When money dies, the gaze turns to gold
The chance of higher commodity prices is great, especially for precious metals. This is because the national debt is taking on enormous proportions. In the USA, government debt will reach the USD 20 trillion mark in the current fiscal year. In our country, too, there are increasing warnings about the consequences of the increase in debt.
In the USA, the U.S. Congress Court of Audit reports and sounds the alarm, as do other institutions such as the Taxpayers Association of the United States. Covid-19 has fuelled the debt in many countries. Here the well-tried gold helps. In this year by approximately 30 per cent in the price rose, Investments in gold and gold enterprises become ever more lucrative. Many gold companies have been able to increase their dividends due to the high gold price. During the gold price boom in 2011 many companies spent a lot on acquisitions. When the gold prices then went down, this led to impairments in the billions.
Today, gold mining companies are more cautious and no longer chase volume in production. Some heavyweights in the gold industry have already reduced their planned production for the current year. Investments could be worthwhile for medium-sized or smaller companies, especially if they score with attractive projects. Because then there is also a chance that companies will pay dividends in the future.
For example, Caledonia Mining, which has been paying dividends for years, or Karora Resources. Caledonia Mining has local investors who are involved in the Blanket Gold Mine in Zimbabwe. In this way, the company has secured acceptance among the population. By 2022 Caledonia Mining aims to produce about 80,000 ounces of gold. Dividends will be paid.
Karora Resources owns the Beta Hunt and Higginsville gold mines in Western Australia and projects full year 2020 gold production of 90,000 to 95,000 ounces.
Latest company information and press releases from Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp/) and Karora Resources (https://www.resource-capital.ch/en/companies/karora-resources-inc/).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
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