When will the gold price break out?
When will the gold price break out?
Actually, the course is set, what is (still) missing are the ETF buyers.
Last week, ETF investors held back. Comparing the past two weeks, the numbers remained about the same. Fed rate hikes are not expected yet. Inflation is rising and real yields are strongly negative. Debt is rising, but higher interest rates are not coming for a long time. Thus, the price of gold should still have considerable room to rise. A rise in the price of gold will probably only be realized when ETF investors get back into it more strongly.
The European Central Bank also wants to accept inflation rates above two percent. Inflation is even expected to reach four percent by the end of the year. Low interest rates and rising prices are eating away at savings. Investors have to rethink and look for yields, because there are none left in the banks. Some experts predict that the expensive monetary policy of the central banks has created a massive asset bubble. This extends from bonds to stocks to real estate. Central banks create liquidity and buy up assets. Then more money is printed, so the problem increases.
A similar thing is happening in the USA. In the US budget, old debts are being replaced by new ones. Whether really, as was recently heard, perhaps soon the bond purchases will be reduced, well, it is hard to imagine. Investors who continue to back gold and gold mining stocks should be rewarded, because the fundamentals are right.
Skeena Rescources - https://www.youtube.com/watch?v=ga4AuDs541c -, for example, is a potential investment. British Columbia is home to the historic Eskay Creek and Snip gold mines, which are being brought back to life. Recent drill results at Snip showed excellent gold grades (up to a good 110 grams of gold per ton of rock).
Also in British Columbia, in the Golden Triangle, is Tudor Gold - https://www.youtube.com/watch?v=Jng_29-C0V8 - with its main project Treaty Creek. This contains gold, silver and copper. A first mineral resource estimate assumes more than 27 million ounces of gold.
Current corporate information and press releases from Skeena Resources (www.resource-capital.ch/en/companies/skeena-resources-ltd/).
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