With gold on the winning side
Gold has already risen in price by almost 20 percent this year. "I think there is a high probability that gold will rise to $4,000 over the next three years," Holmes said. Holmes also expects big steps for silver and the other precious metals. A high gold price usually also leads to a rising silver price. From experience, silver then often achieves a 50 percent higher value. Holmes also refers in this context to the development of the palladium price. This went up in 2019, from USD 1,000 to USD 2,700.
The Institute of International Finance also believes in a rising gold price. The global debt will have a causal effect. In the first quarter of 2020, global debt amounted to a total of 258 trillion US dollars. This corresponds to 331 percent of global economic output. And the immense national debt can lead to a rise in inflation or a significant depreciation of currencies in the long term, see zero interest rate policy. Just the right environment for the gold price on its way up.
According to Holmes, if the investor is looking for suitable gold companies, he should pay attention to quality and above all look for a management with a track record. Treasury Metals or Karora Resources could be considered here.
Treasury Metals owns the Goliath gold project in Ontario, soon to be ready for production. An estimated 88,000 ounces of gold per year (with a peak production of more than 100,000 ounces in years three to six) is expected to be produced annually at an average of 3.81 grams of gold per tonne of rock.
Karora Resources, under the leadership of Paul Huet, who had already successfully built Klondex, is focused on increasing gold production from the Beta Hunt and Higginsville projects. At the same time, the company is looking to reduce costs at the projects located in Western Australia.
Current corporate information and press releases from Karora Resources (https://www.resource-capital.ch/en/companies/karora-resources-inc/) and Treasury Metals (https://www.resource-capital.ch/en/companies/treasury-metals-inc/).
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