Worthless currencies increase the value of gold
Because the Fiat currencies - these are basically currencies that are determined by a government resolution as a means of payment - continue to lose in value during their existence. Gold, on the other hand, has a success story about four thousand years old as protection against the decline of currencies. Looking at recent years, gold cost around US$250 per troy ounce in 2000. Then came a last low. The peak in 2011 was more than USD 1900 per troy ounce. From 2011 to 2015, the price of gold corrected and is likely to have long since bottomed out.
This means that the price of the precious metal is now probably in a new bull market. No wonder. Because mountains of debt are piling up all over the world. Even the USA is unlikely to be able to add to this. When the day will come when the FED will return to crisis-independent monetary policy is therefore uncertain and certainly still a long way off. It is more likely that the devaluation of money will continue, i.e. that the US dollar will also continue to depreciate - in the sense of consumer prices. Gold will thus be increasingly used in its function as a safe haven.
Higher gold prices seem to be programmed with it. Investors will soon find only more reasons to bet on gold and buy it. Large declines on the stock markets could also lead to a relaxation of the Fed's monetary policy. This would further strengthen the gold price through a negative real interest rate. In such an environment, it may also be worth investing in the stocks of companies with gold projects such as Maple Gold Mines and Treasury Metals.
On its Douay gold project in northern Quebec, Maple Gold Mines - https://www.commodity-tv.net/c/search_adv/?v=298484 - drilled a total of approximately 22,600 metres of gold in 2018. An updated resource estimate will be announced in the coming months. The current estimate is at least 3.2 million ounces of gold.
Treasury Metals - https://www.commodity-tv.net/c/search_adv/?v=298478 - has just reported a new resource estimate (NI 43-101 compliant) from its main Goliath project in Ontario. Total mineral resources explored and indicated now total nearly 1,230,000 ounces of gold equivalent, 64 percent more than in 2015.
Current corporate information and press releases from Maple Gold Mines (https://www.resource-capital.ch/en/companies/maple-gold-mines-ltd.html) and Treasury Metals (https://www.resource-capital.ch/en/companies/treasury-metals-inc.html).
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