In view of high debts, inflation that is only temporary seems impossible.
The central banks in the US, for example, hardly have a chance to raise interest rates, because the debts are immensely high. If interest rates were to be raised, bankruptcies and problematic government financing would be the consequences. A look at the seasonal development of the gold price is appropriate here. Typically, the price of gold starts to rise around July. This usually lasts until October, and a further rise in the price of gold is then usually seen from mid-December onwards. If the price of the precious metal rises, then the value of gold companies also rises. What can drive the price of gold up further is inflation and negative interest rates. If seasonality and inflation come together, the way should be paved for a higher gold price.
The European Central Bank has also postponed a rate hike, with the first one targeted for 2023. The fact that gold is currently rising in popularity is also shown by the inflows into gold ETFs. Recently, there was the largest inflow since January. This is naturally supporting the gold price. The possibility of profit-taking could not be ruled out. But the fact is that an investment in gold is always a good thing for medium- to long-term investors, as experience has shown. Although the price of gold moved upwards in November, the premiums on coins and bars fell sharply. This is a buying argument. But if you still want to take leverage on rising gold prices, you need to look at the stocks of gold companies.
For example, Aguila American Gold – https://www.youtube.com/watch?v=UXv0BlRqAXU – with its gold project in Oregon, which is now poised for discoveries after a long time.
Chesapeake Gold – https://www.youtube.com/watch?v=QVVXRhMOosI – is also committed to gold exploration. There should be a pre-feasibility study next year for the Metates gold-silver-zinc project in Mexico.
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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