The right time for gold mining shares

According to experts, mining stocks from the gold sector currently have particularly high leverage. Although margins are no longer as high as they were at the beginning of the year, gold companies are still operating profitably at the current gold price. This has also been worse in times past. The Fed has already raised interest rates five times this year to counter inflation and another rate hike is still to come. This makes for a strong U.S. dollar and thus a headwind for the gold price. In 2023, this should change and help the gold price to rise again, the shares of the gold companies will then benefit disproportionately.

Calculated in U.S. dollars, the price of the precious metal has lost about 9.7 percent since the beginning of the year. In euros, things look better, with the gold price gaining around 4.1 percent since the beginning of the year. The fact that gold investments are worthwhile can also be seen in a five-year comparison. If you go back five years, the price in euros has risen by around 582 euros and in U.S. dollars by around 358 U.S. dollars. Anyone who invested twenty years ago can now look forward to a gain of around 420 euros or 424 U.S. dollars per ounce. With the gold price, certain cycles can be identified that repeat themselves. Now it seems to come to a shift, because the world-wide economic growth reduces. At the same time, a recession is looming. And times when the economy is going down, combined with stagflation, are usually times when the gold price rises and also pulls the silver price up with it.

Gold and silver are held by Tier One Silver – https://www.youtube.com/watch?v=2i-e-fH8jZM – in its projects in Peru, in addition to base metal projects. The main project is the Curibaya project.

Tarachi Gold has two projects in Mexico in its portfolio. Gold, silver, copper and zinc are the contained commodities.

Latest corporate information and press releases from Tier One Silver (- https://www.resource-capital.ch/en/companies/tier-one-silver-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.

Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 – 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/