Gold is a must

Many small investors sold at high gold prices after the gold rush in 2020. But in the long term, everything speaks for higher gold prices. Central banks, on the other hand, have continued to buy gold. Countries such as India, China, Poland and Turkey bought a record amount of gold in the first six months of 2024, namely 483 tons. Diversifying foreign currency reserves is one of the reasons. Dependence on the US dollar is no longer so much in demand now that US government finances continue to give cause for concern.

The Fed’s gold reserves, similar to Germany, Italy and France, are around 70 percent. By comparison, countries such as China and India (with five and ten percent respectively) still have a lot of catching up to do. Gold is an attractive asset for all investors. Gold is independent of government controls and serves as a hedge against economic instability. Investment strategists recommend holding five, ten or fifteen percent of the portfolio in gold. Of course, there are also exceptions who are not so positive about gold, such as star investor Warren Buffett. Although gold does not yield interest, it has proven its worth over the decades and centuries. This is shown by its performance alone.

The path of the gold price will be exciting when the Fed starts to cut interest rates. The continuing interest in gold ETFs is encouraging for the upward direction of the gold price. According to the World Gold Council, gold ETFs recorded inflows for the fourth month in a row in August. Most of the inflows came from North America and Europe. The World Gold Council explains this development with the weaker US dollar and the tensions in the Middle East. Perhaps investors should take a look at promising royalty companies. These have a diversification that appeals.

Gold Royalty – https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ – is active in North and South America and expects to generate total revenues of USD 13 million to 14 million in 2024.

Osisko Gold Royalties – https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ – focuses on gold and copper. The extensive portfolio is focused on North America.

Current corporate information and press releases from Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -) and Gold Royalty (- https://www.resource-capital.ch/en/companies/gold-royalty-corp/ -).

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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