New crises on the horizon – good for the gold price

Although relations between Russia and China show a certain strength, they are not free of tensions. The tensions result from old border disputes between the two countries. The new US president could take advantage of this. China is eyeing Russian land in the Far East. And things are not looking good for the Russian economy. The war with Ukraine is expensive and the inflation rate in Russia is now 8.6 percent. Analysts are already seeing similarities between Russia and the USA when the Vietnam War was going on. At its end, the USA slipped into stagflation. Russia is concentrating on its defense industry. These are not goods that create wealth. The Treaty of Aigun gave Russia the whole of Siberia as well as the political border between Russia and China as far as the Amur River – and large reserves of oil. China needs oil imports and is therefore completely dependent. If Siberia were to belong to China again, the country would have an overland oil supply route.

Gold is considered a crisis hedge and protects against inflation. In addition to geopolitical crises, negative real interest rates and the loss of confidence in conventional currencies are also positive factors for the further development of the gold price. Economic uncertainties and dwindling confidence in currencies are increasing the importance of gold and silver as a financial hedge. In view of the fact that the world and Germany are at a critical point, considerations regarding asset protection should increase. Gold and silver are therefore likely to increase in value. This also applies to the stocks of precious metal mining companies. In this area, Tudor Gold and Chesapeake Gold are pleasing.

Tudor Gold – https://www.commodity-tv.com/ondemand/companies/profil/tudor-gold-corp/ – has gold and copper in its Treaty Creek project in the Golden Triangle of British Columbia. According to the latest metallurgical tests, a high-grade copper concentrate with more than 29 percent copper and gold and silver grades of up to 33 and 96 grams per tonne of rock, respectively, have been detected.

Chesapeake Gold – https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ – owns the Metates project in Durango, Mexico, which contains gold and silver. Here too, a metallurgical update has delighted the company.

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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