Gold as the best hedge

This is true in the longer term anyway, but gold investments can also be worthwhile in the shorter term. Even though gold does not yield any interest, investments in gold companies have a leverage on the gold price that should be taken advantage of. Interest rate cuts expected later in the year are already priced in by the markets. This in turn supports the price of the precious metal. In the U.S., inflation has cooled somewhat, and initial jobless claims have peaked. That the precious metals markets are doing well can also be seen in the price of platinum.

This is clearly higher than still in February. Experts even expect a record platinum deficit this year. This is because demand is recovering, while supply is lagging behind. Platinum ETFs are seeing strong inflows and China’s demand for catalysts promises great demand. Electrolysers in the hydrogen production sector also need platinum. Thus, according to Commerzbank experts, the price of platinum could reach $1,150 per ounce by the end of the year.

This should please Sibanye-Stillwater – https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ -, for example. Because the company produces not only gold, but also platinum and palladium. Projects in Africa and the USA are responsible for this. In addition, Sibanye-Stillwater is focusing on lithium, the battery metal.

If there are no more interest rate cuts by the Fed this year – after all, inflation is still well-off target – this could have a negative impact on the gold price in the short term. However, this is generally expected to have only a minor impact. Investors should therefore remain calm, even if interest rate cuts are not expected until early next year. A gold price well above USD 2,000 can probably be expected then.

A possible interesting investment in the gold sector would be the gold company Maple Gold Mines – https://www.commodity-tv.com/ondemand/companies/profil/maple-gold-mines-ltd/ -, which together with Agnico Eagle is working on two gold projects in Quebec in the Abitibi greenstone belt.

Current corporate information and press releases from Sibanye-Stillwater (- https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/ -) and Maple Gold Mines (- https://www.resource-capital.ch/en/companies/maple-gold-mines-ltd/ -).

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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