Golden era

The chief economist of the private bank Donner & Reuschel, Carsten Mumm, sums it up: "In 2021, everything spoke for the precious metal." What has remained so far? A small minus in U.S. dollar terms and a small plus in euro terms. Why only? The fact that it was nevertheless not enough for a more significant upward movement may have been due to the significant rise in the U.S. dollar since September, which made the purchase of gold outside the dollar area considerably more expensive. Previously, the very positive developments on the international stock markets probably kept potential investors from buying, according to the market observer of the bank, which was founded in 1798.

But why should 2022 be any better. Won’t central banks engage in a monetary policy tightening race? Probably not. Monetary policy will indeed become more restrictive. But this will not be enough to counter the wave of inflationary tendencies. Moreover, the old gold-supporting arguments, as explained by Carsten Mumm for 2021, remain: "exploding sovereign debt worldwide, historically low interest rates, sharply rising inflation rates, corona-related uncertainty factors, massive supply chain problems and various geopolitical trouble spots."

"So some signs point to better times for gold investors," Mumm writes. These include possibly stronger demand for gold from emerging markets, where the economy should benefit. Another market watcher, Charlie Morris, founder of ByteTree, puts it this way, "While gold sentiment is down, I remain bullish."

What is good for gold is also very good for the shares of gold companies with promising projects. And if 2022 is positive for gold, then the good sentiment for precious metals could hold up over the longer term. So those looking to invest in the sector could find investment vehicles to their liking in Fury Gold Mines and Gold Terra Resource.

Fury Gold Mines – https://www.youtube.com/watch?v=c349qOGn1KM – owns two projects each in Quebec and Nunavut, as well as a project in British Columbia. The latter will see a merger with the neighboring company for the benefit of shareholders.

Gold Terra Resource – https://www.youtube.com/watch?v=Pi1uEfDSBcA – owns one of the six largest gold deposits in Canada, the Yellowknife City Gold Project in the Northwest Territories.

Current corporate information and press releases from Fury Gold Mines (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -) and Gold Terra Resource (- https://www.resource-capital.ch/en/companies/gold-terra-resource-corp/ -).

The entire JS Research and Swiss Resource Capital AG team wishes you and your family a Merry Christmas!

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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