The reason for this was the long period of good sentiment among market participants, as good money could be earned on the stock markets. Expectations of interest rate hikes by the Fed did the rest. However, in November, expectations of a more restrictive monetary policy no longer had any effect on the gold price. Inflation expectations remain negative. But gold’s hour will come. There are already warnings of a fifth bad Corona wave, which is associated with uncertainties that should make gold more attractive again.
Investor demand for gold has weakened this year, mainly due to relatively low demand from the ETF sector. Gold purchases by central banks and increased jewellery demand provided some compensation but could not fully offset the decline in ETF demand, according to the World Gold Council. However, if investors start to shift, some of the gains should flow into gold investments, because gold has no counterparty risk (default risk). Thus, some experts expect a significant inflow into the ETF sector in gold. Together with strong demand for instance in coins, bars, jewelry and also the electronics industry as well as central banks, gold prices could go up in the coming year. In addition, a decline in gold production is expected for the fourth quarter of 2021, as production in Russia, for example, is lower in the winter due to the climate.
Companies such as Trillium Gold Mines or Tarachi Gold with gold in the ground can benefit from a rising gold price with leverage.
Trillium Gold Mines – https://www.youtube.com/watch?v=7rLWA5wXDY0 – focuses on properties in the Red Lake Mining District in Ontario. More than 55,000 acres of land are part of the portfolio.
Tarachi Gold – https://www.youtube.com/watch?v=JxxRw5hFkrw – is active in Mexico, the main area is in the Sierra Madre Gold Belt.
Latest corporate information and press releases from Trilliuim Gold Mines (- https://www.resource-capital.ch/en/companies/trillium-gold-mines-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/
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