2022 could be the year of gold

Gold is in a bull market that is anything but shaky. Gold investors should therefore be on the right side. The government probably wants to counter inflation as a gold price driver, keyword compensation payments for increased energy prices. However, such fiscal policy measures usually have only a short-term effect. Such instruments, as we have already seen in the pandemic, are less suitable for a long-term effect. Fiscal policy instruments also increase the government’s debt. This in turn counteracts interest rate increases. If interest rates are low, the problem with government debt is not so oppressive, but if interest rates rise, then debt increasingly becomes a problem.

In the U.S., the inflation rate in March was 8.5 percent, the highest inflation rate since 1981. U.S. President Biden countered this with some aid measures, such as the release of strategic oil reserves. Gasoline prices then also fell somewhat. However, house and rental prices in the USA are also rising. Used car prices, on the other hand, have gone down, probably also due to the high gasoline prices. Nevertheless, consumer confidence is falling overall, real incomes are shrinking, and higher inflation is reducing the purchasing power of employees. Indeed, real average wages have declined.

Nevertheless, it will not be easy to push high inflation back down to a tolerable level in both the USA and the euro zone. For the citizen and also investor, the investment in the proven gold comes into question as a value preservation measure. Also companies, which own the gold in the ground, profit from high gold prices. Therefore, a look at Ximen Mining or Tarachi Gold can not hurt.

Ximen Mining – https://www.youtube.com/watch?v=mSglY78jtDw – is focusing on gold and silver in British Columbia. A new 1200-meter portal is currently being developed at the Kenville Gold Mine.

Tarachi Gold – https://www.youtube.com/watch?v=IRnRAFCd8WI – operates in the Sierra Madre Gold Belt and Durango. Production is scheduled to start in Durango, Mexico next year.

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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