Hedge a weak euro with gold

If you look at nominal GDP, Europe’s has increased by 27 percent over the last ten years, while the U.S. has increased by around 79 percent in euro terms. The consequence is that, in relative terms, Europeans can buy less. Imports have become more expensive than exports because the euro has lost strength, it has become weaker. A strong currency is something positive, because it ensures high incomes and improves purchasing power. Another point of view is that the Fed is more vigorous in fighting inflation than the European Central Bank. With an expected three percent in the U.S. key interest rate, the U.S. is likely to outperform Europe. If the euro weakens now and falls below one U.S. dollar, gold can help investors. Because if he sells his gold after the euro has fallen, he will receive more money as long as the gold price in U.S. dollars remains the same.

Weak and undervalued currencies are only advantageous during the period after a recession or during a period of economic development. But in the long run, a weak currency brings no advantages. Offering products and services cheaply makes no sense. A strong currency, on the other hand, provides improvements in supply and can set trends. Therefore, a strong currency would be desirable, so faster rising key interest rates and thus a stronger euro would be better. In any case, physical gold should be a must for investors as a hedge, as well as an exposure to gold mining stocks to diversify a portfolio with it. Royalty companies such as Osisko Gold Royalties or Gold Royalty are an excellent way to do this. Osisko Gold Royalties – https://youtu.be/1LTHxgrpX7Q – owns more than 165 royalties and streams in North America. The company generated record revenues in the second quarter of 2022. Gold Royalty’s portfolio – https://youtu.be/omgImsRwJX8 – includes more than 190 gold-focused royalties.

Current corporate information and press releases from Osisko Gold Royalties (https://www.resource-capital.ch/de/unternehmen/osisko-gold-royalties-ltd/) and Gold Royalty (https://www.resource-capital.ch/de/unternehmen/gold-royalty-corp/ ).

In accordance with §34 of the German Securities Trading Act (WpHG), I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and that there is therefore a possible conflict of interest. No guarantee for the translation into German. Only the English version of this news is valid.

Disclaimer: The information provided does not constitute any form of recommendation or advice. Express reference is made to the risks involved in securities trading. No liability can be accepted for any damages arising from the use of this blog. I would like to point out that shares and especially warrant investments are fundamentally 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 a mistake, especially with regard to figures and prices. The information contained is taken from sources that are considered reliable, but in no way claim to be correct or complete. Due to judicial decisions the contents of linked external pages are to be answered for (so among other things regional court Hamburg, in the judgement of 12.05.1998 – 312 O 85/98), as long as no explicit dissociation from these takes place. Despite careful control of the contents, I do not assume any liability for the contents of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG applies additionally: https://www.resource-capital.ch/de/disclaimer-agb/

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http://www.resource-capital.ch

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Jochen Staiger
CEO
Telefon: +41 (71) 3548501
E-Mail: js@resource-capital.ch

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