Wealth Decline – Hard Assets Like Gold Could Have Helped

While global wealth has been increasing year by year, this time it’s different. For the first time since the financial crisis, wealth has decreased. A loss of over $11.3 trillion USD was incurred in 2022, as stated in the 14th edition of the Global Wealth Report. Per capita (only adults), this represents a loss of $3,198. Europe and North America have been particularly affected by these losses. Partly, this was due to the strong US Dollar, as various currencies lost value against the dollar.

If the effect of exchange rates were not considered, global wealth would have increased this year as well. However, if inflation were taken into account, which is not happening, it would still be a year of losses. In fact, factoring in inflation would result in a real wealth loss of around 2.6 percent. Latin America managed to see an increase in wealth, but this region’s currency also appreciated by about six percent against the US Dollar. Interestingly, Switzerland leads in per capita income, followed by the USA, Hong Kong, Australia, and Denmark. Germany ranks 16th.

Financial assets contributed the most to the losses in real wealth. Non-financial assets, especially real estate, proved to be resilient. Losing real wealth is not a pleasant thing. This could have been countered with investments in gold, as gold would have yielded a profit, thereby minimizing these losses. The values of gold companies should also not be forgotten.

Active in the Northwest Territories, the large Yellowknife City Gold project by Gold Terra Resource – https://www.youtube.com/watch?v=o5DVKPY6VTk&t=7s – is impressing with excellent drilling results. A successful producer is Karora Resources – https://www.youtube.com/watch?v=3Xxghe25an4 -. The two gold mines in Western Australia have accounted for over 80,000 ounces of gold in 2023 so far.

For current company information and press releases from Karora Resources (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -) and Gold Terra Resource (- https://www.resource-capital.ch/en/companies/gold-terra-resource-corp/ -).

According to §34 WpHG, I would like to point out that partners, authors, and employees may hold shares in the companies mentioned, creating a possible conflict of interest. No guarantee for the accuracy of the translation into German. Only the English version of this news is legally binding.

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