Inflation back – gold belongs in the portfolio

Eurostat, the statistical office of the European Union (EU), has published its first estimate of the inflation rate in the eurozone, which comprises 20 countries. The result is likely to have surprised quite a few people: 2.9 percent. This is an increase of 0.5 percentage points compared to the 2.4 percent in November. What’s more, the inflation rate in Germany is likely to have been 3.7%, which is significantly higher than the eurozone average. The Federal Statistical Office also announced that consumer prices in Germany rose by an average of 5.9% over the year as a whole. Was December the last gasp of the inflation spectre? Hardly. In Germany in particular, there are a number of factors that point to an acceleration in consumer prices in January. There is the much-discussed increase in VAT on eating out.

But there are also a number of drivers in the energy sector, from CO2 prices to grid charges, which are putting a strain on people’s wallets. There is also pressure on service providers and producers of goods due to higher personnel costs. This is because the salary rounds indicate high wage settlements. Last but not least, train drivers could go on strike again to push through their horrendous demands. A wage-price spiral that only a few people are willing to acknowledge could well start – or have already started. There was a similar situation after the first major wave of inflation in the 1970s. When the central banks lowered interest rates again and thought that inflation had been defeated, the second wave came – with a devaluation of up to 15 percent.

What the gold price did in this environment until 1981 is well known: A price rise the likes of which had not been seen before. It is possible that history will repeat itself, or at least that there will be a tendency to do so. The chances are therefore very good that 2024 will be a golden year for the gold price. Anyone who already owns physical gold as a hedge can therefore now also consider betting on the gold price with the shares of gold companies and their leverage. This could be achieved with Tudor Gold and Chesapeake Gold, for example.

In British Columbia, Tudor Gold – https://www.commodity-tv.com/ondemand/companies/profil/tudor-gold-corp/ – is attracting attention with its Treaty Creek gold project in the Golden Triangle.

Chesapeake Gold – https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ – has the promising Metates project in Durango. It is one of the largest undeveloped gold and silver deposits in the world.

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/