Asia’s gold rush

Not only private investors, but also central banks are stocking up on the precious metal at breakneck speed. In Vietnam and Thailand in particular, long queues are already forming in front of the banks. Political instability and geopolitical uncertainties are driving people to buy gold. This reflects Asia’s growing concern. Inflation and currency devaluation against the US dollar are driving people towards gold. This is because the national currencies are depreciating.

The urge to buy gold has been evident in Southeast Asia for around six to twelve months. Economic turbulence is also causing a flight to gold in China. This is because confidence in real estate and stock markets is declining there. Finally, currency devaluations hit small investors particularly hard, reducing savings and driving up costs. According to a survey by the World Gold Council, central banks will increase their gold reserves over the next twelve months. The economic and political uncertainties and upheavals worldwide have become unprecedented. Gold is being bought even when prices are high. High US interest rates usually put pressure on the gold price, but now the gold price remains strong, and the official sector is ensuring record demand.

In June, the central bank in Vietnam allowed more gold to be sold. This led to a run on Vietnamese banks for weeks. Whereas banks used to sell two tons of gold in a month, they now sell the same amount in a week. As one Vietnamese newspaper writes, "gold has captivated the public". In Thailand, and never before, buyers have grabbed gold even when prices are rising. Like Thailand’s currency, Vietnam’s currency has depreciated against the US dollar. Vietnam and Thailand were among the biggest buyers of the precious metal in Southeast Asia. China and India, on the other hand, dominate the broader regional market. Gold companies are benefiting from a high price, including Chesapeake Gold and Vizsla Silver.

With its Metates project in Mexico, Chesapeake Gold – https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ – has one of the largest undeveloped gold and silver deposits in the world.

Vizsla Silver – https://www.commodity-tv.com/ondemand/companies/profil/vizsla-silver-corp/ – owns a prospective silver-gold project in Mexico. Recent drilling has just returned very high-grade gold intercepts.

Current company information and press releases from Vizsla Silver (- https://www.resource-capital.ch/en/companies/vizsla-silver-corp/ -).

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