Gold, gold and more gold

Demonetization continues to advance. Investors have also recognized this and they see the risks. Even if individual foodstuffs are now becoming cheaper again, the cost of living has risen, as have energy prices. The price of heating oil has come down somewhat, but the purchasing power of the population has been reduced. Providing for retirement has become more difficult. The free market system has lost some of its power, and the economy’s ability to grow is declining. Deglobalization is also making goods more expensive because production costs are higher.

This makes investors (and central banks) all the more eager to invest in gold as a safe cushion. In the first quarter of 2023, global demand for gold increased by one percent compared with 2022. In the case of gold jewelry demand, this first quarter saw a year-on-year decline of two percent worldwide. Gold jewelry demand fell in India (presumably due to the high gold price) and Germany and went up in China. There was a conspicuously large increase in jewelry demand in Turkey, which accounted for a full 237 percent of the increase. Gold bullion demand as a whole was slightly less, while demand for gold coins increased by 14 percent.

Central bank purchases were up by as much as 176 percent in the first quarter of 2023 compared to the same period last year. With the end of interest rate hikes by the Fed and the smoldering banking crisis, gold demand should continue to rise over the course of the year. Investments in the gold sector, such as in the shares of Caledonia Mining and Karora Resources, should be considered.

Caledonia Mining – https://www.commodity-tv.com/ondemand/companies/profil/caledonia-mining-corporation-plc/ – is a successful gold producer in Zimbabwe. The Blanket gold mine is expected to produce 75,000 to 80,000 ounces of gold by the end of the year.

Karora Resources – https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ – enjoyed record production from its two Western Australian mines in the first quarter of 2023.

Current corporate information and press releases from Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-corp/ -) and Karora Resources (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -).

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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