So, the interest rate policy of the past time will change. If interest rates rise, then the price of gold falls, many think. But this is not so, as a rule, even the opposite happened. If interest rates were raised, the price of the precious metal rose significantly. A relatively long period of consolidation, since August 2020, for gold and gold mining stocks is behind us. Now, interest rates on, say, U.S. Treasury bonds have gone up, as have real interest rates. But the gold price is showing strength right now.
Good profits were made on equities last year. High inflation figures, high corporate profits and the monetary policy of the central banks provided a good environment. Unlike last year, economic growth is now expected to cool. The pandemic has caused extremely high costs and is still doing so; the infection figures speak for themselves. It will also probably take years for the economy to digest this. And if the market environment changes, not all asset classes have to trend up or down. On the contrary, often stocks then develop quite differently than gold mining stocks. Therefore, diversification is always recommended in the stock portfolio. In any case, stocks of gold companies should always be included.
Investors can also achieve diversification in their portfolio by investing in royalty companies, as these usually have agreements with a large number of mining companies. Royalties and precious metal streams ensure that money is flushed into the coffers of the royalty company. The beauty of this is that the mining risk does not lie with the royalty company, but with the partners.
One such royalty company is Empress Royalty – https://www.youtube.com/watch?v=7uFCyHCv-zs -, which focuses on gold and silver. 17 agreements from development to production phases are already in the company’s growing portfolio.
GoldMining – https://www.youtube.com/watch?v=gofefXhUHKY – is first a high gold resource company, focused on gold and copper in North and South America. In addition, GoldMining has established Gold Royalty as a wholly owned subsidiary.
Latest corporate information and press releases from GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-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.
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/
Swiss Resource Capital AG
Poststrasse 1
CH9100 Herisau
Telefon: +41 (71) 354-8501
Telefax: +41 (71) 560-4271
http://www.resource-capital.ch
Telefon: +49 (2983) 974041
E-Mail: info@js-research.de