100 U.S. dollars up and down, that is a strong movement on the gold market, even more so when it happens in just hours. The gold price's excursion to around 1970 U.S. dollars was thus short-lived. Already again the conspiracy theorists want to recognize concerted actions of the central banks in it. This is quite possible, since gold is considered the last resort of money and thus the natural enemy of the leading world currencies.
However, there is another way to interpret the downturn back down to around $1890. As unconventional as it sounds, it could have been gold investors' fear of Russia. After all, the Russian central bank has increased its gold reserves the most in recent years. There are now 2299 tons of gold in the cellars. If the Russian banking system is now decoupled from the global payments system, it may be necessary for Russian participants to tap other sources of liquidity. Gold is, and has been for millennia, a tried and tested means of doing so. So, the fear that 1000 tons of gold could suddenly be thrown on the market may have led to caution among some gold investors.
Does such a gold sale make sense? On the one hand, yes, but on the other hand, how is the gold equivalent, presumably U.S. dollars, supposed to get into the system? So even with gold, it won't be that easy on such a large scale. But the fact is that the Russians, from the central bank to the small investor, can maintain their liquidity with gold. Gold fans in this country should also bear this in mind. Gold is and remains the number one crisis investment. So, if now the gold price has dropped again, investors who are still underrepresented in gold should take hold. Those who already have a basis in physical gold, i.e. bars and coins, at home and are not risk-averse can speculatively bet on a positive development on the gold market with the shares of companies with good gold projects. Examples of this are Revival Gold and Empress Royalty.
Revival Gold - https://www.youtube.com/watch?v=adyprQlTlwg - is focused on the former producing Beartrack-Arnett property in Idaho. This was once the largest producing gold mine in Idaho.
As a royalty company, Empress Royalty - https://www.youtube.com/watch?v=dEHJIqbEZs0 - already brings diversification. The focus is currently on 17 gold and silver investments.
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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