There was a reason why the gold price fell at the beginning of the week. The broad sell-off in equities led investors to liquidate their positions. In order to cover margin calls, they had to liquidate profit positions, i.e. sell gold. In the US, the unemployment rate rose to 4.3% in July, fueling fears of recession and increasing expectations of interest rate cuts. Added to this are geopolitical tensions. This speaks in favor of investing in gold, even as a non-yielding investment opportunity. Strong demand for gold in India and demand from central banks are having a positive effect. India and Poland in particular bought gold in July. Turkey is also among the diligent buyers. It is therefore not just the Chinese desire to buy gold that is affecting the price of the precious metal. It can be assumed that factors such as the increasing desire of many countries to de-dollarize, geopolitical uncertainties and demand from India and China will have a long-term effect.
And as Ronnie Stöferle, known from the "In Gold We Trust" report series, says so well, "Times change, but gold stays the same". As a fundamental financial and monetary asset, the role of gold is just as strong today as it has always been. From a monetary policy perspective, the world is in a state of upheaval. A solid monetary alternative is needed. The indebtedness of many countries is progressing unchecked, central banks are turning the financial screws to control the economy. We have seen the highest inflation rates. Gold should therefore be seen as an alternative to money, because it is the better money. We also recommend stocks of companies that own gold, such as Chesapeake Gold or Tudor Gold.
Tudor Gold - https://www.commodity-tv.com/ondemand/companies/profil/tudor-gold-corp/ - has a prospective gold and copper property in British Columbia, the Treaty Creek Project. This hosts the Goldstorm deposit, which consists of a large gold-copper porphyry system and several other mineralized zones.
Chesapeake Gold - https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ - also has gold and silver in its Metates project in Mexico. At another project, the Lucy project, also located in Mexico, up to 5.2 grams of gold per tonne of rock have just been identified in drilling.
In accordance with §34 WpHG, I would like to point out that partners, authors and employees may hold shares in the companies mentioned and that there is therefore a possible conflict of interest. No guarantee for the translation into German. Only the English version of this news is valid.
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