But the Fed’s interest rate hikes are temporary. In view of the enormous national debt, the Fed must take a different path, otherwise recession is to be expected. And when the Fed’s tightening has come to an end, the hour of gold is likely to strike. By raising interest rates, the Fed has simultaneously reduced its balance sheet. So the Fed’s holdings of U.S. Treasury bonds have fallen significantly after the massive bond-buying the Fed did in the wake of the pandemic. The consequence of the reduction in the Fed’s balance sheet is that the market is less liquid. Incidentally, in 13 Fed rate hike cycles since 1950, there have been ten recessions, and a soft landing only three times. So investments in gold should actually pay off in the foreseeable future. One could think of gold stocks like OceanaGold – https://www.commodity-tv.com/play/oceanagold-ceo-insight-on-gold-production-increase-cost-reduction-and-exploration-potential/ – or Trillium Gold Mines – https://www.commodity-tv.com/play/mining-newsflash-with-aurania-resources-hannan-metals-labrador-uranium-and-trillium-gold/ -. OceanaGold is already producing, with projects located in the U.S., the Philippines and New Zealand. The company was very successful operationally and financially in 2022 and so dividends are being paid again. Trillium Gold Mines owns a large prospective property package in the Red Lake mining district in Ontario. In addition, there are properties in Larder Lake, Ontario.
Current corporate information and press releases from OceanaGold (https://www.resource-capital.ch/de/unternehmen/oceanagold-corp/) and Trillium Gold Mines (https://www.resource-capital.ch/de/unternehmen/trillium-gold-mines-inc/).
In accordance with §34 of the German Securities Trading Act (WpHG), I would like to point out that partners, authors and employees may hold shares in the respective companies addressed 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.
Disclaimer: The information provided does not constitute any form of recommendation or advice. Express reference is made to the risks involved in securities trading. No liability can be accepted for any damages arising from the use of this blog. I would like to point out that shares and especially warrant investments are generally 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 a mistake, especially with regard to figures and prices. The information contained herein has been obtained from sources believed to be reliable, but in no way claims to be accurate or complete. Due to judicial decisions the contents of linked external pages are to be answered for (so among other things regional court Hamburg, in the judgement of 12.05.1998 – 312 O 85/98), as long as no explicit dissociation from these takes place. Despite careful control of the contents, I do not assume any liability for the contents of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG applies additionally: https://www.resource-capital.ch/de/disclaimer-agb/
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