Gold is rare and therefore valuable

The proportion of gold in the earth’s crust is lower than that of platinum or silver. Around 200,000 tons of gold have been mined to date. The total amount of gold mined to date would fit into a square cube with an edge length of 20 meters. In the past, most of the gold was used in jewelry production, but today it is still around 50 percent. Today, industry also demands gold, for example in medicine or nanotechnology. Gold is in demand worldwide and it is very robust and can hardly be destroyed. Investors particularly like the value-preserving function of gold and its ability to protect against inflation. If the US dollar falls, the love of gold increases. Between 1998 and 2008, the US dollar lost value and the price of the precious metal almost tripled. When there were several uprisings in the Middle East, the price of gold climbed by 23 percent in 1977, 37 percent in 1978 and even 126 percent in 1979. This was due to the Iranian revolution, the Iran-Iraq war and the Soviet invasion of Afghanistan. Inflation is falling, but oil and food are still expensive. If the value of paper currencies falls, central banks and investors rely more heavily on gold.

A look at the past shows that there have been repeated phases since 2008 in which precious metal dealers were almost unable to serve gold buyers. Gold became scarce. After all, gold is a real asset. In addition to physical demand, which also determines the price, it is the market of the futures exchanges. This is where contracts are traded for gold, which is not always actually available, but only exists on paper. Gold is really available from the mining companies that own it in their projects, which is another way of betting on gold. Royalty companies such as Osisko Gold Royalties or Gold Royalty would be an option, for example, as they provide diversification at the same time.

Gold Royaltyhttps://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ – is active in North and South America and owns streams and royalties in the gold sector.

Osisko Gold Royaltieshttps://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ – focuses on gold and copper.

Current corporate information and press releases from Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -) and Gold Royalty (- https://www.resource-capital.ch/en/companies/gold-royalty-corp/ -).

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/

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