Gold - in good times and bad

According to the World Gold Council, the precious metal has achieved annualized returns of eight percent in US dollars since 1971, i.e. since the gold standard ceased to exist. This means that gold has performed better than many other asset classes. This is due to the expected long-term return (the World Gold Council calls it "GLTER"). This is because the gold price is primarily driven by an economic component, balanced by a financial component. The GLTER model assumes that the long-term return on gold is close to the global gross domestic product. This means it is higher than inflation. And so, the precious metal shines with a positive effect on long-term portfolio returns.

Gold serves as a hedge and is attractive as an investment and also as a consumer good in the jewelry and technology sectors. Economic and political uncertainties will continue to exist and will not suddenly disappear. Investors are increasingly recognizing gold as a strategic long-term investment that can also score points for liquidity. History shows that gold actually works as a hedge against inflation. Since 1971, gold has outperformed both the global and the US consumer price index. This is because when inflation was between two and five percent, the price of gold rose by an average of around eight percent. If inflation has risen even higher, the price of gold has also risen significantly. In any case, gold has generally outperformed all major currencies and commodities since 1971. Today, gold and the shares of gold companies are a good investment. There is Osisko Development or U.S. GoldMining, for example.

Osisko Development - https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/- is focusing on the Cariboo gold project in Canada, the San Antonio gold project in Mexico and the Tintic project in the USA. The company aims to develop into a medium-sized gold producer.

U.S. GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/us-goldmining-inc/ - owns the promising Whistler gold project in Alaska.

Current company information and press releases from U.S. GoldMining (- https://www.resource-capital.ch/en/companies/us-goldmining-inc/ -) and Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-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.

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