Bull market in gold and silver continues

From the investor’s perspective, gold has many advantages. Gold company stocks should also be watched.

The time has come: holding gold no longer incurs an opportunity cost. Gold is an insurance against loss of purchasing power and there is no risk of default with gold (unlike with cash in the bank). Many ask whether the price of gold will continue to rise and most experts say yes.

The importance of the interest factor is often used. The US interest rates serve as world benchmarks. If these are negative, then there is no indispensable aspect to be able to determine the prices of stocks, bonds and raw materials. The threat of zero or negative interest rates in the US also affects the relationship between the US dollar, currencies and gold.

A calculation example by the respected analyst Russell Napier on this subject: If the US inflation rate soon rises to four percent and a 10-year US government bond yields a nominal interest rate of 0.50 percent, the real interest rate is -3.5 percent. This is the rate of currency depreciation, at least every year. The longer such a phase lasts, the harder the compound interest effect will hit savers.

The wise investor therefore relies on gold and silver stocks. Gold and silver stocks should be acquired over the long term. Because this also increases the chances that higher prices for gold and silver will hit through and that the companies with gold and silver projects will also increase in value.

And if money printing continues and interest rates continue to fall, the gold price could also approach USD 2,700 per troy ounce by mid-2021. This is how Thorsten Polleit, chief economist at Degussa Goldhandel, sees it. So take a quick look at gold and silver stocks such as Endeavor Silver or Caledonia Mining.

Endeavor Silver – operates the Guanaceví (Durango) silver mines, the Bolañitos mine (in Guanajuato) and the El Compas mine (Zacatecas) in Mexico. Despite the Covid-19 break in the second quarter, the mines generated more than expected. Endeavor Silver plans to increase production in the second half of the year.

Caledonia mining – Successfully produces gold in its Blanket mine in Zimbabwe. In recent years, production has increased and costs have been reduced. The second quarter of 2020 (despite Corona) also brought higher gold production than the same quarter of the previous year.

Latest company information and press releases from Endeavor Silver (- -) and Caledonia Mining (- -).

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