China used to be inaccessible to investors. Now a globally accessible market has emerged. Investors have the opportunity to trade stocks and bonds. Bonds are now also appreciating. Because Chinese government bonds will be added to the WBGI. This is a milestone for Chinese bonds as investors look for investment opportunities in an interest-free world. They still exist in China on yuan.
This could have a negative impact on the USA, Europe, Japan and Great Britain, as they will lose weight in the index. There will be some redistribution to China as the WBGI is followed by a large passive group of investors. It is estimated that capital flows could amount to around $ 150 billion. This is because the WGBI is likely to be replicated by $ 1 trillion in passively managed funds. This should particularly affect the US dollar. At least this means that there is less demand for it. A loss of value is foreseeable.
This is all happening while the national debt due to Covid-19 is immense and continues to rise. Investors buy government debt at low returns. Once the corona crisis has been overcome, sales can be expected to increase.
It should therefore be better to bring gold into the safe haven. According to the experts, investors should use the temporary low point in the gold price for an aggressive entry. Even if the weakness of the gold price should drag on through the fall, a second part of the gold price rally is expected. So it wouldn’t be bad to have promising gold companies in your portfolio.
For example Mawson Gold or Treasury Metals. Mawson Gold – https://www.youtube.com/watch?v=WMZ9hqgBM5c&t=2s – Has projects in two mining-friendly areas. The Rompas-Rajapalot project in Finland with the raw materials gold and cobalt and the Sunday Creek project in Australia. Drilling is ongoing on both projects, and geophysical electromagnetic surveys are also being carried out in Finland.
Treasury Metals – https://www.youtube.com/watch?v=D7waWiqsO9o – will start production on its Goliath gold project in Ontario in the foreseeable future. Treasury Metals also owns the Goldlund project in Ontario, as well as other gold projects and a polymetallic project.
Current company information and press releases from Mawson Gold (- https://www.resource-capital.ch/de/unternehmen/mawson-gold-ltd/ -) and Treasury Metals (- https://www.resource-capital.ch/de/unternehmen/treasury-metals-inc/ -).
In accordance with Section 34 of the WpHG, I would like to point out that partners, authors and employees can 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 these messages applies.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks involved in securities trading. No liability can be assumed for damage caused by using this blog. I would like to point out that stocks and especially warrant investments are generally associated with risk. The total loss of the capital employed cannot be ruled out. All information and sources are carefully researched. However, no guarantee is given for the correctness of any content. Despite the greatest care, I expressly reserve the right to make errors, particularly with regard to figures and rates. The information it contains comes from sources that are believed to be reliable, but in no way claims to be correct or complete. Due to court judgments, the content of linked external pages is jointly responsible (e.g. Hamburg Regional Court, in the judgment of May 12, 1998 – 312 O 85/98), as long as no express distancing is made. Despite careful control of the content, I assume no liability for the content of linked external sites. The respective operators are solely responsible for their content. The disclaimer of Swiss Resource Personal-Financial.com AG also applies: https://www.resource-capital.ch/de/disclaimer-agb/
Note: PERSONAL-FINANCIAL.COM publishes analyzes, columns and news from various sources in this section. PERSONAL-FINANCIAL.COM AG is not responsible for content that has been recognized by third parties in the “News” section of this website and does not adopt it as its own. This content can be identified in particular by a corresponding “from” mark below the article heading and / or by the link “To read the full article, please click here.”; The named third party is solely responsible for this content.