Markets

Geopolitical risks speak in favor of precious metals

Investors love security. With the current sources of fire around the globe, it should make sense to secure at least some of the assets.

“Azerbaijan is advancing into Nagorno-Karabakh”, “Turkey wants to send off the drill ship again”, “EU sanctions Russians” – these are just three headlines from a daily newspaper in mid-October. If you look around further, you will notice fires in the Middle East, quarrels in the South China Sea, border disputes between India and China and always also Pakistan. There are geopolitical risks around the world. Armed conflicts such as in Nagorno-Karabakh can quickly arise.

We are not directly affected by this in the heart of Europe. But the feeling that a constant threat is present can strike investors. If you don’t live as freely as you would like due to the Corona mess anyway and ridiculous news about US presidential elections is on TV, then the urge for security grows. This is currently particularly relevant for the savings. Because every geopolitical dispute, every economic obstacle caused by viruses and every unnecessary expenditure due to election campaigns increases global debt.

Sooner or later, therefore, state repression will increase sharply. What can then offer security is gold. For investors who do not immediately believe in the collapse of the financial system and the political framework, stocks in companies in the precious metals sector can also be useful. Because with fundamentally good companies, the return could be even higher if the gold price rises. Experience has shown that precious metal stocks rise disproportionately, especially in the high phases of a precious metal bull market.

Two companies with fundamentally good projects are Aurania Resources and OceanaGold. Aurania Resources – https://www.youtube.com/watch?v=rM9XiXJvtqo – relies on former Spanish gold mines with his The Lost Cities Cutucu project in the Andes in Ecuador.

OceanaGold – https://www.youtube.com/watch?v=st-TmosFeSg – Has two gold mines in New Zealand and one gold mine in the USA. There is also a gold-copper project in the Philippines. And strategic investments are also part of the portfolio of the medium-sized gold company.

Current company information and press releases from Aurania Resources (- https://www.resource-capital.ch/de/unternehmen/aurania-resources-ltd/ -) and OceanaGold (- https://www.resource-capital.ch/de/unternehmen/oceanagold-corp/ -).

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.

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