Negative interest rates are good for gold

Trillions of euros are practically idle. Investors don’t earn anything from it. Worse, they take risks. Gold, on the other hand, offers protection.

The US investment house JP Morgen Chase & Co. recently made a list of government bonds that are generating negative interest income. Accordingly, there is already around 31 trillion dollars, the equivalent of a good 26 trillion euros, no interest, even more negative interest. Even with an inflation rate of zero percent, investment money loses purchasing power. It is mostly institutional investors who invest these huge sums of money. Insurance contracts, for example, are often difficult to understand at first glance, and customers often do not even notice what is happening to them or what will happen in the future. Life insurance companies are already coming around the corner and offering life and pension insurance policies that bear the risk of hard losses and offer higher returns than currently.

The fact is that the purchasing power of savings is slowly but surely falling. New insurance models will probably not be able to change anything. Because the system of high national debt is based on the fact that this debt remains serviceable through low interest payments and at the same time is slowly but surely also devalued by a comparatively high monetary devaluation.

In contrast, what cannot be devalued by state leaders and central bankers in such an environment is gold, or rather many types of tangible assets. But investors should be careful that state access cannot strike there without restrictions. In the case of physical gold, this is at least difficult. Gold will therefore be the last resort. But investors who want to generate a possible return in addition to gold as insurance should take a look at the companies with good gold projects. Their share prices usually move with a leverage on the gold price. Investors who believe in a positive gold price are therefore adding shares from Osisko Gold Royalties and Fury Gold Mines to their portfolio.

With Osisko Gold Royalties – – the investor brings a large diversification into the portfolio. The royalty company has a large portfolio of investments and has just founded Osisko Development, a mine development company.

Fury Gold Mines – – Evolved from Auryn Resources, owns three high quality gold properties, Eau Claire, Committee Bay and Homestake Ridge, located in Quebec, British Columbia and Nunavut.

Current company information and press releases from Osisko Gold Royalties (- -) and Fury Gold Mines (- -).

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