The inflationary ghost is going around

The inflation event of the 1970s was difficult to control at the time. It occurred after the money supply was greatly expanded in the 1960s. Money was needed because of the Vietnam War and the social measures that followed. Then the first oil crisis came along as well. As a result, inflation rose to about ten percent. Wages and salaries then rose as well. The Bundesbank was only able to stop the wage-price spiral when it raised the discount rate to seven percent. Such an increase is hardly conceivable given the current mountains of debt.

A huge debt crisis is also developing in China, just think of the Evergrande disaster. This is creating problematic situations in the credit and real estate markets. This could spill over to us. And China’s economic development is also affecting the rest of the world. Printing money to create liquidity is fueling inflation. You can see where inflation can lead in Venezuela, for example. The Venezuelan currency has lost massive value against the US dollar in recent years. There, gold serves as money, and in the less densely populated areas, prices in gold are attached to goods and services, because gold can be used to pay for everything here. From a historical perspective, the value of the precious metal is particularly high when real interest rates go down and inflation prevails.

The central banks will therefore have difficulties fighting inflation. It is therefore wise to invest in gold or gold companies today, such as OceanaGold – https://www.youtube.com/watch?v=ZMT6gNJXDz4 -. With properties in New Zealand, the US and the Philippines, the company is well positioned.

Victoria Gold – https://www.youtube.com/watch?v=oi0GmtOrxLM – produces at its Eagle gold mine in the Yukon. This is part of the Dublin Gulch gold property.

Current company information and press releases from OceanaGold (- https://www.resource-capital.ch/en/companies/oceanagold-corp/ -) and Victoria Gold (- https://www.resource-capital.ch/en/companies/victoria-gold-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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