Winter will be turbulent

The official inflation rate of more than six per cent in the US makes people sit up and take notice. Gold and silver rose significantly after this news. The current situation does not bode well, except for precious metals prices. Supply chain bottlenecks persist, Corona numbers are rising in many countries and inflation is picking up steam. In Turkey, the inflation rate is around 20 per cent and the currency there, the Turkish lira, is creating new all-time lows against the US dollar and against the gold price on a continuous basis. Sharp interest rate cuts did not help there.

The next inflation figures from the US, which will be published on 10 December, will probably be even higher than the current ones. Such high inflation figures were seen in the US in 1991, but the Fed’s effective interest rate was more than five percent, which is quite different from today (0.08 percent). Inflation, as history shows, leads to price increases in gold and also silver. The fact that inflation rose 0.9 percent in October compared to September is indicative of an inflationary spiral, so it shouldn’t be a temporary effect. The same is true in this country.

Last week, the gold price was able to post its highest closing price since June. Uncertainties also prevail in the US, and the Corona new infection figures are also rising again there. There are still hardly any ETF inflows in gold, but this could change soon and drive the gold price further upwards. Because caused by the current situation, ETF investors should also increasingly head for the safe haven gold again.

Among the gold companies, Ximen Mining is appealing. The gold projects in British Columbia are joined by a silver exploration project. The Brett gold project has already yielded gold grades of up to 168 grams of gold per tonne of rock as well as visible gold.

MAG Silver – https://www.youtube.com/watch?v=3gtXPK7de0I – is concentrating on silver. Together with its partner Fresnillo, the Juanicipio project in Mexico is operated. In the last quarter, this project produced almost 300,000 ounces of silver and almost 500 ounces of gold.

Current company information and press releases from MAG Silver (https://www.resource-capital.ch/…).

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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