Physical gold and silver investors on hold

Demand for gold and silver bullion was mixed in the first six months of 2023 according to the Perth Mint and the U.S. Mint. Here, investors appear to be waiting to see what direction central banks take with monetary policy. Overall, the two mints said demand was lower than the same period last year. Still, many central banks are raising interest rates. As the European Central Bank just announced, a rate hike in July was still necessary. However, it is still unclear whether this will also be the case for September. Further developments will have to be awaited. The fight against inflation is still ongoing in many countries. It could therefore take time for the interest rate hikes to come to an end.

Then, however the way is free upward for the gold price. Increased interest rates are leading to slower consumer spending by households, so the major industrialized countries will probably have to reckon with below-average economic growth in the second half of the year. Although central banks have already had some success in lowering inflation, for example in the USA, the inflation target of two percent is still some way off. The spectre of recession is therefore still present.

Whether waiting is the right option is something everyone must decide for themselves. In any case, the U.S. Mint saw sales of gold bars and coins fall by one percent in the first half of 2023. At the Perth Mint, however, revenue from sales improved last month. Silver has had a tough time; it’s not considered as much of a safe haven as gold, and recession fears are weighing on industry demand for silver. Perhaps that’s why investors should go for it now, even in the equity values of precious metals companies.

In the Yukon, Victoria Gold – https://www.commodity-tv.com/ondemand/companies/profil/victoria-gold-corp/ – has successfully started gold production in 2019. The open pit operation is expected to extract 200,000 ounces of gold per year from the ground for more than ten years.

Vizsla Silver – https://www.commodity-tv.com/ondemand/companies/profil/vizsla-silver-corp/ – is working on its prospective Panuco silver-gold project in Mexico. This formerly producing property covers approximately 7,200 hectares.

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

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