The Red Sea, inflation and the gold price

In November, consumer prices in the eurozone were only 2.4% higher than a year earlier. In October, the inflation rate was 2.9 percent and a year earlier it was a massive 10.1 percent. However, if supply bottlenecks occur again, this could change quickly. Supply shortages are looming in the Red Sea. This is not the first time that Houthi rebels have fired on ships that have to sail through the Bab al-Mandab strait. It is the effects of the Gaza war that are causing problems here. Ten states have currently joined forces to protect shipping.

A lot of goods pass through the Red Sea, including on German and European ships. Major shipping companies are already avoiding the Red Sea. The war in the Gaza Strip is thus expanding. Important sea routes via the Suez Canal at the northern end of the Red Sea have been affected. And around 30 percent of all cargo ships usually take this route. For Europe, this means that all trade with Asia is disrupted.

If the ships have to take a different route, i.e. around Africa, they have to travel significantly longer and the goods on the merchant ships are likely to become more expensive. Shares in shipping companies have already risen, probably due to better capacity utilization. Inflation could therefore pick up speed again. And that is another factor that could also boost the gold price. Shares in gold companies such as Calibre Mining and Aurania Resources should not be overlooked.

Aurania Resources – https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ – has gold and copper in the ground at its The Lost Cities project in the Andes in Ecuador.

Calibre Mining – https://www.commodity-tv.com/ondemand/companies/profil/calibre-mining-corp/ – is a gold producer with projects in Nevada, Washington and Nicaragua.

Current company information and press releases from Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -) and Calibre Mining (- https://www.resource-capital.ch/en/companies/calibre-mining-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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