The rich and cash

As the U.S. Trust Survey of Affluent Americans found out, wealthy people hold around 15 percent of their portfolio in cash and cash equivalents. Cash holdings increase with age and also with increasing wealth. Cash reserves offer flexibility. But you can’t make money with cash, it has no growth potential. As Warren Buffet once said, "if they can’t find a way to make money while they sleep, they will work until they die". The balance between cash reserves and invested assets is likely to be important. This is the only way to pursue long-term goals and guarantee a certain level of liquidity at the same time.

If you look at the gold chart over the past 20 years, you can see that gold has made good profits. In June 2004, an ounce of gold cost around 315 euros, today it costs around 2,165 euros. But how will the gold price continue? Basically, the market seems to be very optimistic about the expected interest rate cuts. This is because the gold price should rise in response. The head of the US Federal Reserve recently put a slight damper on interest rate hopes. Instead of the three predicted interest rate cuts, there could possibly only be one. Of the US monetary policymakers, seven expect one rate cut this year, eight expect two and four do not see a rate cut coming this year.

Whether and how often monetary policy will be eased in 2024 will depend on the economic data. The Fed will be keeping a close eye on consumer prices. Because if interest rates are too high, there is a risk of recession. The current inflation rate in the US of 3.3% year-on-year is still some way off the desired 2%. If the price of gold now tends to move sideways for a while or falls a little further, gold investments should be considered, for example in solid companies such as OceanaGold or Revival Gold.

OceanaGold – https://www.commodity-tv.com/ondemand/companies/profil/oceanagold-corp/ – is a successful producer and owns four gold mines. These are located in the USA, the Philippines and New Zealand. OceanaGold also has strategic investments and holdings in two exploration companies.

Revival Gold – https://www.commodity-tv.com/ondemand/companies/profil/revival-gold-inc/ – owns the largest past-producing gold mine in Idaho. Revival Gold is one of the largest pure gold developers in the USA.

Current company information and press releases from OceanaGold (- https://www.resource-capital.ch/en/companies/oceanagold-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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