Gold as a hedge against financial stability risks in the eurozone

Forecasts for the future price of gold, however, are optimistic. UBS experts predict a gold price of $2,900 per ounce by the end of next year and $2,950 by the end of 2026. According to analysts, global uncertainties will continue to support gold prices. The expected drivers include interest rate changes by the Federal Reserve and strong demand from central banks, which are likely to push the precious metal’s price higher. An increase in holdings of physical gold-backed ETFs is also anticipated.

For many years, central banks were net sellers of gold reserves, but today they are replenishing their gold holdings with a long-term perspective. The United States, burdened by ever-growing debt, seeks to protect itself against the devaluation of the US dollar. History—going back to the Roman era—proves that currencies consistently lose value over time. Gold and silver, on the other hand, act as monetary buffers. US Treasuries are increasingly being exchanged for gold.

Private investors should take note and follow the example of central banks. Today, central banks own roughly 17% of all the gold ever mined. Investing in gold stocks offers another avenue to benefit from a rising gold price, as it can boost corporate profits.

Some companies even pay dividends, providing an additional income stream. Investors seeking to diversify their risk may consider royalty companies like Gold Royalty or Osisko Gold Royalties.

Gold Royalty – https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ -, active in South and North America, focuses on precious metals. The company achieved record revenues in the first nine months of 2024.

Osisko Gold Royalties – https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ -, with a focus on gold and copper in North America, stands out for its royalty on the Canadian Malartic Complex, one of Canada’s largest gold mines.

For the latest corporate updates and press releases from Osisko Gold Royalties (- https://www.resource-capital.ch/de/unternehmen/osisko-gold-royalties-ltd/ -) and Gold Royalty (- https://www.resource-capital.ch/de/unternehmen/gold-royalty-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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