China craves gold again

The People`s Bank of China bought 32 tons of gold in November, an ounce for around 1,650 US dollars. China`s gold reserves are now likely to total 1,980 tons. The diversification of reserves is likely to be the reason, so nothing unusual for the country. For quite some time, analysts suspected that the Middle Kingdom had been adding to its gold reserves for most of 2022. As the World Gold Council recently announced, central banks bought an enormous 400 tons of gold in the third quarter of 2022, a record amount. Much of this gold was purchased anonymously. In recent years, central banks have been net buyers of gold for 13 consecutive years. Diversification and hedging against risk are driving central banks to buy gold. And it is likely that this will continue.

Jewelry retailers in China are expected to see demand pick up by the end of the year, as consumers there prepare for the New Year with gifts. So, in line with seasonality, gold should be in strong demand in both wholesale and retail. Overall, according to the World Gold Council, the interplay between inflation and central bank decisions will determine the price outlook for gold. In any case, demand is positive for gold on the one hand, and a mild recession could be positive for the precious metal on the other. Those who, like so many central banks and private investors, rely on the value preservation and diversification function of gold, can also put the stocks of gold companies in their portfolio.

Sierra Madre Gold and Silver takes care of gold and silver in Mexico. High-grade projects of the company with historical resource estimates are in focus.

Osisko Development – https://www.commodity-tv.com/play/mining-newsflash-with-calibre-mining-revival-gold-trillium-gold-and-osisko-development/ – is active in the USA and Mexico. The Cariboo project in British Columbia is particularly promising.

Current corporate information and press releases from Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-corp/ -) and Sierra Madre Gold and Silver (- https://www.resource-capital.ch/en/companies/sierra-madre-gold-and-silver-ltd/ -).

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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