January – a golden opportunity

January 2022 and January 2021 ended with small losses, but over many years, January scores with price increases in the precious metal. February and May perform similarly. So now is a good time for gold. Last year also went up at the beginning of the year, but a little late. And so the gold price reached an all-time high of 1,874 euros at the beginning of March 2022, this shortly after the start of the Russia-Ukraine war. It is possible that 2023 will be the year in which the gold price reaches a new high. This is because global inflation will remain high, and the efforts of the central banks are unlikely to change this. The debt burden of governments is more likely to rise, as the energy transition, for example, will swallow up a lot. And if there is a global recession, the central banks will probably provide more liquidity.

This should drive up the price of the precious metal. In addition, the central banks will tend to keep their distance from foreign exchange reserves and prefer to buy gold as a reserve. This was already seen in the third quarter of 2022, when central banks loosened up around $20 billion for gold purchases, the most in more than 50 years. This was primarily Turkey, as well as Uzbekistan and India, stocking up on the precious metal. China also said it bought gold for the first time since 2019. And now China’s gold reserves add up to just 3.2 percent of total reserves, compared to nearly 66 percent in the United States. So there could still be the potential for a huge pent-up demand. Gold shares would not be the worst thing to do, for example from Sierra Madre Gold and Silver or Maple Gold Mines.

Sierra Madre Gold and Silver has high grade gold and silver projects in Mexico. These have historical resource estimates.

Maple Gold Mines is advancing two Quebec gold projects in the Abitibi Greenstone Belt with partner Agnico Eagle.

Current corporate information and press releases from Maple Gold Mines (- https://www.resource-capital.ch/en/companies/maple-gold-mines-ltd/ -) 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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