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Swiss Resource Capital AG Poststrasse 1 9100 Herisau, Switzerland http://www.resource-capital.ch
Contact Mr Jörg Schulte +49 2983 974041

Gold as a hedge against financial stability risks in the eurozone

Global trade conflicts loom, and the outlook for global growth, inflation, and asset prices is grim

(PresseBox) (Herisau, )
ECB President Christine Lagarde is looking toward the future with concern. Sluggish growth, geopolitical uncertainties, and the national debt of certain Eurozone countries are key issues. Additionally, there are overvalued markets for stocks and corporate bonds, raising the potential for corrections.

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.

Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/

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The publisher indicated in each case (see company info by clicking on image/title or company info in the right-hand column) is solely responsible for the stories above, the event or job offer shown and for the image and audio material displayed. As a rule, the publisher is also the author of the texts and the attached image, audio and information material. The use of information published here is generally free of charge for personal information and editorial processing. Please clarify any copyright issues with the stated publisher before further use. In case of publication, please send a specimen copy to service@pressebox.de.