Hedge a weak euro with gold
Gold has always been popular during many different crises and problems, this is even more true when the euro weakens
(PresseBox) - If you look at nominal GDP, Europe's has increased by 27 percent over the last ten years, while the U.S. has increased by around 79 percent in euro terms. The consequence is that, in relative terms, Europeans can buy less. Imports have become more expensive than exports because the euro has lost strength, it has become weaker. A strong currency is something positive, because it ensures high incomes and improves purchasing power. Another point of view is that the Fed is more vigorous in fighting inflation than the European Central Bank. With an expected three percent in the U.S. key interest rate, the U.S. is likely to outperform Europe. If the euro weakens now and falls below one U.S. dollar, gold can help investors. Because if he sells his gold after the euro has fallen, he will receive more money as long as the gold price in U.S. dollars remains the same.
Weak and undervalued currencies are only advantageous during the period after a recession or during a period of economic development. But in the long run, a weak currency brings no advantages. Offering products and services cheaply makes no sense. A strong currency, on the other hand, provides improvements in supply and can set trends. Therefore, a strong currency would be desirable, so faster rising key interest rates and thus a stronger euro would be better. In any case, physical gold should be a must for investors as a hedge, as well as an exposure to gold mining stocks to diversify a portfolio with it. Royalty companies such as Osisko Gold Royalties or Gold Royalty are an excellent way to do this. Osisko Gold Royalties - https://youtu.be/1LTHxgrpX7Q - owns more than 165 royalties and streams in North America. The company generated record revenues in the second quarter of 2022. Gold Royalty's portfolio - https://youtu.be/omgImsRwJX8 - includes more than 190 gold-focused royalties.
Current corporate information 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/ ).
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Unternehmensinformation / Kurzprofil:
Datum: 09.08.2022 - 08:28 Uhr
Sprache: Deutsch
News-ID 665100
Anzahl Zeichen: 4387
contact information:
Contact person: Jochen Staiger
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Phone: +41 (71) 3548501
Kategorie:
Financial Services & Insurance
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