Up to $ 20,000 an ounce? Why now is a great time to start investing?
22. 04. 2020
Global economy suffers and will suffer some time. Unemployment is likely to rise rapidly. GDP, as one of the indicators that we are looking mostly at as a company in connection with the economy, will fall. This, of course, predicts bad times in our eyes.
Nobody expected the economy and the world of money and investment to be shaken by a pandemic. Investors are looking for a way to secure their money, and gold is, of course, one of their first choices. That’s why there are prognoses that predict even greater glory to gold than we’d expect a few months ago.
But the mining industry has been hit by a wave of measures like other sectors. Many significant mines had to interrupt their operations due to the measures to combat the spread of the disease or at least limit it to the minimum necessary. Pierre Lassonde, chief executive officer of Franco Nevada, remains optimistic. “Closing the mines is a short-term matter that will last for two weeks, up to a month. In addition, it will be very easy for mining companies to achieve great results soon,“ Lassonde comments on the situation. According to him, these companies will show great results, for example, due to the large reduction in energy prices, which accounts for 25% of all costs in mining.
The price of gold will grow very quickly, even according to other forecasters. More cautious Mark O’Byrne from GoldCore estimated that it would climb to a minimum of $ 5,000 in a year or two.
Gold is becoming a very hot commodity. In the context of prognoses, we can recommend buying the gold as fast as possible and using the prices which are still relatively low compared to the predicted amounts. The sooner you invest in gold the sooner you ensure yourself against the crisis that is now shaking the world. We recommend that you contact your financial advisor who will help you prepare your savings and investments in gold to suit you best.