The gold-silver ratio is known to many, but the gold-copper ratio can also lead to interesting statements.
The relationship of Dr. Copper as an indicator of the economy to gold shows possible price developments of the two commodities. In short, it seems to be emerging, in any case, that we are facing difficult economic times. That's because the ratio of gold to copper points to slower economic growth and increased safe-haven demand. And past highs in this ratio show that they coincide with crises. Gold is the safe haven that investors turn to in times of geopolitical crises and financial uncertainty. So gold is like an indicator of fear in the market in that regard. The sharp slowdown in global economic activity, as also forecast by the IMF, and inflation that is higher than it has been for decades, make gold attractive.
Problems in the global economy are evident, for example, in the fact that China's recovery is losing momentum. Unemployment among young people in China has reached a new record high. Economic data such as retail sales, factory output and fixed asset investment are falling short of expectations. The same applies to investment in the real estate sector. Yet it was China's economic engine that was supposed to boost global growth.
In the USA, the signs point to recession, so there are plenty of crises. Investors should be invested in gold and gold stocks to hedge, because the gold-copper ratio is rising as the price of gold rises due to the demand for safe havens. For investments, there would be the established gold producers Caledonia Mining or OceanaGold.
OceanaGold - https://www.commodity-tv.com/ondemand/companies/profil/oceanagold-corp/ - owns mines in New Zealand, the USA and the Philippines and produces gold, silver and copper.
Caledonia Mining - https://www.commodity-tv.com/ondemand/companies/profil/caledonia-mining-corporation-plc/ - is active in Zimbabwe at its Blanket gold mine. This is expected to produce 75,000 to 80,000 ounces of gold by the end of the year.
Current corporate information and press releases from Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-corp/ -) and OceanaGold (- https://www.resource-capital.ch/en/companies/oceanagold-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/
The relationship of Dr. Copper as an indicator of the economy to gold shows possible price developments of the two commodities. In short, it seems to be emerging, in any case, that we are facing difficult economic times. That's because the ratio of gold to copper points to slower economic growth and increased safe-haven demand. And past highs in this ratio show that they coincide with crises. Gold is the safe haven that investors turn to in times of geopolitical crises and financial uncertainty. So gold is like an indicator of fear in the market in that regard. The sharp slowdown in global economic activity, as also forecast by the IMF, and inflation that is higher than it has been for decades, make gold attractive.
Problems in the global economy are evident, for example, in the fact that China's recovery is losing momentum. Unemployment among young people in China has reached a new record high. Economic data such as retail sales, factory output and fixed asset investment are falling short of expectations. The same applies to investment in the real estate sector. Yet it was China's economic engine that was supposed to boost global growth.
In the USA, the signs point to recession, so there are plenty of crises. Investors should be invested in gold and gold stocks to hedge, because the gold-copper ratio is rising as the price of gold rises due to the demand for safe havens. For investments, there would be the established gold producers Caledonia Mining or OceanaGold.
OceanaGold - https://www.commodity-tv.com/ondemand/companies/profil/oceanagold-corp/ - owns mines in New Zealand, the USA and the Philippines and produces gold, silver and copper.
Caledonia Mining - https://www.commodity-tv.com/ondemand/companies/profil/caledonia-mining-corporation-plc/ - is active in Zimbabwe at its Blanket gold mine. This is expected to produce 75,000 to 80,000 ounces of gold by the end of the year.
Current corporate information and press releases from Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-corp/ -) and OceanaGold (- https://www.resource-capital.ch/en/companies/oceanagold-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/
