Gold will remain the winner
Harald Seiz has a golden hand: the head of the internationally active Karatbars Group has been predicting for years that gold is the only sensible alternative to money. He has turned Karatbars into one of the most successful gold companies in the world with its various gold products, which are sold in more than 140 countries.
The developments of the past few weeks prove him right: gold is on the verge of breaking through the $1,800 mark. This week the price of the precious metal reached $1,773 an ounce (31.1 grams), the highest level in about seven and a half years.
But there is still room for improvement: the record high of $1,921 from 2011 is still a long way off. However, according to Seiz, "our analysts assume that this hurdle, too, will soon be cleared. Anyone investing in gold now is on the winning track.
"Gold is a clear winner of the pandemic", Seiz says, and he names the actual reasons: the commodity is supported by a weakening dollar and the flood of cheap money from central banks around the world.
In view of rising infection figures, further stimulus measures by the US government and the Federal Reserve are considered likely. The breathtaking depreciation of money due to the expansion of central bank liquidity and national debt is thus continuing unabated.
Furthermore, "it is a foregone conclusion that key interest rates will remain at a low level for a long time," says Seiz on the basis of the Karatbars analysts. "Gold will remain the winner in the long term. Gold pays no interest and is an absolute inflation hedge."
Since real US interest rates (minus inflation) are negative, banks around the world, such as Goldman Sachs, are forecasting a gold price of $2,000 over the next 12 months. Seiz is pleased about this: "This means that our partners and affiliates can continue to do good business."