Investors Keep an Eye on Gold as Governments Worldwide Take Action
- FinancialBuzz.com News Commentary
NEW YORK, Feb. 19, 2021 /PRNewswire/ -- Gold prices were stable on Thursday. However, the economic landscape is becoming more complex and Bitcoin now competes with the yellow metal for a safe-haven status. Furthermore, the road ahead in 2021 remains unclear in terms of where the economy is headed. Nevertheless, gold is expected to bounce back. According to a report by Kitco, the U.S. government continues to move forward with its proposed USD 1.9 Trillion stimulus package to support the U.S. economy further after the fallout from the pandemic. The U.S. is not unique in that regards, as central banks around the world are maintaining very supportive monetary policies and growing their balance sheets to record levels. The threat of global currency debasement is real and continues to increase the longer the pandemic restriction remains in effect. Therefore, the issue may not be which is better, bitcoin or gold, since any alternative asset that will protect wealth will become a necessity if the world's purchasing power falls. Falcon Gold Corp. (TSX-V: FG) (OTC: FGLDF), Agnico Eagle Mines Limited (NYSE: AEM), Novo Resources Corp. (TSX: NVO) (OTC: NSRPF), International Montoro Resources Inc. (TSX-V: IMT), B2Gold Corp. (NYSE: BTG)
Inflation is expected to play a major role in deciding the future of gold. According to the International Monetary Fund (IMF), USD 12 Trillion has been pumped into global financial markets as governments and central banks worldwide have tried to stabilize the economy that was devastated by the pandemic. Investors are now speculating that the fallout will be seen in higher inflation, especially when the economic activity picks up in the second half of the year. When prices rise and the value of the dollar falls, gold is often seen as a hedge against inflation.
Falcon Gold Corp. (TSX-V: FG) (OTC: FGLDF) announced yesterday, "an update on its fall 2020 drilling program at the Central Canada gold mine. The Company has received the preliminary analyses for holes, CC 20-10, CC20-11 and the upper half of CC20-12. There remains outstanding in addition to the balance of CC20-12, the analyses for the final 5 holes of the program. Falcon has presently 264 core samples submitted for analyses and anticipates in the order of 250 more samples to be taken from the last three drill holes core. A surface plan of Falcon's 2020 drilling and that of TerraX Minerals (2012) and Anjamin Mines (1966 & 1967) may be found below in Figure One.
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