Historical Price RecordOn August 24, 2020 the price of gold reached $2050 US. Torex shares also peaked at $24.73.
I'm beginning to wonder if the price of Torex Gold shares could now overtake this previous high even before these kind of much higher gold prices come to pass.
Trend is your friend! The market is now giving precious metal stocks the greater pricing respect that they now, so richly deserve!
Today we have the worst inflationary period in recent memory. Due to Covid, governments and central bankers have shoveled free money out the door as fast as they could muster.
The Russian war with Ukraine has made matters worse and this conflict looks to be a long lasting, drawn out event!
Putin seems to be fully committed to drag this out as long as he can! He has the greater numbers of potential soldiers. Ukraine has the will and committment to defend itself, as long as the
West continues to provide it with financial and military support.
In terms of the overall world economy, logistical issues in producing certain needed goods and getting them to market still remain, despite the fact that energy costs have fallen.
The price of these negative effects on the world economy is being paid today.
With inflation out of control and with central bankers uncertain about how high they may have to raise rates, the price of gold seems again, poised to rise, very much higher!
Gold and silver have historically represented the best hedge against inflationary pressures.
So how high will these prices get before inflation is again reigned in?
How high will rates have to rise to bring inflation back to more a reasonable level of around 2 or 3 percentage points?
And how long will it take for this process to unfold?
The longer it takes, I bet the higher the price of gold and silver will have to go!
A purchase of Torex Gold Resources might turn out to be a most astute move.
But choose your entry point wisely!
But hang on to your hats!
All the best! Java