New Found Gold Corp V.NFG

A

[likeike]

s the global economy continues to deal with inflationary pressures, volatile markets, and a full-blown energy crisis, there continues to be unprecedented amounts of uncertainty around the world.

The recession bells are ringing worldwide as numerous economies contract, interest rates continue to increase, and central banks are still dramatically behind the curve.

China trimmed its key lending rate again last Monday as the country is desperate to try to revive its economy, which is in the middle of a dramatic cooldown in its property market as developers continue to face severe debt and solvency issues.

Interestingly, it was reported last week that China’s gold imports from the major refining hub of Switzerland jumped to the highest in more than five years, which signifies that demand continues to be strong even as the economy faces major headwinds.

In fact, gold has historically been an excellent hedge against economic downturns, as during the last three recessions, its performance has countered that of the S&P 500.

In addition to demand out of China, central banks around the world continue to showcase its appetite as they have purchased 270 tons of gold so far in 2022. 

The Governor of the Polish National Bank, Adam Glapiski, recently touched on why central banks are buying the precious metal: 

“Gold is the safest reserve asset: it diversifies geopolitical risks and is an anchor of confidence, especially in times of stress and crisis.

[likeike]

Serafino Iacono: You’re spot on Alex. I have been saying for some time that I believe we are in the early stages of a commodity super cycle. I believe it’s going to be a very prolonged run for both precious and base metals. Base metals, obviously, are going to provide the building and innovation this company requires for a sustainable future. The electrification of everything