March 18th, 2020 | 11:11 CET
Barrick, First Majestic, Osino Resources, Scottie Resources - preparing for helicopter money
In the 1960s, the Nobel Prize winner Milton Friedman, an influential economist in the USA, studied various models of monetary policy. One of the models of how the Federal Reserve can boost consumption and achieve its inflation targets while preventing deflation would be by issuing cash to the population on a one-time basis. In his example, Friedman describes that a helicopter would drop USD 1,000 banknotes over a community for consumption purposes. This model led to the term 'helicopter money'. After the reduction of interest rates and quantitative easing, the USA will soon provide its citizens with checks to keep the economy going. All drastic measures within a month.
time to read: 1 minutes
|
Author:
Mario Hose
ISIN:
CA0679011084 , CA32076V1031 , CA68828L1004 , CA81012R1064
Table of contents:

"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC
Author
Mario Hose
Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.
Tag cloud
Shares cloud
Entry level for precious metals
If paper money can be increased at will without a value deposit, then the true value of this money must be questioned. This is the reason why the demand for gold and silver is increasing, because it is not available in a limitless amount and because of this limitation it has a certain price, which results from production costs, supply and demand.
Since the outbreak of the so-called corona crisis, the price of gold and silver has first risen and then fallen. This phenomenon could also be observed at the time of the financial crisis in 2008. One reason for this is the so-called Long Squeeze - when investors leveraged credit on the capital market and had to reduce their holdings.
Investors in trouble
Due to the dramatic price losses on the capital markets, investors are selling all asset classes in order to reduce losses and solve problems. The corona crisis has a much stronger impact on the global capital markets than the financial crisis. The value of the S&P 500 Index has fallen by around 30% over the past four weeks. During the financial crisis, the same percentage correction took about 250 days.
Investors, companies and politicians currently have to make decisions that nobody would have thought about two or three months ago. The risks of wrong decisions are correspondingly high.
Diversification into stocks
The imminent issue of helicopter money in the USA is likely to cause a sustained increase in the need for security among investors. There are various ways to invest in precious metals. In addition to physical forms such as bars and coins, shares in mining companies offer the opportunity to participate directly in the value creation and reserves. Diversification is generally advisable when investing in different companies that are globally active in different regions.
Barrick Gold and First Majestic Silver are well-known producers and offer an interesting mix for a portfolio with upside potential in addition to the exploration companies Osino Resources and Scottie Resources. Especially in exploration, Osino in Namibia and Scottie in Canada offer interesting opportunities to participate in the company at an early stage. Both companies have already made discoveries and it is now probably only a matter of time and number of successful drilling programs before gold producers knock on the door for takeover talks.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.
The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.