Not only the DAX is within reach again of the record high, gold is also testing the summit region. The environment of low interest rates, rising debt, recession fears and dollar devaluation could hardly be better. However, the strong silver rally is also sending an important signal that investors should be aware of. For gold, the Turbo Bull CL9HNS with lever 3 or a little more offensive with WKN VP1KHE is suitable as a basic investment.
Do stocks also belong to the category of stable investments or is the rally since mid-March mainly based on the unprecedented liquidity injections by central banks and governments? Even if indices such as the DAX are in sight of their record marks and technically run upwards, there are growing doubts about the sustainability of the upward movement. The fundamental valuation light now shines deep red not only for the hyped technology stocks. Silver and, above all, gold are seen as crisis-proof and stable investments.
Higher public debt
“Given the unprecedented bailouts by the central banks, confidence in the currencies is declining,” said Gil Shapira, chief strategist at the broker eToro. “In addition to the devaluation of money, precious metals are also benefiting from the skyrocketing public debt and there is no end in sight for the spiral,” added Shapira. Just a few days ago, the EU agreed on a 750 billion euro package of Corona aid, 1.8 billion is to be paid by 2027. Euros to be distributed.