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Experts from the European Central Bank have caused a stir with the publication of a new report. If there were to be an unforeseeable fall in the price of gold, the entire financial system could be negatively affected. Gold usually costs the same in Chicago as it does in London, but things were different some time ago. A troy ounce of gold in Chicago sometimes cost up to 50 US dollars more than in London. This is because physical gold has become temporarily scarce in Chicago in recent months.

Most gold is stored in London. When the issue of tariffs began, many on the Comex demanded physical delivery of gold, it became scarce and the gold price on the Comex rose. The majority of the gold market is determined by gold derivatives. The volume is large, but not exactly known, as these are over-the-counter (OTC) transactions. If there are now major fluctuations in the price of gold, there may be mandatory additional payments. And then it could become problematic to procure physical gold for delivery. There would be a bottleneck on the physical gold market, a so-called squeeze (price explosion) would be possible.

Anyone who has borrowed gold and sold it on would have to buy it back at a high price and the gold price would continue to rise. This would not be good for the entire financial system. If investors opt for the values of gold companies, there is no such risk of a margin call. On the contrary: if a squeeze occurs and the gold price continues to rise rapidly, the gold shares benefit twice over due to their leverage on the gold price. Among the recommended companies that own gold are Southern Cross Gold Consolidated and U.S. GoldMining.

Southern Cross Gold Consolidated – https://www.commodity-tv.com/play/southern-cross-gold-more-exploration-to-increase-the-very-high-grade-resource-significantly/ – owns the Sunday Creek gold-antimony project near Melbourne, Australia. Recent drill results are also excellent.

U.S. GoldMining – https://www.commodity-tv.com/play/us-goldmining-further-exploration-in-2025-after-excellent-results-and-resource-update-in-2024/ – has large gold and copper resources at its wholly owned Whistler project in Alaska.

Current company information and press releases from U.S. GoldMining (-  https://www.resource-capital.ch/de/unternehmen/us-goldmining-inc/ -) and Southern Cross Gold (– http://www.resource-capital.ch/de/unternehmen/mawson-gold-ltd/ -).

In accordance with §34 WpHG, I would like to point out that partners, authors and employees may hold shares in the companies mentioned and that there is therefore a possible conflict of interest. No guarantee for the translation into German. Only the English version of this news is valid.

Disclaimer: The information provided does not constitute a recommendation or advice. Attention is expressly drawn to the risks involved in securities trading. No liability can be accepted for damages arising from the use of this blog. I would like to point out that shares and in particular warrant investments are always associated with risk. The total loss of the capital invested cannot be ruled out. All information and sources are carefully researched. However, no guarantee is given for the correctness of all content. Despite the utmost care, I expressly reserve the right to make errors, particularly with regard to figures and prices. The information contained herein comes from sources that are considered reliable, but in no way claims to be correct or complete. Due to court rulings, the contents of linked external pages are also to be answered for (e.g. Hamburg Regional Court, in the ruling of May 12, 1998 – 312 O 85/98), as long as no explicit dissociation from these is made. Despite careful control of the content, I assume no liability for the content of linked external sites. The respective operators are solely https://www.resource-capital.ch/de/disclaimer-agb/.