| | A few weeks ago I wrote that it seemed to me some tipping points, that would impact the price of gold, and therefore EDV price since the two are inextricably tied, were coming into view.
So how we doin' ? : Well, ONE of the things was inflation. My feeling was that it would be hot and for longer. Which is supposed to be good for gold. Now it seems 'everyone' is in total agreement with that. All the Gov banks everywhere are worried. So maybe it is time to revisit that thesis. And my reason for that is because 'everyone' is so often wrong. We need more of that 'time will tell' , but I think a quick turn around to the opposite is a very possibility. A couple examples: In Canada the housing market is in a huge, and totally acknowledged by 'everyone' bubble. In America, and this is my favorite example, Tesla is market valued at about 40 times what would be reasonable. It is truly bizarre the value given to some of those weeks old EV , Tesla spinoffs wanna be companies , the one having a value more than Ford with zero production, zero manufacturing ability etc. Dot Com bubble anyone? Bubbles tend to cause big inflation, bursting the opposite.
Another was the crypto thing. Very much looks like we are in the twilight time there. India has joined China in banning them. Sweden asked the EU to ban all production of Cryptos in Europe because it will be impossible to reach decarbonization goals , if all that electricity is wasted on, well, nothing I think it is a sign when places like Alberta, Texas, other places , are trying to get on the band wagon of crypto making. The wagons coming out of those kinds of places are like ships that have sailed long ago . No sane country will allow a full realized private currency to operate in their country, and if the cryptos aren't currencies what exactly are they, besides a nifty gambling device? I was going to make the joke that if sane countries don't allow them, then they could still exist in America, and El Salvador? But so much of American wealth is based on the might of the dollar (and the mighty military) ; that wealth isn't going to be shared with a private currency no matter how 'cool' it is. So billions have been made by a few on cryptos, and an equal amount lost and to be lost by many. But comparing it to gold is becoming more and more ridiculous.
The THIRD would have been interest rates and the economy. If the economy (world and US mostly) isn't good , interest rates are staying low. 'Everyone' knows that if interest rates go up seriously to fight inflation, those bubbles ( see ONE) get very shaky. So the possibilities might be: 'they' raise rates significantly , the bubbles burst and the economy tanks; or 'they' raise rates a little and the bubbles stay intact a while longer; or inflation continues to spiral out of control, but the economy weakens so they can't raise rates much ( a little raising is probably a sure thing) ; or the economy slows, inflation subsides, interest rates settle back to zero again; maybe even, the economy gets stronger, inflation subsides, the bubbles get even bigger, and everyone can afford one of those new electric pickups.
And I think a fourth tipper was maybe Covid. A couple weeks ago I figured Covid would spiral back into the 'very bad' category again in the US and other places (How bad in Europe was a bit of a surprise). and this would dampen economies. But with, literally, yesterday's news , that we now have a brand new Covid-19-2. , the South of Africa variant, things might be changing. Many experts thought, once the vaccination thing started happening, that the likelihood of a variant that could infect the vaccinated would most likely increase if there were lots vaccinated living besides lots that weren't. The unvaccianted would spew virus , with lots of mutations, and some would get into vaccinated and if any of those mutations were ok with the vaccine then it was square one all over again. But it seems one theory is that the mutation from S Africa happened in an HIV positive person of whom there are many in S Africa. Now just to be very clear, I am not starting the rumour that a Covid virus has joined forces with a HI virus, and the new virus is as transmissible as Covid and as deadly as HIV. Now sure it would solve the climate change issue that the Swedes worry about, humans are causing that, and many fewer humans would solve it. Anyway , the theory is that because the HIV person had a compromised immune system the Covid infection they got stayed in the person much longer than normal and had more chance to mutate into something quite different. It isn't known yet if the new virus is more transmissible , and if it is I don't think that would be a big deal, the Delta variant is infectious enough to get most who aren't vaccinated; the bigger question is will the vaccine stop it . If the answers are yes and no, then we got a problem and the markets were correct in getting worried today. Just so no one succumbs to total despair, Japan recently had a big spike, worst ever, of Covid and just as quickly it improbably went almost to zero. One Japanese guys theory was something like a Covid suicide. You should check it out. Made me hopeful.
So my time is up, there is no more space: For an answer to 'what happens now' just click on - https://www Ronnie tells all.com
My quantum computer programmed algo will give you all the possibilities in a manageable form. Have your credit card handy.
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