RE:RE:EDV getting caught up on their share buy-backsbiker222 wrote: If you step back- its quite impressive the portfolio of "low cost to mine " assets. This cash cow can slowly buy back shares....give a nice dividend......but sooner or later the gold price will rock ( for reasons this vet currently cant see). But the execution on the ground is real. If gold ever does rock past 2000 usd.....it will take some discipline to sit on your hands.
interestingly the swarils ( sp) have built a nice bank. Good coat tails to ride?
biker
Agree on all counts. Sawaris.
Except that I suspect that I might know the reasons Gold MUST go higher (eventually)..and why it is virtually a GIVEN.
Rising Inflation vs. low interest rates = negative real returns.
negative real returns = loss of purchasing power over time (why lend $ to get back less $ value over time?).
protection comes in the form of a non printable "real" tangible asset like Gold (not Fiat currency)...so the price of gold is driven higher in order for investors to preserve purchasing power
But higher interest rates will stamp out negative real rates and inflation you say (as in 1980?)?
Not a chance in He[[ that they can raise them fast or far enough, without creating massive market sell off, the mother of all Recessions, and impossibe interest payments (on the gargantuan cummulative deficits - that were not there in 1980). But for the time being the market THINKS the Fed can MAYBE raise rates fast & far enough. They can't.
Voluntary Currency debasement or debt default becomes the only way out for the FED...which also happens to be excellent for gold.
MM