RE:RE:RE:RE:Weekly TA of KL dealing with $64 ResistanceAgreed - $ weak gold and KL expected to rally
The $ weakness is likely to become more apparent with the US politics in a state of paralysis.
As has been alluded to before, it seems that KL wishes to retain a high degree of liquidity, currently $800bn and rising.
If, say, $400bn of this were to be held as gold bullion, then, within 24 hours, it could be converted to any of the fiat currencies USD, CAD or AUD, which KL may require in a timely manner.
Moreover, in the event of a currency / credit crisis, the KL directors must know that gold bullion has no counterparty risk.
In the first part of the millennium McEwen, when CEO of Goldcorp, stored a pile of gold bars (link below) as stock at the cost of production and therefore was not taxable until sold in the market place.
https://www.gettyimages.co.uk/detail/news-photo/robert-r-mcewen-chairman-of-goldcorp-inc-holds-a-gold-bar-news-photo/94831431 As it happens, with the huge tax bills KL is paying, this policy would have the dual benefit of no counterparty money risk and also a deferral of tax until the bullion is sold.
KL would probably wish to credit the earnings in quarterly trading numbers. If so, that’s fine, all they have to do is buy their own or other miners gold production.
The current board policy is unnerving, since it gives the impression that gold is not a safe form of money to hold??