RE:RE:The walk down continues.JM 2014
Yes, the walkdown starts around 12:30 to 2 pm MST...and small volumes are passed several different house involved....but I suspect....it could be the same group coordinating low asks and selling into a lower ask as long as they can give the illusion of PRB falling they are good to go !
Don't know how legal it is to sell through multiple brokerages...to yourself?...lots of money watch on the sidelines...lots of pain too!
Since it's early in this cycle...let's assume
- High unemployment will occur!
- Interest rates will remain low to try to stimulate housing etc. Might work but I personally know of about 10 families...that have no savings and they will walk away.
- Governments are going to promise and spend lots of future dollars when the current ones won't be paid back ever..........
- Pension insolvency even if you work for the provincial government of Alberta you get pension as long as its solvent.
- Think of Boeing and the bailout they want !!
Eventuayll, Governemnts will have to admit the debts will never be paid back !
So where will gold go....
Eventually someone will start collecting physical out of the Comex and Central Banks and Governments have started to accumulate alredy ...
https://www.kitco.com/commentaries/2019-03-22/Worldwide-Major-Central-Banks-are-Accumulating-Their-Gold-Holdings.html China the largest producer is accumlating refined gold from Switzerland and putting it up for physical Sale on the Shanghai Gold Exchange
World produces about 3000 ton's ....
Are countries like Italy or Spain going to be forced to sell there gold as an asset to cover there bankruptcy of their own currency ? Hmmm I wonder ?
PRB will bounce around but should stay close...and if Gold rises above 1900 then there is no reason to see it stop going ...this COVID 19 is just getting started...high unemployment going forward. Employers will make a slow comeback and when they do...the salaries won't be the same ....debt will become non-servicable at a time when boomers are retiring like crazy!
Crazy thing ...government doesn't konw how to lay off people ...! so the cycle will continue.
Wealthy People will start realize a bond for 10,000,000 weighs the same as a bond for 10,000,000,000....and only the interest they collect matters....so good luck.
I believe gold will rise. I know the different between a kilobar of gold and a 1/2 a ton...one fits in the front seat and maintains it's value the other fit's in the back it too maintains it's value.
GLTA