OTCQX:FSXLF - Post by User
Comment by
idleweisson Aug 13, 2020 1:03pm
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Post# 31404065
RE:RE:Are we all feeling better today? LOL. Just noticed....
RE:RE:Are we all feeling better today? LOL. Just noticed....People are scared and that was the whole point of the takedown in gold. Scare the ones who piled in late. Gold does not drop like this in a bear market. In a bear market you will typically see gold go up a little bit to suck people in before it starts to drop. And in a bear market this will happen day in and day out. In a bull market you will get drops like this.
Some people are also scared that 2011 is going to happen all over again. After the crisis of 2007-2008 gold went up and then went into a bear market in 2011. So people are scared that is going to happen again. But there is a major difference between 2007-2008 and now. We are now running huge deficits which cannot be paid back - they have to be inflated away. The interest rates cannot rise (not for more than a few days anyway) because if the rates go up there is not going to be any money to pay back the huge debts that are owed. So rates will stay down (real rates). And that is good for gold. Gold has nowhere to go but up. FSX is going to move up as people feel a bit more confident about the price of gold. The last time I checked, the shorts were up. But the shorts should be drying up about now. News will help.