New Found Gold Corp V.NFG

Stagflation is here

[nozzpack]

Latest CPI shows CPI remaining higher while economic growth in the US in Q1 was anemic.

Stagflation is the descriptor and the last time this happened.. 1975- 83....POG skyrocketed .

Which is why POG continues to rise.

The FED is trapped.

It cannot raise rates when economic growth is anemic so high CPI cannot be attacked by that move.....even worse, as in the 1970s, CPI is not caused by demand but by supply..but it cannot cut rates as that would boost demand.

So, we are in a goldilocks situation for the POG.
There will be volatility, but high POG seems assured ..

[evilballs]

5 months ago it was immaculate disinflation.  Now its stagflation.... I think the US economy needs a couple more quarters to say that.  

[nozzpack]

Quite true. But, todays US financials shows that US consumer savings have collapsed while their credit card debt has exploded.......a definitive signal that the US GDP collapsed in Q1 because of Dec,ines in consumer demand which , as todays stats shows, will only get worse going forward . That means ...especially in an election year..the probability of a cut in interest rates is much more likely

[Dixiedee]

we will see higher rates at some point in this cycle 2 to 4 % higher than inflation rate will be the bank rate in Canada and same for the Fed rate in the USA  higher interest rates higher gold prices higher inflation higher unemployment all will happen  in the 70s rates went up inflation went up gold went up all cooled off a bit then all went parabolic  rates over 20 % inflation 16%

[1condor]

Dixiedee...the economic situation you outline will indeed help gold and thats why you need to hold a producer during these times. Holding a speculative gold stock like NFG will in many cases not increase as gold moves up. Just look at NFG today barely holding 5 bucks as gold knocks on 2400. At the very least hold a producer to offset the underperfomance of NFG.

[Dixiedee]

As I have told you and everyone else on here holding Builion everyone should have some holding a royalty company and a producer is all a good idea I hold all three and have for many decades but if you do hold some money in a jr newfound gold is the best of the class and yes everyone should invest responsible and do their own DD but implying you can't hold abut of a gold jr in your portfolio is

[unclebobby]

Condor push your agenda else where,  no one listening. And why do you care. Your preaching to Def ears so to speak.