RE:RE:RE:The Canary in the Gold MineYo Doug. In discussions with my investor buddies, we have looked at various scenarios and pitfalls. Right now we are seeing Deflation and Inflation occurring similtaneously. With all the economic destruction and many people not working or working less, houses and cars and major ticket items are getting cheaper. But food and basic necessities are getting more expensive. Both Deflation and / or Inflation are good for the POG.
The area of concern is the major markets, as in the S &P / Dow / Nas. Last time these went for a heave, everything inc Gold and Silver stocks were taken down with it. Will the major markets go for a heave soon? That is the question. Fact is that the only reason the mm have not rolled over is because the Fed / US Gov't and is shovelling money off the back of a truck. Trillions are being printed. My take is that these guys will do anything to stop another crash.
The Fed's role is to provide a stable financial situation before an election. Unless the deep state has a trick that they haven't used yet, this will continue on until the election. The Dems know that Trump has staked his presidency on the economy, so they would like to see it take a heave so that they can oust him. They, if elected, would "rescue" the economy by MMT, or endless money printing. The Dems are as good for PM's as it gets.
We know that Billionaires, many of whom have never owned or touted Gold have already been stocking up. In terms of the major markets, I wonder if they have cut their positions with the exception of the FAANGs. We do know that the dumb money has moved in. I won't go thru the guts of it of which I have been mentioning here for year.
Seasonally, we are moving into a strong season for Gold. But, it hasn't made a difference here. But, I will say this. Many of us are excited that our jr mining stocks have been moving, but we need to remember that they have been laying facedown on the pavement for years. The point is that these stocks are still unbelievably cheap. Dirt cheap. And they have just gotten started.
The POG hit $2060 this morning. We have talked in the past how we could see $100 moves up in a day. We are getting close to that point. The generalists are coming in now. The miners are making a lot of money and their profits are about to go thru the roof. A major with an AISC of $900 or $1000 is ripping at $2000 Gold. Investors are taking note. My Gold ignorant or Gold hating buddies are moving in. The guys on CNBC and BNN are talking about Gold. And they have never liked Gold.
Bottom Line: Until the Major Markets crash, and they will, and every effort will be made to prevent that, the POG and the POS is gonna rip. And the jrs are just getting started.
And when the crash comes, the miners may not follow this time. They might swoon for a bit, but they will already have been recognized as the only game in town.
If Sprott is in the latest financing, look for a $Buck real qwik on SPA and then onward and upward. We have waited years for this and we may have a hard time believing that the moment has arrived.