RE:RE:E-letter follow-on input from BarryCG, what a great addition you are to this board. I don't follow many SH bb but I cannot imagine one with more toughtful, knowledgeable and constructive people than those posting on TUO's.
To make it clear and again appologies for the bad formatting, I'll repost as all of the content was from Barry. He was responding to a question I sent and I would not want to be credited for the intelligent stuff someone else said. So here it is again and please SH don't screw up this time!
I asked Barry where he thought the price of gold was going over the next 12-24 months being he stated in his E-Letter he thought a buyout offer for Treaty Creek may come in that time frame.
This was his response.
"Fabe:
The global fiat currency printing presses are in over-drive with no sign of letting up. Interest rates will remain low… not because Central Banks care about the average borrower, but because the governments they represent are the largest debtors. To increase rates would bankrupt them. All taxes would go to pay interest on the debt. So they print more money and kick the can down the road. Trump & Pelosi are about to pull the trigger on another multi-Trillion dollar printing spree… or watch their economy collapse.
What they can’t print more of is gold. Finite supply that is growing at barely 2% annually (World Gold Council 2020) with reserves declining dramatically. They must replenish those reserves. The largest deposits in the safest jurisdictions will be in high demand.
With top producers facing declining production profiles, shrinking reserves and rising production costs, we expect many to supplement their depleted pipelines by expanding organic exploration in the near term while leveraging targeted acquisitions. (S&P Global, Sept 2020)
The recent correction in gold prices which caused the same reaction in share prices (TUD-TUO-AMK) was related to current political indecision. The bottom line however is this: No matter what the political decision are or who gets elected the printing presses will continue to pump out paper. Gold has no where to go but up. The questions in the velocity at which it will rise. Apparently TD Securities agree.
Cheers,
Barry."
Then he shared an article from Kitco.
'Stage is set' for gold price rebound: TD Securities
Anna Golubova
Tuesday September 29, 2020 09:31
Kitco News
The precious metals sector is looking ready for a reversal of this month’s losses, according to TD Securities. “The stage is set for a precious metals rebound. Market participants should recall that the consolidation in the complex was catalyzed by a positioning squeeze that has since morphed into election-related jitters, pummeling gold bugs in response to months-long delay in passing a multi-trillion dollar stimulus bill,” TDS’ commodity strategists write. The U.S. fiscal stimulus will eventually be passed, which should encourage the gold rally further. “If the election is the hurdle that has kept inflation expectations from rising further, as suggested by the prevailing market narrative, then gold bugs may not need to look too far into the future to expect the multi-trillion dollar fiscal deal,” the strategists note. “Further, this is broadly the case irrespective of the election outcome itself, and in this sense, the secular bull market in precious metals is still intact, as capital will continue to seek shelter from a prolonged period of negative real rates … We think the balance of risks has tilted firmly to the upside once again.”