RE: RE: RE: RE: Bo Polny Bottom? Good morning stack,
I kind of agree with you that gold will first react down with the general market then go its own way.
At some point very soon (weeks or very few months) something will break in the economy e.g., Fed % of the entire bond market will snuff out foreign lending, bond market collapse, junk market collapse, currency crisis, rate hikes, Fed tapering QE, bad GDP and employment, a national debt crisis, consumer leverage crisis, etc something has to give. I don't know where, but considering the size of the Fed balance sheet and the debt levels across consumers, firms and all levels of government, I suspect it will be within weeks or a couple of months.
Right now gold stocks have capitulated to investor doubt and operational costs. I'm personally a buyer as fast as I can get my hands on new cash. Every pay check and every investment gain I make is rolled back into a few of my favorite gold stocks (particularly companies that are now focused on cost control). I will take the bet that fundamental economics and common sense will prevail in the end. Gold is one of the few truly international money safe havens.
No man works for free (or diluted money). A currency must be backed by honest production else it is cheating the person whom you are trading with. And if ever that guy realizes you are cheating him and he is working for less than he deserves, look out, there goes trust out the window. It takes 20 years to build a reputation and 2 minutes to lose it. The same edict applies to trust in currencies. The Fed is about to destroy trust in the USD with all its "well intentioned" QE shenanigans. Gold meanwhile will be there waiting to jump in to play its latent role as a neutral trusted international means of work force/production exchange.