Slate Grocery REIT T.SGR

yin & yang re: POG

[grassyknollguy]

Gold tequila references an article re: Bank of China hinting strongly that it will not add to its balance of foreign currency reserves. This is actually a Bloomberg article and worth the read. China is currently accumulating as much gold as it can along with other central banks. That should be good for the POG. However, currently the POG is falling as stock exchange levels hit new highs (bubbles anyone?). Going back to 2008 & 2009 its pretty easy to picture a stock market crash and the ensuing rapid rise in precious metal prices. Current falling POG should cause some producers to shut down or reduce production leading to a lessening of product at the same time as there may be an increase in demand- good for POG. But gold is in a unique market whereby there is a fractional reserve type of fiat (paper) gold introduced to dampen any upward action re: POG such that the official market price of gold goes down when normal market supply/demand (actual physical) would demand an increase. Sooner or later the market will have its way but for the near to middle term.(1 year?) barring some world shattering event- the false market will rule the day IMO. RE:SGR- again, until gold gets above $1750- its a losing proposition and will require continued re-financing or get taken over by another company.