RE:RE:RE:RE:gold price
BobMabena wrote: I sppke to a fund manager who manages high networth individuals portfolios. He is not based in the US and it's not PG. My main question was around why if gold is a safe haven have we seen this kind of price and stock price volatility AND could it continue.
He said in the short term yes for the following reason;
1) Inflation expectations are falling
2) Liquidity is required to pay for margin calls and gold is liquid. I pressed on this one and ask if this has not yet worked it's way through the system and he suggested there is a lot of cowboy type investors who have doubled down and are now in trouble.
3) Cash is sucking up value as risks rise.
He did see value in the AU related price and said they were going to increase their portfolios gold related position from around 10% to 15-20%. He does expect real volatility in the coming weeks and said it could get really uncomfortable and said I should sell some of my position if I can not deal with the stress. Long term they are very bullish and said 12-24 months is when we will see real returns.
I hope that helps, it helped me.
MM is also a well thought out investor and I would love his opinion.
liquidity crunch yes !
margin calls yes. !
The FEDs actions this afternoon are
unprecedented. And so far the futures market is unimpressed !
We are at a very dangerous moment in history.
possibly the destruction of all fiat currencies. The worlds debts can not be repaid ! Will the US Govt default or inflate?
probably inflate ( ie print to put it mildly) ... and so will every country on earth
I do not think you will have to wait 12-24 months to be rewarded as either a holder of gold or gold equities. It'll come much quicker.
there will be money bazookas firing in every direction. Bailouts will be the new watch word for everyone and every Company not to mention free Covid19 health care for all. It's going to be QE5 and money printing in the extreme like you have never seen ( zero interest, tax holidays, forgiven and backstopped loans, etc etc)
gold will skyrocket !
Confidence in fiat currencies is forever lost .
MM