Things are falling into place There are several reasons why the market, and in particular, NAK, are going to recover.
Record levels of panic and plunging prices, along with record levels of trading, are the hallmarks of a panic-driven market, and they are also typical of bottoms. The threat of the coronavirus might prevent a rebound of the market, but this threat may not be as dire as it's being portrayed.
The spread of the coronavirus world wide, and then it's spread to America, was the trigger for the DOW sell off.
There are three drugs that are now available in America to combat coronavirus, thanks to Trump cutting through red tape to get their use approved.
In China multiple drugs were tested, and one drug, Chloroquine phosphate, an anti malaria drug, that has been around for over 50 years, and is known to be safe, was “highly effective” at inhibiting replication of coronavirus in cell culture, and then in human trials. Chloroquine raises the pH in lysosomes inside people's cells, and this interferes with viruses’ attempts to modify the lysosomes, a prerequisite in the coronavirus's ability to infect the cell. The researchers found that Chloroquine phosphate was effective at inhibiting the virus as it was both entering and exiting cells.
When malaria gets into a cell, and you change the cell's pH with chloroquine phosphate, the malaria can’t live. Knowing that changing the pH of a cell's lysosomes would interfere with the ability of a virus to infect a cell, it was tried on the coronavirus, and was found to be effective in stopping the viruses replication. A researcher said, "If you change the pH, the virus cannot assemble, and if can’t assemble, it can’t affect you.”
The coronavirus invades cells by attaching to receptors on the cell's surface. Sort of like a lock and key. Chloroquine interferes with the coronavirus' ability to attach to receptor's on the cell membrane surface. Chloroquine disrupt's the lock and key mechanism of attachment, and so it helps prevent the coronavirus from entering the cell, as well as preventing its replication once it enters the cell. A one-two punch. This makes it even more effective in fighting the coronavirus.
In 2003, a combination of ritonavir and lopinavir, antiretroviral medications, was found to be effective in treating a related coronavirus, severe acute respiratory syndrome (SARS). The combination of drugs, known by the brand name Kaletra, stops enzymes called proteases from allowing the virus to mature and replicate. It has now been shown to also be effective against the coronavirus, and has been effective in treating patients infected with the coronavirus.
Remdesivir, a nucleoside analog recently discovered in 2016, inhibits viral polymerase activity, shutting down transcription and synthesis of viral RNA. This gives it antiviral activity against a broad range of retroviruses, including the coronavirus.
Remdesivir is a mimic that fools a virus into replacing one of its four building blocks with a chemical fake. Once in the virus’s blueprints, the imposter acts like a stop sign that keeps the virus from copying itself.
In a three-page paper in Cell Research, scientists at the Wuhan Institute of Virology’s State Key Laboratory of Virology write that both chloroquine and the antiviral remdesivir were, individually, “highly effective” at inhibiting replication of the novel coronavirus in cell culture. They have now been shown to also be effective in treating human patients.
Coronavirus cases escalate quickly, but with aggressive tactics, such as stopping public gatherings, they peak quickly. And now, with medications to combat the coronavirus, it is going to be contained even quicker. Well before that happens, the market will start a recovery, and so will metals, such as gold, silver, and copper.
These three meds will help to combat the coronavirus, and thus bring about a rebound in the market, and in metals.
And then there's the Federal Reserve. The Fed has extended the purchase of securities from $40 billion to $75 billion on repos, and extended dollar-swap lines to nine more central banks, which are in trouble. Interest rates have been lowered to the 0-.25% range. The Fed has ramped up the printing of money to accommodate the tremendous amount of dollar demand we have recently, since people are using the dollar as a safe haven. It's debatable whether the US dollar, given US record debt, is still a safe haven.
This, along with the stimulus plans for the U.S., such as giving $1,000 to adults, and $500 for parents' children, may add trillions more to our debt.
This weakening of the dollar, will make people turn to a new safe haven, which will be precious metals.
The opportunity today is definitely in the precious metals, which will also mean an opportunity to own NAK. Our debt, the runaway printing of money and the panic in equities all bode very well for demand for precious metals. Pebble has the largest deposit of precious metals, as well as base metals, such as copper, in the world, and NAK is selling for pennies. NAK is one of the greatest opportunities around.
Gold rallied to over $1900 after the 2008 crisis. I think that it could go even higher than that this time, and it will take NAK along with it.