RE:RE:RE:RE:RE:RE:pretty good sell off absolutely; there are still some economic theories which have validity. History doesn't repeat itself but in a similar way.
commodity first, corporate Second.
Gold will be priced much higher in 10 years, Novo will be a producer of 500k oz in 10 years. That's my business case
Peter
WailingWally wrote:
HuberPeter wrote: In the Small run all is narrative. As Investor you Need some rational premises.
peter
WailingWally wrote:
HuberPeter wrote: Tik Tok; stagflation on the way. Classic supply shock but much more differentiated than the oil price shock and therefore very difficult to control. In-sourcing; Minimum wages; rapidly increasing raw materials; -> Unit labor costs are already on the rise. after sugar rush gdp will return to 1-2 growth. Schumpeter's detruction dead, economical multiplier dead. central banks couldn't stop printing fiat money. Every fourth dollar is printed in 2020.
people smell consumer inflation. Head lines of infla will shock consuments. Especial in the next two months as CPI relates to the same month in the last year. the speed of money circulation will increase and the the wheel starts to turn. stagflation scenario is set up. Selling prices can not put forward to customers. Margins are falling, corporates have to fire employees, output and gdp is sinking. Prices are rising because of the lower supply.
Traders play bond interest. BUT POG depends on real interest. Infa will go up, capital market interest will be covered by central banks.
Gold to the Moon
Tik tok
Peter
WailingWally wrote:
goldstd69 wrote: the USD is getting stronger and stronger continuing to pressure the gold market and miners???? how low will this go and for how long??? we have been correcting since last August....is a capitulation phase near???
Havent you heard? They are printing money faster than they are growing cabbage so it has to move up. Right now. Except its not. Gold does what it wants to do. So ask away, but no one knows. Someday it will move higher.
Wally The Drip
Thats the narrative Peter, but what has gold been doing? The opposite. Gold is old. It will move when it feels like it.
I dont think anyone really understands all the dynamics at play.
W
I agree. You read you digest, you observe, then make up your mind and buy something. My experience with gold is that it moves in tandem with cheeseburgers. A McDonalds trio in 1975 when I went to Florida was advertised at $.99. Todays thats probly closer to $7.00. Back then if gold was trading at $300 (?) that would equate to $2100 today. So big deal, gold went up in those years, but so did everything else. Or in the alternate, the purchasing power of the dollar dropped by that %.
That doesnt make a convincing case for me that gold is money. Its money as much as a cheeseburger is money.
W