RE:RE:Some questions for fellow longsHey Lily, welcome to this board...
Yes I also think you'll do fine here especially with the 4% dividend.
We are waiting for comments from Fed meeting tomorrow but the media is already filled with illogical BS. Everyone says tapering is bad for gold and with the eonomic recovery slowing Fed will err on side of caution yadi yada...
The fact is no matter what the fed does real rate WILL drop and price WILL rise aka inflation:
money supply × velocity of money = price level × real GDP
We are past the point of no return with 120 billion per month since March 2020, you have to tapper at that rate or higher, with projected recovery of real GDP at least unaffected for price level to not increase. I say at least unaffected but in reality it needs to exceed that increase of money supply because velocity of money will tick up MUCH FASTER (in the begining) than real GDP growth. It's simple grade 3 math here. The reality of this mathematical relationship does not allow room for wishful thinking or miracles.
btw that's not to mention the starting point of Fed balance sheet of 6 trillion before the pandemic.
It doesn't matter what the fed does. Those that kept saying the brain-dead regurgitated BS of oh if Fed talks tappering and the strengthening USD is bad for gold...blab blab blab is clearly missing the big picture. The banks are sitting on more cash than they know what to do with already. Not only is tappering going to trigger a repo apocalypse but fundamentally it will completely destroy any chance of a recovery of real GDP exceeding that of the product of money supply and velocity.
This is just my humble opinion.