RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Calling on NachoD.Richy7 wrote
I have not a crystal ball to know that gold go up but common sense. Heres why I believe this: Inflation has become increasingly problematic and more persistent than previous sanguine assessments by Federal Reserve Board (Fed) Chairman Jay Powell and other Fed officials. Real interest rates remain deeply negative, a positive for gold. The average annual return on gold during periods of negative real interest rates has been a stellar 21.12%. Monetary policy continues to be highly accommodative. The bearish case for gold rests on the deteriorating probability of the Fed tapering asset purchases in November. The global economy is beginning to sputter. Spreading economic weakness will make any tightening moves by central banks difficult to implement without broader repercussions. Physical gold buying centered in India and China has risen dramatically. Indian demand alone is 500 tonnes greater than it was in 2020, more than enough to absorb current mine supply. Net buying of gold bullion by central banks is likely to continue and may possibly increase. Positioning by commodity traders is at negative extremes and is usually followed by short-covering rallies. The selling of paper gold on the thesis of Fed tightening is already priced into the market. Gold mining equities are trading at deep value while generating record cash flow.
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Yes we have all been hearing that gold is going through the roof for many years now. The price right now is quite good historically. Where it will go in the future is anyones guess and i dont like to base investment decisions on where gold may go in the future as it is an unknown.
The problem with you is that you dont seem to be able to do basic math. WGC has employees, equipment, fuel, etc, etc. They have to pay all these bills everyday and they need to sell gold to do it. Doing private placements endlessly at 5 cents is not a way to build a company.Do you think that those investing in all these private placements will keep buying more if the company doesnt start producing gold? What happens when they cant get anyone to buy anymore private placements? Bankruptcy is what happens. From the looks of things that may well be where this company is headed if they cant start producing gold soon.
Over the last many years on the message boards of many bush league mickey mouse junior miners like this one i have heard posters like you saying that gold has nowhere to go but up.
The fact is that most of those companies went bankrupt as they were never able to produce any gold or produce at to high of a price. Gold going to $10000 an ounce will not do those companies any good as they are no longer in business.
What junior miners like WGC need to do is start producing as much gold as possible and start getting cash flow positive and then keep piling money in the bank. If they do that then if gold goes up in the future they will still benefit and if gold goes down they will survive.
End of story.