Agreed Peat, the US $ index may be forming its own bull trap, so then it will be game on again for gold. September is historically a mediocre month for POG.
Printable View
looking more like a descending triangle though which has the opposite implication.
(no position)
Overnight the US$ index broke through resistance to reach 93.5 with negative results for POG and commodities. Maybe the index is forming a bull trap this time. I will wait and see.
Anyone care to share thoughts on the GDX ETF from Vaneck?
Just wondering about gold as not much has been happening other than the big drop on the vaccine news. Listening to a you tube clip Rick Rule reckons these 3 signs will indicate when the bull market in gold is over.
1/When QE stops - which it has for now but the US probably has another big round of lockdown handouts coming.
https://www.americanactionforum.org/...balance-sheet/
Not sure how legit this site is but Fed balance sheet leveled off in 2020 after a big jump. 2018 and 2019 last time balance sheet reduced.
2/When US govt deficit is less than 1% of US GDP
https://www.thebalance.com/us-deficit-by-year-3306306
We would have to go back to 2007 for anything close to this.
3/US 10 year treasuries interest rate rises by more than 2%
https://www.treasury.gov/resource-ce...spx?data=yield
I assume this is legit so current 10yr treasury .96%
I guess it is no guarantee but I have been speculating based on money printing and currency debasement through inflation and these views give me something to consider on big down or up days, rather going with my gut. Just writing it down here so I can come back to this post when I am not sure what to do.
better yet below is the you tube clip.
https://www.youtube.com/watch?v=3CqR9Hdqh2c
I still think that QE and inflation will happen over the next few years. So the Trump/Biden election volatility will pass. If I had spare funds I would buy the dip.Thanks for sharing the Rick Rule video.
Yes avoid the MSM hyperbole and all the noise and just keep to the fundamentals which are pretty clear ---The entire US govt debt is currently $20T+ and Biden plans to spend $7.3T on infrastructure... rates 0%
Internationally 17.4T + in Negative yielding BONDS...
Now Why do people buy negative yielding bonds??????
1. They can fund them at even more negative rates
2. The regulator tells them to
3. They don't care
We have one screwed up financial world ... GOLD SILVER PGMs = Intrinsic value with limited future supply without HUGE Capital investment to just keep to present production levels ... a we know all the GOLD in the word at present would only fill three olympic size pools ...
JBmurc, I notice that some of your gold stocks also have copper resources. Is this a good way to also get exposure to copper? Or is it better to look for specialist copper stocks? Cheers
Yes if the Copper projects/target are Quality,,,But If you really want 100% focus on Copper your'll prob be better focusing on a company with that in mind ... MAG has some cracking projects and will spin out a Gold/Cu IPO early next year with free shares for MAG holders to come soon
I think it's a great idea to spread the commodity risk within a company ... sometimes you have Base metal explorers with solid Gold projects or Core Gold Projects with great base metal discoveries etc ...
Many times the market doesn't add much value if any for the minor projects in the micro-caps I generally focus on
some of my holdings for example
-MEU- GOLD + Uranium
-CNB- GOLD + Copper
-RXL- GOLD + NIckel
-RMX-GOLD + Rare earths
My Copper player is CHK... but they still have Gold/U credit upside and a Gypsum project
OBM/WWI/GMR my pure Gold plays. ...