7 replies to this topic

[Russ]

Note the double bottom, 2017 should see the breakout of the 35 year downtrend and Doom the Donald's debt management, which brings me no pleasure....

 

 

[SilentOne]

Yes I agree. First reaction is down as we are seeing (ie. higher rates bad for gold thesis), then comes the real chaos in the bond market ...

[fib_1618]

Gold's main fuel comes from cheaper costs of money as it reacts to future inflationary expectations from any liquidity excesses that develop from this CB policy.

 

And if you think about it further, the better the return on your capital (higher rates), the stronger the underlying currency it's based on (the dollar).

 

So I would disagree with this idea...if anything, gold will collapse even further if bonds continue to decline (interest rates moving higher).

 

Fib

[SemiBizz]

Agreed .618... if the bonds CRASH that means there is a rush to LIQUIDITY...

 

Not into ASSETS... of any kind except for US$....

[Russ]

Gold's main fuel comes from cheaper costs of money as it reacts to future inflationary expectations from any liquidity excesses that develop from this CB policy.

 

And if you think about it further, the better the return on your capital (higher rates), the stronger the underlying currency it's based on (the dollar).

 

So I would disagree with this idea...if anything, gold will collapse even further if bonds continue to decline (interest rates moving higher).

 

Fib

I agree with Armstrong that is will be a loss of confidence in the government(s) that will cause Gold to soar, it will be fear that drives it up and the government going  broke and having their bonds crash will do it. How well do you think the dollar will hold up if the debt markets are imploding?  Despite that a dollar rally should come first as 3 trillion could be repatriated from a Trump tax cut.

Edited by Russ, 14 November 2016 - 03:58 PM.

[Russ]

We are talking about the eventual crash and burn of the whole system and that includes the dollar.

[SemiBizz]

Well, under those circumstances there's nowhere to run with gold either...  If you travel around the World as I do, you can see there is much more vulnerability elsewhere... more on that later in the week when I return.

[Russ]

Well, under those circumstances there's nowhere to run with gold either...  If you travel around the World as I do, you can see there is much more vulnerability elsewhere... more on that later in the week when I return.

 

The coins will always have value I believe, but ultimately food and guns are the last resort. Armstrong does not think we are looking at a mad max scenario but he does think this is going to be the biggest depression in hundreds of years and he does not think Trump can stop it but perhaps delay it for awhile.He is not always right but mostly he is or his computer is, as it just was with Trump and Brexit.