Gold & Common-sense.

  1. NT
    1,708 Posts.
    Predictions of fantastic price escalation for gold have been a common occurrence for years.

    Pundits have predicted 6,329 of the 0 (zero) price explosions in the last five years. (fabricated figures)

    To cut matters to the most simple--
    1. Central banks are unloading gold in an orderly manner.
    2. The banks need to allow for a price that does not have a deverstating impact on gold production - not too low for efficient mining companies.
    3. Nor should the POG be so high that inefficient miners will thrive and close the gap between production shortfall and demand.
    4. There will be minor surges in POG but expect such surges to be moderate and short term.

    Gold is no longer the hedge against currency - there are much better hedges such as property or overseas investment or buying other currencies.

    Good luck to "gold bugs".
    This time will be different????

    Cheers

    NT
 
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