GOLD 0.51% $1,391.7 gold futures

POG A reality check.

  1. 1,781 Posts.
    The gold bugs did themselves a disservice when they tied the future of gold stocks to the "certainty" that POG is set to rise to astronomical heights.

    The manipulators (assumming they exist) have been happy to feed this expectation knowing full well that the flip side of a burgeoning POG, in that scenario, is a crashing dollar, which they must have believed was very unlikely.

    My position all along is that gold must run on fundamentals like supply and demand if gold stocks are to have a solid future.

    The market now will tend to trade gold in terms of the USD or some threat of war or other calamity rather than the gold fundamentals.

    Obviously those in gold thought the best way to ramp gold was by the calamity/doom route. It may just come back to bite the holders of stocks that were capable of appreciation without that sort of stuff.

    I'm still hoping for a rise in POG and its flow on to sound gold stocks but it may now take the market longer to access the true worth of gold stocks and it will sort out the less sound stocks that were getting a free ride.

    (I don't have in mind HC posters but rather the gold gurus on the net.)
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