Gold price - back up the truck?

Is anyone backing up the truck as the gold price starts to break down?

 

yep, but waiting for $2k to fully load.

 

I'm saving cash right now but looks like a decent time. It might even drop some more.

I need a sawmill and the snow is starting to melt here. Spring is comin fast!

 

Going into lumber business?

 

Haha no, I just need one here for my own use at home and could use the lumber from all these trees.
From the sounds of the lumber market they might need it more than I do. This summer could be a desperate situation for construction if theres still a shortage.

 

Not yet, I reckon it's got more to go. For those holding then they have nothing to worry if it rebounds from here. For those not in the market I will have to steal @sammysilver 's line and say

"The best time to plant a tree was 20 years ago, the next best time is now"

 

May have to change my signature!

 

Gold is bottoming in usd? Despite the negativity, it's still around the $1700 mark. au in aud is more tricky.

 

so possibly further breakdown of the USD would lead to higher gold price but also a stronger AUD and then it becomes a balancing act between the two?

 

USD might be getting stronger for now which is good for us stackers.
This is a really hard time for me not to order a 5 or 10 gram bar at least. I'm trying to save cash but DAAAAAMMM!

 

I hear you mate. I’m tempted to back up the truck but getting funds ready and selling off all the unnecessary bits and pieces in the meantime.

 

The relationship between usd and gold might not always be inversed. if you remembered, gold was rising as usd rose gradually from Jan 2019 till March 2020. I'm watching gold stocks, NEM and GOLD looks cheap, even cheaper than gold itself.

 

good point. Many of the miners are well undervalue even at $1700 gold price.

 

I’m still watching, haven’t bought yet. Gold stocks have always been volatile, especially if there’s a stock market correction.

There’s a lot of talk about dollar devaluation but I have a different idea that I have come out of my own. The US is reaching herd immunity both by infection and vaccination and they are the only major economy that can produce sufficient vaccines to vaccinate everyone within months. Once herd immunity is reached, the local economy, malls and restaurants will boom to unimaginable levels, especially with the stimulus. The dollar may stabilise or even appreciate gradually in the short to medium term. Past couple of weeks, I’ve been researching and buying depressed US stocks that will benefit from such a boom.

 

I imagine this would result in higher CPI on the back of govt. stimulus, reduced global supply, possibly less service providers remaining from extended lockdowns and restrictions.
If this plays out it seems like the Fed’s wet dream comes true because they can’t afford to raise interest rates without the govt. defaulting on the debt.

I imagine this bodes well for the gold price when real yields go super negative.

good for hard assets and inflation sensitive services. Bad for the average consumer.

 

Definitely, inflation is good for debtors. With the socialist government in power, a bit of inflation won’t be an issue. You can always give out food stamps and impose rent controls. But the consumers in the developing world will be in trouble. This will drive physical gold buying in these countries.

 

I imagine rent controls will result in mortgage defaults and then the whole house of cards falls over.
Do you believe the fed can control Inflation? At this stage it seems they change the metrics to keep an illusion of it being lower than it is.

 

Rent moratoriums have just been voted unconstitutional in the Texas supreme court.
The judge said he wont file an injunction if they expire march 31st but that it's not legal and not constitutional.
If be surprised to see any judges do anything at this point. It's already been a year almost and the damage is done.
Nowhere in the constitution does it give the cdc the power to do any of this.

 

There is little to no inflation according to "the official numbers" in the US.
Actually we are close to full employment from what they report haha. What a joke.

They cant stop the Inflation at this point, it only can keep going until the point of impact.
If they stop the printing it would all come down instantly.

 

I don't know how it will develop in the future but for some form of UBI to work, rent must be controlled, otherwise it will be like trying to fill up a bucket with a leak.