#gold #miner #russia 2022. Russian, Ukraine ware effect in gold.
Russia United States ware tension we have negative biases
our brains are hardwired to look for the pattern because of all of our history and how we survive as species. when we notice patterns this happens there for this happen.
geopolitical all so, big investors are putting money into gold self-reinforcing prfocying everybody expecting some money goes to the gold they buy gold and drive the price up .
the reason gold is the center of this, gold geo, political perspective the only asset this is not same time somebody else liability in times of increasing political tension
in times of increasing geopolitical tensions really allies but your not really war these things get fears of default or whether its not its chosen or not get uh they get heightened and so investors will flock to safe-haven assets that don't have that capability now
an important point
if you don't store your gold your self you got gold stored by somebody else liability your relying o that person that company that entity that country to give you the gold if you ask for it and so that some be aware of its not a game-changer because different forms of gold ownership are very appropriate depending on what goals are if I want to eliminate counterparty risk completely I got hold my gold my self in my hand if my hand if I want to have assets waiting for me in another country just in case I need to flee and I need wealth waiting for me there on the other side, because I'm not gonna be able to escape with it then that's a situation where storing it and trusting a third party private vault in a different country with a high degree of economic freedom that kind of things allocated segregated insured all that those things become very important because different goals right. depending upon your goals are their different opportunities all within the sphere of gold and precious metals ownership.
that's the only reason gold is rallying right now one of them going to be the federal reserve we see continues more and more fear federal reserve selling more quickly raising rates more quickly those deflationary fears of tightening. you may ask why is that pushing gold up because you may
no1. even in most deflationary times gold does very well look at the great depression yes, gold did extremely well yes that was forced into it by the government repricing it upwards you get the point. whether its deflation or inflation gold tends to preserve its purchasing power. gold is forwarded-looking investors looking are anticipating the future
no2. gold is moving down as investors anticipated the deflation the fed might cause and the moment the fed actually started taper of their asset purchases what happen was gold was bottomed and so now investors have to know more fear what's going to come after deflation or taper has already been priced into gold, and the tings are being priced into gold now are the future what comes after that when the taper fails and they have to start qe up again.
Recently really over a couple of weeks, I would say it's possible this overextended, I'm expecting a pullback. have heavy resistance here 1900. smash that 1860 mark very strongly
I in the meantime, I'm expecting the next couple of months one-two year gold miners I anticipate to do extremely well here most of the mining companies most exploration companies, and producers they are basically being priced by the market in anticipation of a big drop in the gold price reason for this because the gold mining industry wasn't the best at managing their cash flow for a long time, especially in that last gold bubble around 2011.
they burn lots of investors are scared and don't want to pour their money in that has resulted in their prices being suppressed resulted in their share prices being very low to the point that the share pricing in basically a big drop in gold many of these large producers as well are profitable at a gold 17100 1600 1500 1400 some of them down at 12 or 1100 an ounce now as energy cost keep on going up that will change as well.
let us say oil doubles the oil that's going to impact the profit margin of a lot of these gold mining companies, however, the price of gold going up has a disproportionate effect on the companies because if a company for the same amount of work can sell something at 20 percent more 30 percent more 40 percent more that makes a huge difference to their bottom line because if it costs the company fifteen hundred dollars to get it out of the ground and sell it, selling it for 1800 dollars well if cold goes to 2100 dollars they just double their profit margin as it becomes more apparent that gold is in the new bull market every time it drops it drops far less then where it was before every time it rallies it starts to make new high right now. its at an eight-month high soon it could be one year high soon it could be at an all-time high as that becomes more and more apparent that will start get the attention of investors and start to get the big money that will start to look at these miners say hey there some deep value here we can buy this we can sit on this these are cash cow cash machines and it will start to get the attention of investors pushing share prices up you
Russia United States ware tension we have negative biases
our brains are hardwired to look for the pattern because of all of our history and how we survive as species. when we notice patterns this happens there for this happen.
geopolitical all so, big investors are putting money into gold self-reinforcing prfocying everybody expecting some money goes to the gold they buy gold and drive the price up .
the reason gold is the center of this, gold geo, political perspective the only asset this is not same time somebody else liability in times of increasing political tension
in times of increasing geopolitical tensions really allies but your not really war these things get fears of default or whether its not its chosen or not get uh they get heightened and so investors will flock to safe-haven assets that don't have that capability now
an important point
if you don't store your gold your self you got gold stored by somebody else liability your relying o that person that company that entity that country to give you the gold if you ask for it and so that some be aware of its not a game-changer because different forms of gold ownership are very appropriate depending on what goals are if I want to eliminate counterparty risk completely I got hold my gold my self in my hand if my hand if I want to have assets waiting for me in another country just in case I need to flee and I need wealth waiting for me there on the other side, because I'm not gonna be able to escape with it then that's a situation where storing it and trusting a third party private vault in a different country with a high degree of economic freedom that kind of things allocated segregated insured all that those things become very important because different goals right. depending upon your goals are their different opportunities all within the sphere of gold and precious metals ownership.
that's the only reason gold is rallying right now one of them going to be the federal reserve we see continues more and more fear federal reserve selling more quickly raising rates more quickly those deflationary fears of tightening. you may ask why is that pushing gold up because you may
no1. even in most deflationary times gold does very well look at the great depression yes, gold did extremely well yes that was forced into it by the government repricing it upwards you get the point. whether its deflation or inflation gold tends to preserve its purchasing power. gold is forwarded-looking investors looking are anticipating the future
no2. gold is moving down as investors anticipated the deflation the fed might cause and the moment the fed actually started taper of their asset purchases what happen was gold was bottomed and so now investors have to know more fear what's going to come after deflation or taper has already been priced into gold, and the tings are being priced into gold now are the future what comes after that when the taper fails and they have to start qe up again.
Recently really over a couple of weeks, I would say it's possible this overextended, I'm expecting a pullback. have heavy resistance here 1900. smash that 1860 mark very strongly
I in the meantime, I'm expecting the next couple of months one-two year gold miners I anticipate to do extremely well here most of the mining companies most exploration companies, and producers they are basically being priced by the market in anticipation of a big drop in the gold price reason for this because the gold mining industry wasn't the best at managing their cash flow for a long time, especially in that last gold bubble around 2011.
they burn lots of investors are scared and don't want to pour their money in that has resulted in their prices being suppressed resulted in their share prices being very low to the point that the share pricing in basically a big drop in gold many of these large producers as well are profitable at a gold 17100 1600 1500 1400 some of them down at 12 or 1100 an ounce now as energy cost keep on going up that will change as well.
let us say oil doubles the oil that's going to impact the profit margin of a lot of these gold mining companies, however, the price of gold going up has a disproportionate effect on the companies because if a company for the same amount of work can sell something at 20 percent more 30 percent more 40 percent more that makes a huge difference to their bottom line because if it costs the company fifteen hundred dollars to get it out of the ground and sell it, selling it for 1800 dollars well if cold goes to 2100 dollars they just double their profit margin as it becomes more apparent that gold is in the new bull market every time it drops it drops far less then where it was before every time it rallies it starts to make new high right now. its at an eight-month high soon it could be one year high soon it could be at an all-time high as that becomes more and more apparent that will start get the attention of investors and start to get the big money that will start to look at these miners say hey there some deep value here we can buy this we can sit on this these are cash cow cash machines and it will start to get the attention of investors pushing share prices up you