You wrote: "it's paradoxical but true: gold goes up with...

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Koeln

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15/03/21

15:06

Post #: 51776229
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Originally posted by chad987: ↑

i don't even know how to respond to this. have you looked at gold's price chart in the recent weeks? have you observed what gold does when there's inflation expectations and announcement of money printing?

remember a poster in here VictorW i think. back in early jan he was listening to the senate debate and he thought gold was going above 2000 again with ncm going to ATH (me too) with all that unlimited money printing. the market's reaction was to crash gold and miners, he panic sold at a loss. now look back at august last year when gold peaked, nominal yields were sinking everyday, when it bottomed gold topped, back then deflation was the fear.

it's paradoxical but true: gold goes up with deflation expectations and down with inflation - because gold is the bboz of nominal yield it doesn't care about real yield.

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You wrote: "it's paradoxical but true: gold goes up with deflation expectations and down with inflation - because gold is the bboz of nominal yield it doesn't care about real yield."

Acknowledging that both NCM and bboz are not doing well recently, I would like to point out a difference between bboz and NCM.
NCM still pays a dividend (above current cash rate) while bboz does not pay anything, if you are holding these as a long term hedge in your portfolio.

In my personal opinion these instruments perform as a hedge in any portfolio and should only be considered as part of a well diversified portfolio.
For the reason of NCM paying a dividend above current cash rate, I personally prefer to have a bit of this in my portfolio over bboz currently.
But bboz and NCM are not the same and everyone has different strategies for their portfolio.

Disclaimer: This is not financial advise. DYOR.

NCM Price at posting: $24.44 Sentiment: Buy Disclosure: Held
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0 Great analysis

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