The FED opened Pandorra's box last week. Slowly, the market is...

The FED opened Pandorra's box last week.

Slowly, the market is realising that interest rates in the US will remain low forever, that interest rates will continue to fall, that the dollar is very likely to weaken and that there is no way to fight inflation. Which means that real interest rates are likely to fall further.

Trump could be re-elected with a change at the top of the FED. If you buy a dollar today, you are financing the US debt and you can almost certainly say that in 5 years you will only have half your money back. The alternatives are US shares (not quite cheap...) and gold and commodities in general (see copper...).

The next 5 to maximum 10 days will set the direction for the next 18 months. I remain bullish. Sooner or later a few others will realise that a gold producer is a cash machine. With a POG of 2500, 3000 or 3500 USD/oz you don't have to worry about price targets anymore. Then we're not talking about cents but about dollars - Aussie dollars in this case.