au dollar and gold price, page-16

Thanks graham .

Great price action for Amx this week considering the nasty POG backdrop.

Maybe the boys are getting those oxides ready for PFS and some inside buying going on ? Resource Ann's for doumbema and foumbiri may be close .

Would like to see some more director buying at this level . Especially from the newer recruits . Get some decent skin in the game .

POG looks like its suffering from the DOW froth and USD strength , but I doubt it will end well for those buying into the rally here .

Ask yourself , What sort of macro picture would you expect to associate with all time highs on the DOW ? ....

Near full employment , record breaking company profits , above trend growth , rising GDP , balanced budget and little govt debt is what I would associate with warranting record high Dow prices .

But that's far from what we actually have , almost the exact opposite in fact!

So then we must ask why is the Dow rallying to all time highs then ?
For two main reasons imo:

1. QE money is finding its way into the market creating another equities bubble ( watch what happens if the fed removes the air (QE) from balloon they've created .)

2. The artificially low interest rate environment is forcing people that would otherwise be savers into the market to find some form of yield . Little other choice for retirees that need to get some sort of ROI to make a living .

We all know what happens to things in the market place that rise to all time highs on shakey fundementals ( see nasdaq tech boom ) .....they fall to their intrinsic value ( see GFC ) .

USD is on borrowed time also . All fiat currencies have always returned to their intrinsic value , which is zero . Ask the last great global super power , the Romans how things played out when they started stuffing around with their currency ?? Not well at all , and history always repeats .

In the long run , you just don't get something for nothing (QE) and the universe always has a way of balancing all unresolved equations . Gold has always been the counter balance in the momentary and financial world and it must rise eventually to counter the free money that's being sloshed around . Nothing else is certain , but timing is always tricky .

Amx, well they'll be mining a real asset , through real efforts , to create real money (gold). It will also return to its intrinsic value over time , which is much higher than 23c . What is a company worth that produces the only form of real money the world has ever truly known ??? We will find out one day and Ill certainly still be holding my lot .

Hope one day to receive my Amx dividends in bullion form also . Now that would be something !