OGC could run to $9 if Gold $2000+ and Didipio Mine approved?, page-150

Thanks Fangk

I think that a significant reason for the rise in the gold price is the expectation that all the COVID related money printing in the US etc will lead to inflation - the Fed's balance sheet is expanding. However, I suspect that unless inflation catches on that by mid 2021 the buyers of gold will decide to start dumping some of their gold holdings and the gold price will take a major hit. Higher cost mine operators would then be badly affected - note that Macreas is a higher cost mining operation. In addition if the US economy starts to pick up next year gold will lose some of its safe haven attraction.

On the positive side for gold its likely that real interest rates in the US will stay low-to-negative, and that is positive for the gold price.

Its important to see what is happening to the gold holdings of the ETFs, like GLD - are they going down or up. Given that the rise in the gold price has been driven by investment demand, rather than jewelry demand (which I understand has been struggling in Chindia due to the much higher gold price), changes in the gold holdings of the ETF are a useful indicator of the possible direction of the gold price trend.

Oz and Canadian based goldies could be somewhat insulated from a falling USD POG if our currencies depreciate against the USD.

I could be wrong and the story could play out differently.

loki