Gold stock sentiment indicator.
Everything appears to be on pause until the inflation numbers are presented.
As usual you will be told that the expected inflation read is priced into the market.
Personally I believe this is BS.
The market is where it is right now.
A number is chosen which happens to be a consensus pivot point. The actual reading will send the market and gold in one direction or another.
What I do expect is a bit of a reality check and most of the players that have never experienced inflation hitting the books trying to get a feel for how this may unfold.
ATM companies have been making healthy profits with all going to owners and shareholders. The plebs are way behind in wages. Debt is out of control.
As inflation kicks in, inputs absorb some of the cash that was used for profits/dividends and will only be tolerated for so long.
Food and energy inflation hits the plebs hip pocket.
Mouldering in the background are huge slabs of corporate and mortgage debt.
Corporate debt has a fixed rate, at least till refinancing but mortgage debt... Here in Australia we do not get 30 yr fixed mortgage rates, unlike the US.
If the plebs have to deal with inflation in three major necessities of life - food, shelter and energy then wages pressure will rapidly increase. And don't forget the debt that may also increase with rising rates. If necessary, banks will raise rates regardless of what the RBA does.
Wage pressure feeds back into corporate costs who will then have to increase output prices.
The inflationary spiral.
To the rescue for the corporate sector comes automation. But not for the plebs. Except maybe in certain deflationary ways (manufactured goods, etc).
I have always believed the role of CB's has nothing to do with employment. Automation will make it even less relevant.
Much of this debt has been monetised into the pockets of the 1%. And everyone else will pay the principal and interest.
Call it whatever theory you like but capitalism has lost the plot. Or at a minimum, US stewardship of the system has been found wanting.
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Having to odd bit of gold or gold stock is a nice bit of insurance.
Sentiment recovered a little yesterday but seeing some profit taking today.
One thing is certain - stable POG prices are transitory.
Here is the indicator.
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