Visited the gold forum first time in many years. Nothing has changed really themes are the same.
Gold may drop with the coming crunch as investors liquidate for margin and central banks sell to hold up their currencies. India and China jewellery sales will be soft. In the short term cash is good to take up some opportunities in the equity markets.
So whats going to happen?
Dow drops 20 per cent, gold drops 10 per cent more, fed say they will do what ever it takes, 2 more interest cuts and if things are bad another round of quantitive easing. Later in the year earnings start recovering, antivirals for covid available and vaccine available for the next northern hemisphere covid/flu season. Some creative destruction ie. weak companies go under mostly airlines, tourist related companies and US shalers. POO recovers quickly to above 60.
In 18 months share market back to current levels, but with a structurally higher gold prices due to yet lower interest rates and monetary expansion. Aus POG 3500 US 2000.
Just my guess how this will play out.
