I have been interested in gold for a long time now and its one of the reasons that I first became interested in gold resource stocks. The reasons for my interest are around inflation, gold being the planets only actual money and the printing of large amounts of paper money - for quite some time now.
As far as sovereign debt is concerned though, particularly the USA debt, you are right, in that even tiny interest rate increases, increase the USA debt management - that of paying it back , well nigh on impossible - even for the USA IMO.
However, I don't see the USA country imploding or losing its domination of our planet. There is a good chance countries will negotiate debt reduction with each other, that basically largely cancels some of their respective debt obligations. Or something similar. Indeed, I thought Mr Trump would start this off in his second term had he retained the presidency. Debt defaults I don't know but could become part of the picture if they were viewed as 'friendly' debt defaults.
No one IMO wants the US $ to crash - take the Chinese, they have a large portion of US treasuries on their books so I would think that they are interested in seeing all of their treasury interest payments continue.
There will be a fine balance.
Gold resource stocks like FFX are now and will be a very important part of investors portfolios IMO.
All IMO
FFX Price at posting:
$1.09 Sentiment: Buy Disclosure: Held
