Ann: Star of Mangaroon Camp Scale Gold Prospect Expands, page-42

That is true in a sense, liquidity will flow to less risk, which generally are income producing and dividend stocks. However, if you take that mindset into consideration, why are the big gold producers like NST, EVN, SAR, PRU etc, still hovering quite low when looking at a share price perspective and they are yet to break out in the midst of record gold prices? At current record aud gold prices they are making an absolute killing, even if you take the high inflationary pressures and high AISC of most of their mines into account.

IMO it comes down to what the government and their aligned institutions want to invest in and what sectors they want to succeed. You see the general markets like DOW, NASDAQ, ASX etc performing well because the government and institutions are forcing up the sectors they want. AI, tech, defence, pharmaceuticals, renewables etc. They need them to succeed for their own economies, to ensure employment stays high, future growth, expansion etc. If gold and other commodities such as oil, gas, REE etc succeed, then the 'enemies' like the BRICS countries succeed. BRICS countries are the ones who have been buying up big in gold in recent years while the west has lost focus and has been selling precious metals. Generally BRICS are also the ones with very large deposits of natural resources and raw materials such as oil, gas, REE's.

We saw the Lithium pump in recent years, with all the big-name institutions buying up whatever they could, especially ASX Li stocks. They did this because that is what Biden based most of his economic growth on, and what most western economies based their future on - The 'EV and green tech revolution'. The moment China started getting involved and wanted a piece of it, and their ability to do it cheaper with stronger manufacturing then the Li boom quickly died out because they don't want China to 'win'.

In recent months we are starting to see western countries lose their ability to control gold markets and they cannot cap these prices like they used to. BRICS are getting stronger, more and more countries are trading outside the US dollar and western countries are losing their leverage in relation to gold. I would not be surprised to see gold hit $3000usd at some stage this year. Eventually that liquidity has to trickle down to both gold producers and gold explorers to ensure the gold tonnages continue into the future. Right now we are in a sort of holding pattern while we await these certain commodity stocks to take off. We just need one large catalyst to make it happen. The positive is that the upside is huge from these low share price levels we are seeing across the board, even more so in gold stocks.