BML 0.00% 12.0¢ boab metals limited

46 reasons to invest in BML, page-9

  1. 627 Posts.
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    I love your input Protagonist. There's definitely more balanced information with you in this forum. my response is:

    PM pricing is extremely hard to forecast for many reasons including price manipulation. I am sure you already agree with this. My use of “arguably” is very weaselly I agree and it was meant with this intent. I personally wouldn’t be surprised to see gold fall to $1450 USD in the next 12months. The upside to this is that I have conviction that gold and PMs will rise following market consensus of a global recession. I am not entirely convinced that inflation will directly trigger a rise in PM prices however. In fact the opposite is suggested by the below chart.

    My thesis and expected sequence of events is:
    1. High inflation now will cause central bankers to taper and increase interest rates (obviously)
    2. This encourages movement away from gold and into the bond market and hence PM prices fall
    3. the rising interest rates reduce easy credit and the stock market falls
    4. consensus of a global recession is reached by market
    5. people run scared from stocks and into bonds and PMs
    6. PM prices go slightly higher
    7. CPI falls
    8. the central banks then begin decreasing interest rates and printing money
    9. bonds are not attractive and people pile into gold and PMs
    10. PM prices explode
    11. Easy money then floods the stock market
    12. PM prices crash
    13. cycle is repeated a few more times until we implode into socialist fascist surveillance state and banana republic (i.e. future USA)
    14. PM prices increase 1000000% and we begin bartering shoes, coins and children for sustenance
    15. new free market nation is born and the cycles repeat themselves

    I believe step 10 times very well with development and production of Sorby Hills. What’s that? Maybe 3 years away?

    https://hotcopper.com.au/data/attachments/3917/3917797-4f3185e6c232aea72f78eba9c4a33e31.jpg
 
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