Ann: 2022 - Year in Review, page-22

DFrump

We are probably watching the lag effect in gold. It’s the same as the lag effect you are seeing in inflation and interest rate hikes. Rates have taken off but that is yet to flow through. It can take up to a year before you see a real change. She is a slow ship. Many decent commentators are suggesting that 2023 is the year we try for $2000 again. Inflation rate is expected to remain higher for longer. The US dollar should start to weaken as well. All this stuff feeds into the positive side of gold. By the way, it’s getting very hard to buy coins. You can feel a shift in the gold market. The world has trillions in cash, higher inflation and a completely under exposed sector. The printing continues, debts keep rising and govts keep spending. All this does is stoke inflation while they raise rates to try and combat it. Sort of a losing game really. The reserve banks are loading up and have enjoyed using the paper market to suppress the metal price. Once they all get what they want, things might change on the bullish side. Gold is the last big thing to run in the markets as the cycle plays out. The world has never seen this madness before. Covid in China going to slow supply chains down again as well. Gold is chronically under owned. It’s taking time before people wake up. They believed the FED speak about all this going back to 2% and it’s not. That kept people away from the sector. In the mean time, companies are making great money. There has been major under investment and slow assays. Funding isn’t around and building mills is difficult and expensive. It won’t be easy to start a mine moving forward. Bc8 has been doing a lot of hard work to reach this point and it’s permitted with real assets. 2023 might be the start of our long awaited re-rate. I can’t see why gold would fall over and A$2700 gold is a handy price given all the mining sectors experienced cost pressures. Management have said they would build a mid tier miner moving forward. Looks like they have doing just that. The money will turn up one day imo. The wait kills off people. I’m just going to wait and top up sub around these levels. Dyor.