Agree and the funny money printing has not stopped yet - look at...

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Shaq_01

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06/08/20

15:20

Post #: 46351691
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Originally posted by rrossingg: ↑

Tribeca says gold can rally further if history is any guide.

"There has been a huge amount of money printed and we've now got a situation where, amazingly, what seemed liked an unrepeatable event of the GFC of 2008 has now been well and truly exceeded in terms of stimulus and money supply in 2020 to the tune of five times," said Tribeca's head of research, Todd Warren.

The increase in money supply and prolonged negative - or inflation adjusted - interest rates offered a "fantastic set-up for the gold price".

Mr Warren noted the world's three biggest central banks had increased their balance sheets by eight times since 2000, while gold had only increased six-fold. Gold is also trading at a record against a basket of the world's top currencies.

"In comparison to previous bull markets we have a very long way to travel," he said.

The fund's interest in gold stocks is also based on attractive valuations.

Gold mine developers are trading on an enterprise value-to-resource ounce multiple that is about the same level as 20 years ago and well down from the peak of 15 years ago.
Gold stocks also look cheap on a price-to-net asset value multiple. Miners of the precious metal are trading around net asset value, compared with historic levels of around two times.

"There's been a significant de-rating and an opportunity with regard to gold equity valuations," Mr Warren said.

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Agree and the funny money printing has not stopped yet - look at the USA to add ANOTHER AT LEAST 3 TRILLION FROM NOW TO THE ELECTION CYCLE AND BEYOND

We wont have a real idea of what is happening in the economy until early next year

THE PICTURE IS VERY VERY GRIM

MDI Price at posting: 2.4¢ Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

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