DCN 0.00% 28.5¢ dacian gold limited

Hi FiveCent,Here are my tea leave readings for you to...

  1. 1,805 Posts.
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    Hi FiveCent,

    Here are my tea leave readings for you to contemplate on!!wink.png:

    1) The Evergrande is a side show that may prick the stock market bubble. This may not happen immediately but the impact of Evergrande failure will be a gradual erosion of confidence in the stock markets. Debt will become the most mentioned word in the stock markets before and after the start of the markets slide.
    2) Gold price will slide initially, along with the stock markets, due to margin calls but will recover very quickly: GP has already been on the decline since Aug 2020 until Mar 2021 and hadn't risen much since then and therefore it is unlikely that gold is held by leveraged investors (cryptocurrencies are the most likely candidates for the margin calls).
    3) Beyond the Evergrande effect, the stock markets will remain in the doldrum (ripple effect of Chinese economy on the rest of the world) and likewise the world economies while inflation(US may starts to import inflation instead of exporting inflation) continues to creep upward. While the world economies are anemic, central banks will hold back from raising interest and this holdback is also in part due to the huge amount of corporate debts. It had been clearly shown that there is a very high correlation of gold price (in US$) to the difference between Inflation and 10yr yield rate. As the gap between inflation and 10yr yield rate increases, GP (in US$) will keep on rising and rising: therein lies my confidence that GP will at least double between now and early 2024.

    AIMHO. Please don't invest based on my tongue-in-cheek tea leaves readings.

    Cheers.


 
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