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28.5¢ dacian gold limited

Ann: Dacian 5 Year Mine Plan, page-129

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18/09/21

15:51

Post #: 56174519
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Originally posted by sydneyguy: ↑

Evergrande issue has been known for many weeks

it’s not going to crank gold imo

if it was then why has gold pushing for 1830 just earlier this month recently finished the week at 1750 ish following evergrande onshore bond downgrade and bonds trading suspension and equity belting?

moreover - Chinese stock “ bubble” has been easing for a while - note the gold price - it’s also been easing - if the “ bubble “ bursts like many are now salivating and predicting all of a sudden - gold imo will go down with it - people will sell the insurance ( gold) to cover some of their losses - that always seems to be the way and why you see so many on the boards angry gold going down when an actual crisis hits

evergrande will be worked out eventually imo- but if its going to bring a collapse and provide the catalyst for gold to rise - why has it not done so already?

Evergrande has had a terrible week in terms of its bonds and equities and consumer outrage - why is gold down and why would it suddenly change course for a major issue known for many weeks? Why is evergrande now being promoted far and wide as a reason for gold to go up when it’s just gone down at a time when evergrande is hitting msm headlines

There is leverage all over the system imo- gold is no different - as you saw this week as everyone predicted usa dollar collapse once again and no chance of taper blah blah it finished way down despite the evergrande crisis which was occurring

doomsday monkeys got their heads cracked this week- usd up- retails sales data and most other data way way better than expected there - in some cases consensus was completely on the wrong side - this complete miss of even the correct direction saw firming 2022 market futures of a rate hike

to be honest - markets even in USA have begun to fade a bit - I’m actually suprised there wasn’t more of a dip- but I think it’s coming- tax rates in USA approved a masssssssive increase this week ( 21.5 to 26.5)- uk a monster increase the week before -

the mammoth trump tax cut which jolted the markets skywards are imo going to unwind in some part -
They went up in part from increase from eps from lower tax - but seemingly corporate taxes are about to go back up - time will tell

taxes Brazil set to increase - mining taxes already increased mega in percentage terms as well as energy surcharges

Either way - my suggestion is don’t suddenly believe evergrande is the crisis to send gold up- markets down etc- these issues have been well known for weeks and gold has failed to hold -

why evergrande will suddenly change Gold direction which has fallen to suddenly be a catalyst for prices is imo nothing more than spruikers pointing to headlines looking to sell the stuff and get out

good luck -

but evergrande won’t change the fortunes of Dcn- only rising production and margin will do that - and there isn’t any indication that that has improved this week - infact aud gold prices are down and aud energy prices are up this week-

margin compression for Dcn and most of the sector continued right into the end of business Friday that was a the reality - have a trade but trade safe

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As in the Hoarong bailout only a few months ago which did nothing to markets, the same can be assumed for the Evergrande rescue.

However, China's House of Cards (pardon the pun) sure is on shaky ground. And with the imminent slowdown in real estate, money needs to go somewhere! Into the Equity markets (currently at all time highs)? Bond market? Commodities? Maybe PM's? Gold?

@sydneyguy and@Greenflint and others: interested to hear your differing views? Always appreciate arguments from both sides of the ledger.

DCN Price at posting: 21.5¢ Sentiment: None Disclosure: Held
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