FM3 firstmac mortgage funding trust no. 4 series 1-2020

Brother, the fed reserve and all other policies etc all support...

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    Brother, the fed reserve and all other policies etc all support sustained fundamentals for continual interest and strong prices in the POG. However, in the shorter term say, up to 12 months, the following needs to happen for gold stocks to do well

    • Bullion Banks to stop or reduce the amount of shorts in the futures market as that is artificially capping the price
    • Currently, with the amount of shorts the bullion banks hold, it is physically impossible for them to close the majority of them out without sending the POG going parabolic
    • POG needs to rise and break above 2,000usd and hold for at least 30-45 days in order to attract money from funds in the sector
    • The physical demand is very strong and people are actually taking deliveries, this is what is different from the 09-12 bullrun.
    • Its the money from the funds that is going to boost liquidity in the sector in the shorter term
    • Alternatively, we need to flush out the trapped holders in gold stocks, so that most the share registers are professional money, both from institutions, sophs and smart retail
    • At the moment, things are all over the place. I'm still invested long in the sector and have been so from the very start, but, going long means you can/should only invest what you are willing to park and be prepared to not touch for say the next 18-24 months.
    • Trading wise, i'd stay away from gold and trade the other inflation catalyst stocks like lithium, oil, gas, graphite etc, for example, some of the other commodities have seen a 20% rise to the spot price in the last month alone, you can play in those sectors, but just set trailing stop losses
 
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