Gold's relationship with real yields has shifted in recent months, suggesting a regime chance for the yellow metal.
The prospect of a more stubborn core inflation backdrop and potential pause for central banks rate hikes is constructive for gold - and for most other precious metals.
Modest USD weakness over the medium term is consistent with a decent rise in gold pricing.
Investors remain under-invested compared to previous years (e.g. ETFs)
Central banks were huge buyers of gold in 2022 (e.g. China...) - and if this continues, it will be a game changer.
The only downside risk is the possibility of position liquidation to provide margin fro risky assets - as in 2008/2009.
Summary: Gold is set to trade materially higher levels over the coming months and years - this could lead to a new era for precious metals in general.
I personally do not write off the gold topic in the context of HMX. Actually, I only became aware of HMX because I was a shareholder of Echo Resources (which was taken over by NST - now our neighbour in Bronzewing South, so to speak).
Apart from that, it makes a difference whether the gold that could be mined as a by-product of copper extraction could be sold at a USD/oz of 2000 or 3000 (or more).
I don't even want to go into the chart-technical considerations now. Nor do I want to go into other panic scenarios that would send the gold price soaring to heavenly heights.
I think we could see a price of USD/oz 2100 in the next few weeks - which could pave the floor for prices towards 3000 in the next 2 years.
The price of copper is also very resilient. Currently back above USD/lb 4. I would rather have thought we are still correcting towards 3.8 or below. Amazing somehow.
As always, everyone has to know what he or she is doing. For my part, I remain constructively positive for HMX. Let's let the metals speak - if everything that experts, analysts and who knows what else predict comes true, then the calculation must also work out for HMX. Then such a Kalman Hub plus decoration could justify, in my view, a market capitalization that is considerably higher than the current one.
DYOR
HMX Price at posting:
5.4¢ Sentiment: Buy Disclosure: Held
