The US$PoG and Gold equities share prices have had an inverse relationship to the DXY all year. The USA has been utilising the US$ in its economic War to fend of rivals for global reserve currency status. The DXY rose as high as 115.
A couple of months ago, the DXY fell back to 105 in response to a G6 Finance Ministers meeting.
Recently the UK and Japan Bond markets have been troubled as the DXY rose again to 113. The UN and other Nations have criticized the US for destroying global economies with the strong US$.
A G20 meeting approaches and suddenly the US$ falls. Nothing suss here ya reckon? "Fascism is the merger of State and Corporate power" - Benito Mussolini
As Luke Gromen said recently, when liquidity issues hit, the US$/DXY will skyrocket, before it crashes. He also highlighted that the US Treasury mentioned prior to the FOMC meeting, that the US Trade Deficit will double for CY23, raising liquidity issues.
In 3 weeks, NST has risen from $7.66 to hit $10.65 on friday. That's up 39%. The last time the NST price was over $10, the PoG was US$200 higher.
Yet one month ago, NST released ordinary production results, highlighted by increased AISCs.
Just
2 weeks ago , Barrick Gold released Sept22 quarter results, with production down 9% and
AISCs up 22.7% on last years quarter. Newmont's Jun22 quarterly results were similarly highlighted by much higher AISCs.
Labour and Energy costs still trouble world Gold miners. IMO, the real NST bet is what treasures the Super Pit will eventually reveal after all this CapEx groundwork.
With the current run on Gold equities share prices, the question is how much FOMO fizz?
Place ya bets.
Come in spinner.
VIDEO I originally bought at $8.80 and then doubled my holding at $7.61 and $7.36. I did a trade a month ago which clipped 34c off my cost base, bringing it down to $7.96.
So I've taken a good profit off the table.
I hope to get back in and clip that cost base down further. If not, I still made a good profit.
Good luck everyone.
"One of the ultimate signs of investment maturity is when you can buy a stock higher that you passed on lower - when you can look at the same company through unbiased eyes not calloused by a cost basis that could have been" - Ian Cassel
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