I posted this observation on some other spec gold stocks. It picks up Lord Byron's point with regard to a future rising gold price. I think it will happen sooner than later. Sometimes I look at the ASX GOLD ETF to get a direction of things in the gold market for the physical demand. The weekly chart indicates a rising trend and now matches the direction on the daily. Yep cheap buying at the moment. I thought MHC had bottomed when I bought in too, but the market is what it is. The drilling program is still spinning and the new financial year will be upon us. Things happen quickly these days compared to the 1930's. The rest of the world has inflation together with unemployment, which is stagflation. Australia is a little different, in that our inflation rate is roughly half of that overseas, relatively speaking, and we have a labour shortage.
When all is considered, the gold price has been stable and the Aussie dollar maintains the income stream as an automatic stabilizer for producers here. Covid is still an issue here and abroad and the Ukraine war, so shocking, will realign resources to what Australia offers in the way of commodities and critical minerals as necessary goods. Nothing is a quick fix due to lags. When international trade picks up, the Bank of International Settlement rule change with regard to gold as a medium of exchange for international settlement will increase the value of gold. Gold is no longer just a safe haven. Last year both India and Australia were buying gold to top up international reserves. So in my mind gold has a future linked to trade that has not been seen since the Nixon days. So when there is blood in the streets, an opportunity presents in my view. Lots of labs are also 6 months behind. Reality. That does not alter what's in the ground although it can affect planning. Long for me.
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