MEI 2.78% 18.5¢ meteoric resources nl

General discussion (MEI), page-32

  1. 329 Posts.
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    It is expected that the gold price now is not sustainable.
    Now you are going to say we have a few catalysts to support the gold price.

    First, geopolitical tension is only short-term, and no one wants a war to happen, so this will resolve shortly. (unless sh1t happens, which will be very unlikely, nobody is silly to go to that stage)

    Secondly, the high inflation rate that we are looking now is all because the base period is too low (the inflation rate now is compared to last year, so in Feb 2021, the inflation rate is low because of COVID, this makes the inflation rate this month looks crazily high), and it is expected that (according to FED and economists said) the inflation rate will come down (that is because the inflation rate in the Q2 of 2021 started to pick up, so the comparison to this year won't make it too high).

    Thirdly, supply chain problem is expected to be temporary too. However, many countries are coming out of COVID restrictions, the bottleneck in supply chain is resolving. Even if you see some news saying that people don't want to work because of wages or mandatory COVID vaccinations, this is expected to be short-term issue.

    Now you are betting that any of these I have listed above will get worse, which seems unlikely for now, because people now have high expectation. Your best chance will be next few months, if you are betting right, the gold price will favor you. Having said that, this does not guarantee that you will make money though, because you are buying some exploring gold stock, you are relying the imaginary gold under the ground to protect your wealth, unless this company knows how to pull out a trick and pump the SP again, otherwise, MEI is just a dead horse
    Last edited by richardlow: 15/02/22
 
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