With Buffetts Berkshire Hathway dumping bank stocks and buying gold, despite a long history of ridiculing gold as an investment, I think it’s fair to conclude there’s a significant paradigm shift in his and his prodigies investment philosophy and lack of confidence in the banking system. This is a long term cycle investment, not a short term trade.
When this sinks in to the broader investment community we can can expect the larger producers will attract new money. NCM will be top of the Aussie list so we can reasonably expect its longer term price to benefit.
There is a currency crisis underway in addition to a insolvency crisis - an effective vaccine is months off and for businesses with poor cashflow and balance sheets, it’s just a matter of time.
US10Y shot up during last week and added some pressure on PMs, but the decades long term macro trend is down, so nothing material has changed on that front. US debt is blowing out and any material short term rise in yields will add to their servicing inability - the FED cannot allow a circumstance where the governments loses its ability to service the debt - ie default.
That potentially means yield curve control policy which puts additional pressure on long term interest rates, which is positive for gold.
