New broker reports, page-9

With due respect, hedging is an internal PL/BS protection against the bad times which is a prudent way to maintain a sustainable business for the long term. Valuation is based on the spot price of XAUAUD and for the time being I can't see the AUD but continue to outperform the USD. The irony of the current consitions is that money printing and the M2 rate of stimulus is steep and coupled with the vaccines is giving the recovery a big boost. You only have to look at the bond market to see the factoring of even medium term inflationary pressures. It is of cource coming off a very low net basis or less negative. This alone with the TINA (the re is no alternative) has found money jamming the only market with a decent return of capital growth if not dividends.

I am looking +10 -10 around $1700 XAUUSD and AUD$2114 as possible support. This is close to the LT support Fib 50% roughly which is also the retracement of XAUUSD low in 2016! I don't really know much about the hedging strategy of RMS and I'll take your word for it. Unfortunately timing is always in essence the most important aspect of an investment because when in a paper gain it at least opens up options which I did't have this time around. No point gloating about my previous gold exposure because it is the now and future that decides.

Going back to gold rally in USD in 2011, the intial slide was 20% which is a few % bigger than current. This is just a guide form the past. That phase took about 2 years of distributing before the big crash in April 2013. I don't know where some commentary pull up the $2200 figure where gold could seek except equal distant from 2008 low to 2011 high then extend from 2016. If I look at the XAUAUD then technically the rally is all over. AUDUSD 81.5C offers a strong resistance but everything really depends upon Chinese economic intake of IO and perhaps how fast Braxil can come back online.

One thing I have learned is that predicting the future is futile.

I went back to have a look at the time when I entered RMS in the so called pullback but I didn't see the signs of distribution at the top. EVN and to a lesser extent NST all has signs of the same distribution. I bought as the smart money probably finished their rotation out of the sector and a mug like myself was the collaperal damage. Another important lesson on chart reading.

For the time being I am a trapped bull so to get perspective, try to see if get out at no loss is an oprtion before looking at capital gains. Good luck to the sector. Too long a post of really nothings.