Sorry buddy , U say people will jump to safety of gold ? Well they certainly but primarily as a hedge Physical gold ) is the only safe haven . Secondly if we get very high inflation the market will crash or major correction will entail. so will any shares regardless of whether its a gold stock or not. Good news is as gold price will be high , gold stocks will recover faster , The producers first , than the developers than the explorers. Bad news is most of us probably wont have enough courage to hold stocks should a major correction arise or a crash.
I just want reiterate than having a gold stock does not equate to any sort of safety as only a gold hedge can provide that .Physical bullion !
In any case even without hyperinflation or high inflation . Gold is unlikely to ever again go below $1600 us . This is due to as u stated the money printing (QE) and the new rules Basel 3 .
No doubt High inflation will inevitably arise -Its probably the only all governments can get rid of their debt.
AUT Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
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