I think if the FED raises rates to offset the inflation which is obviously here as we can see in our everyday needs the market will drop due to the high valuations & expectations of extreme growth companies & will race to assets that maintain their purchasing power. Gold being the most stable commodity for maintaining purchasing power should see a huge increase in demand with supply unable to keep up which should push the price of gold higher as it becomes more scarce. If this happens & RRL can offload some of their hedges i think the stock will bounce back to well above it's BV providing atleast a 17% return to reach BV + a 4% gross up dividend providing a total return of 21%. I think this is a conservative base case if this scenario plays out but i have no idea it will??
RRL Price at posting:
$1.81 Sentiment: Buy Disclosure: Held
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