DEG 3.27% $1.27 de grey mining limited

where is the bottom?, page-3

  1. 162 Posts.
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    The action in gold is a symptom of a liquidity shortage in the broader market. Gold is the first asset sold when raising cash so it is the first asset to see a fall in price before the true cause of the distress is revealed.

    So, what is the cause of the distress I hear you asking. The problem is that the expansion of the money supply is not happening at a fast enough pace to keep the bubble expanding. This is what happened in 2007 and 2008 before the GFC. Personal and household debt has ceased to expand and is now net negative as individuals have - in aggregate - stopped taking out new debt and are paying down debt. This is the beginning of a market contraction and the rate of expansion of the bubble is slowing. Commercial debt is rapidly declining and at the present rate will go net negative at the end of March or early April. When commercial debt goes net negative that will be the turning point for the bubble and it will begin to contract in earnest and that will be reflected in the broader share market as a crash.

    Wait a minute! Isn't there supposed to be a massive stimulus package from the new US administration? Yes there is but it is not going to be as big as the initial announcement. That is because the numbers in the House and the Senate are almost evenly balanced and that means that there will be protracted negotiations to get any package through both houses and there will be compromises resulting in a smaller relief package and more pork for vested interests - meaning that the stimulus value of the package will not be as big as hoped when it arrives - and the delivery of the package seems likely to be probably around the end of March or early April.

    All in all, this is terrible news for gold investors. We will have to endure some vicious moves against us before we get to the gravy. But I am not going to sell out now hoping to buy back later. No sir, that I will not do. You see, with a severe market reversal government finances will be stressed and new taxes will be imposed and the rules on old taxes will be changed. Except in the most dire circumstances such changes are never made retrospective and if you have not sold your shares to buy them back later your tax liability will be under the old rules (the rules that applied when you bought your shares). That is incentive enough for me to sit tight and hold on for the ride.
 
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Last
$1.27
Change
0.040(3.27%)
Mkt cap ! $2.341B
Open High Low Value Volume
$1.26 $1.27 $1.24 $6.176M 4.913M

Buyers (Bids)

No. Vol. Price($)
2 13851 $1.26
 

Sellers (Offers)

Price($) Vol. No.
$1.27 5138 1
View Market Depth
Last trade - 16.10pm 28/03/2024 (20 minute delay) ?
Last
$1.26
  Change
0.040 ( 2.52 %)
Open High Low Volume
$1.25 $1.27 $1.24 775122
Last updated 15.59pm 28/03/2024 ?
DEG (ASX) Chart
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