Gold stocks: nothing special

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Gold stocks: nothing special

They are at it again. Articles catching on to the US dollar breakdown are appearing in the smaller media , where the thickest bias and dogmatic views are aimed at less experienced investors through emotion.

Gold is fine. Don"t sweat the correction. Well, if you are a momo who got on because you listened to the perma-pompoms, then you should sweat it. You need to sweat it, because the gold price needs you gone, sanitized, cleaned and buffed. The best fundamental backdrop for the gold mining industry is counter-cyclical. It is when things fall apart . It is amid deflationary pressure and asset market liquidation, when gold will hold its value relative to stocks, commodities and just about anything else that"s not nailed down . As the 2020 quote above states,"gold is fine". Ignore these ladies .

If you disagree with me that our markets are the product of socialism , please clue me in as to how I am wrong. When government or government associated and all powerful entities are able to regulate, control how the money is created and where it goes, how is that not socialism as opposed to productive endeavor, which feeds a sounder, less dysfunctional, more equitable economy and financial system? Yes, you are reading an idealist right now.

Those two horsemen are the US dollar accompanied by the Gold/Silver ratio. With silver leading gold today it is a positive signal for the precious metals, commodities and many stock sectors and global regions. But when gold assumes control over its peppy little brother and the USD bottoms within its ongoing larger bull market, the implications of macro events like that shown in the chart above may well bring on a real post-bubble macro.

 

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