Positions as of 21 May, 2024
Mid-tier gold miners continued reporting spectacular quarterly results. They kept growing their production when adjusted for one GDXJ-upper-ranks composition change.
The US dollar is in a critical state. With an alarming 34 trillion debt, unfunded liabilities approaching 200 trillion, and perpetual wars, the situation is grave.
It’s unfair for the U.S. government to tax capital gains on gold and silver. Those “gains” are the result of the debasement of paper money, which is the fault of the U.S. government!
China continues to be the marginal buyer in the gold market, driving up the price. I expect that China will remain a robust buyer of gold going forward in support of the price.
Rates will have to come up more to drive inflation down, and the longer Powell denies that, the worse it will be. The market still hasn't prepared for “harder and longer” tightening.
You should not rely on the banking regulators to protect your bank deposits because they are under significant pressure from the powerful banking lobby.
The pattern is an instant correction. Remember, it was $2452 and suddenly it's at $2332. So the gold market is down $120 an ounce.
The fall in gold, silver, and copper will be called a correction. The short-term bearish trend will be confirmed only if the falling trend continues next week.
