Interest rate changes "in itself" has zero effect on gold prices, but there implications on the economy and there effects on economic growth has large repercussions on present and future metal prices. Its undeniable
this has been the case throughout history. I posted this a while ago.
I went back and looked in search for the last substantial rate hikes and compared it to gold price. From March 2004 to Sept of 2006 fund rate went from 1 to 5.25 ( unheard of these days)..gold price fluctuated from 400 all the way to 720..almost 100 percent return..2005 had the most rate hikes..from 2.50 to 4.25..gold went from 410 to 535...30 percent return...The dollar index during same time period fluctuated between 80 and 90 ..Translation a .25 or .5 increase in rate hike is very insignificant to gold price, especially in absence of any economical growth...In light of these facts and the ever growing debt, global Instability , currency wars etc..gold is still heading upwards...a increase of interest rates may even add more fuel.
As a gold investor I want less talk of hikes and just do it. The quicker the better. The anticipation of hikes has
hurt gold prices and had no effects on the stock market except when reality hits like today. Any hike in interest rates will hit the market hard, cause investors to seek safehaven and the demand for gold to spike. As I said before higher interest rates has only caused damage to gold only during a booming economy and has had a good effect on gold during a economy that is contracting.
Congrats to those that have stuck it through, but by looking at history this can very well be just the beginning.
Mux is outperforming due to index additions and rebalancing. Couldn't of came at a better time with rising metal prices. Russell Global Index,,June 10th...There was another before that, don't recall the name.
Thanx sttomas...yeah I heard about the funeral :)...I was just on a extended vacation.
Mux has been very fortunate the past 6 months, with gold spiking each time we needed it. The first during the cure period, now during the rebalancing. Mux is finally in great position to move forward considering the US economic conditions, Argentina, EG2 and excellent cash flow that will be used in attempt to increase LOM with active operations. With EG2, in my eyes, we will be taking a huge step forward to the S&P 500 index, obviously not there yet to talk about it seriously but Rob will make it happen if the opportunity is given to him.
Thanx Drfish...Glad to see your portfolio is out of the closet and you brag about it with your wife.
I be careful going forward trading based on the P/E. That's not something I look at with this sector especially with MUX with relatively a short earnings history. Miners are built with leveraged to gold and current earnings can multiply very quickly.
The projected cash flow forecast will increase by at least 40 percent ( Q2 to Q4). So the 13M being forecast, after paying G&A, dividends etc are payed out, will end being over 18M. Remember our guidance was based on $1200/0z Au and $16/oz Ag. Nevertheless this recent hysteria will come to a end once the rebalance ends. After which one would think a correction will take place, but I feel the momentum has just started, so one never knows. Gold has barely reached last years highs, so I feel this could just be the beginning for Gold...Just a heads up their was a insider sell..
no to interest hikes great short term boost for gold...Yes to interest rates hikes even greater long term boost to gold...we are sitting pretty right now as far as I can see.
I think the recent mux hysteria ends on the 17th. Additionally the short sqeeze will end..takes time for those trades to unwind...I think all of us should send thank you cards to janett yellen and the indexes that have re weighed us and put us back where we belong.
As if we don't have enough things to look at. It has been dropping and is nearing all time lows. It has never been below 1.40 and currently has just dropped below 1.60. It has a inverse relationship to gold. That held very true during 2012 when gold averaged 1700 and the 10yr bond held below 2, averaging around 1.70. In 2013 gold crashed to 1200 and the bond rate shot up to almost 3. What I'm seeing now the cycle has shifted, gold is rising and the bond rate has been dropping and is nearing all time low's. To me that's significant and is telling us something
Robert, that area is very fertile. Golden predator is near a area of curiosity. Goldcorp just purchased Kaminak Gold a junior miner in the same vicinity. Also Golden predator is almost already permitted...its good gamble for the price.
Today was the last day of the rebalancing. Knowing that , some traders sold knowing normal trading and volume resumes on monday...that could be a mistake with the brexit vote coming up and gold still showing great strength
The rebalancing process has ended and one would conclude we should see some sort of correction. The trading volume subsiding is a given and it has come down to more normal levels the last two days but after listening to Janet Yellen today I am more inclined to think the correction will have to wait. For those that haven't listened into Yellen comments today, I strongly suggest you do. In the gold market nothing carries more weight then the economic stability in US. The last time Yellen announced and finally admitted the US economic growth has slowed was the EXACT moment the gold market shifted. Nothing else really matters, not brexit, not interest rates, not even inflation. Matters have actually worsened since her admission in Dec 2015. She is now including the US in the global economic slowdown. At this point higher level interest rates would ignite gold because due too its implication US growth...If Mux corrects it will be a gift. JMO
I kind of liked they way the gaps left open this morning has been taken care of. I know what you are saying about counting them before they hatch. But when could I start counting?..its up 500 percent from its lows this yr?..tongue in cheek. What I'm looking at is that many are missing whats very obvious to me for last 6 months. The ducks are pretty much lined up for gold. Inflation or no inflation..weak or strong dollar..increase interest rates or not...it all doesn't matter at this point. At the very least gold will surpass last years highs and with the recent stab into a already wounded economy 1400 gold is in reach. JMO but quite a few aftershocks are in the pipeline
At a minimum of 1350, probably ending up more once the first aftershock settles. The $100 rise from $1250 to $1350 translates to a 66 percent rise in profits. Don't you love the benefits of leverage to gold?. But as important in cushioning our pockets Mux will strengthen there position for a acquisition and cushioning our growth profile. Something they were JUST able to dream and talk about just a few months ago. With the rise of SP comes more paper they can sell and strengthening the ability in taking a chance on deposit(s ) with potential. Something that I am sure they are now more keenly focusing on, as well as other miners. The green light has lit. The challenge will be balancing their on brownfield projects eg gold bar, Eg2 and taking on another deposit. My feeling is that lets get Gold bar and EG2 going without diluting the share price too much. By then Gold would of settled and we would know more in what we can afford with the hopes the SP will be even higher.
almost a 8 percent drop and very near all time low. Presently at 1.46 it has never been below 1.4..The drop was not as large as Britain experienced today (13 percent drop) but the huge drop is telling us a story...No confidence and a flight to safety. In Britain it drop below 1 for first time. Historically as yields drop Gold rises.
Its amazing how things can change so quickly. Momentum is everything and gold leverage is king. We need to stay above 18 dollar silver price for a period of time. If so Mux will have a opportunity of doubling our production from 150AuEq to 300AuEq. The higher silver prices goes the easier the decision of building both mines at once. I hope you all appreciate that accomplishment considering the hell we and company went through.
If thenwhydid did what I did instead of asking why I did what I did he be one happy thenwhydid. Instead, what he did then was just constantly asked why we did what we did knowing MUX was then just dropping. Lesson here if thenwhydid did his DD then he would of then stopped lecturing on why we did what we did and would not be thinking changing his name from thenwhydid to whydidnt_ I