Gold

[Aaron]

Good to see gold not in lock step with the sharemarkets today.

One day does not make a trend though.

Maybe gold buyers are seeing a central bank pivot and more monetary madness shortly if financial markets keep falling.

[younga]

Gold is inversely correlated with the real interest rate. When real interest rate is low, good price is high and vice versa. If my calculations r correct, the real interest rate is negative... That is, inflation is higher than the nominal interest rate. That means gold will skyrocket... Let's see what happens...

[Aaron]

it is going to hurt today. Gold dropped like a stone, apparently due to the rise in the US dollar.

The sudden rush to the safety of the USD might portend trouble ahead. Pity they didn't rush to gold.

My guess the POG will only be recover once(if) interest rates start dropping and the printing presses go crazy in the face of a recession.

I have faith that central banks will buckle but it is being tested, glad I reduced my holdings but still looking at a hit to my net worth on paper. The price of oil dropping maybe good as it is one of the bigger inputs into mining and maybe signals a recession with central banks waiting to come to the rescue.

Possibly should be more nimble and jump in and out of things as the news headlines change.

[Entrep]

What happened to gold as an inflation hedge?

[ynot]

What happened to gold as an inflation hedge?

Its not over yet.

[Entrep]

Its not over yet.

Inflation, gold's value, or the belief gold is an inflation hedge?

[ynot]

Inflation, gold's value, or the belief gold is an inflation hedge?

All of the above

[Aaron]

What happened to gold as an inflation hedge?

Well, if the inflation data is right gold is not much of an inflation hedge at all, quite the opposite, although I have not compared its decline to share market indexes and other commodities. When the central banks pivot we might find out if it is insurance against central bank madness.

Hate to work out my losses in gold miners in inflation adjusted terms, nominal losses are bad enough.

Although Entrep are you a crypto enthusiast? I haven't compared gold to any crypto currencies.

[Nor]

What happened to gold as an inflation hedge?

Too much competition from pixie dust or rather believers in it.

[JBmurc]

Strong USD is the problem with ever increasing yield... Gold pays no yield .. I see RMS now in the 60c range JUL20 $2.12 high!! .. AUD Gold price $2513oz ... am very tempted to get back in to the likes of RMS that have predicted 23FY AISC $1750oz-$1950oz (major inflation in costs!! from $1523oz 22Fy)

23Fy production guidance -240-280koz --- so say being conservative 250koz $550 Profit margin = 137mill ...not bad for a 400mill EV