Member Info for booboouberbear

I don’t know about the clandestine takeover, however, there is clearly news in the pipeline, this was rising on Monday when Gold was having a down day and is now off and rising again today, news shouldn’t be far off IMO.

As discussed on here last week, if Gold goes too far an undermines the Greenback as the world’s currency of last resort, then you can bet your bottom dollar (pun intended) that the US Government, in one guise or another will lash out at that, it will start with the baby steps such as driving the individual / retail investor out of the market place.

*Heartening

To see the strength in buying here, firming up with a tightening real spread. Nice primed for news we hope...

The hedge was one of the reasons I invested here, this share price will only go up as the hedge gets closer and closer to unwinding. SHG is a cheaply priced gold recovery play that can deliver extreme capital value if AUX does what I think it will.

At the end of 2020 I expect to see AUX at approx. USD$2,500 (BOA and GS agree with me) a troy ounce on AISC of approx. USD$800 providing a direct uplift of some USD$1,700 a troy ounce to SHG. If that turns out to be even remotely true then the SP won’t be 16p…

As for the rest this is mining in Africa, not putting in a planning application at Mid-Sussex County Council for permission to build a conservatory, things always take longer than anyone thinks they will.

Agreed, there is clearly leakage from these important data numbers, you see some strange movements happen in the 30 minutes leading up to their official release more often these days.

Gold off and running, again. Will be interesting what the US Weekly Jobs Numbers say today and the Monthly Payroll Numbers say tomorrow…could get brutal for the greenback if they are bad.

The problem with an aggressive takeover of SHG is ‘Tanzania’.

It’s a bit of a no go zone in world mining and why SHG are so cheap IMO. There is money to be made, but you need some serious in country skills to be able to deal with the country and the President. I just don’t see people lining up to pay hundreds of millions of dollars (it would take a large premium to the SP from here) to take it over.

Re: - why the AUX price just takes off and then plummets? I think algorithms and pre-placed orders have a lot to do with this. A lot of trading at this level is done by an increasingly more complicated set of algorithms and mind bending mathematics, for example just look at when the AUX Spot Price just hit $2k? It was followed by an immediate drop of $8-10 a troy ounce, I think that is down to computer based automatic trades. The pattern I have noticed though is that can lead to amplification of momentum trading and creates ever increasing volatility IMO.

Colonel,

Complete agree, the Gold ETF Market will have its ‘George Bailey from It’s A Wonderful Life moment’, there will surely be a run on the Gold ETF Market when too much Gold is called for physical delivery.

We all know that the Gold ETF Market is trading in physical gold that doesn’t actually exist, if that is ever called into question on a large enough scale there will be hell to pay and it will be a short squeeze and a half to witness.

Like yourself, Colonel I’m surprised in this environment that AUX isn’t $2k+ at this point. The financial system is utterly bust and is now propped up with nothing more than newly minted FIAT getting pumped out the door at rates never seen before in the developed West. This will have serious consequences for the standard of living throughout the West, we just haven’t gotten to those chapters in the book yet.

Banning private investors from banning AU isn’t as farfetched as it sounds. FDR did it in 1933 during the great depression to control the use of AU as an alternative currency that would have weakened the role of the US Dollar. Depending on how bad inflation gets we could easily find ourselves in a position where governments and central banks control the proliferation of AU if it undermines the local currency and becomes the de facto currency of choice. How governments and central banks could actually implement and enforce that in a modern world is another question?

Markets taking an absolute rodgering today, terrible economic / jobs numbers out of the US and doesn’t help when your clown of a POTUS takes to twitter saying the election should be cancelled.

Yes, crazy volatility and price action in the AU markets, I have never seen these kinds of swings in my lifetime in following the AU markets from circa the late 90s, it's usually a very boring corner of the markets.

There will likely be some crazy days ahead, but the trend is up IMO.

Comes out with dovish accommodative stance and up goes gold, as sure as night follows day…

IMO we are at the start of a once in a multi generation event in which we are watching a tectonic shift in what we know and believe currency to be and the Markets and Central Governments around the globe are now realising this and are now piling into physical gold.

Despite what we have been told these last 12 / 13 years by our feckless governments, you cannot keep printing FIAT Currency ad infinitum without serious consequences, sooner or later gravity always kicks in and things must be valued back to real assets. History going back thousands of years has shown this over and over again, and this time will be no different.

I think there is an abundance of caution (rightly) on this board, but I for one expect AUX to go through USD$2,500 a Troy Ounce in next to no time.

Regarding reasons for selling: - I’d imagine a few hedge funds are trying to get themselves in a decent cash position for the upcoming market difficulties there is bound to be in H2 this year.

AUX Spot Price just gone through USD$1900, seems to be no Gold Bears left in the building…..

https://www.bloomberg.com/quote/XAU:CUR

A mere fistful of dollars off USD$1900 per ounce at spot price AUX.

So they have actually bought some shares an increased their holding but they have closed a sizable CFD position?

There has been some very large sells lately (institutional investor large) like the 10.6m drop yesterday. Either another one is working its way through / working the last one into the market is my guess.