POG2 Mar 2021 17:14
Hi All. We are not yet producing gold but our SP is directly linked to the POG. The market is forward looking and we will become producers. The POG has taken a hit recently and a further fall to below $1700 is to be expected, WHY. The POG is directly linked to the price of money (interest rates). The real rate of inflation is a lot more than the stated gov level, but the market is looking at a rate of below 2% when the real rate is nearer to 8/10% (look at iron, copper lumber, housing Etc). With bond yields rising the negative rates look to be not so negative. They are not and are getting more negative, inflation is way ahead of rising rates. Also the central banks can not allow rates to rise too far and banks will start to control rates soon. This correction in the POG will be short lived and new highs are around the corner as is our SP. Take this false drop as an opportunity to grab physical gold and related stock with both hands. ATB Speedy