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Katwomyn

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Started buying up gold stocks again this morning.

Most of my watched goldies are down over 35%.

The reasons gold took off have not changed, indeed they have probably grown stronger.

Since mid 2019 when things got really strong, more CB's (including Australia) have gone down the QE route, and those who had already done so, piled even further debt on their economy.

The us is heading for further civil unrest, China is flexing its muscles, The EU is going to screw the UK, and of course more and more countries are going down the climate emergency path.

And of course we still have that pesky corona virus making life difficult.

Gold and its producers/explorers may well drop further, but in the long run it will go up.

Mick

 

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  • 2 weeks later...

Should be even better today.

AUD fell against the USD, but precious metals still went up.

Gold up $70 in AUD, and silver up nearly a buck to go above $35 AUD.

And from Kitco News comes the stats that in 2020, there was a 455% increase in gold coin sales from US mint,

Sales of silver coins were up a mere 100%.

it seems that Joe Public is a little smarter than the experts give them credit for.

Mick

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it seems that Joe Public is a little smarter than the experts give them credit for.

 

Very much so.

Much of what the media report and portray is total BS, statistics manipulated to suit a narrative: Usually to make the boomers look great and the generations around them worse.

The youth of today, in general, are far more street smart and conservative than the media will ever tell you. Yes, there are rat bags: But mostly the kids 20+ actually really impress me, far more than their flashy, kim kardashian mimicking parents.

 

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I noted that Germany's largest lender, Duetsch Bank will pay $120 odd million to avoid US prosecution on charges it "engaged in foreign bribery schemes and manipulated precious metals markets".

 

Every time I hear some US govt rep bleat bout the currency manipulators in other countries, I laughs me head orf.

The US manipulates everything financial, and now they want to manipulate everything digital.

Gold has lost over 200 bucks and silver over 2 bucks since last Friday.

So what financial or economic news might cause such a thing?

 

Biden has already stated that there will be at leat two more stimulus packages, and given the financial baggage slung on the last one to appease the special interests groups, the printing presses will be going over time.

Initial Jobless claims sill going up, the November Trade deficit at 68 billion was 5 bill higher than October.

The Fed were talking about more QE less than a month ago, yet Fed govenors Clarida and Evans both spoke this week about the timelines for tapering QE. The FED have put out bullshit forecasts about no rate hikes into 2024, but only complete suckers will believe that.

Average hourly earnings rose rose from 03% in November to 0.8% in December. That will only feed into inflation, which is of course what the FED really wants.

So what causes these sudden losses when all the financial data points the other way?

The great manipulators strike again.

 

Anyone who falls for the leftist crap about the dems caring for the poor should consider this:

With all the demands for lockdowns, stay at homes, no dining out, who suffers the most? It ain't privileged white elites. It is estimated that about 40% of all jobs are in the low paid hospitality/ service industry. Guess who inhabits those jpbs, mostly poorly educated non white citizens, both legal and questionable. And guess who loses out in the loss of jobs?

Big business elites and the well paid public officers who inhabit the federal, state and local governments demand everyone else suffer, but not them. They can work from home, self isolate , lecture everyone else, and not lose a dime in the process. The rich get richer and the poor get poorer, no matter who is in the Whitehouse, Congress, or senate.

 

Mick

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  • 3 weeks later...

Gold: Have we seen the magician's trick?

https://www.sharecafe.com.au/2021/01/29/gol...agicians-trick/

 

By Glenn Dyer

It is clear now that gold staged something of a miracle in 2020,hitting a new alltime high in August of $US2,074.88 on Comex, while demand slid to an 11-year low.

 

In fact its more a magician's sleight of hand; demand down to its lowest level since 2009, as the pandemic drove consumer demand lower, but prices buoyant and record setting at one stage, although the bloom faded late in the year, according to the World Gold Council 2020 report.

 

The trick worked because of soaring demand from ETFs offset a slump in demand from consumers and industry and weaker but still positive demand from central banks.

 

The WGC reported that total gold demand fell by 14% in 2020 to 3,759.6 tonnes — the first annual level below the 4,000-metric-ton mark since 2009.

 

"While demand improved steadily from the severely depleted Q2 total, consumers across the world remained at that mercy of coronavirus lockdowns, economic weakness and high gold prices," the World Gold Council's Gold Demand Trends report said.

 

Thanks to the impact of the pandemic and lockdowns, gold jewellery demand fell 34% in 2020 to 1,411.6 metric tons, a record annual low.

 

However, investment demand for gold surged 40% to a record annual high of 1,773.2 tonnes, with global gold-backed exchange-traded-fund annual inflows reaching a record 877.1 tonnes in 2020. Global holdings in gold-backed ETFs ended the year at a record of 3,751.5 tonnes, the report said.

 

Without the buying support of the ETF's the gold market would have been a disaster area, along with listed gold miners and their businesses.

 

The WGC report said that fourth-quarter demand totalled 783.4 tonnes, a drop of 28% from the fourth quarter of 2019, the weakest quarter since the 2008 financial crisis.

 

The ETF's though saw an outflow in the final quarter of 130 tonnes as prices dropped sharply in November following positive news of potential vaccines for the COVID-19 virus.

 

The gold market also saw healthy bar and coin demand. The WGC said that global bullion demand increased by 10% in the fourth quarter and rose 3% for the year to 896.1 tonnes.

 

A small glimmer of light.

 

But not from central banks, who have been major gold supporters in the past couple of years, adding to the buying from ETFs.

 

The WGC said central bank demand dropped sharply in 2020, down 60% to 272.9 tonnes. The decline comes after central bank demand saw two years of record growth.

 

"Although 2020 marked the 11th consecutive year of net purchasing by central banks, it was the lowest annual total for central bank purchasing since that trend began in 2010," the report said.

 

Analysts have noted that central banks worldwide are more concerned about supporting their domestic economies than increasing their gold reserves.

 

That looks like again being the case in 2021.

 

On the supply side, total supply dropped 4% last year. "The first annual decline since 2017," the report said.

 

Mine production last year totalled 3,400 tonnes, down 4% from 2019.

 

"This was the second consecutive annual decline in production – and the first back-to-back annual drop since 1975," the report said.

 

"COVID-19 pandemic interruptions were the main reason for lower mine production in 2020, and the impact varied both geographically and over time," the report added.

 

And there was no joy from recyclers – production from that source only rose 1% which went against previous price booms.

 

But recycling was a victim of the pandemic and the lockdowns as many gold holders could sell their physical gold jewellery in person

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Gold sliding quietly up in AUD.

Now firmly entrenched above the 2400 handle.

I have started rotating out of my silver stocks back into gold.

Most of the gold stocks I am interested in actually produce gold, whereas most of the silver ones were speccies that didn't produce much.

ALK, SBM, RRS are my preferred ones this time around.

Will add a new one when SAR merges with NST.

SAR going to issue a special divvy before the merger, so pretty happy with that.

Mick

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