Mining Sector Ideas

[bigworld]

gfp: For now it looks like the Magnificent 7 have peaked and will return to earth. NVDA is actually in a bear market now, down over 20% from its peak. Tesla is faltering. The markets were expecting 6 rate cuts. They may not get a single one. Inflation is coming back, led by oil prices. And since Dementia Joe sold off our Strategic Oil Reserve to help with the mid term elections in 2022 we have no cushion to combat geopolitical displacement of oil production. Under the wrong Middle East outcome we could see oil surpass the previous highs near $150 a barrel.

With gold I see it as a reserve of purchasing power. Its apparent rise is really just the Dollar getting weaker. The DXY is not an accurate measure as it is the Dollar being compared to other currencies that are themselves being debased.

As the Treasury rolls over all our short term debt that was sold at ZIRP levels and now must pay out over 4% the Interest on our debt is going to balloon from $1 Trillion to about $1.5 Trillion per year. The treasury can't afford to pay it, so they will adopt Japan style Yield Curve Control mechanism to kick the can a few more years down the road. That's monetization, and the Dollar's value will plummet accordingly. So the current level of inflation might soon be viewed in hindsight as "the good old days". All fiat currencies eventually go to zero. Gold retains value.