When China government has gold storage officially equal to what Fort Knox is supposed to hold, what can we imagine will happen to the USA $? The USA is playing a game currently, that the FED cannot win, were China to demand investment stock equal in value to the USA savings bond value it holds (it could then legally get seat on those tocks BOD and USA government would be hard-pressed to refuse them). IF this happened, it would be hard to keep its obviousness undisclosed and it might well spin a new nexus of inflation on our economy? What if the Chinese government were to take its interest of its T-Bill holding, as hard gold, in lieu of USA dollar?
In effect, right now, China is buying up USA real estate (and BK USA tech companies like AONE battery technology), with its T-Bill interest.
USA companies have over $1.2 Trillion in profit overseas to avoid USA domestic taxing requirement. USA companies also have massive Trillions of debt payments coming due in few years. Will the banks just nicely roll-over that coming due debt?
One cannot be the policeman of the world without solid domestic economy to back that up and surplus finances to apply to that task.
The HL Idaho Mine is slowly coming back on line.
But the mineral deposits development and production costs will be higher, due to earth stress overload incident at the new deeper depths. If the precious and other metals prices remain low as now, HL might need outside financing? HL could also need more new financing to cover Canada and Mexico operations also? F-35 fighters are not the only thing that experiences unforeseen 'expenses'.
I have no crystal ball but USA economy can hardly jump-start itself in 2014 (even with election year pork spending approvals by both parties). Too much debt to still service, at all levels including personal credit.
Economic activity in USA economy falls . . and PM and commodity prices might fall further. Watch oil and gas prices direction: quick way to 'pump' $$s back into consumer pockets.
PM prices have big psychological factor written into them, crises effect on that can work both ways (up and down). Right now, it is looking like no Middle Eastern Peace Talk Kerry positive effect. Will USA suddenly find some Gold to send back to Germany and England as PR token delivers?
Relatively speaking, Gold stocks are not cheaper due to inflationary business and consumer goods cost increases since 2001 (even though charting level is approximately the same matching level), and USA reality economics position via deficit % of USA GNP and credit standing is worse. Yet the HL stock price up potential is still valid, as it 'based' at roughly equal possibility for new positive up price movement, numerically. Which means you are right via charting, which does not show inflation adjustment. This (your numerical comparing, as HL holds its own PMs in-house) also validates
HL stock as excellent way to hedge your physical holdings, without options.
And, HL pays a dividend to share holders! Now, if HL minted private label exclusive PM coinage, happy days are here again!
AI
