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"A deposit of gold ore just discovered in China isn’t just giant. It’s supergiant. So much so, in fact, that Chinese experts claim it could be the largest deposit of any precious metal —not just gold ore—in existence today."
Bitcoin has finite supply and 94% of max supply is already issued and owned. Gold potentially has unlimited supply. Binance token BNB also has limited supply. For some reason no one talks about BNB or has anyone asked for an ETF of BNB. Why?
Added to the increase on the supply side, how will gold prices be affected by the incoming administrations stated drive to deregulate crypto currencies? They even have talked about creating a "strategic national Bitcoin stockpile" and appointing a "presidential crypto advisory council", as stated in a Barrons article in this week's magazine. Trump and many in his cabinet members apparently hold a lot of crypto currency themselves, per the article.
New gold supply mining efforts, deregulating crypto and having governments stockpiling it as a wealth reserve, in my mind, could reduce the price of gold moving forward. Anyone have any thoughts on that possibility?
I scanned Bill Fleckenstein’s site going back a few months and found no mention of this discovery. Lots of gold bugs there - some very well versed. So if it were a big deal I’d expect some comments. Bill has long been bullish gold - but I’m not certain where he stands nearer term now after the huge run-up in price. I’d say the China reserves are not nearly as important as the other factors that drive gold prices like: psychology, central bank buying, government debt load, sovereign currency weakness & inflation expectations. Keep in mind that a mineral “reserve” is just that. In the case of gold it takes enormous sums to extract it from the earth + refine. Very labor and energy intensive. Huge environmental issues as well.
As a very long term investment gold has a place in a diversified portfolio. But when I see a relatively conservative fund (which owns gold) like PRPFX up 28% over the past year it gives me great pause. That’s not normal performance. Longer term things usually even-out. That said, human psychology being what it is, only a fool would attempt to predict how high the price might go or how long the bull market may last. (To be fair, PRPFX holds some “aggressive growth stocks” and so has also profited from investors’ love affair with NVDA and other tech high flyers).
“Does Fleckenstein have a free email or do you have to subscribe?”
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This takes you to his daily commentary one year ago (in this case 12/7/2023). “Ask Fleck” on the left links to the Q&A section. Be aware that by agreement he’s allowed to take a number of days a year off for “travel” or other reasons. (I’d guess about 15-20 days).
PS - I believe you can use the embedded date menu to scroll through an entire year’s commentaries (except for the past 12 months of course.)
The article is full of "mights" and "coulds". Everything is conditional in the article. Further 1100 tons is 32,000 ounces. Extended by $2,500 (roughly the current price), that is $88 billion. -- And those 32,000 oz are not coming to market tomorrow, but over many, many years... once the mine is opened.
Govts are running multi-trillion deficits every year.
All of the "maybe ounces" altogether are about 0.5% of the cumulative gold mined in history -- most of which is still sitting in vaults around the world.
The "maybe mine" in China is a drop in the ocean of govt debt.
Up to a max of 138 grams of gold per metric ton of ore and gold is as deep as 9800 feet. If that mine started new stock listing it would be in the pinks sheets.
Comments
Crypto would prefer that the POG stay as high as possible.
crypto-plot-against-americas-gold-reserves/
Is POG = pot of gold?
New gold supply mining efforts, deregulating crypto and having governments stockpiling it as a wealth reserve, in my mind, could reduce the price of gold moving forward. Anyone have any thoughts on that possibility?
As a very long term investment gold has a place in a diversified portfolio. But when I see a relatively conservative fund (which owns gold) like PRPFX up 28% over the past year it gives me great pause. That’s not normal performance. Longer term things usually even-out. That said, human psychology being what it is, only a fool would attempt to predict how high the price might go or how long the bull market may last. (To be fair, PRPFX holds some “aggressive growth stocks” and so has also profited from investors’ love affair with NVDA and other tech high flyers).
Does Fleckenstein have a free email or do you have to subscribe?
This takes you to his daily commentary one year ago (in this case 12/7/2023). “Ask Fleck” on the left links to the Q&A section. Be aware that by agreement he’s allowed to take a number of days a year off for “travel” or other reasons. (I’d guess about 15-20 days).
PS - I believe you can use the embedded date menu to scroll through an entire year’s commentaries (except for the past 12 months of course.)
The article is full of "mights" and "coulds". Everything is conditional in the article.
Further 1100 tons is 32,000 ounces. Extended by $2,500 (roughly the current price), that is $88 billion. -- And those 32,000 oz are not coming to market tomorrow, but over many, many years... once the mine is opened.
Govts are running multi-trillion deficits every year.
All of the "maybe ounces" altogether are about 0.5% of the cumulative gold mined in history -- most of which is still sitting in vaults around the world.
The "maybe mine" in China is a drop in the ocean of govt debt.
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