Gold Prices During High Inflation, Myth Or Fact? Knowing When To Buy Is Key To Profitable Results

2 years ago
14

A prevailing theory of what drives the gold price is changes to the consumer price index, also known as inflation. Consumer prices have been skyrocketing. But the price of gold has not. So is this a bullish signal?
If rising consumer prices didn't cause the price of gold to rise then why does inflation drive gold prices.
(Gold miners V.S. Spot Gold)
December 2013 – March 2014: (Gold Mining Inc) 164%, comparison to gold spot: 11.49% (10X LEVERAGE)
January 2016 – September 2016: (Gold Mining Inc) 665%, comparison to gold spot: 22.65% (30X LEVERAGE)
December 2018 – February 2020: (Gold Mining Inc) 150%, comparison to gold spot: 26.01% (5X LEVERAGE)
March 2020 – August 2020: (Gold Mining Inc) 218%, comparison to gold spot: 36.12% (7X LEVERAGE)

It's my personal opinion that Admir and all His projects are crazy undervalued and He has caught the attention and support Of BlackRock and other heavy hitters, the fact Gold Mining Inc. is so undervalued means this could be huge.

Why is GOLDMining Inc.- http://goldmining.com -considered the ultimate "Gold Optionality" Company in the world?
16.2 Moz M&I RESOURCE, 16.2 Moz INFERRED RESOURCE
Their "ounces in the ground" is among the highest of any junior mining company --- this needs to be said --- 32 million ounces is beyond rare
GOLD ROYALTY CORP (15% ownership) --- GOLDMining Inc. has an equity position in the fastest-growing gold royalty in the world! Think of it this way --- GOLDMining Inc.'s market cap is CAD$234M and GROY's equity position is worth CAD$122M, which means that you're getting 32M ounces of gold at a price of CAD$112M (234 - 122 = 112). When you divide that, it comes out to $3.5/ounce of GOLD! ($112/32 = $3.5)

You cannot beat that! Today, buying "ounces in the ground" means paying $50/oz !
Top shareholders:
KCR Fund, GDXJ VanEck ETF, Ruffer Gold, Extract Capital, Sprott Global, Marin Katusa, BlackRock Inc, Oppenheimer Holdings
https://www.gldgnews.com/

TSX-GOLD NYSE-GLDG

Whether rising prices are a signal for gold, depends on the cause. If prices are going up due to nonmonetary forces, would that drive up the price of gold?

There are times when the price of gold and consumer goods are rising together and other times one is moving up sharply, but not the other. For example, 2009-2011, the price of gold more than doubled.
This year, consumer prices are up about 6.3% according to Bureau of Labor Statistics. The price of gold is down about 5%.

If prices go up due to monetary sabotage (Money Printer Go BRRR), that is dangerous inflation. If prices go up to due to shipping sabotage, that is inflation also. And if prices go up due to laws that make everyone use more-expensive cars or heating fuel then that is inflation.

When the fed prints an ocean of money, well, that's the reason I started hoarding metals in the first place.

https://www.goldstandardir.com/goldmining-disclaimer-2/

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