Positions as of 18 March, 2025
Smaller mid-tier and junior gold miners just reported their best quarter on record. That combined with record gold prices fueled smaller gold miners’ richest-and-fattest implied unit profits in history.
And we haven't even BEGUN to get to the bad part where the bottom falls out!
Some analysts predict that gold could briefly dip to around $2,956 or even $2,930 in the near term as investors take profits. However, historical trends show that these corrections are often short-lived.
The Fed simultaneously needs to hold rates higher for longer to rein in price inflation, and cut rates due to the excessive levels of debt and malinvestments in the economy. Obviously, it can’t loosen and tighten monetary policy at the same time.
The Fed is balanced precariously on a tightrope. The question is which way will it fall?
In order for the gold price to fully reflect the loss in USD purchasing power, it would need to be $3460 oz. today. As it is, gold is priced at $3045 oz.; more than $400 oz. cheaper than its inflation-adjusted high in 1980.
This is a must-watch conversation for anyone concerned about the stability of not just the US dollar but any currency, the erosion of purchasing power, and the importance of financial freedom.
Some brokerages firms are targeting $3,200 as the next price target for gold. I want to see a bit more on what Trump will do April 1st and 2nd on tariffs to get a feel before I make a call.
