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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Follies who wrote (156786)	4/20/2020 12:24:01 PM
From: Maurice Winn	Respond to of 217589

Yes there's a lag between oil dropping in price , maybe temporarily, and the price of gold following, but it's like gravity = gentle but relentless. Similarly I hold cash at times although I know in the long run governments dilute and destroy. The production of something depends on the financial voltage. High voltage = high production. So when oil is cheap, TJ adds up his costs and opens another gold mine to turn oil into gold. Gold won't go to $10,000 while oil is $20. But it might go to $900 if oil goes to $10 and stays there for years. The futures markets lock in prices and give more predictability., smoothing the peaks and troughs. While the $trillions in economic destruction is a big deal, it's not huge in the grand scheme of things. WuFlu mortality is nasty at 4% overall but not a calamitously catastrophic cataclysm. If it was humanized H5N1 with its 70% mortality then panic would be reasonable. That would be epoch defining. Mqurice