Watch the energy sector. Diesel energy is the lifeblood of the economy. China's wind & solar export industry. Gold's cost of production is $1,550 and silver: $20.
Corrections in Gold tend to be limited to 8% to 10% at the most while corrections in the gold miners tend to be limited to 15%. The exception is when you get a vertical recovery, like..
Once gold closes above $2,000 for a few days in a row, algorithmic traders could flood into the sector. Silver is in a trading range, carving out a channel formation...
China, for much the same reason, is buying physical gold from other countries and also from gold miners within its jurisdiction. In fact, China recently announced they have record holdings of gold.
The rate of supply increases required, is equivalent to building eight copper mines the size of Escondida, the largest in the world, per year, for the next eight years. That’s insane.
