Those Who Purchased AuStar Gold (ASX:AUL) Shares Five Years Ago Have A 80% Loss To Show For It
Like a book? You glossing over pictures of your wife again Pilots? What was her name again? Lassie I think you mentioned.
This is one dog stock, best avoided. ...
Gold’s rally might not last. The asset faces near term risks that could send its price crashing down.
But several factors could send prices crashing back down to earth. Here is a list of three things that could crash gold in 2020:
1. A Coronavirus Vaccine
By betting on gold, investors are essentially shorting the human race. That’s because the metal benefits from the ongoing human and economic turmoil unleashed by the coronavirus pandemic. According to Edward Moya, a senior analyst at brokerage firm OANDA, progress in developing a coronavirus vaccine will probably derail gold’s rally.
And thankfully, a vaccine looks closer than ever.
But a vaccine isn’t the only thing threatening gold prices. Several companies, including Gilead, are working on potential treatments for people who are already infected. If any of these therapies show promise, gold bugs could be in a world of well-deserved pain. Which side are they on, anyway?
2. An Economic Recovery
While gold seems to be loosely correlated with the equity market, the metal can benefit from economic turmoil. That’s because when the economy is in bad shape, the Federal Reserve and the Federal government both step in to buy up assets, provide liquidity to the market, and spend outrageous amounts of money.
3. Deflation And A Soaring Dollar
Gold tends to move in the opposite direction of real yields — which are bond yields adjusted for inflation. This means the metal’s price goes up when there is inflation in the economy and it goes down when there is deflation in the economy. With U.S oil prices recently falling below zero, there is a big possibility that America could be facing consumer price deflation. And this would be terrible for gold.
According to the Wall Street Journal, demand for Treasury Inflation-Protected Securities (TIPS) is “surging”. When demand for these assets increases, it means more investors expect deflation in the economy. If these investors are right, gold prices could be crashing soon.
Poor Mucus is still active and trying to work out what to do. He has never met a troll slayer like me. He is thinking how does he get out of this mess he created. He is thinking why did he ever dare to enter the MNS chat. How does he turn it around. Does he fake death and never return to TS? Does he trip in his fountain and have his skull penetrated by one of those golden knobs? Does he send an apologetic letter to me crying that he should never have crossed my path?
Stay tuned for another episode of You’ve Been Owned.
Well Mucus you bought the other day at the high so you are thinking MNS is a better bet than a lotto ticket. Carry on numbnuts.