To me, it looks like the lows of the prior week in miners was a corrective wave leading into a more impulsive wave that we have just been in. May be getting into some ST resistance here but big picture momentum looks strong to me so still think there may be more to this move. Would not be surprised to see some correction early next week but looking for higher prices before year-end.
Gold Mining Stocks as Inflation Hedge?
- Thread starter ipatent
- Start date
Just expecting more from time/price perspective given the pattern:
The catch though is if broader markets go up I doubt the miners really move a lot to justify random down side risk. I made a lot of money on New Gold until my last position at $2.14 cratered and I just held it. Got out at $2.03 Cdn. It was $1.29 Cdn at one point. Fortuna I sold at $6.80 Cdn after poor earnings ( a short term trade ); very lucky I did as news cratered the stock.
Most of the gold/silver miners I trade are tough calls up or down now short term. So I look at ones with significant quick upside potential. However, I don't hate the trade, and if it gets even better I'll look for intraday dips to jump on board my favorites.
Gold has lost its luster as an inflation hedge. It is more of a commodity now. Central banks have stopped using Gold as store of foreign reserves. Gold is more linked to USD, not inflation hedge.
I think in general, crude oil is a better inflation hedge than gold. During economic up cycle, business is booming and cause inflation pressure, just like now. So demand for oil is high and this makes oil price higher.
But the Achilles' heel of using oil as inflation hedge is the production increase and some price elasticity.
I think in general, crude oil is a better inflation hedge than gold. During economic up cycle, business is booming and cause inflation pressure, just like now. So demand for oil is high and this makes oil price higher.
But the Achilles' heel of using oil as inflation hedge is the production increase and some price elasticity.
Crypto may have taken on some of gold's role as an inflation hedge, slowing the rise of gold, but a lot of ordinary people don't understand or trust crypto.
Last edited:
Not at all. Crypto is on its own. It is not a store of value. Its value is not stable and does not move according to economic cycle.
Crypto is an instrument of speculation. It is not a virtual currency, coin or money. No one knows where it is heading to. Its price can just rise or drop 5% for any reason.
Hey -- I know you're a good trader so I'm willing to accept your different viewpoint on this one. 
