KGC - LongThis is simply a stupidly low price. Gold is at a stupidly low price right now. Inflation is at 6.8% as of today (using flawed official numbers) and the 10 year yield is under 2% meaning there is worse than a negative 4% real yield on US debt which is ridiculous. The idiots in the market right now are selling gold because the Feds are signaling tighter monetary policy but there is no way the Feds can raise rates anywhere close to what the inflation rate is, so negative real interest rates are here to stay. EVENTUALLY instituional investors are going to get sick of have a negative real yield on their money and will pour it into gold.
Right now, bitcoin has siphoned over a trillion dollars that would have otherwised gone towards gold, if Bitcoin takes a harsh dive, and it looks like it will, than the illusion of bitcoin being a safe haven will be shattered and the people whose eyes were opened to the charade of fiat money will turn towards gold. The stock market will be impacted by the feds raising rates, and risk off sentiment will be hit further solidifying a move towards the safe haven assets.
KGC just levered up by acquiring Great Bear Resources, which has sent the stock price plummeting over the last day as investors see it as overextending its balance sheet, however, once gold begins making it break out move - this aquisition is going to pay HUGELY as it is a leveraged payoff.
Price of gold and Gold miners are stupidly low right now.
