New Highs As Supply Contracts

Is it as simple as being stuck between supply and demand?

If so, does that mean gold’s new highs have nothing (or very little) to do with inflation?

Over a year ago, was this post, proposing the following insight for gold (GLD):

“Maybe it’s because of scarcity (along with nearly everything else) that’s causing the increase in price.”

We can see from this link, world-wide production dropped in 2020, and has remained lower.

That is at least, an alternate reason for the increase in price.

Then, Newmont, NEM

Let’s not forget, in the above post was Newmont Mining, forming a ‘terminating wedge’, ready to break lower.

On Friday, January 20, 2023, one day before the update, NEM closed at 53.34.

The following week, three trading days later, NEM posted a high of 55.41, and rolled over; currently down a stiff 35.4%, at 33.91.

Miners In Decline, Why?

Gold’s at new highs, while miners GDX, GDXJ, are in a multi-year decline. Why?

Let’s answer the question with a question.

Why is Boeing (BA) and the airlines in decline? Why has there been one aviation incident after another like here, here and here?

Why are we having investigations like this and this?

Stay Tuned

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