As inflation expectations continue to roll over, so do the gold miners

Who is surprised that the inflation bugs are selling gold stocks?

Now a favored plan may be kicking into gear. That plan would see future buying from the miserable hands of those that listened to the loudest, most greed inspiring gold/inflation bugs at the gold websites, Twitter, Reddit forums and various other pump stations.

If you bought gold stocks because… INFLATION! You bought wrong. It remains to be seen whether HUI in the lower panel is going to lose the September low, but that’s the only thing standing in the way of disaster (or glory, depending on your perspective).

When I discussed this topic with Jordan I was tempered so as not to create negative hype. But I felt I had to express the potential crash scenario, which could manifest from the traditional running of the (inflation) bugs. So far, it’s still in play. Not hyping, just chronicling the situation which we (NFTRH, this website, you if you agreed), and not 90+% of the gold bug cult community herd accounted for ahead of time.

There’s still time for a reversal but I don’t like this second slip below 235.

inflation expectations and gold stocks

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This Post Has 2 Comments

  1. Brian

    If inflation bugs are selling gold stocks why aren’t they selling gold? Looks like panic selling in the stocks and this is not sustainable.

    1. Gary

      No, it’s not sustainable and won’t be as the macro turns. But it’s the event, not the more structural backdrop that matters in the interim, if it occurs. As for gold, I’d bet 1/10th of gold bugs actually have gold. At least that’s been my experience over the years. Gold stocks are pitched far and wide but who other than the dealers make money off the bugs if they buy bullion?

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