Could you explain the significance of your gold cross in that particular example skyship or does relate directly to your post earlier 34250 ? |
Absolutely Skyship.
GGP I have a special affection for and great hopes! |
free stock charts from uk.advfn.com |
...and, as we all know - the best way to play gold is.......GREATLAND GOLD! |
The Apiarist.
8-) |
 FT Article Text :
Gold glitters as the unimaginable becomes imaginable
Another week, another record high for the gold price. Cue wild celebration among goldbugs — and frantic speculation from everyone else about the reason for the explosion in demand for the precious metal.
Geopolitical turmoil is one obvious explanation. Inflation concerns amid insane tariff dramas is another. However, there is a third, less noticed, issue bubbling away too: some hedge fund contemporaries of Scott Bessent, the hedgie-turned-US Treasury secretary, are speculating about a revaluation of America’s gold stocks.
Currently, these are valued at just $42 an ounce in national accounts. But knowledgeable observers reckon that if these were marked at current values — $2,800 an ounce — this could inject $800bn into the Treasury General Account, via a repurchase agreement. That might reduce the need to issue quite so many Treasury bonds this year.
This week such chatter intensified after Bessent both pledged to “monetise the asset side of the US balance sheet” — in other words, to focus on assets as much as liabilities — while also promising to lower 10-year Treasury yields.
“Re-marking201;. . . to current market value would mechanically deleverage the US balance sheet,” says David Teeters, of IESE business school, who notes that if gold prices keep rising, this potential blessing swells. Or as Larry McDonald, a libertarian analyst, notes: “It is time to get creative around . ;. . Uncle Sam’s balance sheet.”
Will this ever happen? I don’t know. Nor, I suspect, does Bessent, since it is the ever-capricious Donald Trump who sets policy. But the fact that this wild speculation is swirling underscores three key points.
First, investors know that Bessent has an incentive to be creative, given the scary fiscal hole. House Republicans are mulling a massive tax and spending bill that would add “up to $5.5tn of net primary deficit increases” and “boost interest costs by about $1.3tn over the next decade” according to the Committee for a Responsible Fiscal Budget. That could spark bond market alarm this spring, if not a Congressional revolt from populist nationalists. And that hole cannot be plugged just by smashing a tiny agency like USAID (a grotesque move), or letting Elon Musk halt federal payments (also outrageous). “While there are potential cost savings, the only way to create fiscal responsibility is with substantial tax increases,” argues Robert Rubin, former Treasury secretary.
Second, Bessent needs currency tricks as well as fiscal ones. As JD Vance, the vice-president, told Congress last year, Trump’s cabal considers the dollar to be wildly overvalued — to the degree that it is hollowing out the country’s industrial base. They attribute that to its reserve currency status.
But while they would prefer a weaker currency, Trump also wants to retain that global dollar dominance and Bessent himself knows that tariffs will probably strengthen its value.
That makes their policy seem bizarrely contradictory. But some market commentators, such as Luke Gromen, think the contradiction could be resolved if the Treasury tolerated, or enabled, gold to keep surging against the dollar. “Gold is likely to be a key pivot [for] the new system the Trump administration is clearly trying to engineer,” he says.
Many mainstream economists would disagree, but that just illustrates the third key point: the realm of possible policymaking — the so-called Overton window — is now widening. To grasp this, look at a dense investor memo written last year by Stephen Miran, who heads Trump’s Council of Economic Advisers, which is the most thoughtful explanation of Trumpian financial economics that I have seen (echoing ideas largely endorsed by Bessent, among others).
Miran argues that investors should expect tariffs to be used initially as a dramatic negotiating tactic (as they were this week). They will later be deployed as a longer term means of raising revenue and demarcating geopolitical allies. He also contends that the dollar’s reserve status and American military dominance are so tightly entwined that the White House could force countries who enjoy the US security umbrella to finance its deficit by buying very long-dated treasury bonds.
More strikingly, Miran predicts that while tariffs will initially strengthen the dollar, the greenback should eventually fall, even if the White House defends its reserve currency status. How? He outlines several tactics that could be used, including “voluntaryR21; co-operation from the Federal Reserve and a multilateral dollar devaluation accord.
Such ideas might seem mad. And Miran acknowledges that the policy “path” to implement tactics like these “without material adverse consequences” is “narrow”. Quite so. “If they start playing games with a weakening dollar, that is highly risky,” says Rubin. But what Miran’s memo shows is that once-unimaginable ideas are now becoming entirely imaginable. And not just Trump’s threat to invade Greenland.
Thus it is no surprise that gold is outperforming bitcoin right now; nor that traders are flying gold bars from London vaults to New York. Welcome to a financial Alice-in-Wonderland world where buying bullion seems almost sane.
gillian.tett@ft.com
Copyright The Financial Times Limited 2025. All rights reserved. |
Hi Again. Glad we are seeing the same formation. I don't talk of exponential rises in anything (bar the negative impact of social media on children).
What I do see is reality: a world economy that has not recovered from the decade scale economic shock of the global covid shutdown, fraught with political unrest and change, and whose people are struggling with the brutal impact of inflation - whilst government has been hell bent delusional on pretending 'the recovery was wonderful'. Today My wife's new spectacles cost almost £700. I literally spat my cornflakes out.
Gold is going nuts. Some interesting articles are now appear in mainstream media this weekend, attempt to explain this and appear to be contemplating the impossible. Something the gold bugs have been professing for years.
Todays FT for example debates the situation succinctly:
Thinking the article through , 1) it makes sense for the US to allow or to push gold a lot higher, before revaluing it to the asset side at $2,800 an ounce — this could inject $800bn into the Treasury General Account. (Obviously $5k and gold could inject $1.6 trillion and 10k gold $3.4 trillion ).
2)“House Republicans are mulling a massive tax and spending bill that would add “up to $5.5tn of net primary deficit increases” and “boost interest costs by about $1.3tn over the next decade” = ie spark bond market alarm this spring = market buys gold.
3) Luke Gromans point: “The contradiction could be resolved if the Treasury tolerated, or enabled, gold to keep surging” IE Gold likely to be the key pivot in the new system Trump is trying to engineer - and it would perhaps seem to support the idea floated by Judy Shelton - ie “the new gold backed long dated Treasury bond” in coordination with a deliberate dollar devaluation = good for US industry and good for gold = good for the US balance sheet and debt situation
4) This Keeps the world buying US debt. Then if Brics and China and now the US see increased role for Gold = more competition for gold resources = Gold prices much higher. A case of if you can't beat them join - them ie US behave fiscally better and reassert the reserve currency's status and strength in part backed by gold.
(just the gold ideally needs to be a lot higher... to have more impact.
ALL ROADS LEAD TO GOLD
But all roads appear to lead to a much higher gold price.
And. huge lower grade high volume deposit like TELFER. Thats the best news you can images because low grade high volume producing deposits have the highest torque to the gold price.
its like the Goldilocks scenario for Greatland. |
You may need a seat belt rather than a chart, Hazl! |
Excellent will try to get to grips with that.
I see more in this charting malarky than I used to!
Does that apply to OMI,too? |
Right now there are effectively two, out of phase, Lassonde curves in play here. One for Havieron and a second for Telfer.
The trick lies in overlaying the two in such a way as to make sense. |
The only chart we should be looking at is the Lassonde Curve as we emerge from the Orphan Period and now look ahead for the dramatic rise, yet again, into the 20s & 30s: |
Hydro.
Yes indeed, quite a reasonable looking hockey stick, in fact there is quite a presentable one over the past 2 months:-
free stock charts from uk.advfn.com
In fact looking at the chart over the past 25 years one can pick out dozens of "hockey sticks".
The point I was trying to make (rather clumsily), is that all these formations have eventually reverted to the mean. The important question is whether that mean is pointing upwards and over the past 25 years it has done so to the tune of 850% in $US.
With the geopolitical and financial situation being what it is currently, I can't see that trend turning south any time soon. However, and maybe I'm being pedantic, but the use of terms such as "exponential", in a purely mathematical sense, can only point towards armageddon. The last time we saw such a rise was during the Weimar Republic and that didn't end happily for anyone!
However, more pertinently as far as GGP is concerned, we shan't know for sure until April what effect that the rising gold price is having on the Telfer situation.
What we do know is that there is a very large pile of low grade ore sitting there.
Back in Aug/Sept when SD was thrashing out the deal he must have figured that this stockpile had some value. Let's say for sake of argument that he calculated a margin of $100/oz. The price of gold has risen $400/oz since those negotiations, ergo, the margin is now $500/oz a rise of 400%. This calculation is for illustrative purposes only but the principle is good enough to keep me invested.
However, more importantly than any of this Scotland take on Ireland at Murrayfield tomorrow.
Cheers. |
Apiarist - maybe done your specs and Zoom out on that gold chart to the weekly -
Where you will see the “hockey stick” formation (of the past year) compared to the previous 50 incurrent gold price ascent.
Rate of change is what matters. We have not see this level of rate of change in gold price for a decade
The world has changed markedly. Gold is telling the market something very special is about to happen…. (and 90% are blind to it)!.
Good luck |
Excellent!! |
Nevermind linking gold to crypto, move like imb.
GGP will be 30p plus very soon.
dyor |
For any newbies. Last toast opened a 4m short @4p. AKA bedsit burnt toast. Gotta larf 😆 |
Fair point |
Indeed! April will, surely, be a game changer for shareholders! |
Tell, steady as it goes ignore the trolls and let the trend be your friend. .Gold looks good today..2,871.68.+21.00.+0.74%.Good weekend all .Zoo |
Indeed, Telbap.
A nice steady climb 42% YoY and long may it continue. No exponentials or parabolics and certainly no hockey sticks!
Just an even positive gradient, nothing to scare the horses and we'll clear your 12p before the canal turn and still with plenty of running left in the old nag!
free stock charts from uk.advfn.com |
Toasty still holding out for your 4p short spreading Misinformation as usual choo choo |
Nice steady climb to 12p. Then all the numpties will disappear elsewhere. Can't wait to hear the WDD drill grades, I think they will not disappoint, the only question remains, how big is it?April I believe will tell us a lot. |
The word is that the index is nearly filled from my sources and this will tank as soon as they fill like before.
6p anyone ?
Also rumbles around a placing with the asx listing despite assurance from the ceo no raise.
Think he will roll out the accretive raise line. |
That's correct, Come on: Wyloo invested £35m at 8.2p (for just over 8.5%) and subsequently followed their money to maintain their 8.5% stake at 4.8p. |
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