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David Sowden
Business Development Manager Australia NZ
Asked a question 8 months ago

Steve Van Metre says lower gold and gold miner prices are leading us into the insolvency event. I don’t get it. Does anyone have an explanation?

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He was simply pointing out that gold/gold miners led the S&P in the insolvency event of 2008. He was noting the striking parallel and showing that just because gold is going down, doesn't mean the reflation narrative is correct. Gold can lead to worse situations. 

Gold does not provide protection against a liquidity or insolvency event per se. 

Christopher Moir
Maker of random charts that seem important 2 years later

Gold is falling because there is the chance of a spike in real interest rates. In this scenario, gold will go down making the miner's output less valuable and oil will go up meaning miners No1 input is more expensive. Aka margin compression.

The insolvency stuff I have no idea.

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