I'll double your bet with my last two dollars and say they're worried about a margin call... brokers tend to load up clients without a decent explanation as to the risks involved..
Same thing happened in 2018, margin sellers needing liquidity dumped quality stocks to generate cash. I remember gold dropping spectacularly before a quick rebound.
We're stuck in between the competing powers of inflation and hawkish central banks.. either may be very very good for gold - higher interest rates to suppress inflation will precipitate a big crash and this may just be a warning rumble to this effect. In this situation, you'll have governments having to service higher interest payments (as they're already in deficit), which means either sacking government workers or printing much more money and letting inflation deal with the debt loads. My gut tells me they'll try and raise rates but we've never had these levels of debt simultaneously across governments in the world so I don't expect them to do it well enough..
I hope no one is in margin call territory yet as you'd be a moron to be fully leveraged at these levels, but you can't put a price on stupidity..
Either way, this is the time to husband cash as anyone going to CR when the market gets the wobbles gets badly punished. I'd be cooling the drilling for a little while if this falls further, wait for the bounce and then start making announcements.. good announcements in a falling market are wasted IMO.
That's my 2 bucks.
MGV Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
