There’s No Limit On Gold Anymore, Robinhood Users Send Worthless Stock Surging On News Of Bankruptcy (Video)

There’s No Limit On Gold Anymore, Robinhood Users Send Worthless Stock Surging On News Of Bankruptcy Video by Silver Report

There’s been some methodical discussion about the limits of the current rush of gold demand. Some have been suggesting the old record high in gold prices would somehow represent the top. I wanted the dig into the dynamics of the precious metals market and why the old rules no longer apply. It’s true the surge in gold and silver prices is currently far above the 200 DMA and from a technical standpoint that has tended to signal overbought conditions yet when comparing it to the rate of money creation Gold and Silver are still extremely undervalued. The fundamentals for Gold and Silver remain strong despite seeing so much investment demand in fact they seem to have only become more intriguing and the bonus is all the economic news coverage on gold has been extremely bullish. All of the large banks have set new gold price predictions above $2,000 and the banks have a lot to do with dictating price. I wanted to discuss the bankruptcy of the Ascena Retail Group Inc. because retail investors have been snapping up the stock on the news of their bankruptcy. The company has over $1.2 billion in debts and the company has made a very clear disclosure that the stock is actually worth nothing, on page 5 of the court declaration filed by Ascena’s most senior official just hours into the case:

“Existing common equity in Ascena will be canceled.” as their creditors will take ownership of the retail chain, which Ascena also made plain. The reaction from Robinhood users has been intense and it’s pushed the shares up around 120%, the trading volume was strong on the news the company won’t be able to pay its debts. Just a little more confirmation the old rules no longer apply

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