Precious Metals |

Don’t Cross the Streams

Gold and silver traders are no doubt on the edge of their seats as economists shake their heads (that is, the small minority of them who have noticed) as precious metals appear to be staging an impressive breakout that has been a long time in coming.

It should be interesting to see where things go from here – it’s been a steady drumbeat of higher prices all year so far and the trends driving the recent move – loss of confidence in central banks and a weakening dollar – appear to be strengthening.

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Following a lengthy discussion about the energy market (oil prices to rise this summer), at about the four minute mark Jeffrey Currie, Goldman Sachs Head of Commodities Research, reiterates his long-held bearish outlook for precious metals.

I’ve read Currie’s commentary many times over the years, but never seen him speak until this clip. Granted, his call for $1,050 gold in recent years was pretty spot-on, but, over the long-term, his record isn’t so hot (not always bearish).

More importantly, it’s not clear why someone who looks like that would wear glasses like that – I mean, we get it, you’re a PhD economist working at Goldman Sachs – is there some sort of Uber-Nerd/Uber-Dork/Uber-Douche competition going on?

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Two-Term Presidents and U.S. Stocks

Another fine infographic over at the Visual Capitalist reminds us of how the last few eight-year stock cycles coinciding with two-term presidents haven’t worked out so well toward the end of those periods, that is, unless you’re a short-seller.

Of course, the main subject for the infographic is gold as an investment and it’s worth pointing out (as many others have already done so far this year) that the yellow metal is doing exactly what it’s supposed to do at times like this.

Barro and Schiff on Gold and Inflation

Josh Barro of the New York Times and Peter Schiff of Schiff Gold talk about the yellow metal and how fast consumer prices are rising. The result of the discussion is pretty predictable.

Also see fellow NYT scribe Paul Krugman’s take on the subject here.

For some time now, I’ve thought that it will be instability (and probably much worse) in the global monetary system that eventually pushes the gold price higher, an idea that is not mentioned in any of the above discussion, but which should have been.

Gold, Commodities Routed

Bloomberg puts together lots of opinions (none of them positive) about the recent plunge in the gold price and broader weakness in the natural resource sector.

One Gina Rinehart, Australia’s commodity queen and richest woman, has been smarting, losing nearly $20 billion in net worth recently, according to this story at the Telegraph.

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