For the first time this year spot gold revisited 1300 Friday morning before selling off through the day to close at 1284, down $5. Silver reached a high of 17.30 and then closed down 15 cents on the week at 16.97. Miners closed off 0.7% (HUI) after volatile trading during the week, sucking in buyers of miners ETFs at the highs on Friday morning before reversing in a failed breakout. The gold-silver ratio rose slightly to 75.7.
As we noted last week, we look for the rally to continue, though we expect a period of consolidation in gold before prices move much above 1300. Long-term we expect miners to outperform and will be buyers of junior miners on weakness in gold.
The Left Decries our Post-Truth Society While Pushing the Ideas that Fuel It
“Relativism, subjectivism, and materialism are all bankrupt philosophies. Yet these are what drive our culture and politics. When objective truth and values are abandoned, there are no unifying principles of truth or morality that bind together the vast number of disparate individuals and groups that inhabit our nation.
“America’s greatness stems from its commitment to e pluribus unum — out of the many, one. Out of the many states, one nation. Out of the many races, religions, and backgrounds, one people. To achieve that—to bind together all these subjective entities into a functioning and civil whole—we need objective principles to which we are all committed.
“If we truly want to make America great again, if we really want peace and prosperity, we must return to the foundational principles and truths that made our nation great in the first place. If we want unity—e pluribus unum—we have to abandon subjectivism and once again embrace objective truth and morality. If we don’t, America will be transformed into a brave new world where truth is defined by the powerful.” Denise C. McAllister in The Federalist
Gold: Barbarous Relic
Cash or Gold? You decide.Watch full-screen.
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"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my Country. Corporations have been enthroned, an era of corruption in high places will follow, and the money power of the Country will endeavor to prolong its reign by working upon the prejudices of the People, until the wealth is aggregated in a few hands, and the Republic is destroyed." — Abraham Lincoln, Nov. 21, 1864
Is America Headed for Bankruptcy? (July 2016) “America’s exploding deficit is cause for major concern and yet no presidential candidate in the running right now seems to be talking about it.” —Martin Feldstein
The Fed’s balance sheet is a pile of tinder, but it hasn’t been lit … inflation will eventually have to rise.
Where will the price of gold be in 5 years? Greenspan: “Higher.” How much? Greenspan: “Measurably.” (New Orleans Investment Conference, Oct 25, 2014)
Mercenary Musings: "We should always be cognizant that gold is the only real money and its true value is never subject to the decrees, fiats, machinations, whims, let alone the dreams, fantasies and whimsies of elected and/or autocratic national governments." — Micky Fulp
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TradersGame ebook guide for long-term precious metals investors:
New version coming. Watch for it.
You can protect your assets and assure your financial survival with precious metals in your portfolio. Diversification is always best for the long-term, so what’s the right mix for your needs? Get the answer.
How to Buy Gold and Silver Today (to Preserve your Assets Tomorrow)
A Balanced Portfolio
Bullion market specialist Jerry White suggests a balanced precious metals portfolio — based on an investor’s risk tolerance and other factors — and analyzes the benefits and costs of each investment product, from junior mining stocks and gold coins to bullion bars and platinum group metals. For gold novices and experienced investors alike. White is a former trading manager of a major bullion house, director of broker Brody, White & Co., exec of a Comex depository and consultant to Comex, major refiners and coin wholesalers.
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SF Fed Pres Says Worse to Come — Admits Policy Failure (August 2016) “The critical implication of a lower natural rate of interest is that conventional monetary policy has less room to stimulate the economy during an economic downturn, owing to a lower bound on how low interest rates can go. This will necessitate a greater reliance on unconventional tools like central bank balance sheets, forward guidance, and potentially even negative policy rates. In this new normal, recessions will tend to be longer and deeper, recoveries slower, and the risks of unacceptably low inflation and the ultimate loss of the nominal anchor will be higher. We have already gotten a first taste of the effects of a low r-star, with uncomfortably low inflation and growth despite very low interest rates. Unfortunately, if the status quo endures, the future is likely to hold more of the same—with the possibility of even more severe challenges to maintaining price and economic stability. To avoid this fate, central banks and governments should critically reassess the efficacy of their current approaches and carefully consider redesigning economic policy strategies to better cope with a low r-star environment.” —San Francisco Fed president John Williams
They’re Coming for your Cash "It might sound like a conspiracy theory spun by right-wing crazies. But judging by the increasing desperation of governments to reboot the world economy, it just might happen. . . If you don’t already own some gold in fully allocated form, now would be a good time to consider buying some." — Mark Nestmann