Cold fusion used to be a zany term in the physics lab for generating endless cheap energy. Alas, no longer. Now it is the latest nutty idea from economists to create endless amounts of free money. Hold onto your wallets, this is an idea from the twilight zone. Continue reading “Cold Fusion: The Latest Insane Idea in Monetary Policy”
Gold Continues to Move from West to East
Gold has always been an opaque market, mostly because that’s how most owners of gold want it. Secrecy is highly prized by central banks, who continue to misreport their gold holdings as we will describe below. Private holders also value their privacy. However, in the past couple of years, more information has started to become available, thanks in large part to the work of analyst Koos Jansen. (BullionStar.com) Continue reading “Gold Continues to Move from West to East”
Goldman, Sachs is Wrong on Gold
Gold’s number one bear Jeff Currie, the Global Head of Commodities at Goldman Sachs, this week defended his call for much lower gold prices, even restating his target of $1000 by year end. Goldman Sachs is predicting that the Federal Reserve will increase U.S. interest rates no fewer than three times this year. Continue reading “Goldman, Sachs is Wrong on Gold”
Technical Indicators Still Positive for Gold
Gold took a kicking over the long weekend. It had moved too far too fast, was overbought and needed a correction. But that’s all it is, IMO. Continue reading “Technical Indicators Still Positive for Gold”
Is Gold an Inflation Hedge?
In a word, no. Yet this is one of those inaccuracies that just won’t die. When anti-gold Wall Street pundits want to talk down gold, they say gold is an inflation hedge and since there is no inflation, sell gold. Continue reading “Is Gold an Inflation Hedge?”
The Real Story on the US Economy: Manufacturing Sales
US manufacturing sales on a seasonally-adjusted basis have fallen for 17 consecutive months and are now down more than 8% below the July 2014 peak. December 2016 manufacturing sales were at the same level as November 2011, obviously a story of stagnation rather than the economic recovery the Fed keeps yammering about. Total sales in 2015 were $258 billion less than 2014–$5.738 trillion vs. $5.996 trillion. That’s despite record car sales in 2015. And what’s worse, inventory at the manufacturing level continues to pile up despite declining production. Continue reading “The Real Story on the US Economy: Manufacturing Sales”
Wayne’s Pick of the Week: Coeur Mining (CDE:NY)
Quite frequently, analysts just get it wrong. Last week, Coeur came out with its fourth quarter results and analysts found fault. Investors were smarter and the stock went on a tear. And there is probably much more to go, in my opinion.
Continue reading “Wayne’s Pick of the Week: Coeur Mining (CDE:NY)”
Negative Interest Rates Will Bring an Explosion in Gold
By the latest count, roughly $6 trillion worth of sovereign debt worldwide now trades at negative yields.
Continue reading “Negative Interest Rates Will Bring an Explosion in Gold”
Wider Credit Spreads Favor Gold
Gold is the ultimate safe haven because it is no one else’s obligation. It isn’t issued or backed by any government, central bank or corporation so the value of the gold you own is completely independent of anyone else’s performance or lack of it. When you own a bond, its value is dependent on the creditworthiness of the issuer. You don’t really own an asset, you own their obligation to you. When you own a stock, the value is dependent on corporate performance and whether or not management meets its obligations to you as a shareholder. Stocks aren’t assets, they are paper promises.
Pick of the Week: Kinross (KGC: NY)
