Well to tell you the truth, I am currently hedge by being short on silver. But if the gold-silver ratio rises, the USD is likely to rise as well. That has been an ongoing theme for an economic contraction.
What I am trying to say is that the enviro that is good for gold mining is also theoretically good for the USD. In this enviro Au out performs cost-input commodities like oil. The gold sector is fundamentally counter cyclical, as hard as that is for inflation bulls to believe.
There is IMO a reason why gold stocks have been so lame for so long, and that is because inflation bulls insist they are part of the inflation play. But in that enviro, their fundamentals actually degrade.
Yes, I suppose I meant it in a somewhat cynical way. My point was that this administration would be a promoter of inflation (just like the last admin) but that the targeted groups of beneficiaries are different. Of course the banks happily use and abuse the money first, as usual. Same system, different beneficiaries (after the banks get theirs).
My apologies dear readers (and SA)... right under the Dow chart should be this paragraph, which helps make sense of the one that follows.
"Interestingly, today’s Dow is mimicking the average election year to near perfection! I am going to assume that the market has no clue yet who it thinks is going to win."
The Last Bear Just Locked The Bunker Door [View article]
100% agree. That is the big picture, and it is why speculation is fine... but only after one has seen to eliminating debt and getting the leverage out of their lives.
The Last Bear Just Locked The Bunker Door [View article]
I started my website in 2004 because of catastrophic risk you note. I am not intending to snear at it. EVER. What I am doing is noting the cycles that play out over the years within this risk environment.
As an example, had I acted on my alarm in 2004 I'd have not only missed many subsequent profit opp's, but I'd have likely sat 100% in US dollars (I always keep a significant level there BTW) and fallen behind by leaps and bounds.
What I mean by the Age of Inflation onDemand is that we have an ongoing 'continuum' of deflationary pressure (I use the monthly TYX or USB chart to illustrate) that is routinely met by inflationary policy. This policy is always doomed to fail, but it has thus far reliably produced 'swings'.
I also believe there is going to be a 'final deflation', which would end the system.
Dumb Money Sold In May And Went Away [View article]
The target for the SPX is and has been (for many weeks now) 1200 to 1250. The play has also had gold miners leading. Check. People get so worked up about a headline and that is really not productive.
Uncivilized Savages Unite! Open Letter To Charlie Munger [View article]
I have a feeling that is a question that many people who have no position are struggling with today. The open letter was written by NFTRH subscriber Larry Lepard, and I cannot give an answer for him.
Gold Ratios - An Update [View article]
What I am trying to say is that the enviro that is good for gold mining is also theoretically good for the USD. In this enviro Au out performs cost-input commodities like oil. The gold sector is fundamentally counter cyclical, as hard as that is for inflation bulls to believe.
There is IMO a reason why gold stocks have been so lame for so long, and that is because inflation bulls insist they are part of the inflation play. But in that enviro, their fundamentals actually degrade.
Post-Election Thoughts [View instapost]
Yes, I suppose I meant it in a somewhat cynical way. My point was that this administration would be a promoter of inflation (just like the last admin) but that the targeted groups of beneficiaries are different. Of course the banks happily use and abuse the money first, as usual. Same system, different beneficiaries (after the banks get theirs).
Clarity Coming To Markets Soon [View article]
"Interestingly, today’s Dow is mimicking the average election year to near perfection! I am going to assume that the market has no clue yet who it thinks is going to win."
Systemic Stress Is Building, And It's Bullish (For Now) [View instapost]
FrankenMarket Lives (On)! [View instapost]
The Age Of Boom & Bust Accelerates [View instapost]
Gary
Gold Stocks Aim Higher In Relation To The Broad Stock Market [View article]
Dumb Money Sold In May And Went Away [View article]
The Last Bear Just Locked The Bunker Door [View article]
Thank you for your comments.
The Last Bear Just Locked The Bunker Door [View article]
As an example, had I acted on my alarm in 2004 I'd have not only missed many subsequent profit opp's, but I'd have likely sat 100% in US dollars (I always keep a significant level there BTW) and fallen behind by leaps and bounds.
What I mean by the Age of Inflation onDemand is that we have an ongoing 'continuum' of deflationary pressure (I use the monthly TYX or USB chart to illustrate) that is routinely met by inflationary policy. This policy is always doomed to fail, but it has thus far reliably produced 'swings'.
I also believe there is going to be a 'final deflation', which would end the system.
Does this sound like snearing?
Dumb Money Sold In May And Went Away [View article]
Uncivilized Savages Unite! Open Letter To Charlie Munger [View article]
Gold Stocks And Treasury Yield Relationships [View article]
Gold Stocks And Treasury Yield Relationships [View article]
Gold Stocks And Treasury Yield Relationships [View article]