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The long-cycle in precious metals has peaked, writes Citi's Jon Bergtheil, arguing we'd need a...
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Wednesday, February 20, 11:41 AM ETThe long-cycle in precious metals has peaked, writes Citi's Jon Bergtheil, arguing we'd need a level of systemic risk higher than the past few years to warrant a continued bull run. Especially vulnerable are the PM miners (GDX, SIL) which benefit from what may be mistaken belief $35 silver and $1,600 gold are the "new normal."
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Wake up Bergtheil! We are probably closer to the bottom of the cycle rather than the peak (give or take another -20% to -30% decline in the XAU).
What is fascinating is that most would have never thought that there would be the problem of higher costs at such elevated levels in the price of gold.
I mean, when gold was $700/oz, it was assumed that it would be peaches and creme for the producer if the price got to $1,200. Yet, here we are at $1,600 and saying that they're getting hit by higher costs.
Even the best laid plans don't seem to work out.
Regards.
New York bankers own the politicians, the Treasury Dept. is a revolving door for Goldman Sachs. Some of Obama's biggest campaign contributors are bankers, Obama will not prosecute them or make them pay more taxes, they own him. He is instead going after the middle class and the higher income people that run industry and create real jobs so he can give it to the banksters (70% of the 16 Trillion dollar debt is interest payments) and keep the civil servants employed who really produce no wealth.
Gold should have a rally after March/April into the summer of 2013, then the final low will show up in the June area of 2014, the debt crisis is not over, Europe and Japan will go down first, then the USA and will drive Gold to $5000+ after Economist Martin Armstrong's pi cycle date of 2015.75 (late 2015) , the peak may come in 2016 and as as late as 2020. Give a man (Armstrong) the credit as he has been predicting this crisis since the 1980's when Reagan's people ignored his warnings.
See more here... http://bit.ly/Y8kbv6
and here... http://bit.ly/Yatk4h
them trust worthy now?
Still bullish on Ag, thanks to the bubble heads in WDC....
[Federal government debt, the biggest bubble since helium]
There is no way that the US is going to become a net exporter of energy in amounts that could even slow down this rate of growth in the debt.
There is no way this flat line recovery is going to turn into a boom in business.
There is no way that the unemployment figures are going to have a sustained improvement short of all the unemployed giving up hope and shifting to the underemployed list.
There is no way that you can set such records in increased liquidity and not have explosion inflation regardless of business activity.
There is no way that the Fed can liquidate its holdings of treasuries in an orderly manner without collapsing the Treasury market.
There is no way the Fed can liquidate any toxic paper it took on from banks internationally in the crisis of 2008.
There is no way the Fed can step away from QE which would mean higher interest rates without collapsing the flat line so called economic recovery.
Read the article on the Coppock indicator for the buy signal.
It is quite helpful.
Tell me what has changed in this country? Anyone?
Still ultra high unemployment (the real % of people not working in this country is absurd)
More Americans than ever rely on the government and it's handouts just to survive.
The above statement is going to put a massive strain on an already strained entitlement system.
Most Americans have almost zero net worth.
The government will never, ever stop spending
There is no way at all the government is ever going to repay any of its debts.
This "game" can keep going for quite awhile and it will for sure.
I am not a precious metals bug. I own physical metals and they do make up about 5% of my total net worth. If I never need them for anything i will pass them down to my kids.
The wealthy through time have always owned precious metals. They have always been a part of the elite's net worth and Wall Street never wants average Americans to know that. They do not want average Americans having any leverage of the banking cartels. That is a deadly secret they want to be kept hidden.
What I am is someone who refuses to sit there and be brainwashed by the liars on Wall Street who want to keep this Ponzi scheme going and going for as long as it can go on.