After the rally completes, a precious metals pullback is likely upcoming, to be followed by resumed broad market leadership
Despite a rough quarter for gold, its major miners just reported their second-best results ever. While their metal suffered a serious drawdown exacerbated by Fed-rate-hike fears, the miners still earned fat near-record profits. Those combined with gold stocks’ parallel selloff pounded sector valuations to their lowest levels in at least a decade and likely ever.
Chinese investors were key drivers of the gold bull market last year, as Western investors generally sat out the rally until the end of the year. Despite gold trading sideways in the second quarter after its big price correction in the first, Chinese physical gold investment demand remained robust.
When the SS Central America was discovered on the ocean floor more than a century later, part of its gold was recovered. Much to the media’s surprise, its value had survived remarkably well.
Our political process can’t reduce spending and/or raise taxes enough to balance the budget, so the debt grows and grows. As it does, paying the interest plus the accumulated debt load pulls more capital away from more productive uses. This depresses..
