Stocks are faltering and August/September is noted as a poor period for stocks. Meanwhile, gold, silver, and gold stocks appear to be under accumulation despite another sell-off. The August/September period is usually good for gold.
To close, we remain mindful of the S&P “Casino” 500’s excessive (understatement) overvaluation, the price/earnings ratio at this writing (per the opening Scoreboard) at 44.9x, (i.e. double, indeed triple, as was taught in portfolio theory).
Copper futures climbed above $6.30 per pound Thursday, hitting over three-week highs as production in Chile declined due to a combination of water shortages, lower ore grades, unplanned maintenance, the transition from oxide to sulfide mining and labor disputes.
The sharply higher gold price has increased the profitability of small-scale mines over the last couple of years. The lack of employment opportunities in some countries has also driven people into mining out of necessity.
While I have my personal gold in a bank vault, I opened an account for each of my grandchildren, starting in 2014, and still buy $100 a month in gold for their accounts. It turns out the initial grandkids are all well over $30,000...
