The End of The Great Keynesian Experiment will undoubtedly lead to lower nominal rates and negative real interest rates. Under these conditions, gold prices will soar.
The further decimation of the dollar is far from assured as it now appears to have bottomed in its decline. It has merely fallen to the top of its long-term normal trading range in value.
The price of gold does not tell us anything about gold or its value. The gold price tells us only how much purchasing power the U.S. dollar has lost – nothing else.
Jim Grant, the financial word’s adult in the room, says the bear market in Treasury bonds could last for decades. Do the long-term charts bear him out?
In the past 16 trading days, the Gold/Silver ratio has dropped from 86.4x to now 77.9x. But ’tis basically a three-week Silver gain of +12.9% versus just +1.8% for Gold.
As per CFO of the New Development Bank, the BRICS are discussing a common currency for the long term, but I will believe it when its design is finished.
A potentially pivotal week of trading is seeing precious metals markets push higher. On Thursday, the dollar slid to its lowest level in more than a year versus a basket of foreign currencies.
