I've always been of the opinion over the last number of years that the precious metals will be the only assets worth owning when this Everything Bubble meets its pin...either by design, or by circumstance.
Gold prices made a significant low during November or December in 8 of the last ten years. Gold prices are low and over-sold as of Nov. 27. The gold to S&P 500 ratio shows gold is inexpensive compared to the S&P over four decades of history.
In 2018, before the trade war between the US and China put the boots to copper demand, and covid-19 mine closures/ abandoned expansion plans crimped supply, we made a bold prediction: that copper supply is NOT going to be able to keep up with demand in the long-term.
Growing income and wealth inequality were on my (and probably your) radar screen long before COVID-19 came along. The pandemic has made them both more obvious and more urgent. The actions by the Federal Reserve have widened the gap.
Within the first two months of the crisis, more than $10 trillion in relief packages were announced worldwide. This was three times more than the response to the 2008-2009 financial crisis.
If it cannot be used for finance, if it is unsuited to borrower and lender alike, then what is it used for? Some would contend it is used as a medium of exchange. After all, some merchants do accept it. Let’s look at that.
Want to see a crystal-clear picture of who has been helped the most by decades of trickle-down economics, who has gone nowhere and who has actually gone slightly downhill? Well, here you go..
The appointment of Janet Yellen as Treasury Secretary fully removes the “Chinese Wall” that is supposed to separate the Fed and the Government. I believe her appointment signals a decision to transition monetary policy into the unfettered implementation of “Modern Monetary Theory.”
It is remarkable how much the year 2020 has played out like 2019...at least for the precious metals. And now, with 2021 on the doorstep, it's time to begin looking ahead.
Earlier in November, Ronald-Peter Stöferle, Managing Partner Incrementum AG gave an excellent speech and presentation at the 2020 Precious Metals Summit. In this presentation, Ronald covers a wide range of topics, including but not confined to...
