Lawrence Summers said that U.S. policy makers, by allowing the economy to overheat, have likely cemented inflation rates of 4% or higher, way beyond their long-term target.
There is a whole wide market out there and while the time will come to ride a big gold stock rally, that time does not yet appear imminent, continued short-term bounce or not.
Gold stocks surged higher in recent months fueled by huge gold-futures buying. But when those upside bets on gold grew excessive, heavy selling soon erupted to rebalance overall spec positioning.
Without question, investing in the precious metals sector has been a pain in the ass for nearly the entire 20 years I’ve been involved. The official intervention, which has become shamelessly blatant, is the primary reason.
