Updates: Gold and silver both displayed weakness this week after a tremendous run in recent months. Some would call it a natural pause while others may point to the extraordinary amount of paper short positions in the markets. Either way, the fundamentals for precious metals are still strong against the backdrop of perpetually high stocks. Two well respected analysts in the market penned articles looking to gold’s past in order to gain insight into gold’s future. Craig Hemke explores the Comex with his article “Comex Gold Into Year End” and Gary Christianson looks at gold’s past to discover that “Gold is the Alpha Currency”.
Segment #2: A look at Christianson’s article reviewing Gold’s past; a look back at 1965 and loss of confidence debtors of the US’ had as the US was printing money. Then there was the Nixon lift of the gold standard and how people understood the gold’s role as providing an anchor to a currency.
Segment #3: What happened to gold in the early 2000’s and what was happening from a geo-politically and monetary policy perspective. We quickly move up to 2019, reviewing how the seeds of the next crisis were sown from papering over of the last financial crisis.
Segment #4: What did the past teach us? The issues over the last 70 years were deficit spending, growing debts, and wars are continuous. The national debt will most likely continue to grow at approximately 8% a year. Prices and wages rise as bankers and government devalue dollars and the bottom 90% are growing, but not wealthier. The US runs on debt. So what do you do? Place your vote and get gold. Chrisianson looks at gold to debt ratio and believes that gold could easily get to the $5,000-$8,000 range.
Segment #5: Is 2019 more like 2010 or 2016? Craig Hemke makes the argument that in 2016 gold & silver experienced a false breakout. Yet, in 2010 was when QE really kicked in gold and silver really took off. That false starts seem to happen regularly in bull markets and confirms that he believes 2016 was the needed false start. He goes on to write that by spring gold and silver will most likely rocket higher.
Segment #6: Open discussion with Darren and Jeremy.