Tag Archives: inflation

Precious metals - Gold, Silver, Platinum, Palladium and there respective mining shares - have failed to sustain any rebound despite tremendously supportive sentiment amid an extreme oversold condition. Nevertheless, we believe that the bottom is in and a rebound should begin very soon. The question though is, "What will the driving force be for a sustainable rebound which will evolve into a new cyclical bull market?" Below are several options to be considered and my assessment as to which it will be - and why.

"Do we really have a time machine and have reset to 2007 or have we in fact entered the uncharted territory of unsustainable, runaway trends the likes of which have never been observed in recorded history? Also, just how relevant is the Dow Industrials Index in all of this?"

The breakdown after the QE4 announcement, and now the extreme move into a yearly cycle low has, I daresay, convinced everyone that the gold bull is over. I would argue that it is impossible for the gold bull to be over as long as central banks around the world continue to debase their currencies [and that] gold is just creating the conditions - a T-1 pattern - necessary for its next leg up to what I expect to be...around $3200 sometime in late 2014 or early 2015. [Let me explain.] Words: 560; Charts: 3

I read many hundreds of articles every week looking for writers who have an in-depth understanding of our economy and who are not reticent to tell it like it is. Monty Pelerin (a pseudonym) does just that week after week, year after year. This post includes introductory paragraphs and links to 25 of his most enlightening and current articles. Take a look. There are bound to be several that will grab your interest.

On the surface, policy settings around the world look very inflationary with large fiscal deficits and aggressively easy monetary policies yet it is hard to see inflation gaining any traction [with] global activity so weak and the monetary transmission process so impaired in many countries. There is more of a deflationary than inflationary tone to the economic environment and it does not look as if this will change any time soon.

[In a recent] conversation about international banking and the state of the global financial system [with] a senior executive of a large international bank - the ultimate insider - I was floored by what he told me. [Here's what he had to say and, in his opinion,] what basic steps, taken now, will enable you to be one of the few people left standing should the house of cards collapse. Words: 465

People who are saying there is no reason to buy gold now, never understood the reason people were buying it in the first place. People weren’t buying gold because they were worried about a crisis in the Eurozone or weak US stocks. People were buying gold because central banks were printing too much money. It’s inflation that drives the gold train, not political uncertainty.

As we all know, money printing always leads to inflation. It's just a matter of figuring out which assets get inflated. This time around gold is not the only beneficiary, stocks are, too, and I'm convinced that the chart below holds the key to the end of the bull market. Words: 475; Charts: 1

Evidence suggests that the "Zero Hour Debt" line has been reached. Get out of the U.S. dollar [U.S. treasuries] and buy physical gold [or equities] before it's too late. It is the only way to protect yourself against a massive U.S. dollar devaluation to come in the next few months. [Let me explain why that is the case.] Words: 719; Charts: 5

For the month of January, U.S. stocks experienced the best month in more than two decades [and the Dow hit 14,009 on Feb. 1st for the first time since 2007]. Per the Stock Traders’ Almanac market indicator, the “January Barometer,” the performance of the S&P 500 Index in the first month of the year dictates where stock prices will head for the year. Let’s hope so.... [This article identifies f more solid reasons why equities should do well in 2013.] Words: 453