BREAK ON THROUGH TO THE OTHER SIDE

One of the old arguments against owning gold was the lack of yield. With $10 trillion of negative yielding debt and trillions or Treasuries with negative real yields, there goes that argument out the window. If the actions of central bankers around the world give you confidence in their abilities, don’t own gold. I’m sure printing more worthless paper to pile on top of the worthless paper they’ve already printed will work.


Chart of the Day

One of the outcomes of Brexit has been a surge in the price of gold. For some long-term perspective, today’s chart illustrates the trend of this millennium’s gold market. Notice how the pace of the bull market in gold that began back in 2001 increased over time. In 2011, however, the parabolic trend in gold prices came to an end and a new downtrend began. Over the past 32-months, gold had been trading within the confines of a mildly sloped downward trend channel. More recently, however, gold has surged well beyond resistance (red line) over the uncertainty brought on by the United Kingdom’s decision to leave the European Union.

“Regardless of the dollar price involved, one ounce of gold would purchase a good-quality man’s suit at the conclusion of the Revolutionary War, the Civil War, the presidency of Franklin Roosevelt, and today.” Peter A. Burshre

4
Leave a Reply

avatar
  Subscribe  
Notify of
kokoda
kokoda

The author contends that since Treasury yields are squat that makes the Gold space a good place to be since gold stocks do not offer a yield.

BUT, many, many stocks on the exchanges offer a yield (dividend). I think the author was slightly disingenuous. This is not a slur against gold in any form.

Thaisleeze
Thaisleeze

Its all about gold.
Each of the following events resulted in a net gain of physical gold to the western banking system
Iraq war 2
Ukraine
Libya
Venezula crisis
Greece crisis
Oil crisis
Now we have a crisis with Deutsche Bank. Last month no gold was repatriated to Germany from the NY Fed and the bulk is still outstanding. Fertile imaginations are running wild. It has taken a lot of gold to satisfy the huge Asian demand this century, it had to come from somewhere.

Faux Queue
Faux Queue

Who pays $1350 for a suit?
Two silver dollars would buy you a nice pair of shoes then, and still will today. Potential upside for silver at this moment is tremendous.

Discover more from The Burning Platform

Subscribe now to keep reading and get access to the full archive.

Continue reading