Neither corporate debt or stocks are rising because the economy and financial system have been magically cured by money-printing. But when the Fed prints enough money to make literally everything “money good” when it comes to their value in debased dollars, everything can rise for some time. Let’s not forget that stocks tend to do quite well during hyperinflations; it’s just that gold, hard assets, and claims on hard asset do even better.
Speaking of gold, we saw another 1% (10.38 tonnes) capitulatory sale on Wednesday by the GLD ETF . As I’ve noted before, 1%-plus one-day sales of bullion by the ETF are rare and tend to be capitulatory when they occur. The last one-day, 1% sale (also 10.38 tonnes interestingly) was on July 8, which happened to mark the July low as I noted at the time in Gold correction is coming to an end.
Given that ETF sale and several other indicators I watch, I tend to think the odds are high that we saw another important low in gold on Wednesday. If so, it should now set the stage to challenge the $1,000 mark sometime in August.
No comments:
Post a Comment