Loading ...Crescendo of selling…
The pain is probably already palpable in the PM sector. I imagine once silver falls apart, the screams will become deafening.
Last week Powell arrogantly stated that M2 money supply was no longer correlated with inflation. And you know what, I believe him. M2 was being ramped up between 2013 and 2016, and yet gold miners (along with commodities) suffered their greatest bear market in history. Who is arrogant enough to say we won’t get a repeat?
Every time we think the gig is up, the Fed manages to pull another rabbit out of its hat. Don’t fight the Fed. Just go to sleep and end the suffering (like the poor folks in “Invasion of the Body Snatchers”). (Never sell your bullion, of course.)
IMO, you are hinting at the key issues here.
We have had a 40 yr bond bull, now cracking harder. Is it over? What would that mean?
In a prior post, I shared what I think it means, as this:
“Rotating out of Ponzi (finance) into the real world of insolvency”.
PMs are (as usual) at the leading edge of this realization.
They will lead the way out, at the bottom, as well.
Where is that bottom? WHEN will that bottom be? Have we even topped yet?
Lower rates (and Ponzi Finance) are behind the “Everything Bubble” … we’re possibly in the death rattle stage here. But it has had nine lives, and EVERYTHING is at stake, so mind the math and be patient.
In a private note … IMO, we have HAD the dollar hyperinflation since 1971, since the international banks and eurodollar credit have flooded the world with this funny money.
The US didn’t weimar, because the dollars were accepted as reserves by everyone overseas. Who will be playing the role of Charles deGaulle this next time (calling the hand)? Xi? Putin? or some guy named Satoshi Nakamoto?
Interesting times, eh?
It just reinforces that anyone who thinks they can become rich speculating against the central banks is more or less nuts. The best you can do is preserve what you have. That means owning physical bullion, which could underperform everything right up until they pull the plug, for all we know.
Gold and the miners have taken serious damage vs US equities over the last few months. It doesn’t look like there is going to be an imminent rebound to new highs anytime soon. This is likely to play out over years, not months.
I suspect GDX gets hammered enough over the next 6 months so that the gap down there at 26 gets filled. At that time the PBC bull market can commence in the gold stocks.
There is always a gap that needs filling. At some point, GDX needs to make a “high consolidation” and end the perpetual chart damage.
I have heard it time and time again–just wait until the next major bottoom, THEN the real bull market will begin. Whatever.
The bottom line is $hui:$gold ratio hasn’t made a higher high in 30 years, and it doesn’t look like it will do it before the SHTF IMO. At best you might be able to make a couple of nickels if you trade the miners perfectly. Otherwise, the charts for the last 30 years have been screaming you are better off in bullion. Factor in risk, and its not even a competition.