Golden notable quotables for 12/29/2016. . .
“First, ‘record levels’ of anything are records for a reason. It is where the point where previous limits were reached. Therefore, when a ‘record level’ is reached, it is NOT THE BEGINNING, but rather an indication of the MATURITY of a cycle. While the media has focused on employment, record stock market levels, etc. as a sign of an ongoing economic recovery, history suggests caution.” – Lance Roberts, Real Investment Advice (Article: Records are records for a reason)
“During November, the UK (London) re-emerged as the main provider of gold to Switzerland, with the Swiss importing 48 tonnes of gold from London. This is the highest monthly gold import flow from the UK to Switzerland since last January. The second largest source of gold flowing into Switzerland during November was Hong Kong which provided 35 tonnes, with the UAE (Dubai) a distant third providing 16 tonnes, and the US sending just under 12 tonnes to the Swiss.” – Bullion Star
MK note: An old story. The ETFs are selling. The Chinese are buying. The gold is flowing East through the London–Switzerland–HongKong-Shanghai pipeline. The Chinese buy gold when the dollar price is falling.
“President-elect Donald Trump’s pick for budget chief, Mick Mulvaney, has been an active investor in gold and gold-mining stocks, often seen as a hedge against collapsing currency.The South Carolina Republican congressman has accused the Federal Reserve of debasing the value of the greenback and has praised bitcoin, an alternative currency. He held between $50,000 and $100,000 in precious metals as of the end of 2015, filings show.” – Noah Buhayer/Bloomberg
“Since the rate hike, gold prices have already risen a bit. This trend is on track to continue in the coming year, for a variety of reasons. For one thing, many experts believe as Donald Trump takes office it will strengthen the gold market.His proposed policies are likely to raise the national debt and increase inflation, which historically leads to a rise in precious metal values. There has also been an influx of commodities investments from China, which have driven copper and zinc up in the last few months, and stand poised to do the same for gold.” – Trevor Gerszt, NewsMax Finance
“[G]old has been a better investment than equities in recent times. Since the turn of the millennium, gold has returned over 300%, while the S&P 500 has returned 55.09%. In addition, the MSCI EAFE index, which represents the performance of large-cap and mid-cap stocks across 21 countries consisting of countries in Europe, the Pacific and the Middle East, has lost 5.21% since the turn of the millennium. If anything, the potential slump in gold should be seen an opportunity to add more gold to your portfolio for the long-term.” – Sam Alcock, The London Economic (Article: Why the potential gold slump will be temporary, hence presenting a buying opportunity)
MK note: The one thing about “potential slumps” is you don’t know when they are going to suddenly end – particularly in the gold market.