…Something different – at least for now – is going on. Maybe it’s related to smart, big money knowing that the world is on the cusp of rampant, uncontrollable price inflation after the unprecedented money supply inflation of the last 9 years. And, in reality, the money supply inflation began with Greenspan in the late 1980s/early 1990’s. The U.S. money printing has been going on since Nixon closed the gold window and it went semi-Weimar in 2008-2014. The U.S. exported its inflation with the strong dollar policy and reserve status of the dollar. That has changed. The BoJ and the Peoples Bank of China have been printing money the last few years like a meth addicts on steroids. The ECB is a close third.
This monetary inflation was contained when it was just the Fed and maybe the BoJ printing in volume. Now the world is drowning in printed fiat currencies of every flavor. Price inflation is on the cusp of breaking out furiously in all currencies. This will translate into a furious break-out in the price of commodities, especially physically deliverable gold and silver bullion.
PG View: Something does indeed feel different: The price of gold has been quite resilient heading into year-end, despite very high December rate hike expectations, a stronger dollar and a stock market that continues to plumb record highs.