How to think about physical demand vs supply risks

ScotiaBank/Nicky Shiels/3-27-2020

photo showing a stack of gold kilo bars“Given Gold has found a bottom at $1450, its investor story has emerged even stronger —> positioning is clearly a lot cleaner, max macro fear has dialed back from extreme levels, risk appetite in US equities has returned, US$ remains somewhat capped (Feds unlimited QE and US taking top virus case spot) and funding pressures have alleviated somewhat.Gold has simply found its post crisis floor (like it did in 2008/9 post Lehman) and should be closer to $1700,  as it begins to react to massive inflationary monetary and fiscal stimulus and a new regime in which Big Gov has emerged as the only solution needed to fight the virus.”

USAGOLD note:  How gold fits into the structure outlined in Jim Bianco’s analysis posted immediately below.

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