Monthly Archives: June 2020
Economics in orbit
GoldSeek/John Mauldin/6-1-2020
“Wars Have No Winners. In a race-to-the-bottom currency war, everyone loses. Gold is the world’s best currency now. We are at war, so swap paper for gold. The US dollar will probably break down, as the Fed actively tries to weaken it. (While I think the dollar will go lower, I certainly would not use the words ‘breaking down.’ Against what? Maybe gold. But I buy gold as central bank insurance, not as an investment. Though I do agree with Mark that it is probably time to buy a little more ‘gold’ insurance.)”
USAGOLD note: In the long piece linked above, Mauldin relays the thinking of a number of analysts (as well as his own) – including David McWilliams, Niall Ferguson, Mark Yusko (referenced above) and Barry Ritholtz among others – on a range of subjects including gold.
A tug-of-war between bulls and bears muddling risk indicators
Bloomberg/Michael Hunter and Anooja Debnath/6-1-2020
“For Stephen Gallo, a currencies strategist at the Bank of Montreal, the overall trading pattern implies a use of haven assets as a form of insurance within the return to risk, particularly on global equities. ‘The demand for gold and good government debt may be sophisticated investors seeking insurance against a stock rally that, at times, looks like investors climbing a wall of worry,’ he said by telephone.”
USAGOLD note: Or better, climbing a wall of serious doubts and reservations ……