Gold and silver take breather from torrid summer pace; a recollection of Hugh Hendry’s late June call
(USAGOLD – 7/23/2020) – Gold and silver are taking something of a breather this morning after the torrid pace of the past several days – a performance belying their reputation for quiet summers spent languishing in a range and not attracting much attention. Gold is up $2 at $1877 and silver is down 39¢ at $22.73. Since May 1 – the traditional beginning to the summer doldrums – silver is up a white-hot 51.5% (!). Gold during the same period is up a respectable 11.4%. (Please see our Chart of the Day.)
We recall former hedge fund manager Hugh Hendry’s elaborate and somewhat unconventional analysis of the present economic situation at the end of June: “… [W]ith overseas nations printing central-bank reserves to buy dollar assets,” he warns in The Dawn of Chaos, “and with banks and credit markets now uncomfortable with owning Treasuries, and what with a podcast star running the Fed, I can see US stock and gold prices rising considerably higher and volatility exploding to the upside … I can see the dawn of CHAOS, people, and it’s going to change the course of history once and for all!” [Emphasis added.] Hendry believes a massive devaluation of the dollar is required saying “[i]f The Fed doesn’t change then the world’s going to snap.” Hendry says he is “long gold”.
Chart of the Day
Chart courtesy of TradingView.com • • • Click to enlarge
Chart note: This chart offers a visual reference to this morning’s market report above. Silver is up 51.5% since May 1, 2020. Gold is up 11.4% over the same period.