The gold investment thesis revisited

SprottInsights/John Hathaway

Repost from 4-12-2021

image of black swan head“Missing, in our opinion, are the yet unseen consequences from extreme financial asset valuations supported by the rapid expansion of new public and private sector debt. Economic nirvana, founded on path-dependent monetary and fiscal policy, is impossible. The punchbowl cannot be taken away without wrecking the economy and the markets. Public servants are unwilling and incapable of doing so. Intoxicants will most likely disappear for unforeseen reasons. Gold will sense adverse outcomes long before they have been articulated.”

USAGOLD note:  Hathaway concludes that “either inflation or deflation seems possible at this moment.” And then there is the outlier – the possibility of something completely unforeseen. Perhaps the level of physical demand now working its way through the gold and silver markets is an indicator that investors already are preparing for “outcomes long before they have been articulated” – some black swan event yet to be identified.

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