Grandich Interview

Listen here

Summary:

  • Peter Grandich rejoins the show with thoughts on geoeconomic events.
  • The PBoC shifted policy recently, selling $315 billion in US Treasurys from their $3.65 trillion reserve in support of the ailing Yuan currency and equities.
  • Clearly one of the wisest of the global central banks has lost faith in the Fed, ahead of the first US benchmark rate hike since 2006, nearly 10 years.
  • Higher rates dilutes the intrinsic value of existing US Treasuries, as newer issues offer greater expected return.
  • Our guest views the event as emblematic of a global crisis of confidence in centralized economic planning.
  • Intervention via the plunge protection team (PPT) was responsible for the 500 point rebound following the 2,000 point, 2-day deluge in the Dow Industrials.
  • In his 30 years on Wall Street, he’s never seen so much negativity on the sector, a good sign that the ultimate nadir could be close.
  • His technical work suggests that a solid break above $1,200 gold could lead to a brisk move to $1,300 – $1,400, in lightning fashion.
  • The host adds a cautionary note, that the onset of the last PMs bull market offered ample time to accumulate positions – in similar fashion, there should be no rush to overweight a diversified portfolio.
Peter Grandich of Peter Grandich and Company rejoins the show with comments on geoeconomic events. The PBoC shifted policy recently, selling $315 billion in US Treasuries from their $3.65 trillion reserve over 12 months, in support of the ailing Yuan currency and equities, according to a Bloomberg.com report. Clearly one of the wisest of the global central banks has lost faith in the Fed, ahead of the first US benchmark rate hike since 2006, nearly 10 years. Higher rates dilutes the intrinsic value of existing US Treasuries, as newer issues offer greater expected return. Our guest views the event as emblematic of a global crisis of confidence in centralized economic planning. Peter Grandich thinks intervention via the plunge protection team (PPT) was responsible for the 500 point rebound following the 2,000 point, 2-day deluge in the Dow Industrials Index. He’s taking the contrarian viewpoint with regard to the precious metals – in his 30 years on Wall Street, he’s never seen so much negativity on the sector, which is a good sign that the ultimate nadir could be close and a new bull market at hand . His technical work suggests that a solid break above $1,200 gold could usher in a brisk move to $1,300 – $1,400, in lightning fashion. The host adds a cautionary note, that the inception of the last PMs bull market offered ample time to accumulate positions – in similar fashion, there should be no rush to overweight a diversified portfolio with any specific asset class until similar footprints emerge in the charts.