Grandich Visits An Old Friend – Gold.

Posted by on January 23, 2017 - 12:19 pm

If someone only met me from 2014 on, they likely wouldn’t know I was once heavily involved in the metals and mining industry. Google my name and you will still find dozens of pages with links to me and all things metals and mining.

While I do miss certain aspects of my previous “life” (like my friends at GATA, Jay Taylor, Michael Campbell and a few others), by and large, Mark Twain was right when he supposedly said:

“A gold mine is a hole in the ground with a liar standing on top of it.”

I for one, found that to be a fair description all too often in the junior resource end of the metals and mining industry.

Having said that, and knowing I went from 99% of my business life being devoted to metals and mining to zilch, I can’t help myself to publicly comment on it given what has developed most recently.

My reasons for commenting here included the fact that friends I have from that 25+ years of my life, and folks around the world who still care what I think (not counting those who use to send some pretty nasty emails when I did it for a living) when it comes to gold and related items. Because of them, I felt compelled to say a few words (come on Pete, anyone who knows you is aware saying “just” a few words is not your “style”)

Okay, here goes:

  • As surprising it was to see gold get slammed just hours after Trump was elected President, I think his stances made known in recent days is incredibly bullish for gold going forward. For starters, I think he rang a bell for a top in the U.S. Dollar. If it wasn’t IMHO the beginning of the end for the Euro as we know it (thanks to the beginning of the end of the European Union thanks in part to Brexit and Trump’s election), we would be seeing the Dollar selling off right now. I suspect it will be gradual and more of slow retreat, but never-the-less bullish for gold.
  • The rise in gold should coincide with a major top in U.S stocks and bonds. One of the few stock groups that should benefit from this are mining shares. Here, a major ramp up in “M & A” (Mergers & Acquisitions) is most likely (the only two stocks I own are metals-related, both of which I suspect can be bought out in the next 12-24 months).
  • A word not tossed around in years within the financial arena, “inflation”, is making a bit of a comeback. I don’t think it’s about to return to its formable years like back in the 1970s, but since it’s been so low for so long, any real measurable increase is going to raise eyebrows – even within the “Don’t Worry, Be Happy” crowd that makes up much of the financial services industry and the financial media that feeds off them.
  • The gold paper “manipulators’ are still around, but no longer can push things around their way past a few hours or a few days. The gold physical market continues to evolve (thanks in part to the Far East playing a much bigger role) and when the momentum players return to gold if and when some technical resistance levels are breached to the upside, the gold cartel will hear this most deserving music.

Okay, “Old-Timers-Day” is done. I now return to my “life after gold” world.




Posted in: Matters of Finance, News
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