Jim’s Mailbox

Posted at 10:01 AM (CST) by & filed under Jim's Mailbox.

Jim,

You said it would it start this June.

Dave

8 Reasons a Huge Gold Mania Is About to Begin
June 17, 2019

Nick GIAMBRUNO

An epic gold bull market is on the menu for 2019.

I’m not talking about a garden-variety cyclical gold bull market, but rather one of the biggest gold manias in history.

This gold mania will be riding the wave of an incredibly powerful trend… the re-monetization of gold.

The last time the international monetary system experienced a paradigm shift of this magnitude was in 1971.

Then, the dollar price of gold skyrocketed over 2,300%.

It shot from $35 per ounce to a high of $850 in 1980. Gold mining stocks did even better.

Today, gold is still bouncing around its lows. Gold mining stocks are still very cheap. I expect returns to be at least as great as they were during the last paradigm shift.

So let’s get right into it, starting with the first four catalysts that will send gold prices higher…

More…

 

Jim/Bill,

Gold investors have not only global economic and political hurdles to evaluate and live by,

Trump backed himself into a corner with China, essentially demanding it give the U.S. ultimate say over its fiscal, monetary and trade policy.

They are terms of surrender.

(What audacity, if true!)

but also “Devine Intervention” (Trump and the Fed intervening to keep a lid on gold and silver).

Remember, no one important wants to see gold rise through the cap currently in place. When it does it will be the biggest tell of all that Draghi, Jerome Powell at the Fed and the rest of the central bankers don’t have any answers for what is happening.

 

 

 

 

 

 

You can keep a lid on gold, economic deterioration, interest rates, etc.  for only so long with monetary intervention.  But like the natural flow and buildup of magma under the earth’s surface, at some point the pressure will create a blowout.

You simply cannot defy physics forever.  There must be payback.  The Devil to pay, so to speak.

CIGA Wolfgang Rech

Draghi Punts, Trump Grunts, Gold Bunts
June 19, 2019

Authored by Tom Luongo,

For months now the markets have been in denial that ECB President Mario Draghi has any answers to the Euro-zone’s problems. Today’s statement confirms what anyone with eyes to see has been saying.

There is no Plan B.

Draghi started the year saying he would end his various QE programs and by June he’s not only put them back on the table (New TLTRO in September) but has now opened up the possibility of taking rates lower.

Draghi told an ECB conference in Sintra, Portugal, that “further cuts in policy rates… remain part of our tools.” He added that there was “considerable headroom” to re-start bond purchases, which inject newly created money into the financial system in the hope of boosting lending and economic activity.

Draghi has been exposed as swimming naked, as Warren Buffet would put it.

More…