He must read JSMineset.
Smart Money Diversifying Into Gold – One Billionaire Invests Half His Net Worth
May 2, 2018
Some big investors see warning signs ahead for markets but are holding their positions. Egyptian billionaire Naguib Sawiris is taking action: He’s put half of his $5.7 billion net worth into gold.
He said in an interview Monday that he believes gold prices will rally further, reaching $1,800 per ounce from just above $1,300 now, while “overvalued” stock markets crash.
“In the end you have China and they will not stop consuming. And people also tend to go to gold during crises and we are full of crises right now,” Sawiris said at his office in Cairo overlooking the Nile. “Look at the Middle East and the rest of the world and Mr. Trump doesn’t help.”
President Donald Trump is aiding Sawiris in one way, though: If a North Korean peace deal can be reached, the Egyptian’s investments there may finally pay off. After 10 years of waiting to repatriate all his profits easily and control his mobile-phone company, Egypt’s second-richest man says an accord would let him reap some of his returns.
Bill and Jim,
Yesterday the Fed not tightening again is so incredulous. With the massive tax cuts we have and low unemployment they claim and with even their hand picked inflation gauges all above 2%, they bailed. Stagflation keeps the status quo a little longer until after North Korea and Iran issues are over and that will be soon. If the Fed had raised rates and noted both strength in growth and inflation the bond market would have tanked smartly. And stocks too without a doubt. Dollar may have got a bid but with TED spreads widening I doubt the dollar would have stayed strong. If the Fed had bailed and noted growth weakness and a more submissive time to inflation, dollar would have tanked and stocks too because of weakness tone. The Fed chose the stagflation statement that would appease both bond, dollar, stock, gold bears and bulls. But they could have chosen that statement and still raised a measly 0.25% but did not. The tipping point is near. The blame and trigger will not be a true exogenous event like a geopolitical or China trade war currency manipulation, it will be a heterogeneous event that is so obvious yet most believe it to be exogenous. Higher rates on both long and short end is putting an end to the Greenspan’s put that has put so many investors into a state of intentional ignorance and/or cognitive dissonance.
Some nice charts on commodities and gold, but the lumber chart astounds me!
When you consider lumber, and recently, news stories of how the Saudis want $80+ oil, you just about cover most of what makes industry tick.
It’s a foreboding sign of things to come, namely inflation.
CIGA Wolfgang Rech
My Case For Gold Hitting A Record High Above $2,000
May 03, 2018
(Kitco News) – Before I lay out to you why gold will hit new highs in the coming years, I want to first thank you and all of my loyal Kitco readers who have followed my daily reports for so many years. I have a lot of irons in the fire, but writing for Kitco, and you, is one of my very favorite daily chores. I hope you continue to follow me in the coming years.
If you know me well by having read my Kitco daily reports for years, you know I’m pretty straight-forward and not much for hyperbole or bombastic proclamations. While the headline of this special report may sound like I’m really going out on a limb, just read on and let me explain.
I am going to show you three charts that lay out my case for gold pushing to new highs above $2,000 an ounce. These charts will corroborate my notion that it’s not a stretch to suggest gold will hit a new all-time high in the coming years, or possibly sooner.
Goldman Sachs Commodity Index (GSCI) at a multi-year high
See on the monthly chart for the GSCI that prices are at a more-than-four-year high and have been trending higher for two years, suggesting more upside for the raw commodity sector in the coming months, and likely much longer. Commodity markets are highly cyclical. The raw commodity sector is embarking upon what I believe will be a years-long up cycle that will produce new record highs in several, or even many, raw commodity markets.