Supply & Demand

The “Japanisation” of banks is the new illness of contemporary finance. Stemming from Japan, it is expanding progressively, especially in Europe. How does this disorder translate?

The popularity of the GDXJ ETF product has been so overwhelming, VanEck reported they would be changing the index rules to accommodate the increased demand

Over the past few weeks several political and geopolitical factors goaded safe haven assets higher, providing a particularly positive environment for gold and helping to push it past this fairly important resistance.

Gold is being powered higher by excellent demand in India (the world’s biggest wedding season is in play), institutional investor concerns about the US debt ceiling (the next deadline is April 28), strong growth in China, and by the populism wave that is sweeping through most of the Western world.

Several “black swans” are looming which could inflict a financial nuclear accident on the U.S. markets and financial system.

Recent progress made in streamlining trade in local currencies has brought Moscow and Beijing closer to creating a financial architecture that could facilitate transactions in gold.

For the third consecutive time since the tightening cycle began in December 2015, gold rallied on the back of a Fed hike.

Seems to me the world is ready to hyperinflate into gold. After all, all currencies have already hyperinflated in the financial world.

After a challenging Q4 in 2016 in a context of rising bond yields and a stronger US dollar, gold seems to be getting its shine back in Q1.

To own gold is not climbing a wall of worry. For anyone who understands the problems that the world is now facing, physical gold ownership gives peace of mind and the best insurance that money can buy.