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Old 05-18-2020, 05:44 AM   #221
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...
Hedge fund luminaries including Paul Singer, David Einhorn, and Crispin Odey are among those bullish on gold, according to recent letters to investors. So are large asset managers like Blackrock Inc. and Newton Investment Management.

“Gold is the only escape from global monetising,” Odey wrote. Gold futures were the third-largest position held by his flagship Odey European Inc. fund at the end of March. “In the short term, the money will be made on the inflation bet.”

The logic is simple: the massive expansion of central bank balance sheets around the world must eventually dilute the value of their currencies -- most importantly the dollar -- leading to inflation of hard assets like gold. The price of the metal has already risen sharply this year, touching a seven-year high of $1,751.69 an ounce on Friday. But some believe it has much further to go.

“In recent months, gold has gone up in price to some degree, but we think that it is one of the most undervalued investable assets existing today,” Singer’s Elliott Management Corp. wrote in a letter to investors in April. He argued that low interest rates, mine disruptions and “fanatical debasement of money by all of the world’s central banks” would lead gold to rise to “literally multiples of its current price”.
...
https://www.bloomberg.com/news/artic...n?srnd=premium

If they are putting their (managed) money where their mouths are, it's going to push gold higher.
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Old 05-18-2020, 06:15 AM   #222
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... silver's Friday rally picked up new momentum after the release of the Federal Reserve's industrial production data for April. The report showed that industrial production dropped 11.2% last month, the most significant drop in the report's century-old history.

One of the report's components showed that mining output, including gold and silver production, dropped 11.2%, the sharpest monthly decline in history.

"Nobody really talks about the mining numbers in this report, but someone was obviously watching it," said Streible. "The data points to tightening physical supply. Silver prices are going higher because the market is getting a lift from all different angles."

With silver prices back over $17 an ounce ounces, Ole Hansen, head of commodity strategy at Saxo Bank, said that the next critical resistance level to watch is $17.50 an ounce.
...
More: https://www.kitco.com/news/2020-05-1...onth-high.html
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Old 05-19-2020, 04:28 AM   #223
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An article I read from Tom Dyson caught my eye. Two years ago, Tom sold everything he had and invested all his money in gold......

https://www.rogueeconomics.com/bill-...your-best-bet/

Quote :
The Ultimate Barometer

The Dow-to-Gold ratio is the ultimate barometer of systemic “health.”

It tracks the 30 Dow Jones stocks, as priced in gold. And it tells us the best time to buy gold… and the best time to buy stocks.

You buy stocks when they are cheap relative to gold. That is, when the Dow-to-Gold ratio is below 5 (when it takes five ounces of gold or less to buy the entire Dow).

You sell stocks when they become expensive – when the Dow-to-Gold ratio rises above 15 (when it takes 15 ounces of gold or more to buy the entire Dow). So you sit in gold until stocks become cheap again (in gold terms).

Over the last 120 years, whenever the system “reset,” the ratio went below 5. Stocks were cheap, relative to gold.

On the flip side, when things were ripping – as they were in the late 1990s, for example – the ratio got as high as 41. Stocks were expensive, relative to gold.

And the thing about this barometer is that once it begins a trend, it tends to stay in that trend for many years.

It’s all in this chart of the Dow-to-Gold ratio from 1900 to 2020…
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Old 05-19-2020, 08:05 AM   #224
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I posted a note about a Bloomberg news report a while back where the author talked about the S&P500 measured in terms of gold:

https://www.pmbug.com/forum/f4/our-m...html#post34775

Similar idea.
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