Loading ...Unrelenting “PM-Bullish…Everything-Else-Bearish”
Andrew Hoffman
December 30, 2016
The “cataclysmic, financial big bang to end all bangs” I warned of 15 months ago – just before the PBOC commenced a devaluation that has already reached nearly 15%, en route to much larger levels; is upon us, waiting for a tiny spark, of any kind, to ignite.
Under these circumstances, history’s largest bubble (U.S. stocks) and “anti-bubble” (Precious Metals) have been inflated and deflated, respectively – under the guise of a fraudulent, ad hoc created “Trump-flation” meme that will rapidly dissipate once he formally takes office next month – starting with the March “debt ceiling” debates that will make it painfully clear that not a thing promised or hoped for will come to fruition. Moreover, if rates and/or the dollar continue to rise; let alone, if China launches the aforementioned “nuclear” option of a one-time Yuan devaluation; the historic House of Cards could collapse “at one fell swoop.” To that end, is it possible that, as I wrote yesterday, gold and silver prices have bottomed in late December for the second straight year? Only time will tell, but with prices at historically suppressed levels, amidst an environment of surging physical demand; razor thin above ground, available-for-sale inventory; and dramatically declining production, the odds could not be higher.