Metals firm, for now…..

  • Posted by Allan Lederman
  • On February 9, 2016
  • 0 Comments

Gold & silver have made what appears to be a breakout, confirmed for now by a similar charge in mining shares. Platinum and palladium joining reluctantly. Minor PGM’s absent from the party. The good news

  1. Worries about bank balance sheets
  2. Negative interest rates becoming mainstream
  3. Doubts about growth going forward, making debt service more onerous
  4. Cb’s seem to be out of ammo. Negative rates more like a .22 when a howitzer is needed
  5. Dead bodies have not surfaced yet in the energy loan sector

Bad news:

  1. Deflation
  2. Muted demand

Gold should still be bid until the purge in stocks is complete probably around 1450  S & P