The number of billionaires in recent years has expanded vastly, and most are underowned in gold & silver. During this time, the supply of gold & silver has not expanded nearly as much as the billionaire cash.
The tell will be a $75 or $100 up day. Maybe more.
This means that the price of gold will have to rise much much higher ($2500?) to equilibrate supply & demand if some or most of the billionaires decide to increase gold (& silver) holdings.
And Syb, zero (& negative rates) = zero (and negative) carry costs to own gold.
Syb, you going to bet against Soros on this? And Gundlach? All are calling for a gold "meltup" as faith in central banks goes bye bye. Syb, don't miss the gold train.
So is billionaire Mark Cuban--on CNBC in minutes---promo says he is super-bullish on gold.
This is getting "veddy interesting"
When Central banks Panic & go to Negative rates = Buy Gold (carry costs zero)
Big traders are underowned in gold, so they must play catch up before the meltup Gundlach predicts.
All realated to credit default swaps blowing out--banks are afraid to lend to eachother, esp. in Europe.
Gundlach says rally is just starting! BUY!
Sentiment: Strong Buy
"Dollar an unnecessary layer of complication". All fine and dandy for US buyers, but don't you think the dollar enters into the buy/sell decision of traders of U.S. bonds outside of the U.S.?
Gold is the big winner today, but one day's action doesn't make a trend. Watch it like a hawk.
OK, fine, but how does the dollar enter into your model? If the dollar continues to sell off against the yen & euro, will that impact demand for USTs?
What will negative (short) rates do? I don't think you want to be in bonds or the dollar when that happens. Gold is spiking up today on neg. rate fears and dollar plunge fears. Soon, this will be very bad for bons in my opiinion. When TLT hit the mid $130s about a year ago, a substantial selloff followed. This time, maybe something more. Good luck all.
I agree--this panic buying could be immediately followed by a major drop in bonds, especially if the dollar sells off.
This is getting gnarly real fast.