In Gold we trust report 2019

Executive Summary of the In Gold We Trust Chartbook

  1. A Turn of the Tide in MonetaryPolicy • Events in Q4 clearly showed that a “monetary U-turn”is currently on its way, which means that further large-scale experiments like MMT, GDP targeting and negative interest rates might be expected in the course of the next severe downturn. • We might already be in a prerecession phase. Crisis-proof assets will probably be in greater demand again in the coming months.
  2. A Turn of the Tide in the Global MonetaryArchitecture • Renunciation of the US-centric monetary order(“de-dollarization”) is now making headlines. • Geopolitical tensionsare increasing: Trade wars -> currencywars
  3. Gold‘s Status Quo • 2019 ytd, gold is up in almost every major currency. In many currencies (AUD, CAD) gold trades at or close to new all-time highs! • Despite the rally that started in August of last year, sentiment is still bearish.
  4. Gold Stocks • Mining stocks are in the beginning of a new bull market. Creative destruction has taken place, and leverage on a rising gold price is higher than ever. The mega-merger between Barrick and Randgold might have marked the bottom. • Gold & silver mining stocks are probably one of the most hated asset classes these days. We are convinced that the capitulation selling of the last couple of years now offers investors a very skewed risk/reward-profile.
  5. The HUI/SPX ratio currently stands at a similar level as in 2001 and 12/2015, when the last bull markets in gold stocks set in

Read Full report below


Leave a Reply

Your email address will not be published.