Some people say that gold is dead. They point to deflationary pressures and a bear market that started back in September of 2011. The bulls have been wrong for years; however, that may be about to change…
Ponzi schemes are as old as time.
Are things going to be any different in the Silver Market for 2016?
Spoiler Alert: It's NOT a rate hike!
If equities sell off another 20% like 2008, gold would not follow them down in a "dollar short squeeze or flight to quality". There is now a very different real interest rate and energy price setup and gold doesn't have the same macro correlations as before.
We have made a contrarian call for a falling silver price and a rising gold to silver ratio for years. This ratio has risen a lot during this time. Are we ready to change our call yet?
We have seen extreme short positioning building up in the oil futures market. The quantity of short positions opened is at an all-time high for Brent, and still high for WTI futures.
Inflation on the things we NEED..........Deflation on the things we don't NEED.........welcome to the machine.
After all, in yesterday’s oil trading there were over 600,000 contracts trading hands on the Globex exchange Tuesday with over 1 million in estimated total volume at settlement.
But here is a giant freebie for all those stupid, clueless oil executives out there in North America.
It's all up to China tonight.
For example, the world population continues to grow, good farming land with proper soil management is a finite resource, and the world is going to need more food in the future.
The last two years rents have been rising primarily due to supply and demand issues.
“To the intelligent man or woman, life appears infinitely mysterious, but the stupid have an answer for everything.” ~Edward Abbey
I am sure corporations, wildcatters and trading firms are all making business decisions based upon these low natural gas prices, and they are not from the bullish side of the equation.