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Weldon's Mini-Metal Monitor: Yen-Gold... Rock On


The monetary debasement of the Yen continues...


Note the following statistics released this morning from a yet-to-be-named country:

  • Monetary Base - HUGE expansion during the month of January, driving the year-year pace of money supply growth higher by + 0.4%.

Then note the comments from that country's Central Bank:

  • "As prices rise, real interest rates will fall further. And as short-term rates will stay near zero during this process, the impact on the economy and prices should strengthen further."

Of course, the data and CB commentary detailed above are from Japan.

Indeed, monetary base growth is exploding amid a rise, finally, in bank lending and credit creation, particularly at the regional bank level, in light of a property boom all while Bank of Japan members talk about how much more is needed before deflation can be declared dead, officially.

We remain bullish on bullion priced in JPY.

More so
: When we note the long-term mega-macro-monthly overlay chart on display below, plotting the price of Yen-Gold against the path of Dollar-Yen, dating back to the abandonment of the USD 'Gold Standard.'

The monetary debasement of the Yen continues … Gold is reflecting it.

Bottom Line: We remain bearish on the Yen, most particularly versus Gold.

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Position in gold
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