Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyan Mailbag

By

PrintPRINT

Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.

Laurie,

I agree with your bias but I sure disagree with your conclusions written today. If inflation (as measured by the PPI) is up huge tomorrow, I suspect gold and silver will get hammered and hammered hard, probably more gold than silver. If inflation is up, bonds will sink, and with that the US $ will probably rise with rising treasury yields. That is my belief. Gold would likely selloff on a rising US$.

On the other hand, if inflation is weak, I expect the Euro to rally and treasuries to rally and the dollar to fall and gold and silver to rise. For the record, I expect tame inflation numbers tomorrow (even if they have to cheat) on the basis of falling grains and stable to falling oil prices. We have to see the combined affects of CPI and PPI to know, but I say metals are a buy because the rest of your analysis is wrong!

Bet you a quarter on it too.

Thanks,
Minyan Mike Shedlock


Hi Minyan Mike,

I can see where you are coming from and point well made. It is certainly very possible, although I think that gold will move independently from the dollar and bonds, similar to its 12 buck fall with no currency/bond moves last week. Headline inflation rises scare the heck out of people and they run to gold. Have you ever considered a scenario where bond yields are rising, the dollar falling and gold rising? That is something on my radar screens but still a bit away in timeframe. That will be pretty messy for sure.

Happy to have a beer on it... I'm in NYC late Aug so I can buy it for you then!

Cheers,

Laurie

< Previous
  • 1
Next >
position in silver, gold

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE