All Hail the Return of the Bull Market for Gold and Precious Metals
Now that Sprott Inc., Paulson and Co and even former perma-bull Jim Rogers are abandoning gold as their primary investments, that to me is the signal of capitulation. The only guys now predicting gold’s imminent return to a bull market are the likes of Paul Singer of Elliott Capital Management and Stanley Druckenmiller, formerly of Duquesne Capital Managment. In my book, these guys are the smart money.
Just for backgrounder, Druckenmiller returned an average of 30 percent per year to investors in his funds over a career spanning 30 years. No other fund manager in the history of the world has ever come close to beating him. He closed his fund in 2010 and converted the company into a private family office because he felt he would no longer be able to deliver those kinds of returns consistently, in the fact of the Fed’s ‘financial engineering’.
Singer is famous for raising $1.3 million in 1977 from friends and family and parlaying into a fortune worth $1.9 billion. He is also famous for forcing wayward Latin American debtor countries into paying their obligations in full. He was the last man standing when Argentina defaulted, and forced Alberto Fujimori to pay him a $56 million judgement to allow him to leave Peru.
Both have never wavered from a belief in the fact that gold is, in fact, the only real money. Nor did they rush in and load up when they could see that there was no hope of gold overcoming its evil derivatives twin – the futures market – as long as there was quantitative easing going on to juice markets away from commodities.
But now that the inevitable wages of the sin of printing money ad infinitum out thin air are being paid in the form of stagnating global growth, the limits of ZIRP and QE effects having now been reached, all options available to the elite global financial layer are negative for dollars and euro, yuan and yen, and positive for gold.
The incremental devaluation of currencies has slipped out of the news cycle for now – but it should be back in due course. The bull rally currently underway will prove to be the last gasp of the QE-ZIRP fuelled mania in stock markets, and that plunging sensation experienced throughout July and August will return shortly.
Proxy War Being Fought by Russia and United States: Good for Gold
Mainstream press is still reluctant to categorically describe the global proxy conflict among the United States and Russia as such, despite the fact that they do battle in both Ukraine and Syria. When the fight jets of both countries are starting to encounter each other regularly in the skies over Damascus and Donetsk, you know its just a matter of time until Murphy’s Law asserts itself.
We’ll be featuring a series in November that will outline the top gold mining companies to have a piece of when gold resumes its ambitious assent into rarified price regions above $1,500 per ounce – which, given the geopolitical turmoil and the demise of central bank interventions ROI, will be sooner than you think.
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