Gold tickled $1290 this morning. Where is that Jeffrey Currie when you need him? We need to get him to assplain why he didn't foresee worldwide deflation, the Euro QE, and the Swiss depeg.
Cos right now his prediction is looking like it should have been prefaced with "if all things continue on the way they are right now, here's what comes out of my ass"; and that's not the quality of analysis you'd demand from a paid employee of Goldman Sachs, is it?
Anyway, here's the news:
Tim Duy - the Fed will probably take a dovish turn. I'd agree. The Fed aren't blind: they saw Trichet's single rate rise in 2011 send the Eurozone back into depression, and their job description involves not fucking up the US like Trichet fucked up the EZ.
Wall Street Rant - Doubleline data fail, the stock market has gone up for 7 years in a row and more. Jeffrey Gundlach is such a moron that he can't even look at his data to see if he's wrong, and the Financial Times bloggers are such morons that they don't bother to fact-check the assertions of some hedge fund talking head. It takes a blogger to smack these bitches down. A blogger. And this one hardly ever even posts.
That's how undependable the lamestream media is.
FT Alphaville - a current account surplus? In India? It's more likely than you think. There goes another source of downward pressure on the gold price.
The Gold Report - interview with Eric Coffin. He's right about this:
The real danger for the euro would occur should Greece prosper following a massive devaluation of its currency. Then countries like Italy, with much bigger debt loads, would want out as well, and the euro might be finished.And that's what might well happen. But he's wrong about this:
Putin clearly likes bullion. The Russian central bank has bought a lot of it in the last two to three years. There's a certain logic to a gold-backed ruble because the ruble is now effectively a petrodollar, and the oil price collapse has been disastrous for Russia.Russia's only been buying their own mines' gold, and only because the sanctions mean the gold can't reach the world market. Russia can't have a gold-backed ruble, because then every Russian will trade in their worthless rubles for gold bullion and the central bank will go bust.
Mining.com - Goldcorp pays $440M for Probe Mines. So does the recent pop in the gold price signify an end to the doldrums enough that the queue can be cleared, and all the low-cost developers (AKG, PG, DNA) will now quickly get bought out? That would be nice.
Mining.com - most money pumped into gold ETFs since 2012. Net inflows of 22 tons, or 25% of demand. This is how a pop in the gold price can happen. Pray, do continue, Whitey!
IKN - why I own gold. Long essay from this week's IKN, and I agree 100% that physical gold is an asset without counterparty risk (more or less). It's only one of many reasons that people own gold (including Asians), but it's a reason that people tend to forget (except Asians). Until, say, the Yellowstone supervolcano blows up.
And, I might add, in that sense it's okay for gold to have a carrying cost - that makes it just like insurance, which it is.
Reuters - Pope says ban on birth control doesn't mean to breed like rabbits dammit! Considering he's the Pope, why does he still hold to an outdated, incorrect interpretation of the story of Onan that belies an abject ignorance of basic OT/Jewish theology? Because he must be basing the ban on birth control on the story of Onan, because God's commandment in Genesis 9:7 clearly demands that people breed like rabbits.
Sorry Pope, you had a good run there with all the caring about the poor stuff, but now you've just proven you're as much of an ignorant dogmatic asshat as every other pope. For fuck's sake, this bullshit rule should go the way of opposition to heliocentrism, or fish on Fridays.