As we kickoff the trading week, here is a look at gold bull alert, plus 3 stunning charts.
June 21 (King World News) – Peter Boockvar: Notwithstanding what many in the Reddit crowd thinks, trading and investing are not easy and with a monetary tightening ahead in the coming years, it will get even more challenging. No matter how slow the Fed goes, no matter how much they ‘communicate’ what they want to do, there is no avoiding the potholes of reversing extraordinary easing. I’m stating the obvious but when markets and the economy have been addicted and medicated for so long on low rates and QE, there will NEVER be the right time to ease up and NEVER a smooth way of doing this. I say ‘obvious’ because just look at the history, particularly over the past 10+ years when each QE program ended and when the Fed was raising rates…
Billionaire Eric Sprott bought a 20% stake in a mining company
to find out which one click here or on the image below
If Mike Tyson is going to punch someone in the face, no matter how much notice he gives them and no matter how prepared they think they are, it is still going to really hurt. And finally, what makes this time even more unsettled is the direction of inflation from here will be predominantly driving things rather than the Fed’s own volition.
I say this ahead of a slew of Fed speak this week, particularly from Jay Powell tomorrow where inflation is not just a Wall Street topic of pontification. It is a Main Street story now and that means the questions from politicians should get more pointed as their constituency speaks up in frustration.
Gold Bull Alert
As for the commodity pullback in some raw materials, here are some charts to put it into perspective. One is the CRB index, highly influenced by the direction of energy prices (which I expect to go higher)…
CRB Headed Much Higher
…another the CRB raw industrials index which I believe is very important to watch because it includes commodities that don’t trade on a futures exchange and thus do not get pushed around by speculators. It also doesn’t include energy.
CRB Raw Industrials Index Just Off 10 Year High
This index was down just 1.6% last week, and the same amount off a 10 yr high and includes resin, tallow, burlap, rubber, wool, hides and print cloth that you can’t trade on the CME or LME.
The 3rd is the food index where you have to take a microscope out to see the recent pullback off at ten yr high.
CRB Food Index Just Off 10 Year High
I remain bullish on most commodity stocks as we have a global reopening and recovery to look forward to and it won’t be just US consumers driving things here.
To listen to Dr. Leeb discuss the gold and silver takedown, why the pullback is most likely already close to being finished and why both metals are headed into the stratosphere CLICK HERE OR ON THE IMAGE BELOW.
To listen to Alasdair Macleod discuss this week’s takedown in the gold and silver markets and what to expect next CLICK HERE OR ON THE IMAGE BELOW.
Also just released: Greyerz – Gold And The Coming Global Economic Meltdown CLICK HERE.
Also just released: “This Has Certainly Been A Week For The Ages, And A Major Wakeup Call For Everybody!” CLICK HERE.
Also released: Gold & Silver Smashed As Bullion Banks Attempt To Get The Hell Out Of As Many Gold & Silver Shorts As Possible Prior To Basel III Implementation CLICK HERE.
Also released: We Are Now At The Beginning Of What Will Be A Historic Collapse CLICK HERE.
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