Like a true contrarian, Gold Newsletter publisher Brien Lundin looks beyond the headlines to understand what is really moving precious metals prices. He has concluded that the mainstream media may have it all wrong.
So whilst the government works to stem inflation, the West continue to increase it. There is little the Chinese can do to stop these currency wars, so instead the government encourages both individuals and institutions to invest in gold.
Many were surprised at gold’s fall given Yellen’s appointment is expected to be a bullish underlying factor for most markets, including the precious metals. Market speculators are clearly convinced Democrats and Republicans will meet some kind of resolution by Oct. 17.
The global rally for gold underway since late June will soon translate to juniors, says Brien Lundin. With so many undervalued companies in safe North American jurisdictions, he sees no reason to add sovereign risk to a portfolio.
Actual real world experience, evidence and academic research on the gold market are frequently ignored in favor of the simplistic and often the misleading. This will change in the coming years when there is a realization as to the importance of gold as a diversification and as a means of preserving wealth.
Precious metals rallied in London on Tuesday morning as European stock markets also bounced with commodity prices. The U.S. dollar eased back on the currency market, as did major government bond yields.