via InvestorIntel - Trump And The Gold Bugs Clutching At Straws

Ecclestone ruminates how we've been gifted a grubby tap with gold. Comments are excellent purple prose.

http://investorintel.com/gold-precious-metals-intel/trump-goldbugs-clutching-straws/

via Nowandfutures.com - Gold, BGMI, DOW 1970 - 1982

http://www.nowandfutures.com/images/gold_bgmi_dow_1970-1982.png

73/74 recession was considered a ‘crash’, but floating gold prices were in their infancy, and miners had the longstanding benefit of devaluation. Many gold miners were out of business by the 1960’s, as they could not pay their cost of capital.

(Komis, Star Lake, Fork Lake, Decade, Jolu, Tower Lake, Golden Heart, Greywacke - all failed as as consequence of not being able to pay their cost of capital since the 1950's.

Golden Band Resources, demonstrating that they are able to pay their cost of capital could single-handedly demolish the paradigm that gold miners are deadbeats.)

We still have to consider devaluation as a driver for gold prices, lower interest rates, historically large short positions in a highly leveraged futures market, commodities stabilizing, a declining U.S. Dollar, a stock market decline against a backdrop of stabilizing mining sector in commodities after a long bear market, possibly negative nominal rates on U.S. Treasuries, negative nominal rates in the Eurozone, expert analysts known for their accuracy forecasting a vertiginous drop in gold prices in a single chorus and the perception that central bankers are omnipotent despite an obvious liquidity trap, and the dollar value in everything is absolute.

People have lost sight of how seriously inflation has eroded purchasing power.

-F6