The world has been losing confidence in the currencies issued by central banks, and lately the US dollar. Investors are also aghast at the deterioration of the quality of our political leaders. Investors, like voters everywhere feel disconnected that both our central bankers and politicians just don’t get it. One can detect the decline in confidence in every part of the world. Others like China and Russia already have more dollars than they possibly want. However, US policy has treated them more as enemies than allies or even as equals. As such it is not such a surprise that both countries are hoarding gold to offset American hegemony. We believe they also suspect that the American people will elect an inflationary president and a dysfunctional Congress this November since neither Clinton nor Trump stands for sound money. Mr. Trump, that serial debtor has filed for Chapter 11 bankruptcy, four times. That will be good for gold, but bad for the dollar. We continue to expect gold at $2,200 per ounce gold......................Finally most gold miners are mining gold at a profit with all in costs (AISC) about 20 percent lower to $1,000 per ounce. Prospects for the industry are bright. Gold shares have more than doubled in the first quarter and the TSX gold weighting was increased to seven percent from four percent. Yet most institutional accounts are underweighted, waiting for the proverbial pullback. Although gold is technically overbought, rather than a pullback we expect a consolidation of the recent move. We believe that we have entered the second leg of gold bull’s bull market that began in April 2001 and will continue to rally reaching $2,200 per ounce. We like highly liquid Barrick and Agnico Eagle among the seniors, prefer B2Gold and Eldorado among the intermediaries and McEwen Mining among the juniors..... http://www.321gold.com/editorials/ing/ing052216.pdf