logo
Published on Gold Anti-Trust Action Committee (http://www.gata.org)

How modern monetary theory could spike a new bull cycle in gold

By cpowell
Created 2019-08-18 23:28

By Chad Slater
Australian Financial Review, Melbourne
Monday, August 19, 2019

The year is 2003 and a long argument has ensued over gold and inflation. Gold is trading at $US370 an ounce, having recently traded at lows of $US250. I am locked in a debate with an analyst colleague who is adamant that gold is going to soar on the back of the coming inflation from interest rates near zero.

I have been lucky enough to work with a diverse range of personalities. Without naming names, one ex-sell side analyst taught me how to model stocks in such a lucid and coherent way that my analysts now dare not stray from the colour coding I was taught.

... Dispatch continues below ...



ADVERTISEMENT

Storage and Withdrawal of Gold with Bullion Star in Singapore

Bullion Star is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore.

Bullion Star's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in Bullion Star's bullion vault, which is integrated with Bullion Star's shop and showroom, making it a convenient one-stop shop for precious metals in Singapore.

Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage rates are competitive.

For more information, please visit Bullion Star here:

https://www.bullionstar.com/ [1]


At the other end of the spectrum, I learnt just as much from the aforementioned analyst who retrained from being an engineer after reading The Australian Financial Review and deciding "I could do this" -- as you do. He is an out-of-the-box thinker and a natural contrarian, someone who thinks of things well ahead of others, sometimes to his own financial detriment.

I argued that there can be no inflation without deflation. What I meant was that with independent central banks having stable inflation mandates, they would halt any rise in inflation. Only if they either removed or were forced to remove this (by virtue of losing independence) could we have inflation.

He of course had the last laugh, as gold has quadrupled since. But on the inflation point, there’s early and then there’s early. He was at least 16 years early on the inflation argument, but we may be getting to that point soon. ...

... For the remainder of the commentary:

https://www.afr.com/markets/equity-markets/how-modern-monetary-theory-co... [2]

* * *

Join GATA here:

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Friday-Monday, November 1-4, 2019

https://neworleansconference.com/noic-promo/powellgata/ [3]

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org [4]

To contribute to GATA, please visit:

http://www.gata.org/node/16 [5]