Gold - 1600s Brushed!

Fact is, as you regular readers well know, hardly are we as concerned about the price of Gold as are we about the unsupportable (understatement) level of the stock market as measured by the S&P 500. Herein we've been hammering on the yield of the riskless 10-year U.S. Treasury Note (1.554%) at some point surpassing that of the riskfull S&P (1.517%).

And in the wake of our writing a week ago to "watch for increasing volatility in the markets", so it came to "pass" (not surprising you a wit) this past Thursday when at precisely 17:20 GMT the yield on the 10-year U.S. Treasury Note passed above that of the S&P in eclipsing 1.500%. The S&P Index at that moment was 3827 ... but 97 woeful minutes later at 18:57 GMT, the S&P had careened down 100 points ... that is over double the median trading range of an entire day (in measuring from one year ago-to-date).

Moreover, 'tis just another of many indications that the stock market is due for a wholesale crash, be it due to rising yields, a terrible earnings season for the S&P (only 59% bettered their bottom lines, and worse, 82 of the 505 constituents don't even have earnings), single stock manias, bogus bits**t, and our favourite measure: the honestly-calculated S&P "live" price/earnings ratio now being 68.7x.

But the S&P may have one saving grace from a fall with same: the p/e of TSLA finally is under 1,000x (at 818x). "We're saved!" Besides, Bloomy just reported that for February, a record $86 billion was invested into exchange-traded funds. "It's all good!" (Remember 2008? Or 2001? Or '98, '90, '87?)

In the midst of it all, there are those presently arguing for inflation, some for stagflation, some for depressionary deflation and at the other end of the spectrum those for hyper-inflation. But regardless your flavour of flation, at the end of the day, again 'tis the supply of faux dough vs. that of the yellow metal which ultimately determines the price of Gold. (Unless after 5,000 years 'tis suddenly different this time ... we don't think so).

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