Gold From 'On The Go' To Narrow

To be sure, the S&P's next crash is a day-to-day waiting game, but to reprise an advert quip from then evening San Francisco Examiner: "A lot can happen between 9 and 5."

Meanwhile, from the "At What The Heck Are You Looking Dept.", we uttered quite the guffaw this past Wednesday upon Dow Jones Newswires referring to the U.S. Economy as "Hot" but  just look at the Economic Barometer:

And again, that rightmost pip of the S&P 500 (red line) is an all-time closing high at 3975. Just bear in mind (for the billionth time): yields are rising and exceeding that of the S&P (1.465%); 84 of the S&P's 505 constituents have negative 12-month earnings; our "live" price-earnings ratio for the Index is at present 72.0x; and  the Senate is moving for "sharp corporate tax increases" which can only push the P/E even higher (ex-the inevitable crash). Just in case you're scoring at home.

As for the Econ Baro's metrics recorded this past week, obviously by the declining blue line they again were poor, notably with Feb's slowing of Home Sales, and actual shrinkage in both Personal Income and Personal Spending, as well as in Durable Orders. Of course, Federal Reserve Chair Powell was right there, stating that his bank shall continue to support the U.S. economy (even though it's "hot") and that Federal Debt reduction should not be an issue for now.  Instead, the bank is assessing conversion to a digital Dollar.  (While we deplore the latter, at least its supply supposedly is fixed.)

As to some extent is the supply of Gold. To be fair with our opening Scoreboard valuation of Gold (the current reading being 3734), one must include Gold's marginally increasing supply in the calculation: to otherwise not so do is to cheat, (as is typically done with the P/E of the S&P: "Well, if we include the negative P/Es, they'll make the ratio appear attractively lower.") Typically around some 85 million ounces of Gold are added annually to its global supply. Seems a large number, but essentially by volume it's just some 147 cubic meters, or less than three standard size shipping containers: that's it. It's taken nearly 40 years for the supply of Gold to double; the supply of Dollars has doubled in just nine years. 

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