The Doctor Is In?

Gold’s not buying. Neither is the bond market. Inflation Hysteria #2 has so much less to it than #1 in 2017-18 ever did. But this one isn’t completely empty. There are some asset classes which have been absolutely on fire thus seemingly consistent with the “money printing” excesses of the Fed and feds. Investors fearing for currency “debasement” and fiscal breakdown by piling into real and tangible assets in an obvious way.

Just not gold. Other commodities, however, particularly copper.

They call it Dr. Copper for a reason, and that reason is its situational proximity to real fundamental balances – or imbalances – in the real economy. As an industrial metal, there’s as much to its price in economy as everyone is told to think about dollar currency. But in those instances where the two get together, combined there could be an inflationary indication supposedly like no other.

Or at least not nearly as deflationary as recent years.

Late in 2020 is being talked about as if this is one of those instances. Perhaps, as some say, the most likely candidate for the long-feared final end of the US dollar and the inflationary inferno its collapse is purported to bring about.

So far as the good metal doctor is concerned, the price hasn’t been this high in more than seven and a half years. Surpassing the last cyclical peak during Inflation Hysteria #1, it’s not just that fact but also the manner in which it has come about; a better than forty-five-degree angle shooting up, like QE’s bank reserves, seemingly to the moon (though still much less impressive than during Reflation #1 with so much less “money printing”).

Not only that, look at exactly where the appreciation began: March 23.

 

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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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