Gold jumped 5% last week, booking its
best week in over a month.
This is a respectable move for an asset that many consider to be a worthless yellow metal.
“It’s not so much that people don’t like gold anymore — it’s that they hate it,” wrote strategist Dylan Grice in the July Edelweiss Journal. “Of course, this makes gold more interesting than it has been in many years. There is blood on the streets.”
Indeed, factors like a reversal of poor sentiment and upward pressure from short covering may be propelling a short-term rally.
But longer-term forces like currency devaluation and high public debt levels remain favourable, argue the gold bulls.
And you may think the gold bulls are unreasonable. But unfortunately that’s irrelevant, at least in the short-run. People who you consider to be irrational have money and they buy and sell like everyone else in the markets.
Frank Holmes, CEO and Chief Investment Officer of US Funds, recently gave a big presentation at the Agora Financial Investment Symposium in Vancouver.
His talk included a 71-page slide deck. We pulled the 50 key slides that support the gold bulls’ undying investment case. 46 of those slides include charts making connections to money supply, emerging market demand, U.S. presidents, and many other things.
All of them represent reasons why people are buying gold and driving prices up from their lows.
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