Gold Stocks: Performing Much Better

Gold stocks continued to trade much better than they have been, I mentioned that on my last podcast even though gold was down 11 dollars on the day, gold stocks were down but not that much, down just a little bit. (Newmont Mining (NEM), Barrick Gold (ABX), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), Goldcorp (GG))

Market Vectors Junior Gold Miners ETF (GDXJ) Has Some Catching Up To Do

The smaller gold miners if you look at the  Market Vectors Junior Gold Miners ETF (GDXJ) which is an index of junior gold mining stocks,  I I think this thing still has to move up 30 percent or so to get back to where it was when gold was lower than it is right now earlier this year.

Gold Hits A New High For The Year

The price of gold has been creeping higher and higher ever since it had that correction and by the way I think I did a pretty good job of nailing the correction, the fact that I said it would be a very shallow correction and I'm pretty sure that I nailed the the bottom. I came on and I did a podcast when it looked to me like the gold stocks were confirming an end of the correction in gold and gold did rally and initially gold stocks rallied to but then the gold stocks came back down and almost retested their lows, didn't quite do it. But the price of gold never came back down, the price of gold kept rising and rising and now finally yesterday the price of gold hit a new high for the year. (Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD))

Currency Markets: Monetary Policy Divergence (EUR/USD)

I think that even if the Federal Reserve hikes again in a couple of weeks they're nearing the end of their tightening cycle and you know even though the Federal Reserve claimed to be data dependent and they hike interest rates despite the fact that the data was much weaker than they thought, I think the markets are starting to look beyond the hikes to the cuts. I think we're getting ready to start a new easing cycle and on the other side of the Atlantic the ECB is getting ready to end their easing cycle and to begin tightening so I think the currency markets are more looking at that policy divergence than whether or not Trump is going to get any anything through Congress.

Gold & Gold Stocks Will Move Higher

When the Federal Reserve raises rates in June, if they raise rates in June, Gold is going to take off. If they don't raise interest rates in June then it's going to explode even higher and of course you know you're going to see an even bigger move in the gold stocks. (Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD))

Bitcoin Is A Speculative Asset, A Bubble

I don't think something like Bitcoin is ever going to succeed at being money. It's not going to be used as a medium of exchange as a store of value but what it is now is a speculative asset. People are buying it, it's appreciating and the people that own it on paper are making money and some of them are actually cashing out and making real money but the majority of the paper wealth that's been accumulated is still sitting there. But you do have people that are coming in and buying at these high prices. Ultimately the bubble is going to pop and the things are going to come crashing down, the question is how much bigger is this bubble going to get? Have we already seen the peak or is this going to be the biggest bubble of all time?