Kirkland Lake Gold Ltd. T.KGI

RE:RE:RE:Something wrong in the state of..................

[Whistler1122]

BasesAreLoaded wrote:

JRafflesUK wrote: The rationality per the Kitco article below, is that 10 Year T-Bond interest rates have risen fractionally above 1%. However, the commentary also adds that rising yeilds are a harbinger of inflation - good for gold. 

https://www.kitco.com/news/2021-01-08/Metals-traders-keep-a-very-close-eye-on-U-S-Treasury-yields.html
 
A feature in the marketplace this first week of the trading year is the push higher in U.S. Treasury market yields. The benchmark 10-year note yield is presently fetching around 1.10%, after trading below the 1.0% level since late last winter. Combined with a rally to multi-month and even multi-year highs in many raw commodity futures markets recently and the U.S. dollar index this week hitting a 2.5-year low, the prospects for problematic price inflation are now very real.

Add this important element to the inflation argument: For anyone who has studied economics, it seems nearly unfathomable to think that the massive injections of liquidity into global financial systems over the past months (read that central banks printing money) cannot produce problematic inflation down the road.

Rising bond yields and commodity prices are a harbinger of that problematic inflation scenario. And remember that history reminds us that significant price inflation is bullish for hard assets, including the precious metals.
 
 

Anyone who has studied economics, which I have, knows that economists are usually wrong.


Casey

yes, its all BS, because nothing ever Ceteris Paribus!