RE:RE:RE:RE:RE:RE:RE:Critical point for POG History may not repeat, but it can rhyme.
Think late 70’s post oil crisis dislocation and economic transitions (you can say growing or adjustment pain) meets the always denied until it can’t be denied structural inflation. Result: stagflation, an ideal economic model for gold to become a preferred asset.
This time we have some differences, but there is a turning of the screw occurring - whether it is the rejection of global labour and market mobility that was one of the signs of the decades-long dominance of labour by capital - and erosion of earnings for a significant portion of the population in various labour ghettos like hospitality and retail services, or the contracting out or extinction of good union manufacturing jobs ... these bottlenecks and labour shortages are the result of making many necessary occupations singularly unattractive. Along comes Covid and a lot of people move, take a course, learn a skill, have the breathing room to move on to greener pastures. Good for them say I - while CEO’s, homeowners, stock market investors have all seen great gains in wealth and income, wages have stagnated. I actually don’t mind paying more for my dinner out if it means the dishwasher and prep cook can make a living wage.
Looks positive for gold, but also will push the necessity of technological change and productivity gains - more robots, more touch-pads ordering in restaurants or booking into a hotel without needing a person’s time, same in logistics and shippng - that fink Bezos should be congratulated on the focus he made on R & D at Amazon, their materials handling has innnovated and resulted in productivity (no comment on other aspects of how they run their aggressive business plan). Just wait, we aren’t so far away from driverless electric tractor trailers on highways going point to point, fleets of driverless electric cars prowling urban areas for passengers or delivering meals. Drones - maybe those dropping packages on your porch too.
Yours truly a huge believer in a copper and gold bonanza coming. Oil is pointing the way.
i’m waiting to see at what point increased gasoline and home energy costs start a reversal of public opinion that maybe we do need pipelines like Keystone, Trans-Mountain etc.,. - ouch at the pump these days!
Yes, a little optimism on Wall Street as well today, there are some companies making great earnings numbers. Those well positioned to pass on cost escalation ... Netflix, McDonalds ... seen as desireable refuges from the ravages that might be wrought by wage and materials price inflation?
Treaty Creek looks like a good ingredient in your portfolio stew these days, now turn up the heat.
cg