Gold Price Plummet

Posted by Catalin Chiloflischi, CEO Canarc Resources

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This article by Dan Kurz makes a very good macro-picture and valuation case that the post-Trump gold slump could be a good time to buy precious metals. Some serious analytics here. ~Catalin

“Gold per troy ounce (toz or oz) in $ terms has slumped by a whopping 11% since the November 8, 2016 election. The dollar’s trade-weighted value, meanwhile, has risen by 4% over the same period, while the value of the 10-year Treasury has fallen by a considerable 6% and the S&P 500 has rallied by 6%. What happened? In a nutshell, perception changed. Traders bet on more fiscal stimulus-based growth, lower corporate taxes, higher federal deficits, higher nominal interest rates, and higher inflation, so stocks went up, bonds went down, and the buck went up.

Strangely, and in contrast to the above “playbook,” gold and silver prices, or precious metals (PM) prices, fell and fell… CLICK HERE for the complete article