Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

About Gold Miners and Inflation

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I think the case is closed, or it should be closed. But with firmly ingrained perceptions passed down from one generation of inflationist gold bugs to the next, you never know. Remember the old dismissive “gold is silver is copper is tin is oil is hogs” line from the 2003-2008 time frame? Probably not, but I remember it because it was me saying it against an army of inflationist commodity and resources bulls advising to buy gold, buy silver, buy oil… buy resources of all kinds to protect yourself from the evils of inflation!

As an interlude, here is a pleasant interaction I had with a reader (actually, the interaction was his in a comment to an article of mine, but you get the drift) during the 2016 gold sector launch that ultimately proved to be ill-fated by mid-year because… inflation.

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Gold Stocks Show the Way

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[edit] It goes without saying that gold miners and the royalty companies that live off them will be shown to have been impaired like many other companies by the coming Q2 numbers due to shutdowns. An emailer questioned my view on this and it has been one of my personal caution points. Markets should be looking ahead, but during this euphoric sentiment release across broad markets maybe they’re overlooking some things. The other caution point is that a big bullish expression on the heels of Fed announcement is also a setup for short-term disappointment. So with respect to the daily chart below, maybe Friday’s gap will fill after all. But as noted in the article below notes “the gold stocks lead and their fundamentals and value proposition will have improved by leaps and bounds as we exit the COVID-19 global lock down”.

It’s a good Friday because I get to start my weekend work earlier. Many people temporarily have no weekends because they are huddled at home as one day bleeds into the next amid the global pandemic. Monday is Thursday is Saturday. Good Friday is Halloween is Festivus.

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Golden Slumbers Awaken

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Right off the bat, I want to make sure a couple posts over the weekend don’t go unnoticed by those of you who just read Slope on weekdays……..

Generally speaking, everything but bonds and oil are up this morning. Gold has had another strong session, up about $32 as I’m typing this, and up nearly $200 during its recent uptrend.

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3 Metallic Amigos: Please Avert Your Eyes

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Better yet, don’t avert your eyes. You need to see this. The pictured Amigos seem of a different, more innocent time. See their wackiness. See them smile. See them full of life.

But each Amigo, especially Amigo Ag and Amigo Cu, look like they were bracing for something in this picture. Amigo Au is just charging forward, blissfully unaware, although he too has got some minor issues. The macro Amigos are in a chain that goes like this… Au → Ag → Cu. Counter-cyclical gold with limited industrial utility, semi-counter, semi-cyclical silver and completely cyclical copper.

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