Jordan Roy-Byrne on gold and resource stocks.

Big Al
April 30, 2014

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    Apr 30, 2014 30:40 AM

    Great advice Jordan. Stocks are indeed leading. Its a sign worth paying attention too.

      Apr 30, 2014 30:44 PM

      Hey, we agree again!

        Apr 30, 2014 30:13 PM

        We might be agreeing a lot in the next while Matthew. My bear suit is getting chucked in the dumpster.

        Apr 30, 2014 30:17 PM

        oh, no……….two in a row…………….what could this possibly mean……….

          Apr 30, 2014 30:17 PM

          bird……I am only joking……………..

            Apr 30, 2014 30:45 PM

            No problem Jerry. I am liking all the negativity on gold and silver that is perking lately though. It tells me I am probably right that the worst is behind us for metals prices. I think views on how hot inflation might get are not yet being taken into account by markets because the market continues to have low expectations for how the dynamic nature of conflict can bring about rapid unexpected changes. Nor do I think the market sees serious inflation as being a credible risk or that the Fed and other Central Banks will achieve targets they have set. Lets keep and eye on the CRB index and various commodities that we have flagged here in the past though. Inflation charts have bottomed. The obvious stuff like corn, wheat, meats, oil and natural gas are key and should be the triggers that set off a move into the commodity sectors and form the basis of a new driver for precious metals especially if the discord in Ukraine starts getting hotter. We would be foolish to doubt the impact of that region on global pricing and thus the changes that will begin to put pressure on pocketbooks. Keeping in mind that there are two sides to the equation where inflation is concerned and those are supply and demand. So in cases where aggregate demand is weak we can still get inflation if supply itself becomes restricted or unstable. That is what wars bring us and that is where I think we are headed. Anything less than a country like Ukraine functioning smoothly where energy and food are concerned is going to be a recipe for rising prices that should set off waves of price hikes. If the bar moves to where supply/demand disequilibrium brings about the changes that push renewed consumption on the fear of a rising price cycle then an inflation mentality will establish itself even where aggregate demand has not moved much on the needle. That tends to push growth, reduce savings, cause wage demands to accelerate and create friction in the economy. In other words we will heat up despite the gloom.

    Apr 30, 2014 30:01 PM

    The “Backstop Boyz” arrived this morning at 7:30 to stop today’s early-on “smash job”. They then focussed on supporting gold to the detriment of silver, and it’s been that way most of the rest of today. The Boyz’ crucial test will come Friday morning when, if the NFP is PM-negative, the CrimNakes will certainly try another “smash job”.

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    R G
    Apr 30, 2014 30:35 PM

    Jordan: Like I’ve always said, You’re the BEST!!!


      Apr 30, 2014 30:44 PM

      I agree, as he is very bright.

    Apr 30, 2014 30:38 PM

    birdman – dont throw that suit out just yet…

      Apr 30, 2014 30:46 PM

      Remember Halloween is only five months away.

        Apr 30, 2014 30:49 PM

        James, I don’t doubt myself often and this is one of those times.

        Apr 30, 2014 30:50 PM

        Can I just show up as myself, Al? That should be scary enough!

          May 01, 2014 01:22 PM

          Will there be any children around? If so, the answer is a big no!