With the rally in gold prices over the past two months having defied analyst expectations for continued weakness, precious metals remain under-owned and out of favor despite their strong relative and absolute performance into 2023.
The U.S. Treasury Department on Thursday began using extraordinary cash management measures to continue borrowing under the federal debt limit, Treasury Secretary Janet Yellen told congressional leaders. The Treasury began a 'debt issuance suspension period' to last through June 5 that suspends investments in the Civil Service Retirement and Disability Fund which are not immediately required to pay beneficiaries.
Nevertheless, the heart of the problem has been that bank reserves are held in government debt in Europe and the United States. Virtually every long-term held maturity since at least 2010 is bleeding losses substantially. Although the gold price has been outperforming the stock market since early Q4 2022, mining stocks remain deeply discounted when compared to U.S. stocks as investors are under-invested in the precious metals complex.
My response is that most investment firms, advisors, and the Fed hate gold, as it exists outside the system. The Fed cannot manipulate or create gold the way they do Federal Reserve Notes. When gold rises, as it has been doing, it hoists a big red flag over Wall Street, the Fed, and the economy. All the lies, corruption, and secrets of the Fed and politicians cannot erase the dire message of a rising gold price."The gold-bears will be defeated.
Templeton authored four edicts that completely set him apart from the contemporary financial landscape. All four can be attributed to the current state of the relatively tiny junior gold stock complex: