Black Gold Had It’s Day, Yellow Gold Is Back As Well As...

Black Gold Had It’s Day, Yellow Gold Is Back As Well As Silver
May 16 (King World News) – Top Citi analyst Tom Fitzpatrick: The standout this week in markets was probably the performance of precious metals. Gold closed the week up about 2.35% whileSilver had a “Sterling week” J closing up 7.3%. King $ looks like it is getting usurped by precious metals while still holding up pretty well against other “FIAT” currencies. Precious metals also nicely outperformed the major Equity markets with pretty much every major US Equity index closing down on the week to varying degrees.

Gold’s performance also makes sense given the move lower in US Yields and yield curves. With decisive breakouts seen on both Gold and Silver we would expect that trend to continue over the next weeks and well beyond with Silver likely to lead the way for now given the price action in the Gold/Silver ratio.

The Floodgates Have Been Opened
It feels like that pivot point has now arrived where markets realize the floodgates have been opened and will stay open on fiscal stimulus; monetary stimulus and monetization of US/ Global Debt. The economic destruction that is taking place will not be some quick easy “turn on the taps” fix. Lower growth, higher unemployment that will undoubtedly be more structural and last longer than people have thought.

Get Ready For Unthinkable Levels For Gold & Silver
As a consequence the stressed periods of 1976-1980 and 2001-2011 may be the best reference which could therefore yield unthinkable levels for Gold in the coming years. As I continue to say-“The only thing unthinkable in financial markets in a crisis is that anything is unthinkable” The same likely holds for Silver (It reached $50 in both 1980 and 2011).