Metal Mania

China’s targeted infrastructure investment announcement in itself is underwhelming.  Building 1254 miles of roads is not going to turn around the base metal and material sector.  However, if this is a down payment the story has shifted.  ISA will be closely watching to see if Chinese policy makers attitudes have shifted (FT Alphaville).  Copper completing significant bottom at Peter Brandt.  Perhaps the iron ore price collapse was a supply shock:  FT Alphaville.  A deluge of Chinese date comes out this weekend:  CNBC.

Ray Dalio:  “The main advantage that gold has over other currencies is that it can’t be printed.”  Pragmatic Capitalism

What is money (currency used in exchange)?  Aristotle’s definition:

  • Durable
  • Portable
  • Divisible
  • Intrinsic value

Libertarians will note gold developed into money thousands of years ago in the marketplace.  Perhaps a Christian would suggest God ordained gold as money, with Genesis mentioning gold before Eve was created.  Anyway…

Gold-Stock BreakoutZeal.

Gold and silver chart mania:  King World News.

Perhaps the best gold charts are in Euros:  Greg Harmon.

“The Gold/Swiss Franc ratio has been the leading indicator of Gold for years” and is challenging all-time record highs.  Peter Brandt

Why was gold strong on a weak unemployment number yesterday?  The formula from a mate:  “For better or worse, global slowdown = global easing = more unsustainable debt = more slowdown = more easing = sweet spot for gold.”

Weekend fun:  Ben Bernanke as a kid:  ChessNwine.

Further fun (this came out six years ago, three years prior to the first quantitative easing):