Tim Shirata | Aug 05, 2016 02:33AM ET
We remain bullish on gold and silver. We remain bullish on Brazil bonds and Indian stocks for the long term. We are aware that the Brazilian government is unhappy that their currency has risen so much, and they are trying to intervene to slow down the real’s appreciation.
We are entering the often problematic August-to-early-October period. Our investment management clients’ accounts have cash, and we would not be surprised to see a market correction in the next few weeks or months which will give us an opportunity to buy quality stocks more cheaply.
Historically, stocks often bottom in mid-October, and with the election in early November, we will be aware of opportunities to capitalize on the ongoing change that characterizes the current U.S. market.
Gold and Silver
As regular readers know, we believe that history shows that gold can work well in periods of both deflation and inflation as a means to protect capital and maintain buying power. More important than the direction of the economy is the current psychology about governments’ ability to avert economic problems, and about the integrity of government actors that is projected to the business community and to the consuming and investing public.
Silver is both a precious metal and an industrial metal. It is widely used in electrical and electronic circuitry and it is used along with copper in the current massive global build-out of solar projects in those countries which are not rich in oil and gas and which need to import energy resources in huge quantities.
These big imports are expensive, and a switch to solar makes a lot of sense for countries like India and China, which are currently undertaking the world’s largest solar build-out projects in the next few decades. Their silver and copper consumption will increase dramatically.
As we examine the demand for gold and silver today, we see a much larger and more interested gold/silver participant group than we have seen in many years.
We bring this up because wherever we look we see a lot of demand for gold and silver. Where is this demand coming from?
Those are just a few… There are many more.
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