According to Ronald-Peter Stoeferle, central bank buying has helped “strengthen gold from a weak hand to a strong hand” and supported gold prices in recent years.
Tag: Central Banks
Monetary U-Turn – When Will the Fed Start Easing Again? Incrementum Advisory Board Q1/2019 – feat. Special Guest Trey Reik (Sprott USA)
Dear investors, friends and clients,
Are we at the cusp of a Monetary U-Turn? What will the Fed do next; hike, ease, or keep their hand on the pause button?
During this quarter’s advisory board call we had a lively discussion between Jim Rickards, and special guest Trey Reik, about the Fed’s likely next move.
Trey works at Sprott USA, and has deep knowledge about gold, gold mining stocks, and monetary policy.
During the call we also talked about:
• What sort of chairman is Powell showing himself to be?
• Is institutional interest for gold finally coming back?
• How is the fed using balance sheet normalization in conjunction with interest rate policy?
• What is central bank purchasing of gold signalling to the market?
We hope that you will find our discussion insightful and inspiring!
Have a great week!
Kind regards from Liechtenstein,
Mark J. Valek & Ronald-Peter Stoeferle
Incrementum AG
Ronald-Peter Stöeferle: The Perfect Storm for Gold & Mining Stocks
Ronald feels that we are in a perfect storm for gold as his inflation indicator began to rise this January. One should load up on inflation-sensitive currencies, mining equities, physical gold, and the commodity sector in general. The combination of monetary tightening and rising rates is going to lead to recessionary risks and the economic numbers show a dramatic cooling.
Time Stamp References:
1:40 – Perfect storm for gold is brewing.
3:00 – Recessionary risks are increasing.
3:40 – Federal Reserve monetary U-Turn.
5:30 – His long-term targets for gold.
6:50 – Central banks are buying.
7:30 – Institutional investors remain on the sidelines.
8:45 – Entering the second stage of the bull market.
10:30 – Recent gold and mining equities performance.
13:20 – Dedollarization is increasingly an important topic.
14:20 – US Dollar is rolling over.
Incrementum Inflation Signal: Reversal To “Rising Inflation” – Interpretation and Investment Impact
Dear investors, advisory board members and friends,
We hereby want to inform you that as of the beginning of January, our proprietary inflation indicator has switched from “FALLING INFLATION” to a full blown “RISING INFLATION” signal.
In the following please find a detailed analysis and interpretation of the Inflation Signal and our current macro thoughts, as well as the impact on the investment process.
Ladies and gentlemen, we believe that current valuations in inflation sensitive assets are a tremendous buying opportunity which we want to utilize.
Best regards,
Mark J. Valek & Ronald-Peter Stoeferle
Incrementum AG