Republic Risk: Gold, and Silver, and Bitcoin (Oh My!)

The monetization of debt and monetary inflation continues. Now momentum has hit gold, silver, and copper stocks.

Equity Storm Watch Is GREEN on the S&P 500 and GREEN on the Russell 2000

It’s Stimulus Time! China’s back with another $42 billion in monetary stimulus to help backdrop the nation’s battered housing market. And we wonder how global liquidity increases. There’s a reckoning coming in China that will hit Europe and the United States at some point. But for now… the music is still playing. I’m looking at small cap gold producers like NovaGold (NG).

I highlight a few things that have my blood rising. Commodity prices are one of them. Copper prices have breached $5, and gold is over $2,400. This is clearly a monetary inflation issue with less to do with China’s recovery and more with Chinese stimulus. There’s a strong relationship between the performance of copper and the actions of the Chinese central bank. That makes sense because the nation is a massive exporter and manufacturing economy. In the U.S., the relationship is between the central bank and the performance of our financial stocks. …