Inflation Breakout?

My IDW is in breakout mode but I’m not surprised given Michael Oliver’s very reliable work. It reveals that we are heading toward a massive breakout in all manner of prices beyond equity price inflation.  Commodities, including the monetary metals of gold and silver and non-dollar currencies have all entered into a bull market meaning the dollar is in a bear market. Long-dated sovereign debt markets have entered into a pronounced bear market, reflecting a move higher in commodity prices. The only major market that seems to refuse Michael’s call is the S&P 500 even though he remains convinced equities will head south as the markets understand the Fed has lost control of inflation and will have no choice but to raise rates, albeit less rapidly than the rise of prices. Such a scenario can only be viewed as optimal for rising commodity prices including gold and silver.  

Regarding our portfolio, there are several triple-digit gainers so far this year. As of this past Friday, Novo gained 933.5%, followed by Klondike Gold +155.47%, Kirkland Lake +152.8 and Corvus +143.6%. There are a host of other double-digit gainers knocking on the door of triple-digit gain status such as Osisko Mining +98%, Telson Resources +96% and Newrange Gold +88%.  

Corvus shot up this past week on some very significant news including possible Carlin-style gold mineralization on its Nevada property. Be sure to pay attention to my weekly missives that address the most significant news releases of the past week.

About Jay Taylor