I have mentioned my good friend Dan Oliver only once and that is doing him a disservice, as he is very likely the most brilliant monetary analyst out there, certainly well above any that I know of. He is in the ending process of writing a major book on gold and the monetary system, which I look forward to reading when published. Although, gold is about the only asset I would recommend, I am not in a position discuss actual investment opportunities, but Dan certainly is.
His fund was set up a number of years ago in anticipation of the events that are now unfolding, if he is correct in his assessment, which I clearly think he is, the upside to his methodology is more than substantial. If there is anyone out there who is interested in reaching out to Dan, his number and email are included in his pdf below.
It has become clear even to the most obsequious economists that the Fed has lost control of its narrative: the economy is not “healing” and interest rates cannot be raised without destroying the economy and the banking system (which is all the Fed really cares about).
Thursday’s Brexit vote has muddied the waters for many markets, including gold. The vote has come to be seen as a global referendum on the elites and their international institutions. As Brexit looked more likely, gold soared above $1300, and as the poll numbers have softened, gold has retreated. No doubt bears will push their advantage if Britain decides to remain in the EU, but the underpinnings of the current gold market are far broader than whether a formerly great nation decides to commit a final act of cultural suicide.
The nature of our banking system is that it drives overcapacity in the highest levels of capital, as exhaustively detailed in previous letters. The overcapacity sends prices lower, which impairs the assets that form the collateral for the banking system. The Fed is then forced to print to save the banking system, and the cycle begins again, only more virulent.
( This is not a solicitation and I have no financial interest in his fund nor any of Dan’s endeavours)