25-05-2013
Gold, Short Interest at Historical High
| It is now general understanding that Japan exporting deflation and subpar growth in the Us will keep inflation at bay for a long time: this has caused, among other drops in the price of basic materials, depressed gold prices. Good inflation does not surge as bad inflation: the cost of oil in yen terms is at historical high, and it is is highly likely that it will stay there for a long time, while consumers expectations in Japan remain very tepid. People in the far East will start looking at some sort of hedge. Against common sense, we favour gold and the Australian dollar as the most promising asset classes for the foreseeable future. |