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CHARTS OF THE WEEK-QUOTES-QUICK HITS
-CHART OF THE WEEK: U.S. 10-Year Yield Breaching 3% Bolsters Calls for Higher Rates. The 10-year U.S. Treasury yield rose above 3 percent for the first time since January 2014, in a signal that higher interest rates are ahead in the world’s biggest bond market amid an onslaught of supply and a Federal Reserve intent on boosting interest rates. The yield, the benchmark for everything from U.S. mortgages to dollar bonds in developing nations, climbed as high as 3.0014 percent on Tuesday, before retreating to 2.99 percent as of 11:36 a.m. in New York.
Traders have been focused on the next round number on the horizon for days, even though no clear catalyst emerged as the main culprit for the longest selloff in a year. The move reinforces that yields are on the rise in the $14.9 trillion Treasuries market. They surged in the first two months of the year, but pared that advance last month, leading some strategists to ponder whether 2018 might echo 2017, when optimism on the economy led yields to peak early in the year. Fed officials’ most recent forecasts are for two additional rate increases in 2018. Traders are pricing in more than that.
“We are basically at our mid-year target right now,” said Jay Barry, a JPMorgan Chase & Co. fixed-income strategist. “This yield move is to be expected now given we are at a mature point in the cycle.” Of course, just because the market hit a milestone doesn’t mean investors need to fret about runaway interest rates just yet. JPMorgan estimates the 10-year yield will end 2018 at 3.15 percent, the same as the median forecast of 56 analysts surveyed by Bloomberg. Indeed, the last time the 10-year yield topped 3 percent, toward the end of the bond-market wipeout known as the “taper tantrum,” Treasuries went on to rally anew. Read more here-https://bloom.bg/2HXJVGS
-CHART OF THE WEEK: Two-Year U.S. Yields at 2008 Highs Are Scarier Than a 3% 10-Year. With all the focus on the 10-year Treasury yield breaching 3 percent, investors may be missing the most important movement afoot in the world’s biggest debt market. It’s the spike higher in U.S. short-term rates that’s really flashing a warning signal for companies, share prices and consumers, according to Peter Tchir at Academy Securities Inc. The surge in two-year yields to the highest since 2008, is “the scariest chart for investors,” said the firm’s head of macro strategy. One-year bill rates are also the highest in almost a decade. “The 10-year yield might attract all the attention but higher short-term yields are more problematic,” Tchir wrote in a note Wednesday. “Consumers who want to purchase large items are faced with higher costs. Investors can allocate to less risky bonds and out of dividend stocks and still get some yield.” Read more here-https://bloom.bg/2HuoWyb
-CHART OF THE WEEK: It’s Not 3% Yield That Threatens Stocks Going By 40-Year Pattern. A two-week bounce in equities seemed to be losing steam as the 10-year Treasury yield approached the much feared 3 percent. The worry is premature, according to Tom Lee, the co-founder of Fundstrat Global Advisors LLC. While almost every major peak in bond yields since 1980 has coincided with declines in stocks, a trendline that plots the highs points to a danger zone of 3.25 percent to 3.75 percent.
The study is part of a model that informs Lee’s prediction that the trouble for equities would be a 4 percent yield, rather than 3 percent. “Since 1980, interest rates and bonds are negatively correlated. Higher rates = lower equities,” Lee wrote in a note to clients. “When 10Y touches the trendline, it has marked past equity tops.” It’s the second time this year that a 3 percent yield emerged as a headwind for stocks. The S&P 500 fell for a second day Friday as the 10-year Treasury yield rose to as high as 2.94 percent. A similar spike in February was blamed as one catalyst that sent the S&P 500 to its worst selloff in two years.
Debates over the ramifications of interest rates are heating up as the Federal Reserve is expected to raise borrowing costs at least three times this year. While Wall Street strategists agree higher bond yields will hurt earnings and make equities less attractive, they differ on what levels would present a pressure point for the stock market. Some cited 3.5 percent, while others say it’s the pace of the increases that matters. Read more here-https://bloom.bg/2qYPoF0
-CHART OF THE WEEK: Global Markets Are Facing Major Milestones at Every Turn. With all the focus on the 10-year Treasury yield, it’s easy to overlook the tumult that may await global investors across other asset classes. The U.S. government’s decade-long borrowing costs crossed the 3 percent threshold for the first time in four years on Tuesday. That’s not just any round number, but one that marked the highs of its double-top formation back in 2013 and 2014. That matters, according to Matt Maley, an equity strategist at Miller Tabak & Co., because the last time yields broke through a double-top, earlier this year, the February correction in equities ensued. “A potential break above the 3 percent level has a lot of investors walking on eggshells,” he said. Read more here-https://bloom.bg/2HXaWKg
-CHART OF THE WEEK: As Most Crowded Trades Turn Sour, Fund Managers Brace for Pain. Two of the world’s most crowded trades are headed south at precisely the same time, resulting in a double-dose of pain for global fund managers. Shares of the FAANG-BAT complex which includes U.S. tech giants Facebook, Amazon, Apple, Netflix, and Google parent Alphabet, as well as China’s Baidu, Alibaba and Tencent have lost more than $200 billion in market value since late last week.
Money managers in a Bank of America survey earlier this month labeled being long the companies the most crowded bet in markets. Meanwhile, the dollar resumed its best run since 2016 Wednesday. That’s after hedge funds and other large speculators amassed the biggest net-short position in more than five years, Commodity Futures Trading Commission data show. “The problem is that some of these big hedge funds and macro funds, they keep jumping onto the same stuff over and over again,” said Michael Purves, chief global strategist at Weeden & Co. “The boat gets very lopsided very quickly.” Read more here-https://bloom.bg/2I3JomR
-CHART OF THE WEEK: U.S. Investors Just Gave Up on the Bull Market. Call it the running of the bears. With equities almost three months removed from the last record, Americans have grown less optimistic that the market will bounce back. For the first time since Donald Trump’s shock election in November 2016, a majority of consumers expect stocks to be lower 12 months from now, according to the latest sentiment survey from the Conference Board. It’s a stark turnaround from January, when a surging stock market pushed sentiment to a record in the University of Michigan’s survey.
That release arrived just as volatility spiked and the S&P 500 slumped to its first correction in two years amid angst that rising inflation would force the Federal Reserve to accelerate the pace of rate hikes. Since then, markets have swung in a wide range as investors assess whether expectations for rising corporate profits will be enough to overcome the threat of trade wars and geopolitical tension. The S&P 500 was little changed Tuesday as traders digested the 10-year Treasury yield’s foray above the psychologically critical mark of 3 percent for the first time in four years.
“Investors have this understanding that equity markets are at lofty levels and we are in a low-return environment, so as the risk-free rate moves higher, even in a gradual manner, that becomes more of a competitive asset class,” said Chad Morganlander, portfolio manager at Stifel Nicolaus, while cautioning that this metric may not be that useful for market timers to set their watches to. Read more here-https://bloom.bg/2HMj5Uo
-CHART OF THE WEEK: New Homes Are Hot Because Americans Don’t Have Much Choice. U.S. homebuyers are now more likely to purchase new than at any time since the 2008 crash. They don’t have a lot of choice: The supply of existing homes is at a record low. New-home sales made up 11 percent of the total market in March, according to an analysis by Veritas Urbis Economics LLC of government data released Tuesday. That’s close to the 10-year high of 11.1 percent, reached in November. The supply crunch has been years in the making.
Now, as demand surges with the improving job market, many single-family houses that might have been purchased by first-time buyers are instead being rented out by investors who bought cheap after the crash. Also, baby boomers are living longer and more often staying put instead of downsizing. “When inventory is this low, homebuyers turn to new homes,” said Ralph McLaughlin, chief economist for the real estate consultancy. “Those are homes that predictably come on the market.” Read more here-https://bloom.bg/2qVA3G0
-CHART OF THE WEEK: These Cities Have the Largest Home Price Gains Since the Recession. Home renovation and home-flipping TV shows continue to be all the rage and a viewers’ ultimate fantasy might be: what if I had optimally timed the real estate market to purchase investment property? Using figures from ATTOM Data Solutions, Bloomberg News found this “shoulda, coulda, woulda” proposition produced the biggest appreciation in two locales at opposite ends of the socioeconomic spectrum.
Well-timed purchases in down-and-out Detroit and affluent San Jose, California would have yielded a return of more than 190 percent, albeit from very different starting points. At the post-recession bottom in early to mid-2009 the average home in the Detroit area could have been grabbed for only $47,000, while in San Jose such a home would have cost around $395,000. Not quite a decade later Detroit area home prices are averaging $137,900, while San Jose weighs in at a whopping $1,150,000. How’s that for tripling your money? Read more here-https://bloom.bg/2I1OvUB
-CHART OF THE WEEK: Why High-Flying U.S. Home Prices Are About to Get Another Jolt. The U.S. housing market’s storyline for the last several years has been one of steady demand and limited supply, pushing prices ever higher. Now, a new chapter has opened up for the industry and its customers: soaring costs for building materials. Reports on Tuesday underscored both resilient purchase activity and accelerating home prices. The S&P CoreLogic Case-Shiller index showed property values in 20 major U.S. cities climbed 6.8 percent in February, the biggest year-over-year gain since June 2014. Government data revealed a faster-than-projected rate of new-home sales in March and huge upward revisions to the prior two months. Inventories of previously owned homes are plumbing the lowest levels in at least 19 years, a key reason why resilient demand by itself has fueled price appreciation that’s extending to the new-homes market. Now, with the costs of lumber and other building materials soaring together, buyers are unlikely to see any relief for some time. Read more here-https://bloom.bg/2qWQgL5
-U.S. consumer confidence unexpectedly rose in April to the second-highest level since 2000 as Americans grew more upbeat about both current conditions and the economic outlook, according to figures Tuesday from the New York-based Conference Board. Bloomberg
-More than $85 billion in value wiped from the popular ‘FANG’ tech stocks. Amazon, Alphabet, Netflix and Facebook shares all fell by more than 3 percent Tuesday. The total value lost from FANG stocks was $88.4 billion. CNBC
-Apple loses $64 billion in stock value as Wall Street is in ‘full panic mode’ on iPhone demand. Apple’s stock is cumulatively down 7.1 percent in the three trading sessions through Monday, wiping out $63.9 billion of shareholder value. The decline was sparked by key Apple partner Taiwan Semiconductor Manufacturing’s weaker-than-expected guidance Thursday morning. “Heading into Apple’s much anticipated March (FY2Q18) quarter next week the Street has gone into ‘full panic mode’ as supply chain checks out of Asia indicate that June iPhone shipments are trending well below expectations,” GBH Insights analyst Daniel Ives writes in a note to clients Tuesday. Fred Hickey, editor of High Tech Strategist, believes TSMC’s poor guidance is a precursor to a chip sector and stock market drop. CNBC
-A Toronto man was charged with 10 counts of first degree murder and 13 of attempted murder after a van struck dozens of pedestrians on a busy sidewalk Monday afternoon in the worst mass attack in Canada in almost three decades. Alek Minassian, 25, appeared in a Toronto court on Tuesday to formally face the charges after a Monday rampage that left 10 people dead and more injured, according to broadcaster CP24. Monday’s incident marked the worst mass killing in Canada since Marc Lepine killed 14 women at a Montreal engineering school in 1989 before turning the gun on himself. It comes on the heels of several other vehicle attacks around the world, including one in a Berlin Christmas market that killed 12, a van attack in Barcelona that left 13 dead, and the truck loaded with arms that drove into a late-night crowd in Nice, France, in 2016, killing 80 people. A vehicle attack in Edmonton, Alberta, last year injured four pedestrians and a police officer. Bloomberg
-Bitcoin breached $9,000 for the first time in a month Monday and that’s emboldening advocates of the largest cryptocurrency. “The crypto space is still in its infancy,” said John Spallanzani, a portfolio manager at Miller Value Partners in Baltimore. “The weak will be exposed and the strong will prosper.” Bitcoin has rallied about 30 percent so far this month, putting it on pace for its best April since 2013. That’s helping to soften the blow from the more than 50 percent first-quarter loss that followed last year’s 1,400 percent gain. Bloomberg
–Jeffrey Gundlach, the chief investment officer of Los Angeles-based DoubleLine Capital, used the Sohn Conference in New York to tout the SPDR S&P Oil & Gas Exploration & Production ETF and to recommend shorting Facebook Inc. as a relative-value trade. “Some people think inflation should not rise going into a recession, but actually the opposite is true,” Gundlach said. “One should expect that as the next recession approaches, commodities should have a big gain.” As Facebook comes under growing scrutiny, there’s been increasing talk of regulating social media companies.
Equity bubbles are often popped by regulation, according to the fund manager, who is also chief executive officer at DoubleLine. The Los Angeles-based firm oversaw about $119 billion as of March 31. “There’s good and bad going on in the world,” Gundlach said in discussing social media and Facebook CEO Mark Zuckerberg’s apology over the recent controversy surrounding users’ personal data. “Interpretations matter.” Gundlach has been touting commodities as one of his favorite investments this year, because they historically rally late in economic cycles. He recommended against using leverage for the latest paired trade, which he called fairly risky. Bloomberg
-The city of Vancouver’s new empty homes tax is expected to bring in $30 million in revenue in its first year. Vancouver Mayor Gregor Robertson said $17 million has already been collected from owners of almost 8,500 properties that were determined to be vacant or under utilized for at least six months of the year. “For those who didn’t rent their empty property and chose to pay the empty homes tax, I just want to say thank you for contributing to Vancouver’s affordable housing funding and making sure we can invest more in affordable housing,” Robertson said at a news conference Monday.
“For those who did rent their empty homes, thank you very much for adding to the rental housing supply here in Vancouver. It’s desperately needed.” The tax is the first of its kind in Canada, requiring homeowners who do not live in or rent out their properties to pay a one per cent levy based on the assessed value of the home. Robertson said the tax was intended to address the city’s near-zero vacancy rate. The most recent figure from the Canadian Mortgage and Housing Corporation puts the city’s rental vacancy rate at 0.8 per cent, up slightly from the previous year, the mayor said. BNN
-The bad news at Deutsche Bank AG just got worse. Amid a weeks-long leadership tussle that claimed the scalps of the chief executive, two of his top lieutenants and tainted its chairman, the bank inadvertently transferred 28 billion euros ($35 billion) to one of its outside accounts, Bloomberg News has revealed. While the blunder was quickly reversed and caused no financial harm, it’s a stark reminder of the vulnerability of even the most sophisticated financial firms. For Deutsche Bank, the mistake comes at a delicate time as the new CEO, Christian Sewing, seeks to convince investors the bank can now return to growth.
His predecessor, John Cryan, had already tackled an improvement in controls that had failed the lender in the past. “Fat-finger incidents are common within banks but automated controls should prevent their execution,” said Michael Huenseler, a portfolio manager at Assenagon Asset Management, which owns Deutsche Bank stock. “The shocking amount in the case of Deutsche Bank points to deficiencies in the bank’s IT functionalities, which lends new weight to Kim Hammonds’s critical remarks and raises urgent questions about the potential costs of changing the systems.” Bloomberg
-The Finnish government has decided not to expand a limited trial in paying people a basic income, which has drawn much international interest. Currently 2,000 unemployed Finns are receiving a flat monthly payment of €560 (£490; $685) as basic income. “The eagerness of the government is evaporating. They rejected extra funding [for it],” said Olli Kangas, one of the experiment’s designers. Some see basic income as a way to get unemployed people into temporary jobs. The argument is that, if paid universally, basic income would provide a guaranteed safety net.
That would help to address insecurities associated with the “gig” economy, where workers do not have staff contracts. Supporters say basic income would boost mobility in the labour market as people would still have an income between jobs. Finland’s two-year pilot scheme started in January 2017, making it the first European country to test an unconditional basic income. The 2,000 participants all unemployed were chosen randomly. But it will not be extended after this year, as the government is now examining other schemes for reforming the Finnish social security system. BBC
-Treasury Secretary Steven Mnuchin will depart for China to negotiate over U.S. trade disputes within days, President Donald Trump said. “We have a very good chance of making a deal,” Trump said in a meeting with French President Emmanuel Macron. If the two sides can’t reach agreement, he said, proposed U.S. tariffs on billions of dollars in Chinese goods will take effect as planned. The trip to China will be Mnuchin’s first as Treasury secretary. While he’s met with Chinese counterparts in Washington and during G-20 meetings in Europe, Mnuchin hasn’t traveled to meet them on their home turf. His last three predecessors visited China within the first months of their tenures as Treasury secretary.
The Treasury Department said Saturday that Mnuchin would travel to China but didn’t say when he would go. The Trump administration has proposed tariffs on more than 1,300 Chinese products in response to complaints about China’s acquisition of U.S. intellectual property. The Chinese government in turn proposed its own tariffs on U.S. goods, targeting agriculture and other exports from rural and Midwest areas important to Trump’s election. But the administration has indicated it’s willing to negotiate with China and avert a trade war, a prospect that’s rattled financial markets. If the two sides can’t reach a deal, the U.S. tariffs would take effect after a May 15 public hearing. Bloomberg
-President Donald Trump is seeking a “detente” with Russia and wants to work with his counterpart Vladimir Putin to achieve this, according to the U.S. ambassador in Moscow. “My president has said repeatedly that he wants a better relationship with Russia. Repeatedly. And he has said quite clearly that he would like to engage personally with President Putin,” Jon Huntsman said Tuesday at a roundtable in Vladivostok, according to a transcript posted on the U.S. Embassy website. “You can call it a desire for detente or a desire for a healthier relationship.” Trump last month invited Putin to hold talks in Washington when he called to congratulate the Russian president on winning a record fourth term. So far, there have been no preparations for the summit. Bloomberg
-President Donald Trump complimented Kim Jong Un as “very honorable” so far and said he hopes to hold his summit with the North Korean leader “very soon.” The praise for the North Korean leader is a dramatic shift for the U.S., which has long criticized the Kim family dynasty for brutality and deceit. Trump himself last year derided Kim as “Little Rocket Man” and said it is “hard to believe his people, and the military, put up with living in such horrible conditions.” “We’re having very good discussions,” Trump told reporters at the White House during a meeting with visiting French President Emmanuel Macron. “Kim Jong Un he really has been very open and I think very honorable from everything we’re seeing.” “I think we have a chance of doing something very special with respect to North Korea good for them, good for us, good for everybody,” Trump added. But, he said, if Kim doesn’t agree to something “fair and reasonable and good, I will, unlike past administrations, I will leave the table.” Bloomberg
-Deputy Attorney General Rod Rosenstein told President Donald Trump last week that he isn’t a target of any part of Special Counsel Robert Mueller’s investigation or the probe into his longtime lawyer, Michael Cohen, according to several people familiar with the matter. Rosenstein, who brought up the investigations himself, offered the assurance during a meeting with Trump at the White House last Thursday, a development that helped tamp down the president’s desire to remove Rosenstein or Mueller, the people said. Bloomberg
–Wells Fargo & Co.‘s $1 billion fine won’t close the book on fallout from its consumer scandals. The nation’s third-largest bank submitted to an unprecedented order Friday that would give the Office of the Comptroller of the Currency the right to remove some of the lender’s executives or board members. That comes on top of the penalties Wells Fargo will pay to settle U.S. probes into mistreatment of consumers, the largest sanction of a U.S. bank under President Donald Trump. The OCC said it “reserves the right to take additional supervisory action, including imposing business restrictions and making changes to executive officers or members of the bank’s board of directors.” The agency could also veto potential executive candidates. Bloomberg
-Builders in Toronto’s frenzied condo market are walking away from giant towers they have pre-sold, reflecting a rougher road to profits and leaving buyers in the lurch. Soaring construction costs and condo values in Canada’s largest city, where prices have surged amid a booming economy and strong immigration, have spurred developers to cancel projects they started when construction was cheaper and pre-sales were less lucrative. Condo prices have increased about 20 percent since February of last year, according to the Canadian Real Estate Association.
“Many projects launched for pre-sales prior to having their proper approvals in place,” Shaun Hildebrand, a senior vice president at Urbanation Inc., said. “By rushing to bring units into a hot market, some projects jumped the gun and added risk to the development.” According to Urbanation, which studies the Toronto condo market, there are 10,622 condo units in the greater Toronto area that were offered for pre-sale before 2017 and still await construction. Since the start of last year, 17 projects, with 3,627 units, have been canceled in the region, according to real-estate-services firm Altus Group Ltd. That’s up from seven projects, with 808 units, in 2016. Bloomberg
-The number of people receiving jobless benefits fell to a record low in February, another reflection of diminishing labor market slack as the Bank of Canada weighs when to raise interest rates again. Employment Insurance recipients fell to 480,240 in February, a decline of 2.3 percent from January and 13 percent from 12 months earlier, Statistics Canada said Thursday from Ottawa. Bloomberg
-Prosperity did little to eradicate chronic joblessness last year, based on one measure of the U.S. labor market. During a survey reference week last year, almost 20 percent of American families had no one bringing home a paycheck even with the unemployment rate finishing the year at a 17-year low, according to data from the Bureau of Labor Statistics. The proportion of families with an unemployed person declined by 0.7 percentage point to 5.8 percent last year. The remainder of American families with nobody working were retirees. Bloomberg
-The next front in China’s crackdown on debt is the one closest to home. On the back of a boom in property prices, household borrowing has been climbing for 10 years straight, at a pace that rivals any such run-up in major economies. At $6.7 trillion, and a record 50 percent of gross domestic product, private debt is now approaching developed-world levels and crimping consumer spending power. Take Huang Panpan, a 33-year-old public-relations executive from Beijing. Last year, he took the plunge on a 2.9-million-yuan ($460,000) mortgage on a 385-square-foot home and now faces monthly loan payments of about half of his take-home salary. Since then, he’s been in austerity mode: cutting travel, selling stocks, putting off a car purchase as well as a plan to start his own business. “I was someone who never paid much attention to the price tags when buying things or booking trips,” Huang said. “I feel more pressured financially with all that debt.” Bloomberg
-A museum’s bid to boost its acquisition budget by selling a Marc Chagall painting has sparked a culture clash in Canada, raising an age-old question: Whose art is it anyway? The National Gallery of Canada is auctioning off the Chagall, worth as much a $9 million, so it can snap up another piece by Jacques-Louis David, being sold for $5 million by a cash-strapped church in Quebec City. The gallery sees it as a last shot at the David and doesn’t mind parting with one of its two Chagalls. But the move sparked outcry, particularly in French-speaking Quebec where history and identity politics loom large. Two museums and a cabinet minister are now vying to keep the David, with Quebec’s government designating it a heritage piece in order to block its exit from the province. They’re also bristling that the National Gallery would ever sell a piece in the first place. Bloomberg
-Irish bloodstock billionaire John Magnier is selling an Amedeo Modigliani nude estimated at $150 million, the most for any work of art at auction this season, according to people familiar with the matter. The 1917 “Nu couche (sur le cote gauche)” depicts a reclining female nude from behind, one leg bent, looking calmly over her shoulder at the viewer a pose almost identical to “La Grande Odalisque” by Ingres from a century earlier. The piece, previously owned by casino mogul Steve Wynn, will be the star lot of Sotheby’s Impressionist and modern art sale on May 14 in New York. The May auction season is poised to be the biggest on record, driven by Christie’s offering a trove of masterpieces from the estate of David Rockefeller.
The top end of the art market has been on a tear, with global art sales ringing up $63.7 billion in 2017, a 12 percent increase from a year earlier. Leonardo da Vinci’s “Salvator Mundi” fetched $450.3 million in November, the most expensive work ever sold. “This is among the greatest modern paintings in private hands,” Simon Shaw, Sotheby’s co-head of Impressionist and modern art, said of the Modigliani. “The scale, the power, the subtlety, the fine level of finish it’s something he really threw himself into. He was painting it as a masterpiece.” Bloomberg
-A three-bottle lot of Romanee-Conti 2012 Domaine de la Romanee-Conti and a magnum of Henri Jayer 1990 Vosne-Romanee, Cros Parantoux each fetched $45,510 at a Hart Davis Hart Wine Co. Burgundy sale in Chicago that totaled over $7 million, its largest ever auction from the region. Three-bottle lots of Romanee-Conti from the 2006, 2007, 2011 and 2014 vintages each sold for $41,825 while a six-liter Methuselah of La Tache 1983 DRC sold for $31,070, according to an email from the auction house.
Top lots also included a 12-bottle lot of Richebourg 1996 DRC and a six-magnum lot of Romanee-Saint-Vivant 2005 Dujac Fils et Pere, which each fetched $28,680. Burgundy prices have risen strongly over the past decade, reflecting the scarcity of wines from the region’s fragmented top vineyards and volatility in the Bordeaux market, where wines typically come from larger estates. The Hart sale attracted bidders not only from the U.S. but also Hong Kong, Denmark, Switzerland, Canada, China, Brazil and elsewhere. “Featuring an impressive 48 vintages dating back to 1966 and encompassing all the domaine’s Grand Cru vineyard sites, the sale’s DRC offers achieved a total of $2.2 million, claiming eight of the sale’s top 10 lots by value,” Hart said. Bloomberg
-Six magnums of rare Chateau Lafleur 1982 wine from the Pomerol region fetched 54,970 pounds ($77,095), or more than $12,000 each, as a selection of historic Bordeaux vintages dating as far back as 1909 went under the hammer at a Sotheby’s auction in London this week. A lot comprising 34 bottles of all sizes of Chateau Montrose 2010 from Saint Estephe, ranging from 0.375-liter half-bottles to an 18-liter Melchior, sold for 38,240 pounds, while 10 bottles of Petrus 1988 fetched 20,315 pounds and five bottles of the same producer’s 1989 vintage sold for 14,340 pounds, according to an emailed Sotheby’s statement.
The sale took place as the attention of collectors is starting to focus on the 2017 Bordeaux vintage being shown to merchants and the wider wine trade this month, prior to going on sale as en primeur futures for delivery in two years. The arrival of a new vintage on the market can divert attention from older wines, although the auction season follows a cycle of its own. “Bordeaux dominated the results,” Stephen Mould, Sotheby’s head of wine for Europe, said in the statement. The price for the Lafleur ’82 top lot, which beat its pre-sale estimate, reflected its “impeccable provenance,” he said. Prices for leading Bordeaux wines are rebounding after falling 40 percent from a 2011 peak before leveling out. The Liv-ex Fine Wine 50 Index is now up more than 30 percent from the floor it reached in 2015. Bloomberg
-A piece of the Boss is going on sale. Lyrics for Bruce Springsteen’s 1975 anthem “Born to Run” will be auctioned in June at Sotheby’s with a high estimate of $300,000. The handwritten text, which is being sold by an anonymous U.S. collector, fetched $197,000 in 2013, according to the auction house. Ranked as the New Jersey native’s greatest song by Rolling Stone magazine, it was used by Springsteen as the title of his 2016 autobiography and is the finale of his current Broadway show. The majority of lines in this version of the song were unpublished and unrecorded, but “the present manuscript does include a nearly perfected chorus,” Sotheby’s said Friday in a statement. Read more here-https://bloom.bg/2JogfCh
-Inequality around the world has reached an irreversible tipping point. The U.K.-based House of Commons Library said this month that, if current trends continue, the richest 1% will control nearly 66% of world’s money by 2030. Based on 6% annual growth in wealth, they would hold assets worth approximately $305 trillion, up from $140 trillion today, the Guardian reported. This follows a report released earlier this year by Oxfam, which said that just eight billionaires have as much wealth as 3.6 billion people the poorest half of the world. The U.S. actually has a greater gap between rich and poor than many European countries. The divergence in the levels of inequality has been “extreme” between Western Europe and the U.S., according to a separate report, released earlier this year by the World Inequality Lab, a research project in over 70 countries based at the Paris School of Economics, and co-authored by the French economist Thomas Piketty. “The global middle class has been squeezed,” it said. Marketwatch
-Netflix CEO Reed Hastings’ pay keeps climbing. Hastings, Netflix’s co-founder, took home a total of $24.4 million last year, according to a company filing Monday. His pay rose 5% in 2017 from the year before. Most of Hastings’ paycheck came from stock options the company granted him. Stock options allow employees to buy or sell company shares at a pre-determined price and time. Since options take time to vest, they’re widely used as performance incentives. CNNMoney
-Walmart Inc. Chief Executive Officer Doug McMillon was paid $22.8 million for last year, or 1,188 times more than the company’s median worker. McMillon, who oversees a workforce of more than 2.3 million people at the world’s largest retailer, received a $15.7 million stock award, most of it tied to performance, as well as a $4.74 million annual bonus and $1.28 million salary. The median employee earned $19,177. Bentonville, Arkansas-based Walmart excluded 3.9 percent of employees in calculating the pay ratio, all of them located outside of the U.S. CNBC
-75% of the ultra-rich forecast a US recession in the next two years, survey finds. Of those expecting an economic downturn in the U.S., a fifth of respondents 21 percent believe it will begin in 2019 and 50 percent expect the next recession to start in 2020. The ominous predictions may come as a surprise to some, seeing as the U.S. is enjoying strong growth, robust corporate earnings and its lowest unemployment in 17 years. The International Monetary Fund recently upped its U.S. growth forecast for 2018 to 2.9 percent. Read more here-https://cnb.cx/2Hs80bB
-Poloz Lays Down Some Markers for Cautious Rate Hikes in Canada. Bank of Canada Governor Stephen Poloz is unapologetic about his cautious approach to raising interest rates. He faces constant criticism for stoking debt accumulation with cheap credit. His reluctance to match higher U.S. rates has fueled a drop in the currency. And now there’s a new challenge: Canada’s inflation is rising at the fastest pace in seven years, while at the same time, the jobless rate is at the lowest in four decades and the expansion is running up against capacity. Even so, Poloz is willing to err on the side of nurturing an economy that’s still feeling the effects of the last global crisis.
“It seems like a long time ago but we’re still actually climbing that same hill, so we need to get the job done,” Poloz said at a media round-table Saturday in Washington, where he was attending the spring meetings of the IMF. “We’re at the intersection, but we wouldn’t be there without policy.” Like central bankers elsewhere, Poloz is trying to figure out how to bring historically low interest rates to more normal levels without inadvertently triggering another downturn. To walk that line, he must answer two questions: where is normal; and how quickly should policy makers raise borrowing costs to get there? In his comments Saturday, Poloz gave few signs he’s in a hurry to raise rates.
He dismissed, for example, the recent inflation spike, which he said will be temporary. He also said plenty of uncertainty remains over where the neutral level for interest rates actually is. While the central bank’s base case estimate is somewhere between 2.5 percent and 3.5 percent, it’s possible it could be as low as the current policy rate of 1.25 percent. “It could very well be the rate it is today,” Poloz said. “I don’t really think that, but anyway, the point is, it could be.” That’s consistent with his cautious narrative, and his reluctance to provide much forward guidance about the future path for rates. Read more here-https://bloom.bg/2qUUhjr
-Christie’s to Auction 20ct. Yellow Diamond Ring. Christie’s Geneva spring sale will feature a 20.49-carat, fancy vivid-yellow diamond ring, estimated at between $3.9 million and $4.7 million (CHF 3.8 million to CHF 4.5 million), the auction house said Wednesday. Other notable lots are an 8.52-carat fancy intense purplish-pink diamond solitaire ring, estimated at $3.6 million to $5.2 million (CHF 3.5 million to CHF 5 million), and a pair of Bulgari Burmese sapphire earrings weighing 22.77 carats and 21.42 carats.
The auction house has estimated the set, which is surrounded by diamonds, at $1.6 million to $2.1 million (CHF 1.5 million to CHF 2 million). The Magnificent Jewels event will also include a late 19th-century emerald and diamond necklace by Tiffany & Co. that was originally sold at Christie’s New York more than 20 years ago. The piece’s estimated price is between $727,367 and $1.2 million (CHF 700,000 to CHF 1.2 million). The sale will take place on May 16 in Geneva. The auction house will preview the pieces in its Hong Kong, London and New York locations prior to the event. Read more here-http://bit.ly/2qTtAvt
-Sotheby’s to Sell Two D-Flawless Diamonds. Sotheby’s will auction two flawless white diamonds weighing over 50 carats each, estimated at a combined price of more than $15 million. The first is a round brilliant-cut, 51.71-carat stone, estimated at $8.2 million to $9.5 million, while the second is an oval-shaped, 50.39-carat diamond, with an estimated price of $7.3 million to $8 million. Both stones are D color, flawless, type IIa and the largest of their shape to be sold at auction. The stones will be previewed in London on April 6 and go on sale at Sotheby’s Magnificent Jewels and Noble Jewels auction in Geneva on May 15. Sotheby’s also said it had sold a 102.34-carat white diamond the only known round brilliant, flawless diamond over 100 carats in a private sale.
While the company did not reveal who bought it and for how much, it said the purchase price far exceeded any price per carat paid for a colorless diamond at auction. The current record for a white diamond is $260,252 per carat, it noted. “Having witnessed the enormous effect of the 102.34-carat stone on those who saw it, we are now thrilled to bring to market two more truly exceptional stones, both of which are among the largest, highest-quality white diamonds ever to come to auction,” said David Bennett, worldwide chairman of Sotheby’s international jewelry division. “Diamonds like these have always captivated collectors and connoisseurs alike and continue to do so today.” Read more here-http://bit.ly/2I0x9au
-Sotheby’s Geneva Jewelry Auction Features 300-Year-Old Blue Diamond. It’s still a month away but early indications are showing that Sotheby’s Geneva Magnificent Jewels and Noble Jewels sale on May 15 is going to be a sparking event filled with statement diamonds. First up is a 6.16 blue diamond with 300 years of royal history: “The Farnese Blue.” Sotheby’s is calling it one of the most historic diamonds ever offered for a public sale. It also is the first time in the diamond’s 300-year history that it is appearing on a public market.
Its estimate is $3.7 to $5.3 million. The pear shaped blue diamond was first given to Elisabeth Farnese, Queen of Spain in 1715 and descendant of Pope Paul III, following her 1714 wedding to King Philip V of Spain, grandson of Louis XIV, King of France. It has since been passed through the royal families of Spain, France, Italy and Austria, the auction house said a witness to 300 years of European history, from the aftermath of the Spanish succession War to the fall of the Habsburg Empire. Throughout this time, it was secretly kept in a royal casket. Outside of close relatives and family jewelers, no one knew of its existence. Read more here-http://bit.ly/2FgiiWr
-Blue Diamond Breaks Record at Sotheby’s Auction. A 3.47-carat fancy intense blue diamond ring sold for $6,663,300 at a Sotheby’s auction on Wednesday, setting a new sales record for a stone of its grade with a $1.92-million-per-carat price. The sale nearly tripled Sotheby’s estimated price range of $2 million to $2.5 million. Blue diamonds are the rarest and most expensive variety of the stone. Additionally, the value of blue diamonds has been rising at a higher rate than that of their pink and yellow counterparts, according to data from the Tel Aviv-based Fancy Color Research Foundation.
Fancy colored stones are graded based on their color quality. Fancy intense, which this stone was designated, is the second highest color grade after fancy vivid, according to the Gemological Institute of America. The stone itself has an unlikely backstory, according to Robin Wright, senior specialist with the Jewelry department at Sotheby’s. The ring was acquired shortly after World War II by a Pan Am pilot who gave it to the woman he would marry, who was a Pan Am stewardess. Although the pilot died shortly after, his wife held on to the ring for many decades, wearing it at a time before fancy colored diamonds were extremely valuable. “There was no market for them,” Wright says. “They would have been priced considerably less.” The stone even bears a chip from when it was briefly dropped in a garbage disposal in the 1970s.
After the owner died in 1990, the ring passed on to her daughter, who got it appraised in 2006 by a local jeweler in the Midwest. He estimated that it was worth $150,000. The family was “extremely pleased” with the auction result, Wright says. “It’s a real American story.” Another fancy intense blue diamond fetched nearly as high a price at a Christie’s auction on Tuesday. The 3.09-carat ring sold for $5,375,000, with a price of $1.74 million per carat. That sale also far surpassed the auction house’s estimate, which expected the price to fall in the range of $2 million to $3 million. Read more here-http://bit.ly/2qY5zU7
-Blue Diamond Tops Christie’s New York. A 3.09-carat blue diamond smashed its pre-sale estimate at Christie’s Magnificent Jewels auction in New York last week. The rectangular-cut, fancy intense blue diamond ring, surrounded by tapered baguette-cut diamonds on either side, sold for $5.4 million. Its original estimate was $2 million to $3 million. A similar 3.47-carat ring sold at Sotheby’s New York Magnificent Jewels auction the previous week, garnering $6.7 million, well above the $2 million to $2.5 million original estimated price.
Other top lots at the Christie’s sale included an 8.42-carat, rare fancy intense pink, potentially internally flawless diamond ring, which sold for $5 million. A Cartier twin-stone ring, featuring a 2.42-carat, fancy vivid blue diamond and a 2.85-carat, fancy intense pink stone, fetched $4.5 million, and a similar twin-stone ring with a white, D-color stone and a fancy vivid blue diamond went for $3.5 million. Signed period and modern jewels by Boucheron, Cartier, David Webb, and Van Cleef & Arpels were also popular, and an oval-cut, 22.76-carat diamond “thread” ring from designer JAR sold for $2.8 million. Overall, 88% of lots sold for a total of $45.7 million. Christie’s next auction is the Geneva Magnificent Jewels auction, which will take place on May 16. Read more here-http://bit.ly/2vLehJV
-Brian Roberts: Is This The Most Expensive Diamond In The World? Blue diamonds are rare. Far from your typical diamond chain or standard piece of 14k gold jewelry, they often get confused with sapphires, which are a different gemstone entirely. Sapphire stones get their blue color from a mix of titanium, iron, magnesium, copper and chromium, while blue diamonds get their color from a high boron concentration. The most expensive sapphire on record, the Padparadscha Sapphire, cost $20,000 per carat. But, if you even find a blue diamond on the market, expect to pay at least $3.8 million per carat.
Blue diamonds have been a curiosity for centuries, but popularity peaked after Joseph Lau, a real estate developer turned collector of fine art and wine, bought a 9.75 carat blue diamond for $32.6 million at a Sotheby’s auction. It broke two world auction records. But Lau was just getting started. In 2015 he purchased another blue diamond at a Sotheby’s auction in Geneva that set the most expensive diamond record again. This time he spent $48.4 million on a 12.03 carat blue diamond. Although Lau is the owner of the most expensive diamond in the world, the most popular blue diamond is the Hope Diamond, a 45.52 carat walnut-sized blue diamond with ownership records stretching back four hundred years. Read more here-http://bit.ly/2HVyz5Y
-Lucara Unearths Another Massive Diamond From Botswana Mine. Lucara Diamond Corp. has recovered yet another massive diamond in Botswana, at a site previously owned by giant De Beers. The 472-carat light brown stone is the third largest found by Vancouver-based Lucara at the Karowe mine. The site has proven a windfall for the Canadian miner which now produces some of the biggest and best diamonds in the world. “The early sampling work that was done on Karowe was done with equipment that really was not optimal and they ended up breaking a lot of diamonds,” Chief Executive Officer Eira Thomas said in a telephone interview Thursday. “When we went into commercial production we expected to do better but we had no idea that the diamonds that were being broken were so much larger.”
The largest stone uncovered at the site, the 1,109-carat Lesedi La Rona, was sold by Lucara last year for $53 million, or $47,777 a carat. A 373-carat chunk that broke off the Lesedi sold for $17.5 million. In 2016, Lucara sold the most expensive rough gem on record, the 813-carat Constellation, for $63 million. Although smaller than the near tennis-ball sized Lesedi, The Constellation earned a higher price per carat because of its superior quality. Brown-colored diamonds command significantly lower prices in world markets typically $4,000 to $7,000 per carat but the unusual size of this one means it will need to be valued differently, Thomas said. Some manufacturers may actually choose to accentuate the color through polishing, while others may look to change it through heat treatment, she said. “They tend to command a lot of interest because there are a variety of views on what can be done with stones of that color.”
So far this year, Lucara has found 218 diamonds of more than 10.8 carats at the mine, including four stones of more than 100 carats each, the company said in a statement Thursday. While the very largest stones add volatility to Lucara’s quarterly revenue numbers, the company is consistently reaching an annualized average value of $600 to $650 per carat, and expects that to continue over the life of the open pit, Thomas said. The biggest diamond ever discovered is the 3,106-carat Cullinan, found near Pretoria in South Africa in 1905. It was cut into several polished gems, the two largest of which the Great Star of Africa and the Lesser Star of Africa are set in the Crown Jewels of Britain. Read more here-https://bloom.bg/2HUocPP
Gold to silver ratio at 80 to 1 with gold at $2,000 the silver price would be $25.00
Gold to silver ratio at 70 to 1 with gold at $2,000 the silver price would be $28.57
Gold to silver ratio at 60 to 1 with gold at $2,000 the silver price would be $33.33
Gold to silver ratio at 50 to 1 with gold at $2,000 the silver price would be $40.00
Gold to silver ratio at 40 to 1 with gold at $2,000 the silver price would be $50.00
Gold to silver ratio at 30 to 1 with gold at $2,000 the silver price would be $66.67
Gold to silver ratio at 20 to 1 with gold at $2,000 the silver price would be $100.00
Gold to silver ratio at 15 to 1 with gold at $2,000 the silver price would be $133.33
-Perhaps connecting the strange withdrawals in the JPMorgan COMEX warehouse, as well as the strange withdrawals in SLV was the even stranger massive deposit of nearly 14 million oz into the Deutsche Bank physical silver ETC, XAD6, this week (ETC = Exchange Traded Commodity same as ETF). At first, I thought the massive deposit was a reporting error, but I am assured it’s correct by my source, Nick Laird of Sharelynx, who keeps meticulous and up to this point, flawless data.
A 14 million oz silver deposit or withdrawal from SLV, with roughly 317 million oz in total deposits would have tongues wagging in the world of silver and for good reason. But the Deutsche Bank ETC, which has been in existence since 2011, only had 19 million oz before the large deposit this week increased the amount of silver held there to nearly 33 million oz, a sudden increase of nearly 75%. It’s certainly not as if 14 million oz of physical silver is all that much in dollar terms (around $230 million at $16.50) and it’s perhaps more a wonder why someone hasn’t moved sooner to buy physical silver in such quantities in an international venue. Silver is, after all, a truly international commodity.
So my sense is that the big withdrawals from the JPMorgan COMEX warehouse and from the SLV may be related to the big deposit in the Deutsche Bank ETC. Over the past seven years, JPMorgan has picked up about 8 million oz of physical silver monthly, so a sudden purchase by any other entity (say Goldman Sachs of 12 million oz in the March deliveries or whoever may be behind the DB ETC purchase) could set the physical silver world off kilter, with “off kilter” being decidedly bullish on price. Oh, and by the way, guess who is the custodian for the Deutsche Bank silver ETC? Yeah, you know who. Silver analyst Ted Butler April 21 2018 via Ed Steer edsteergoldandsilver.com subscribe here-http://bit.ly/1fdAByN
-Ted Butler: Avoiding the Obvious. A new interview by James McDonald, Director of Enforcement for the U.S. Commodity Future Trading Commission (CFTC), on Friday makes it clear that neither he nor the Commission has any intent to address the obvious manipulation of the silver market, conducted principally by JPMorgan. As a reminder, preventing manipulation is the primary mission of the CFTC. Click on podcast April 20 2018 https://www.cftc.gov/. What you’ll hear is a self-congratulatory review of what a great job the agency is doing in terms of market manipulation in precious metals and how the agency welcomes and takes very serious and always follows up on all allegations to the fullest extent; even offering multi-million dollar rewards under its whistleblower program.
McDonald acknowledged that the agency has received more public complaints on precious metals manipulation (silver specifically) than on any other market and wished to assure the public that the CFTC was diligently protecting it from the evils of price manipulation. It’s true the agency has brought many more cases involving spoofing and other fraudulent acts and for that both McDonald and the Commission should be commended. But both are avoiding the 800 pound gorilla of silver manipulation and JPMorgan standing right in front of them. So rather than a public interview offering the general assurance that everything is on the up and up in COMEX silver, why not just address the specific issues that have caused so many to believe otherwise? Those issues include excessive speculation on the COMEX, JPMorgan’s perfect trading record and its massive accumulation of physical silver.
Why not just pick up the phone and explain to me why I am wrong in my allegations? Or just hit “reply” to any of my more than 100 emails explaining the COMEX scam? That would seem to be the most expedient course of action. The truth is that no one from the agency has ever inquired, followed up on or challenged any of my allegations. That’s because all my allegations are based upon the agency’s own public data. One would think that this presented a perfect opportunity for the CFTC to prove me wrong and end the allegations of manipulation in silver which, clearly, aren’t going away. Should you choose to encourage the agency to resolve this issue once and for all, I’ve enclosed a letter from Jim Cook, president of IRI, Inc., that he has allowed me to offer as a template. Read more here-http://bit.ly/2r2h8cb
-Jeff Clark: Frustrated by the Dormant Silver Price? Don’t Be, Says History, the Upsurge Is Coming. Frustrated by the comatose silver price? Tired of it going nowhere and being held down? Well, history has a message for you: This trading behavior is normal. Furthermore, similar scenarios from the past say the next price explosion is on the way. I know from past studies that silver doesn’t always shoot up when gold does, in spite of the fact that it almost always gains more than gold before the uptrend is over. I decided to put the data to a chart and see what it showed. I listed gold’s five biggest bull markets, then added silver’s performance to see how closely it tracked gold throughout the uptrend. What it showed confirmed my suspicion: Silver usually (though not always) trails gold in the beginning stages of a bull market. Take a look.
In three of gold’s five biggest bull markets, silver clearly trailed the gold price in the beginning stages. It caught up and eventually surpassed gold’s total return, but it usually got off to a slower start than gold. Sound familiar? In the 1992-1996 and 2008-2011 markets, silver did advance with gold and even jumped ahead of it fairly early in the trend, but in the other three bull markets it lagged until later. So we have historical precedents for silver’s current price behavior remaining flat while gold creeps higher. In other words, what we’re experiencing now has happened before.
- Since precious metals bottomed in December 2015, gold has risen 26% (through April 20), but silver has only gained 24%.
- Gold has advanced 3.4% YTD, but silver is up only 1.3%.
This is all very similar behavior to three of the bull markets listed above. But you can also see this lag in performance is only temporary: As history shows, silver has outperformed gold in every major modern-day precious metals bull market (though it did fall below gold before the mid-1980s uptrend ended). There is no reason to expect this won’t be the case the next time around. Although the gains vary widely, silver’s average advance was 378%.
But since Mike is calling for a new world monetary system within two years, silver’s gain will be anything but average. It’s more likely to resemble the latter half of the 1970s: add a zero to the price (and your net worth). This data signals that we should hang on, and not fret silver’s lackadaisical price behavior. We already know from history how this story ends silver will sell at multiples of what it sells for today. Mike and I and everyone else at GoldSilver continue to buy silver while it’s deeply undervalued. Read more here-http://bit.ly/2JpDsUq
–Steve St. Angelo: Waiting For The Buy Signal, What’s Going On With Silver Investment. The Silver Market is setting up for one heck of a move higher as investors are waiting for the signal to start buying. While the silver price has shot up due recently, it still isn’t clear if this is the beginning of a longer-term uptrend. The reason for the quick spike in silver was likely due to a small short-covering rally by the Large Speculators trading on the Comex. For the first time in a quite a while, the Large Speculators (Specs) were net short silver. For example, the Large Specs were net long by more than 100,000 contracts last year when the silver price was $18.50. However, the last COT Report showed that the Large Specs were net short silver by 17,000 contracts. Read more here-http://bit.ly/2FfZy9u
-David Morgan and Mike Maloney: Silver Breakout Or Fakeout? They take a look at recent price action in silver. Watch more here-http://bit.ly/2KfTMIT
-GoldCore: New All Time Record Highs For Gold In 2019. Gold is gaining momentum after a 5-year consolidation and is set to challenge the 2011 highs some time next year. Once gold clears $2,000, a powerful bull market should drive the gold price meaningfully higher. Read more here-http://bit.ly/2qZyHt8
-Lawrie Williams: Russia adds to gold reserves again in March. China may continue to be telling the world that it has added zero to its gold reserves since October 2016, but Russia is still increasing its gold hoard on a monthly basis. Its official total gold reserve holding as reported to the IMF surpassed that of China a couple of months ago and continues to rise further with the central bank reporting another 300,000 ounces (9.33 tonne) increase in March bringing its official gold holding to around 1,890 tonnes, now getting on for nearly 50 tonnes more than China’s ‘official’ total of 1,842.6 tonnes.
There is speculation that, given the bad will between the two nations, Russia may dispose of some of the U.S.-denominated assets in its substantial Forex holdings replacing them with some other currency (the Chinese yuan for example) and gold (It may already have started this process). This would be a move that if followed by some other nations (notably China with its enormous forex reserves) could start to destabilise the U.S. economy which is very reliant on the global acceptance of the U.S. dollar as the world’s principal reserve currency. Read more here-http://bit.ly/2vLl6LG
-Adam Hamilton: Gold Nearing Bull Breakout. Gold remains largely forgotten, off the radars of most investors. But that’s likely to change soon as this leading alternative investment is nearing a major bull breakout. Once gold climbs to decisive new bull-market highs, sentiment will turn and investors’ interest will surge. Their resulting buying will rapidly drive gold higher, attracting in more capital inflows. Gold is only a couple modest up days away from that key breakout. Universally in all markets, traders’ psychology is completely dependent on price action and levels.
When prices are high and rising, speculators and investors alike eagerly buy in. They love chasing winners, so buying begets buying. This creates powerful self-reinforcing virtuous circles, with rising prices helping to entice in ever-more traders. In recent years this dynamic catapulted the market-darling FANG stocks higher. With capital inflows following performance, investments that aren’t high and rallying naturally see waning popularity. That’s the story of gold over the past couple years or so. Gold’s last new bull-market high came way back in early July 2016, when it hit $1365. That was 21.3 months ago, which may as well be an eternity in terms of sentiment. In most traders’ minds, gold has effectively been dead and buried ever since. The bottom line is gold is nearing a major bull breakout above $1365.
That will turn psychology bullish and bring traders back in droves. Gold is rallying ever closer to new bull-market highs as evidenced by its massive multi-year ascending-triangle chart pattern now nearing a bullish climax. Today gold is only a couple percent below that decisive breakout, which will finally blast it back onto the radars of investors. That’s likely coming soon, with gold in the midst of its major spring seasonal rally. Speculators have lots of room to add gold-futures longs, while investors remain radically underinvested. And once gold comes back into favor, the abandoned gold miners’ stocks are going to soar. Their prices are far below where they ought to be based on their fundamentals and prevailing gold levels. Their upside from here is enormous. Read more here-http://bit.ly/2Huh7Vj