Authored by Steve St.Angelo via SRSroccoReport.com,
The biggest frustration to many precious metals investors, is why have the gold and silver prices under-performed the market since 2011? Actually, for gold it was since 2012. Even though gold hit a new record high of $1,900 in September 2011, its average annual price was higher in 2012 at $1,669 compared to $1,571 the prior year.
Via RealVision.com,
If You Only Look At One Chart…
Time is short, so here is one chart to get you thinking in a new direction.
Velocity of Money (M2)
M x V = P x T
Source: Bloomberg
The chart that no central banker wants you to see
Velocity and inflation will continue to fall as long as debt compounds faster than GDP growth.
Over the past three years, gold has found itself in an odd place: while it still remains the ultimate "safety" trade and store of value should everything go to hell following social and monetary collapse, when it comes to "coolness" it has been displaced by various cryptocurrencies, all of which have vastly outperformed the yellow metal in recent months. Meanwhile, central banks continue to pressure the price of gold to avoid a repeat of 2011 when gold nearly broke out above $2,000, putting the fate world's "reserve currency" increasingly under question.
From the latest Weekend Notes by One River Asset Management's Eric Peters
Beep Beep
The market finally woke up,” said Roadrunner, the market’s top volatility trader.“The volatility of the VIX index jumped 40% on Wednesday, that’s the 2nd biggest daily move in the VVIX we’ve ever seen.” The S&P fell just 1.8% on Trump/Comey jitters.
"Historically there seems to be a new group of people each time that underappreciates the very significant risks of being short volatility and wants to learn this expensive lesson."
Co-inventor of the VIX index, Sandy Rattray is CIO of Man Group, CEO of Man AHL, and a member of the Man Executive Committee, and he has a clear message for investors - he believes it is extremely unlikely that today’s low realized volatility represents a 'new normal'.