Saturday, November 28, 2020

Tag: Silver: Canary In An Inflationary Coal Mine

Silver: Canary In An Inflationary Coal Mine

by Stewart Thomson, via Silver Seek:

The demand-side drivers of the gold price are the Western fear trade and the Eastern love trade. The fear trade has languished in recent years, leaving the love trade to do the “heavy lifting” for the price.

2. That has gone reasonably well; China’s gold mining industry has consolidated and embraced environment-friendly mining. India’s jewellery industry has restructured, with hallmarking poised to become mandatory.

3. Both countries have strong GDP and wage growth. In the short term, the US government’s hastily-imposed tariff taxes have hurt Chindian stock markets and fiat currencies. That’s put a modest damper on the growth of love trade gold demand.