Aloha from The Big Island of Hawaii! I feel very blessed to be able to spend our annual pilgrimage here with my family including aging but healthy and happy parents. Much of the world has already passed into 2017 and Happy New Year to those who have! We'll be among the last to pass through this annual time portal later tonight.
Despite the tough sledding in this business as precious and industrial metals have swooned for much of the past five years, we have been encouraged by signs of life in these markets in 2016. Anticipation of an aggressive infrastructure build-out as well as corporate tax cuts during Trump's presidency has fueled the surprising stock market bounce since his historic victory on election night and should continue to nicely support the industrial metals complex. Necessary aggressive debit financing/continued money printing could be a boon to the precious metals market as at some point the risk-on crowd will be scrambling for safe haven assets, the most sought after of which will essentially disappear soon after Wall Street insiders and central bankers get a whiff of the changing tide. This may occur the next time our debit ceiling is breached which is expected sometime this coming Spring. It could occur in earnest when the aging stock market bull finally succumbs to the the next generation bear who some predict will be a real bastard. More certainly the precious metals would blast off to nearly incomprehensible levels should the wheels ever completely fall off our debit clogged economic engine as they have recently in Venezuela and several years ago in Zimbabwe where hyperinflation has already reared its devastating head.
While forecasts are as common as the talking heads that purport them this time of year, we will stop short of any firm prognostications. We will however suggest you invest in at least some safe haven assets now while many alternatives are readily available so you'll be able to protect your family should the "greater depression" forecast by some ever become a reality. Unlike the gold, silver and other rare and precious metals that reportedly less than 1% of us own and seek, we will not be in this world at some point in the future. Enjoy this special holiday, reach out to your family and friends this weekend and get a nice bottle of wine or two for several of those most dear to you and share a fabulous New Years Eve. See you soon on the other side for what we really hope and pray will be a very happy & blessed New Year.