Liechtenstein-based asset-management firm Incrementum AG this week published its "In Gold We Trust" report for 2016 and was quite bullish for both the monetary metal and gold mining equities.
The report, written by Ronald-Peter Stoeferle and Mark J. Valek, includes a chapter titled "The Fix Is In -- Gold Price Manipulation Exposed," which is prefaced by your secretary/treasurer's remark at GATA's Washington conference in 2008: "There are no markets anymore, just interventions."
The report says: "What most market participants once considered a crude goldbug conspiracy theory, reflecting dissatisfaction with the precious metal's price trend and sour grapes on account of missing the rally in the stock market, has now become a certainty."
As for gold equities, the report adds: "Relative to the gold price, the gold stocks in the Gold Bugs Index are at the same level as in 2001, when the gold bull market began. This is by itself strong evidence that gold mining stocks are cheap relative to gold.
"However ... mining stocks were able to outperform gold only between 2001 and 2004. We have discussed the reasons for the disappointing performance of the sector in the period after 2004 and its fundamental problems in detail in last year's report under the heading 'Why Have Gold Mining Stocks Performed So Badly?' We also mentioned on that occasion that the gold mining industry had gone through a process of creative destruction and fundamental restructuring.
"As a result of this, we expect that in coming years, mining stocks will once again become the kind of leveraged bet on gold that investors crave."
At 144 pages, complete with charts, Incrementum's "In Gold We Trust 2016" report is serious stuff. It's posted in PDF format here:
http://www.incrementum.li/wp-content/uploads/..._we_Trust_20...
