The opinions expressed in this blog are for informative purposes only. To the best of our knowledge, the information presented in the blog are accurate, however, we do not guarantee the accuracy of information. The views conveyed do not constitute investment advice and readers should seek professional advice when making financial decisions. Readers should not rely on the information, and those who do, do so at their own risk. Paramount Gold Nevada Corp. is not licensed as an investment advisor.

It Looks Normal But it Ain’t

Buy equities and sell gold because the economy is strong and the Fed is supportive? Really?

We think you should not be fooled by the reigning narrative. Consider the following:

In 2018, US real GDP growth was the best in years. Nominal GDP rose more than 5% while the national debt grew by more than $1.2 trillion, about 6% of […]

The Logic Behind Buying Gold Now

In our view, the gold story is getting much simpler and much more urgent.

Here is how we see it. The Fed cannot exit QE. QE is a failed policy. More QE is coming. Buy gold to preserve capital.

To combat the financial crisis of 2008/9, the world’s central banks created an enormous amount of new money…about $15 trillion…to restore liquidity to […]

The FOMC Opens the Door to a Higher Gold Price

The January 30th FOMC statement and the subsequent news conference with Chairman Powell removed the last significant headwinds for gold. We think that a new bull market for gold is about to commence.

Essentially, Chairman Powell trashed the Fed’s forward guidance of the last several years which he had enunciated as recently as October, 2018. There is now no commitment to […]

Markets Reject the Fed?

On Wednesday, the Fed raised the Fed Funds rate by a quarter point as expected. The Federal Open Market Committee (“FOMC”) statement was suitably ‘dovish’ by reducing the consensus forward guidance on future rate hikes from three to two. The Fed also signalled that its Quantitative Tightening program (selling $50 billion of assets per month) would continue on “autopilot” as […]

The Stock Market and Gold

What is the stock market trying to tell us?

First and foremost, valuations are too high. Third quarter results have been disappointing. Investors are realizing that sales and earnings cannot grow fast enough to keep the market at record valuations.

Second, the stock market is telling us that its advance has been too narrow…too dependent upon a handful of stocks driven higher […]

The Gold Market Is Turning (We Think)

As we have noted, markets are deep into what we have called the Tariff Trade based on the assumption that Trump would win his trade war with China and that he would do so before it had any serious negative impact on the US economy. The Tariff Trade was to go long certain US equities and the dollar and short […]

Why the Next Market Crash Will Not Take Gold Down

The global financial crisis of 2008 was essentially caused by excessive leverage, a loss of confidence in real estate credit and a resulting sudden collapse of liquidity in the financial system. The central bank response was to lower interest rates and flood markets with liquidity. Since then, debt loads have increased more than 30% and the percentage of higher risk […]

For Gold, It’s All About the Dollar

Positioning, sentiment and market structure continue to favour a powerful rally in gold. The Commitment Of Traders report released by the CME Group on September 7, 2018, shows the gross speculative short position grew 1.3% to 213,259 contracts, just shy of the all-time record set two weeks ago. On a net basis, speculators are short 13,500 contracts, the largest short […]

Moving Towards a Reset

Gold is the ultimate safe haven, for two simple reasons. First, its total above ground supply only grows 1.4% per year, no matter what anyone does (and even this rate of increase is starting to fall as production levels have peaked). Second, gold is final settlement for the payment of obligations; it is universally accepted as itself, in physical form, […]


For nearly four months now, gold has been pressured lower by a rising dollar; the inverse correlation has been almost exact. Gold has dropped 5.2% from its January 25, 2018 close of $1362 to its May 16 close of $1291.50. Meanwhile, the US dollar index has risen 5.4% from this year’s low close of 88.50 on February 15, 2018 to […]