The monetary dollar game now appears to have reached its final phase. After the huge rise in the dollar, there seems to be only one way out for the US: a devaluation against gold. With the strong movement of precious metals, it may have already begun. It is reminiscent of the 1930s, when President Roosevelt devalued the dollar to defuse the crisis. Substantially higher precious metal prices in the coming years are therefore very likely. The fall in the price of some base metals accelerated in August (zinc -9%, copper -4%), fearing a new economic crisis. Nickel was a big exception, with an increase of 24% last month, as Indonesia plans to ban the export of unprocessed nickel ore from 2020 onwards. In anticipation of greater unrest, (an imploding bond bubble?), we have adjusted our portfolio by doubling positions in precious metal producers. Physically covered ETFs have also been added. Our largest position, Great Bear Resources, rose 30% due to good news about new gold discoveries.
Monthly report August 2019