Above find my video presentation from the Toronto Subscriber Investment Summit 2015: Life In a Zero Yield World. Below, find the latest HRA editorial.


Latest HRA Editorial: Painted Into a Corner

From the March 31, 2015 HRA Journal: Issue 230

After a month of pain gold traders got some relief thanks to a dovish Fed. The price hasn’t moved enough to have a big impact but it’s nice to see a bit of green on the screen. The next US payroll report will define market sentiment for the balance of the spring. Fed chief Yellen basically said there would be no April rate hike and the wage gains, or lack thereof, in the next payroll report should decide if the first rate increase comes in June or not until autumn.

So far there hasn’t been much of a financing window for the juniors this year. After good activity in January things have cooled and there are few placements getting announced. That could change if the next payroll report gives gold another boost.

Earnings season starts in a week and it looks like this will be a weak one. There aren’t a lot of reasons for New York markets to move higher. The US Dollar is holding most of its gains which will generate more margin contraction for S&P companies.

With so much negativity, a rate increase may be anticlimactic for the gold sector. If the Fed holds back and Greece doesn’t get booted out of the EU there would be room for a Euro rally that would carry gold higher with it. The short position on the Euro is massive and a violent move higher is quite possible. That gives us the best chance for a funding season that will give us news flow through the middle of the year. Stay tuned.

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