Seabridge Gold Review of the Gold Market:
December, 2016 Investment Thesis
Gold is at, or close to, a bottom.
A normal correction in gold has been extended and deepened due to expectations that President Trump’s economic program will drive faster U.S. growth, faster inflation and a more aggressive rate hike cycle that will strengthen the dollar.
The expectations of the Trump plan are unrealistic. The Trump plan will likely not be passed.
The Fed rate hike cycle will not be aggressive and the dollar will falter. More QE is likely.
In any case, Fed rate hike cycles are not historically negative for gold.
The E.U. banking system represents a very significant undiscounted risk to financial markets.
Gold is the best available hedge against a failure of Trumponomics and loss of confidence in central bank omnipotence.