Forty Year High

And when I'm lost 
You'll be my guide
I just turn around
And you're by my side
--Madonna

The CPI printed at +6.8% YOY this am, the highest annual rate in almost 40 years. The inflation gauge has now exceeded 5% for six consecutive months.

In what may retrospectively be perceived as one of the larger market disconnects on record, gold continues to languish in this environment. Bullion has more or less flatlined on the news and the miners have been sold, with many names marking new lows for the move.

I continue to add to the sector on weakness, and to shift bullion ETF funds into miner shares, as it seems the stars are favorably aligning the risk/reward relationship for precious metal producers.

position in gold