The world is interconnected, and our trading partner's interest rates are much lower than ours. Productivity is increasing so dramatically as a result of technology that every day we are building a larger and larger inflation buffer where a tendency for higher prices gets absorbed by increases in capacity and improvements in efficiency. Yes, its true that wages are increasing, but I am beginning to feel that interest rates in the United States may remain within a narrow 2%-3% band for the ten year treasury, for years to come.
That will tend to be supportive for Gold and Platinum, although my Platinum view rests on limited supply, not on competing interest rates.
My Gold initiative of a few weeks ago, seems early; Gold today is $1278. To create more insulation for my Gold position, I have sold GDX, and bought Kirkland Lake (KL, $31.05), a gold producer with a remarkable balance sheet and high grade, low cost ore body that is on a growth curve that will help insure big earnings even with some fluctuation in the gold price.