We’re pretty sure that “batshit crazy” isn’t a technical term in financial markets, but it’s hard to disagree with the assessment of recent moves in precious metals by Societe Generale strategist, Albert Edwards.
Gold’s historic surge through $US4000 an ounce this week might have grabbed headlines, but it’s the context behind that move that matters. Since Federal Reserve chairman Jerome Powell used his speech at the central bank’s annual Jackson Hole symposium in late August to flag cuts to official US interest rates, the spot gold price has surged 20 per cent, taking its gains since the start of the year to 52 per cent. Silver is up 64 per cent, platinum is up 86 per cent and palladium is up 50 per cent. Edwards is right about those bats.
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