Category: Abhay A. Abhyankar

The Mystery Of The Missing Keys To Greece’s Next Economic Boom – Part I

  • After years of painful public reforms, huge pension cuts, and mass privatizations, Greece’s economy finally looks to be ticking up.
  • Our view is that tourism and trade will offer the two biggest deltas on the country’s next economic boom.
  • The sad and unfortunate thing is that the keys to Greece’s next economic boom are no longer with the Greeks.

This article will be the first in a three-part series on Greece. We very strongly believe that Greece has begun its next economic cycle and that the two best plays on the country will be trade and tourism, but we are also of the view that the keys to its next economic boom are located outside of Greece.

Please click here to view the presentation.

Gold in A Goldilocks Scenario

Both fundamental and technical factors are aligning up for the ascent of Aurum.

As per the World Gold Council while the total supply of gold declined 8% YoY, most forms of demand, viz. jewellery, bar & coin, central bank, technology, were up YoY.

Gold is trending up against all major fiat currencies and a technical break out seems to be in the making.

In our previous write up on Gold (GLD, GOLDX, GLDI, GLDW) and Gold miners (GDX, GDXJ, NUGT, JNUG): The Ascent of Aurum – Long Gold, we wrote a bullish thesis that rested on the following factors:

  1. Declining global mine production in years to come — a result of past, massive, haircuts to capex by some of the largest gold miners around the world. Gold miners’ Capex has declined 65% from 2012 to 2016.
  2. Gold is a safe haven asset and according to world Gold Council’s most recent report on demand trends, current uncertainties in China and Europe are driving these flows.
  3. Technical analysis of gold price chart reveals a strong bullish set-up at a time when this trade is far from being crowded.

We review our thesis and present both fundamental and technical evidence to convince any gold bears out there to get out of the way.

Please click here to view the presentation.

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