Asymmetrical Risk

Big, bad, $50 billion-plus market cap Newmont Corporation, a gold miner which has been unable to hold over the $70 handle since before the 1987 crash, is back up to the scene of prior crimes and threatening to overtake it again after dipping (more benignly, as you can see relative to prior times) since last summer. 

Does it look like it will fail again? And just how high can it go after failing at the same level for over thirty years? 

Food for thought this weekend, especially with bureaucrats, technocrats, Fedheads, and the like all swearing there is no inflation and that inflation will not be here to stay even if it comes. Food price inflation, maybe gasoline prices going up this summer, too, are all to be expected. 

But I suspect these government officials and the like are genuinely horrified at the thought of a serious spike in the precious metals, since that would act as prima facie evidence on inflation to the public at-large. Macro speculation is always a tourist adventure. 

So, again, I come back to the point that NEM did not get violently rejected from $70 this time around, since last summer.

In fact, it seems quite comfortable up at these levels unlike previous instances...