Monday, September 26, 2011

E-cat and Gold

A quick thought here as I work my way through the day.  Time is short, so I have to make this quick.  Okay, the thought is this:  If the E-cat is successful, and it looks like it could get a great credibility boost in the near future, then it could have a moderating impact on energy pricing.  That would lower inflation expectations and be bearish for gold.  If on the other hand, it is not successful, then energy prices could face upward pressure.  In such a case as that, I would expect that to be inflationary, and bullish for gold.

Gold is bearish lately, but it may not have anything to do with the E-cat.  Of course, the media isn't covering it.

But don't underestimate the intelligence of market participants.  Anybody with any brains for this business knows what the E-cat can mean for energy markets.  And that can impact gold too.


stevehigh said...

Here's something that could prove bearish for the gold market. What if some variation of the ECAT LENR process proves able to produce gold itself (instead of copper)? Them every home prospector can start producing the yellow stuff in his or her own basement!

Greg said...

That's an interesting idea. I may post something about that. Stay tuned.