by Keith Weiner
Sprott Money
On Monday the dollar had a ferocious rally, moving up from 15.87mg gold to 16.77mg and from 1.21g silver to 1.32g. In mainstream terms, the price of gold dropped about a hundred bucks, and the price of silver crashed $2.20.
One notion we’re hearing a lot now is, “there is no alternative to stocks.” Certainly, stocks have been rallying. They were up in Sunday evening (as we reckon it here in Arizona) trading. Then Pfizer announced good news for its COVID vaccine, and that seemed to be the signal to bid up stocks even more.
Many in the mainstream believe that stock prices are linked to the economy. Many of the rest would quibble slightly, and say that stock prices predict the economy. However, we argue that stocks and other assets trade inverse to interest rates. A stock has a yield (well, most do) based on its earnings.