Our global disinflation trigger. Now short Gold.

On June 25 we went long Gold and Platinum as our global inflation expectations gave us bullish signals. Today we close those positions, locking in a small profit in Gold and a loss in Platinum. Platinum prices were hurt specifically in relation to the Volkswagon Diesel emissions scandal. Which is not only regretable of the potentially (if found guilty!) dirty cheats at the company but also to our portfolio, as we trade Platinum based on inflation signals to hedge inflation liability and not on Diesel car demand! Whilst not a stellar outcome on the two trades themselves, the long precious metal positions helped a long way in preserving capital during August and September where equity markets were beaten down. Read more... (VIEW LINK)