Fleckenstein
Capital.com

Often wrong, never in doubt. – Bill Fleckenstein

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Q: Hey Bill,

I have been buying physical gold the past year. My question is, what is the end game, in your opinion? Will gold end up being used as currency, a new currency being backed by it or is the the goal to exchange it for US dollars at a much higher price?

Loved your podcast with QTR btw. Definitely thought you leaned a bit left being from Seattle. I’m from CA. Saying Trump IS actually doing some good things, is punishable by death.

Hope you have a great weekend.

Q: Has Wesdome crossed into new territory after its recent drill results, which are promising but also may require a lot of money? Luis, who knows as much about Wesdome as anyone, said it's time for the company to sell to a larger company. There was a fairly big selloff on Thursday, continuing its recent swoon after a big runup. All of this leaves me a bit confused, although if Luis is right, wouldn't that be another reason to add on weakness - because it's another way to win? Or is there another explanation for the stock's recent weakness that I'm missing?

Q: As the quarter ends, with gold hovering around $1,500, do miner prices adequately reflect the gold price increase or is there a re-rating that hasn't taken place yet?

Q: A little historical data on gold inflows into GLD, from SentimenTrader:

“Over the past week, an average of more than $400 million per day has flowed into GLD, the most since August 2011. Fund flows can be tricky, but according to this backtest, when the 5-day average inflow to GLD is above $250 million, the fund rose over the next month only 30% of the time, averaging a return of -3.5%.”

As always, data like this comes with a caveat (or several). Sample size, context, investment backdrop, etc. point is, inflows alone don’t tell us much, but perhaps less bullish than what might be instinctively conceived.