[edit] The post began as a simple view of the inflationary dynamics in play within the precious metals market but as sometimes happens it, err… expanded. Please excuse the wordiness. But I would rather be wordy and try to make points backed in facts and data than backed only by my biased ego.
Not that I have proof (re: the title), but I do have some charts to help make the point that people who bought gold and gold stocks due to inflation fears have been driving the gold sector higher since March.
Back in January and February HUI rammed upward amid much doubt and skepticism because the general market backdrop was bearish and even more importantly, the commodity focused ‘inflation trade’ was nowhere to be found. At that time we were calling the deflation story “long in the tooth”.
