Don Coxe got on the horn with Eric King at King World News yesterday to share his latest macro outlook. Coxe’s blend of historical and economic acumen, expressed in a thoughtful Canadian tongue, is always a treat.
He’s a gold bull, and is especially keen on mining shares as a “20-year call option” on gold prices that won’t expire until the gold bull runs out of gas. Which, he adds, won’t happen until the competitive devaluation of currencies ends, and real interest rates poke their heads into positive territory once again.
Coxe also remains fond of agriculture, as he believes the development of China and India to be so significant that it will be talked about “thousands of years from now.” (Though as an aside, I recently asked my grandfather-in-law – a lifelong cattle farmer – about the oft quoted stat that it takes seven pounds of gain to produce a pound of beef. He chuckled, asking “if they ever call anyone in the industry about these numbers”).