Kitco/David Lin
‘Perfect storm’ for gold, silver to rally substantially says Yamana’s Peter Marrone

Precious metals are not done rallying in our current economic environment, and in the next bull run, silver is likely to outperform gold said Peter Marrone, executive chairman of Yamana Gold.

“It’s difficult for me to predict where the gold price will be on a short-term basis, but as well, I appreciate there’s an element of speculation in this discussion. It’s very difficult to see in the intermediate and over the longer term, directionally, gold prices do not go to higher levels than it is today. And given the amount of monetary stimulus and fiscal stimulus in the world and likely going to increase, the amount of government debt to GDP, I’m not suggesting that this is not tolerable, I am suggesting that this is the perfect storm for gold price to go to higher levels,” Marrone said.

On inflation of operating costs, Marrone said that Yamana Gold’s guidance on costs this year does not consider inflation to get out of control.

“We’ve guided costs taking into account what we think is the inflation rate in the countries in which we operate. It is not very high levels of inflation in most countries. If we look at Chile, Brazil and Canada, Argentina’s a bit different, the inflation rate there is higher…if we look at the other countries, the inflation rate is between 2% to 4%, not anything that’s extreme,” he said.

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Associated Press/Stan Choe and Alex Veiga
GameStop’s saga may be over; its effect on Wall Street isn’t

The frenzy around GameStop’s stock may have quieted down, but the outsized influence small investors had in the saga is likely to stick around.

No one expects another supernova like GameStop to happen again, where a band of smaller-pocketed investors helped boost a struggling company’s stock 1,000% in two weeks. But the tools they employed can be used again and again, if those smaller investors stay connected on social media forums and if regulators don’t change the rules to hinder them.

These smaller players, called “retail investors” in the industry to differentiate them from hedge funds and other big firms, are using many of the same tactics as the professionals, after all. And if retail investors continue to hold greater sway, the result will likely be sharper swings for some stocks than they would have had otherwise, if not to GameStop’s spectacular degree.

GameStop’s wild ride is causing some professional investors to gird for more volatility in the market and politicians in Washington to ask who is getting hurt. A House committee is calling several of the GameStop saga’s players to a hearing on Thursday, titled “Game Stopped? Who wins and losses when short sellers, social media and retail investors collide.”

“I don’t think we’re going to see major reforms that prevent it,” said Tony Casey, a professor of law at the University of Chicago, of the rise of social-media-driven trading. “All the parts in this will still be here in a few years, and we will likely see versions of it.”

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CNBC/Kevin Stankiewicz
Bitcoin poses no threat to the dollar as the world’s currency leader, Fed’s Bullard says

St. Louis Federal Reserve President James Bullard told CNBC on Tuesday he believes increasing interest in bitcoin does not pose a serious threat to the U.S. dollar as the world’s reserve currency.

“I just think for Fed policy, it’s going to be a dollar economy as far as the eye can see — a dollar global economy really as far as the eye can see — and whether the gold price goes up or down, or the bitcoin price goes up or down, doesn’t really affect that,” Bullard said on “Squawk Box.”

Bitcoin, in particular, has been championed by crypto bulls as a store of value that can be used to hedge against inflation or the debasement of fiat currencies like the dollar. Some have touted it as “digital gold.” In addition, bitcoin and other cryptocurrencies also present themselves as a way to buy goods and services like actual money.

Bullard, who has led the St. Louis Fed since 2008, expressed concerns about widespread transactions using a range of cryptocurrencies that are not issued by governments. “Dollars can be traded electronically already, so I’m not sure that’s really the issue here. The issue is privately issued currency,” he said.

Before the Civil War, it was common for banks to issue their own notes, Bullard said. He likened it to Bank of America, JPMorgan and Wells Fargo all having distinct brands of dollars. “They were all trading around and they traded at different discounts to each other, and people did not like it at all,” he said.

“I think the same thing would occur with bitcoin here,” Bullard said. “You don’t want to go to a nonuniform currency where you’re walking into Starbucks and maybe you’ll pay with ethereum, maybe you’ll pay with ripple, maybe you’ll pay with bitcoin, maybe you’ll pay with a dollar. That isn’t how we do this. We have a uniform currency that came in at the Civil War time.”

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