Good morning. Cocoa prices are crashing, the Financial Times reports: “Analysts say the retreat reflects a drop-off in consumer demand as a result of the higher prices, as well as expectations of a better crop . . . speculators who had been riding the rally have more recently dumped their positions, with many now betting on falling prices.” Think that over (and read today’s letter) before you plunk another lump of cash into that gold ETF.

If the gold rally is about inflation and dollar debasement, why doesn’t the bond market or the dollar care?

The amazing rally in the gold price needs explaining, and one of the most popular explanations is that fiscal sanity will never return, inflation will rise and the dollar will be debased. The Wall Street Journal reports that investors are