On Thursday, gold rallied above a near-term consolidation pattern to close at $1,747 an ounce. That put the monetary metal about $30 away from making new highs for the year. As of this Friday recording, gold prices are marching higher again and come in at $1,761, up 2.5% for the week. Full Story
So here we are, with the sector leading the recovery out of the March crash during still-deflationary times. Inflation? It is not yet anywhere to be found, and that probably has a lot of inflation-centric would-be gold boosters on the sidelines. Someday, when these ladies are in full cheer with inflation signals rising, it will be time for caution. Full Story
The coronavirus pandemic has created enormous volatility in global financial markets but prices of safe-haven assets such as gold and bitcoin are not surging as one might expect, thanks to intense and large-scale manipulation, according to analysis by the University of Sussex Business School. Full Story
The major gold miners’ stocks have rallied dramatically out of mid-March’s stock-panic lows, soaring to new bull-market highs. Their just-reported Q1’20 operational and financial results reveal whether today’s higher gold-stock prices are fundamentally justified. They also illuminate whether this gold-stock upleg is likely to continue powering higher, despite the catastrophic economic damage from governments’ lockdowns. Full Story
President Trump recently tweeted, “As long as other countries are receiving the benefit of Negative Rates, the USA should also accept the ‘GIFT’. Big numbers!” Considering the President is a real estate marketing guru facing a ballooning national debt, it can’t come as a surprise he’d be in favor of Negative Interest Rate Policy (NIRP). Full Story
Foodflation is registering at the checkout lines of your local grocery store – and in a bigger way than has been seen in decades. On Tuesday, the U.S. Labor Department reported that grocery prices paid by consumers surged 2.6% in April. That’s the largest one-month price spike recorded in 46 years. Full Story
By: Peter Schiff, President and CEO Euro Pacific Capital - 14 May, 2020
The April federal budget deficit came in at a staggering $738 billion as government coronavirus stimulus began flowing through the pipelines and revenue dipped due to the government lockdowns.
Analysts expected a massive deficit in April, but it’s still a staggering number. To put it into perspective, the previous record for a single month was $235 billion and that was just in February of this year.
Including April’s shortfall, the budget deficit for fiscal 2020 stands just under $1.5 trillion with five months still left to go. Full Story
If we zoom out, we remain bear-biased going towards around 2650 per our 4-hour white/red line projections from earlier this week, but we are still waiting for more clues/confirmations. Bears need some sort of a day 2 setup to the downside eliminating the daily 20EMA trending support in a decisive manner in order to prove that the big, bad, real bears rotate back in town instead of gummy bears. Full Story
There’s been a concerted effort recently among the oligarchs I like to call The Davos Crowd to demonize cash. From hedge fund manager Ray Dalio pronouncing ‘Cash is trash’ earlier this year to the fear-mongering surrounding COVID-19 making people fearful of dealing in cash because it might be tainted the anti-cash rhetoric has been amped up to eleven.
And it’s been no secret that the elite of the world want us to stop transacting in cash because it is something they can’t track. Sweden has flirted with the cashless society while the European Union did away with large denomination bills the same way the U.S. has been phasing them out. Full Story
Over the past two months, much has been written about the current stresses in the Bullion Bank Fractional Reserve and Digital Derivative Pricing Scheme. Though the decision by Scotiabank to exit this business was made months ago, the timing of the announcement is certainly interesting. Why? Full Story
It’s the soft demand season for gold (April-Sept), and that means upside and downside breakouts can become “wet noodle” affairs. Bulls and bears who aren’t prepared for this type of sideways price action may get frustrated. Full Story
The Fed has re-inflated the biggest stock and asset bubble in history after the previously biggest stock bubble was punctured in March. Today the Fed will begin buying junk bond/leveraged loan ETFs using Blackrock as its front. There’s two obvious problems with this. First, how does this help the economy? The money printed and used to purchase the ETF securities will never flow to the companies issuing junk bonds. Full Story
First we were told we had to shut down the country to “flatten the curve” so that hospitals were not overwhelmed by coronavirus patients. When most hospitals were nowhere near overwhelmed, and in fact were laying off thousands of healthcare workers because there were no patients, they moved the goalposts and said we cannot have our freedom back until a vaccine was available to force on us or the virus completely disappeared – neither of which is likely to happen anytime soon. Full Story
I think there has been more hair torn out in frustration during this rally off the 2200SPX region lows than at almost any other time in market history. The frustration in trying to understand this market is ubiquitous. Full Story
We couldn’t help but notice the disconnect. We saw this screengrab at Agora Financial and found messaging so completely at odds with each other that we felt we had to show it. Reality bit with Friday’s release of the April employment numbers for both the U.S. and Canada. They weren’t pretty (featured in our Chart of the Week). As to the Dow Jones Industrials (DJI), well, it might be the old adage of throw gobs of money at it and thanks to QE, it might go up. Full Story
In recent interviews I have “borrowed” a descriptive I originally heard from Chris Martenson explaining the effect of compound interest and exponential growth. The descriptive involved picturing Yankee Stadium and beginning with a drop of water and doubling the amount of water until the stadium was full. Full Story
On the deflation side, jobs, industrial demand, and the small business lifeblood of communities are contracting at an unprecedented pace. Meanwhile, trillions in credit card, auto, student loan, and mortgage debt that props up consumer spending and home values is at risk of imploding – and bringing markets down with it. Full Story
The best performing metal this week was silver, up 3.34 percent. Gold rebounded on Thursday to steady around $1,700 an ounce as economic data worsened. Unemployment surged to nearly 15 percent in the U.S. Bloomberg notes that the number of Americans filing for unemployment was above 3 million for the seventh straight week, boosting demand for havens as the economic situation continues to deteriorate. According to Bloomberg data, holdings in gold-backed ETFs surged about 3,000 tons to an all-time high this week. Inflows in 2020 so far have already surpassed the volume added in all of 2019. Full Story
The deflation and depression is right here, right now, and if you don’t believe that, try asking some of the 30 million people who just lost their jobs in the US or those who (used to) work in the catering and tourism industries. Full Story
Tonight I would like to focus in on silver which remains one of the best bargains in the PM complex right now. When I first became acquainted with the PM complex back in early 2002 I learned quickly that just because gold may have had a good rally sometimes the PM stocks move very little which was confusing to me as I thought they should move in tandem. Then there were other times when the PM stocks would rally and gold didn’t move that much. It didn’t make a lot of sense at the time, but markets can be fickle like that. Full Story
As we noted in March while it was happening the sentiment environment became terror-stricken. Not fearful. Not over-bearish. Not even a contrarian extreme. Market sentiment was marked by full frontal terror as indicator after indicator (ref. Sentimentrader’s historic readings week after week) got slammed to epic over-bearish proportions. Full Story
According to the International Energy Association (IEA), fossil fuel usage in electricity generation dropped by 245 terawatt hours (Twh) last year, while renewables production rose by 119 Twh. (put in context, Scotland, with a population of just over 5 million, requires an annual 25 Twh of electrical energy; global energy demand per year is roughly 160,000 Twh) Full Story
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