The resulting enormous SLV-holdings builds are unprecedented, forcing them vertical to smash through many new record highs. That is unleashing a powerful virtuous circle for silver, with investment buying driving silver higher attracting in even more investors. Silver still has a long runway higher to mean revert back up to historic norms relative to gold. And the Fed’s epic monetary inflation should keep demand high. Full Story
By: Gary Christenson, Deviant Investor - 17 July, 2020
The Fed is monetizing government debt, a sign of trouble to come. What other programs could government and the Fed initiate that accelerate the journey to national insolvency?
a) MMT creation - $ trillions more debt each year. b) Universal Basic Income—income for all, work not required. c) Reparations to your favorite groups. Where will it end? d) Stimulus programs, boondoggles, and payoffs. e) Expanded Medicare, Medicaid, Student loan forgiveness. f) Enlarged wars. A new war. g) Pension plan bailouts for cities and states. h) Bailouts for politically connected corporations, cities, and states. i) When will it end? Full Story
This is an interesting interview between Professor Brian Lucey and Dr. Fergal O'Connor, lecturer in finance and economics at University College Cork (UCC) on gold's performance as a safe haven asset in the last 200 hundred years and in recent history including the 2008-2012 global financial crisis.
The pandemic is one moment in history and Brian and Fergal discuss what gold has done in other periods of financial and social stress, and what its prospects might be. Full Story
Peter Schiff appeared on the Joe Rogan Experience this week. The wide-ranging, three-hour interview covered a number of topics, including a critique of socialism, the 2020 presidential election, the recent social unrest and how to fix troubled communities, how the minimum wage hurts workers, and the economic impacts of the coronavirus. Full Story
By: Stefan Gleason, Money Metals Exchange - 16 July, 2020
Summer doldrums? Not for precious metals markets!
In early July, gold and silver each broke out to fresh multi-year highs. The yellow metal is within striking distance of new all-time highs and the headline worthy figure of $2,000/oz.
The white metal, meanwhile, has a lot of catching up to do. And as it does, the gains in percentage terms could be explosive. Full Story
Research reveals that European central banks have prepared a new international gold standard. Since the 1970s, policies that paved the way for an equitable and durable monetary system have gradually been implemented.
In my view, the current fiat international monetary system is ending—unconventional monetary policy has entered a dead street and can’t reverse. I have written about this before, and will not repeat this message in today’s article. Instead, we will discuss a topic that deserves more attention, namely that European central banks saw this coming decades ago when the world shifted to a pure paper money standard. Accordingly, European central banks have carefully prepared a new monetary system based on gold. Full Story
The Continuum (monthly 30yr yield with the 100 month EMA ‘limiter’) simply states that the economy was weakening, as were inflation expectations, before 2020. In early 2020 we got a real deflationary jolt from which asset markets are still clawing back, with full frontal inflationary support from a Federal Reserve desperate to keep asset owners whole (and further enriched) and to further punish savers and those without the means to invest in the racket. Full Story
There has been a trend for several years, of bullion banks leaving the market. This is due to country-specific regulatory pressures in some cases, global regulatory pressures, and no doubt, the adverse treatment of gold on the balance sheet under Basel III. Either this trend has hit critical mass, or something else happened around the time of peak government response to COVID-19. But there was unprecedented impact to the gold market. For example, we wrote that for the first time ever (or at least 1996), the expiring gold and silver futures contracts had rising basis).
By impact, we mean the gold and silver markets have become less efficient. Full Story
Gold in a Secular Bull Market… Ready for $2,000 an Ounce?
Gold had a phenomenal week, notching its fifth straight week of gains as investors sought a safe haven from sinking government bond yields. Last Tuesday, the yellow metal broke through the $1,800 an ounce resistance level for the first time since 2011. It touched a nine-year high of $1,828 on Wednesday before declining on profit-taking, but it’s clear to most analysts that the precious metal is in a secular bull market.
Many are now predicting all-time record highs for gold in the next 12 months, with Goldman Sachs forecasting $2,000 on an “uneven recovery.” Full Story
By: Stefan Gleason, Money Metals Exchange - 14 July, 2020
Many retail businesses including grocery stores and fast food restaurants have been wrangling with a national coin shortage. Some are posting notices informing customers that they will need to pay in exact change or use alternative payment methods such as credit cards.
What’s driving this scarcity of quarters, dimes, nickels, and pennies?
The answer from the U.S. Mint: COVID-19. The virus caused some Mint branches to temporarily slow or suspend production this spring. By May, the total number of circulating coins minted this year came in at around 4 billion, a 1 billion-coin shortfall compared with the same period in 2019. Full Story
House Rep, Alexander Mooney, introduced a Bill that would the first true audit of gold owned by the United States in more than 65 years. The Bill, if passed, would require a full assay, inventory and audit of the U.S. gold every 5 years. Currently the gold is being “safe-kept” by the Fed. Full Story
A coming crisis will likely be triggered by a collapse in the dollar’s value and a rejection of the dollar’s world reserve currency status. The economic collapse will be worse than the Great Depression. This will result in widespread violence along with government crackdowns on liberties, accelerating the US slide into authoritarianism. The only way to avoid this is for Congress to make drastic cuts in spending — starting with defunding the military-industrial complex — and to audit then end the Fed. Full Story
Surreptitious intervention in the gold market by the U.S. government is the target of legislation introduced in the House of Representatives by Rep. Alex X. Mooney, R-West Virginia.
In a letter to House colleagues seeking support for his Gold Reserve Transparency Act, H.R. 2559, Mooney writes: "Because there are concerns the U.S. Treasury may have sold, swapped, leased, or otherwise placed encumbrances upon some of America's gold, H.R. 2559 also requires a full accounting of any and all sales, purchases, disbursements, or receipts; a full accounting of any and all encumbrances, including due to lease, swap, or similar transactions in existence or entered into in the past 15 years; and an analysis of the sufficiency of the measures taken to ensure the physical security of such reserves." Full Story
Doomsayers always sound smart. I know a few of them who have been wrong for 28 of the last 30 years. I have been positioned very cautiously myself but not outright bearish (thank god, since I would have lost a fortune). Right now I like utilities (defensive, cheap-ish, unloved). I like some healthcare stocks (but worry about the election impacts). I like gold. It's hard not to want to continue to own Amazon, too, and I do. I'm short regional banks because if there are economic issues it will be in loan markets and in real estate and small-to-medium size businesses. That will hurt the regional banks. I do not own puts on any major equity indices. Volatility is elevated and it's just not a cheap hedge. I am short some credit but the Fed backstop makes it a bad hedge, too. But I honestly don't think we have a big market selloff ahead for a few reasons. We should be bullish now, and here are some reasons: 1) the Fed has your back with easy monetary policy; 2) Big Government has your back with more fiscal stimulus; and 3) investors are not long. Positioning isn't a substantial risk. Full Story
By: John Mauldin, Thoughts from the Frontline - 13 July, 2020
Data Problems Permanent Losses Job Openings Sticky Problems Wargaming with Uncle Doug You Need to Have a Plan B, C, D, and… A World I Don’t Recognize Full Story
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