By: Steve St. Angelo, SRSrocco Report - 20 March, 2020
I was finally able to spend some time today talking with precious metals dealer, Tom Cloud this morning. Tom Cloud, like all precious metals dealers, has been busier this past week than in the last 30-40 years. The response I’ve seen by many of these dealers, they haven’t seen anything like this in the past.
Tom told me that business has been so busy, the office was still returning calls and processing orders until late in the evening. He says, there is now a long line of people, in the queue, waiting to purchase precious metals when they become available…. especially silver bullion. According to Tom, 75% of the volume buying is in silver bullion while 25% is for gold Full Story
By: Dave Kranzler, Investement Research Dynamic's Mining Stock Journal - 20 March, 2020
Just like Fisher Black’s “portfolio insurance” and LTCM’s Nobel Prize backed downside-risk removal models, the risk parity strategy turned out to provide all risk and no parity when the market had the rug pulled out from under it. And when this happens the biggest charlatans of modern money management start crying for the Fed and the Government to bail them out. Full Story
By: Steve St. Angelo, SRSrocco Report - 19 March, 2020
What happens when the oil price reaches the low $10s?? Gasoline will be selling for 99 cents a gallon or less. Can you imagine? This is partly the reason we are seeing a low PAPER SILVER price. I will get into the details of why this is the case in a video shortly. However, physical silver prices for bullion are $4-$8 higher than the spot price, and the spread may continue to increase going forward. Full Story
The U.S. dollar has been one of the few big winners lately, but this is hardly a good thing. If the greenback continues to strengthen, it will hurt U.S. multinationals whose overseas revenues are reckoned in currencies that would be falling. In addition, all who owe will need to repay their loans in dollars more dear than at the time they were borrowed. And it will sink prices for a broad variety of commodities, particular crude oil, that have been used to collateralize a super-leveraged derivatives market worth perhaps $1.5 quadrillion notional. Do you see the problem? Full Story
Late last week, after weeks of holding its own and providing some stability through the worsening coronavirus crisis, the price of COMEX Digital Gold was smashed in a manner not seen since April of 2013. Was this just a natural market reaction? Hardly.
The past month has seen truly historic moves in the global equity and fixed income markets. The U.S. stock market has fallen sharply, but perhaps more dramatically, the U.S. treasury market has soared, with interest rates falling in unprecedented fashion. Through it all, trading in COMEX Digital Gold remained solid and price was primarily in a trading range. Full Story
By: Richard (Rick) Mills, Ahead of the herd - 18 March, 2020
Will all this stimulus be enough to head off financial catastrophe?
Notice all of these measures are aimed at encouraging spending by lowering interest rates, and getting banks to make more loans. The International Monetary Fund is all-in, too, on Monday publishing a set of policy recommendations to stressed countries, involving, “fiscal and monetary policy” - code for borrow more, spend more. The IMF is generously offering its $1 trillion lending capacity to put member nations even further into debt: As a first line of defense, the Fund can deploy its flexible and rapid-disbursing emergency response toolkit to help countries with urgent balance-of-payment needs.
Lower interest rates and massive asset purchases by central banks are the monetary tools of choice when it comes to restoring shocked financial systems. The idea being that making the cost of borrowing cheap for individuals and businesses will entice them to spend, spend, spend. It’s no wonder this is the panacea for floundering markets. In the US, consumer spending makes up 70% of Gross Domestic Product; in Canada it’s 65%. Full Story
But governments will pay a big cost for obtaining help from the monetary metals -- the cost of long-term competition for their currencies and maybe even the cost of the return of market economies and limited government.
Whatever happens, may it be done in the open, for all to see and understand, and after decades of official lies, rigging, and corruption, fiat justitia ruat caelum. Full Story
By: Keith Weiner, Monetary Metals - 17 March, 2020
Forget quantity theory of money, inflation, etc. That is not what drives consumer prices or the price of gold.
Think as an arbitrageur. What would you do, if Treasury bonds pay too little? Would you unload your life savings, your family estate, to binge on bourbon, to buy a Bentley? Now suppose that a major bank has a trillion in assets (mostly bonds) financed by a trillion in liabilities (deposits plus its own bonds) at an average cost of 2%. And the Treasury bond yield falls below 1%. What will the bank do? Will they sell Treasury bonds to send their employees on a big bender at Bellagio casino?
That’s not how the world works. Investors who are displaced out of Treasurys when the yield goes too low, will just move to the next investment down the line. It could be one that pays a higher yield for a higher risk.
Governments love crises because when the people are fearful they are more willing to give up freedoms for promises that the government will take care of them. After 9/11, for example, Americans accepted the near-total destruction of their civil liberties in the PATRIOT Act’s hollow promises of security. Full Story
Today’s crash wiped out almost the entire Trump Rally, going back to the day “The Donald” was elected President of the United States. The stock crash, rolling through our days like late-summer thunder, is a daily headline now, each day unimaginably worse than the record day before! Full Story
By: Dave Kranzler, Investement Research Dynamic's Mining Stock Journal - 17 March, 2020
The western Central Banks, led by the BIS, are operating to push the price of gold and silver as low as possible. It’s a highly motivated effort to remove the proverbial canary from the coal mine before it dies. A soaring price of gold signals to the world that the Central Banks have lost control of their fiat currency, debt-induced profligacy. Full Story
By: Richard (Rick) Mills, Ahead of the herd - 16 March, 2020
Beyond public health measures aimed at containing the virus, finance officials and central bankers around the world have been taking extraordinary steps to contain the economic fallout from covid-19.
On Friday, the New York Federal Reserve announced it would ramp up Treasury bond purchases, adding to the Fed’s stated intention on Thursday to intervene in short-term funding markets to the tune of $1.5 trillion, and purchase US Treasury securities, opening the door to another round of quantitative easing. Also on Friday, the Bank of Canada said it will make an emergency 50-basis-point cut to its overnight interest rate, bringing it down to 0.75%. Full Story
By: Steve St. Angelo, SRSrocco Report - 16 March, 2020
The world is heading towards a global depression, but the market hasn’t quite figured it out yet. Unfortunately, many analysts and economists continue to believe that the worldwide contagion will be generally short-lived, suggesting growth will return in the second half of the year.
A perfect example is the overly optimistic forecasts of global oil demand by the International Energy Agency (IEA). Each month, the IEA puts out their OMR, Oil Market Report on global oil supply and demand statistics. According to the IEA’s January report, it forecasted global oil demand to be 100.1 million barrels per day in the first quarter of 2020. Full Story
How much of last week's smash in monetary metals prices was caused by what seems to be the primary explanation for it -- selling required to meet margin requirements for positions in other markets that were falling amid the worldwide virus panic?
Surely there was some of that, but suspicion also must fall on governments and central banks seeking, as they long have done in times of crisis, to bolt the exits from the financial system, which they control. This suspicion must be especially strong because of what GATA disclosed last week -- the refusal of the U.S. Commodity Futures Trading Commission to answer a member of Congress as to whether the commission has jurisdiction over manipulative futures trading conducted by or for the U.S. government and whether the commission is aware of such trading... Full Story
Let this be another one of our finest hours. Now is not the time for war. It is the time for a trade truce. It doesn’t mean we never return to the battle for a fair playing field in the world of commerce, but some things trump even the war cries of presidents. America is better than that. That is what makes America great, and will make it great again. Full Story
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