Today, investors flush with cash are even putting their paper money in base metals because in paper money’s end game, something is better than nothing, So much paper money has been printed, its reversion to the mean, i.e. zero, may be closer than believed, perhaps just another printing press run away. Full Story
To the extent that some analysts reject the Fed/Wall St/Perma-Bull narrative that the Fed’s repo operation is needed to address “temporary” liquidity issues or was caused by the newer regulatory constraints, the only explanation offered up is that the financial system’s “plumbing” is malfunctioning. But there has to be an underlying cause… Full Story
A new thought occurred to me about the extraordinary circumstance of the explosion of Federal Reserve accommodation in the repurchase (repo) market that erupted in mid-September. I’d be lying if I claimed to understand exactly what’s going on, except to know that truly astounding amounts of money (many hundreds of billions of dollars) are involved and that certain facts seem clear. Most reports point to JPMorgan as being at the heart of the expanding repo drama. Up until now, there has been no suggestion that the repo drama burst onto the scene by other than financial preconditions being ripe for the crisis to have erupted. What follows is unadorned speculation about a possible connection or motive between JPM’s role in gold and silver and the developing repo saga. Full Story
Total deficit spending, the extent to which monies spent by the federal government exceeded taxes collected, was a staggering $422 billion in just the last 12 weeks. In total, $367 billion of the funding for this increase in the national debt was provided at very low interest rates, via the mechanism of the Federal Reserve simply creating the money needed to fund the government spending.
Neither the Treasury Department nor the Federal Reserve will admit to what is happening. The Fed is using two separate programs to accomplish this, with a sufficient degree of complexity that it becomes difficult for average citizen to follow where the money is coming in from and what it is being used for. Full Story
By: Stefan Gleason, Money Metals - 11 December, 2019
In October, according to the World Gold Council, gold ETFs attracted $1.9 billion in net inflows to reach a new record high total gold holding of 2,900 tonnes – at least on paper.
There is good reason to be skeptical of whether all these “gold” vehicles actually hold physical metal sufficient to back their market capitalizations on a 1:1 basis. Some of them very well might; others almost certainly don’t.
In fact, many of these gold instruments hold futures contracts and other financial derivative products that merely “track” the gold price. Full Story
Though we're still three weeks away from flipping the calendar, let's begin to look forward to 2020 and attempt to decipher whether or not the precious metals can build upon their 2019 gains.
For precious metals enthusiasts, this time of year is always difficult. Often, holdings in mining shares get beaten backward due to tax loss selling. Mainstream "analysts" and investment houses begin to publish forecasts that invariably predict lower prices for gold but higher prices for just about everything else. And then, of course, there's this guy...who seems to consistently predict a drop to $700 every year! Full Story
There was a withdrawal from GLD yesterday, as an authorized participant took out 75,348 troy ounces. And there was a fairly decent withdrawal from SLV, as an authorized participant removed 1,868,540 troy ounces. Ted would suspect that regardless of whether this was a "plain vanilla" withdrawal, or a conversion of shares for physical metal, JPMorgan owns this silver now.
In other gold and silver ETFs...minus COMEX and SLV & GLD movements...there was a net 36,030 troy ounces of gold withdrawn, but in silver there was a net 389,011 troy ounces added.
There was no sales report from the U.S. Mint.
Month-to-date the mint has sold 500 troy ounces of gold eagles -- and 25,000 of those 'America the Beautiful' 5-ounce silver coins. Pretty pathetic. Full Story
The 28-day repo QE for $25 billion that was added to the program Nov 14th was nearly 2x oversubscribed this morning, which means the original $25 billion deemed adequate 3 weeks ago was not nearly enough – a clear indicator the problems in the banking system are escalating at a rate faster than the Fed’s money printing operation. Just wait until huge jump in subprime quality credit card debt that will be used to fund holiday shopping begins to default in the first half of 2020… Full Story
By: Michael J. Kosares, USA Gold - 9 December, 2019
Though we would not characterize 2019 as a breakout year, gold has certainly thrown off the restraints. As a result, it has been a very good year thus far. Per Friday’s close (12/6/2019), gold is up almost 13.8% on the year even after accounting for last week’s selloff. Silver is up 13.7% on the year. If the current gains hold through the end of December 2019, it will be gold’s best year since 2010! Full Story
By: Keith Weiner, Monetary Metals - 9 December, 2019
The Left focuses on wealth inequality, because they see one of the signs. The falling interest rate seemingly benefits those who own assets (it does not actually benefit anyone), particularly those who finance assets with dirt-cheap credit. And it harms wage-earners, by incentivizing businesses to borrow cheap to buy capital goods to replace labor.
The Right typically denies this plain fact, because they want to head the Left off at the pass. They want to foreclose on the Left’s policy: which is to impose a wealth tax. Newsflash for the Left: if you think wage earners get a bad deal now, wait ‘til you see what it’s like as you strip-mine the capital from the investors and corporations! It takes capital to pay a wage.
Anyways, the Right do not want a wealth tax, so they deny the observation. We are all for the right to keep wealth that one earns by producing and selling something valued by the market. However, increasingly today the rich are profiteering on the Fed’s destructive interest rate trend. Full Story
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.