Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Precious metals news
Nov 23, 2021 - 07:38:51 PST
By next June when the Fed is finally done tapering and allegedly ready to hike rates, the yield curve may be hugely inverted and signaling recession.
There is an alternative. Avoid financial assets. Think about real assets… Gold, Property, etc… Buy assets linked to the real world.
Like gold, silver functions as a safe haven in times of economic uncertainty. And its lower price, currently 1/75th the cost of gold, makes it the “poor man’s alternative” flight to safety. This explains silver’s excellent performance last year, as investors piled into precious metals due to the panic in the financial markets caused by the coronavirus.
The much anticipated - and much poo-poo'd - release from global reserves (of 50 million barrels) was announced this morning as the Biden administration desperately tries to stop the freefall in its approval ratings.
(Price surges are busting through policy makers’ targets in all the region’s major economies, with annual inflation prints this month of 6% in Chile, 6.2% in Mexico, 10.7% in Brazil and a whopping 52% in Argentina. Major Wall Street banks are forecasting average cost-of-living increases across Latin America will end the year above 10%, the highest globally, and predict pressure on consumer prices will extend well into 2022.
Absent vociferous support from elected officialdom, how could the Fed be expected to “whip inflation now?” Alas, the path of least resistance is for monetary policy to stay behind the curve until inflation becomes Public Enemy No. 1.
BofA Securities took a look at two mining companies' stock, noting it will be difficult to sustain 10-Year Treasuries above 2.5% and with gold markets “refocusing from tighter monetary policy on limits to interest rate increases, the yellow metal should rally."
Every key area of silver demand is forecast to rise in 2021, according to the Silver Institute's Interim Silver Market Review.The institute projects silver demand will come in at 1.029 billion ounces this year. That would mark the first year demand has exceeded 1 billion ounces since 2015.
Gold’s fall was a ‘knee-jerk’ reaction to the dollar, said Stephen Innes, managing partner at SPI Asset Management. Strength in the U.S. currency dims the metal’s appeal for overseas buyers.
The dollar surged past a key level against the yen for the first time since 2017, as the renomination of Jerome Powell as Federal Reserve chair fueled bets that the U.S. might tighten policy more quickly.
U.S. to Release Oil from Reserves in Coordination with Other Countries to Lower Gas PricesNov 23, 2021 - 05:36:29 PST
The U.S. will release 50 millions barrels of oil from the Strategic Petroleum Reserve in an effort to combat climbing gas prices.
So what would the U.S. do if it were losing a major war with Russia or China? U.S. nuclear weapons policy has always kept a "first strike" option open in case of precisely this scenario.
The U.S. was also looking into providing more weapons to Ukraine’s armed forces, including anti-aircraft stinger missiles. CNN added that some of the equipment, including helicopters, was originally intended to be deployed in Afghanistan.
Nov 23, 2021 - 05:12:22 PST
The currency, which is down almost 40 per cent against the dollar this year, plunged as much as 8.8 per cent and broke through the symbolic threshold of 12 to the dollar after Erdogan used a combative speech to expound his vision for the country’s economy.
President Joe Biden has tapped Jerome Powell to serve a second term as chairman of the Federal Reserve.Biden said Powell's "steady leadership" helped calm markets as governments shut down the economy due to coronavirus, and he expressed confidence in Powell's future leadership. "I believe Jay is the right person to see us through," Biden said.
U.S. President Joe Biden's decision to reappoint Federal Reserve Chair Jerome Powell arrives at a critical juncture for the central bank.
This looming deflationary threat is also why anyone who really thinks the Fed will hike rates not once but twice in 2022 - an election year - may want to consider taking it easy on the booze and/or hard drugs.
Fed Picks Leave Open Questions on How Central Bank Will Regulate Wall Street: WSJNov 23, 2021 - 04:58:16 PST
President Biden’s decision to reappoint Jerome Powell and elevate governor Lael Brainard signals continuity on monetary policy but leaves open questions on the direction the central bank will take in regulating Wall Street.
Powell & Brained Suddenly Make Inflation #1 Priority in their Thank-You Statements: WolfstreetNov 23, 2021 - 04:55:36 PST
Looks like the start of a U-Turn on inflation. 2-year & 10-year yields jump.
Fed Atlanta President Bostic Says Faster Taper Would Give Option for Earlier HikesNov 23, 2021 - 04:50:20 PST
Federal Reserve Bank of Atlanta President Raphael Bostic said the central bank may need to speed up its removal of monetary stimulus in response to strong employment gains and surging inflation, allowing for an earlier-than-planned increase in interest rates.