Precious metals news

The world is seeing heightened geopolitical tensions. In Ukraine, escalations persist with U.S. involvement; Kosovo-Serbia confrontations risk becoming a proxy war between the U.S. and Russia; Israel has declared war against Hamas after a significant attack; Syria's situation remains complex with U.S., Turkey, and Russia involved; and China-Taiwan relations are cautiously watched. For investors, amidst these uncertainties, diversifying portfolios, particularly with inclusion of hard assets, is crucial.

Mike Maloney and Alan Hibbard prove beyond a shadow of a doubt who is the winner in the contest between physical gold and mining stocks.

Friday saw a significant drop in regional bank stocks, with unsettling declines in just one day. Earnings reports showed that the banks' challenges are far from over. Zions Bancorp and Regions Financial suffered massive share drops, and Comerica's Q3 earnings plunged by 29%. Fed Chairman Powell's remarks hinted at tightening policies, which could strain these banks even more. Early signs suggest the upcoming week might bring further challenges for the banking sector, as U.S. Treasury note yields rise ominously.

**No one predicted that creating trillions would lead to inflation.** In a recent speech, Fed Powell touched on the unpredictability of inflation, evoking memories of the 2008 crisis. The debate is whether the Fed acts on or shapes market expectations. Its presence inherently distorts the economy, as seen with the 2002-2004 housing bubble. The Fed's influence often results in market imbalances, and its history suggests it might repeat past mistakes, sometimes disregarding legalities.

Geopolitical tensions threaten the global economy, with the Federal Reserve warning of severe financial repercussions. The heightened risks of increased inflation, disruptions to supply chains, and declines in asset prices loom large. Amid the backdrop of Middle East conflicts and the war in Ukraine, the US faces its own internal challenges with surging borrowing costs and a rising federal deficit. Industry leaders predict dangerous times ahead, and the fallout from rising interest rates may soon hit businesses and households, potentially slowing economic activity.

In the wake of aggressive monetary tightening, the cost-of-living crisis has exploded, casting doubt on central bank strategies. With markets reeling from heightened interest rates and geopolitical instability, debates intensify over inflation goals, asset purchases, and policy coordination. Most economists predict a shift away from past tactics, but persistent challenges spotlight glaring flaws in global financial approaches.

The Federal Reserve's actions have put the U.S. economy at risk. After inflating the M2 money supply post-pandemic, they contracted it sharply in 2022, mirroring conditions before the 1987 market crash. Their focus on lagging indicators rather than monetary signs threatens a severe downturn. The economy is on the brink, and the Fed's oversight may push it over the edge.

Trust in American institutions is eroding. Over 50% have little to no confidence in Congress, with only 3% expressing strong trust. The executive branch, led by Democrat Joe Biden, sees 39% of adults expressing distrust, with 56% of Republicans being particularly skeptical. Meanwhile, the conservative-majority Supreme Court faces skepticism from 36% of the population. This decline in trust extends to other pillars like religion, policing, and banking.

The Biden administration ran a $1.695 trillion budget deficit in fiscal 2023. It was the third-largest deficit in US history. The only time the US government ran bigger deficits was during the COVID years of 2020 and 2021.
The government closed out the year with a $170.98 billion deficit in September, according to the final Monthly Treasury Statement of the fiscal year. That was more than double the projection.

Bidenomics favors the top 1%, leaving the 99% struggling with low-wage jobs. A severe auto loan crisis looms, with delinquencies at a decades-high. Consumers face crushing debt and economic pressures, and a potential 2024 recession could worsen things. The Fed's interventions are further destabilizing an already shaky economy.

Biden's excessive federal spending has resulted in severe inflation, causing The Fed to hastily increase rates. The 10-year Treasury yield exceeds 5%, and the 30-year mortgage rate hits its highest since 2000 at 7.63%. Despite the economic strain, Biden seeks an additional $100 billion for Ukraine and Israel. Continuous reckless spending by the administration may lead to a predicted recession in 2024.

The US housing market is declining. Federal Reserve's Jerome Powell indicates potential rate hikes, suggesting concerns over high inflation. National Association of Realtors reports a 2.7% drop in active inventory and a 4.4% decrease in new listings from last year. The Fed's balance sheet remains near $8 TRILLION, with Powell giving no indication of significant reductions.

The mainstream continues to insist that the economy is fine. Inflation is beat. A soft landing is in play. But in his podcast, Peter Schiff said we're in the early stages of a financial crisis. It should be obvious, but very few people see it coming.

While the world is counting on growing LNG supply from the United States in the years ahead, unfortunately, most of the U.S. shale gas fields are in decline.  It really comes down to just two shale gas fields that provided the growth in the past several years... but that won't...

James Puplava predicts gold surpassing $10,000 by the decade's end. Having previously forecasted gold's rise when below $300, Puplava now points to demographic shifts, especially the retirement of baby boomers, as a key driver for rising precious metal prices. With China's declining workforce and the anticipated global depression between 2030 and 2036 by ITR economics, economic challenges loom. The current environment of high inflation and geopolitical tension may lead governments to print more money, possibly devaluing the dollar.

James Puplava predicts gold surpassing $10,000 by the decade's end. Having previously forecasted gold's rise when below $300, Puplava now points to demographic shifts, especially the retirement of baby boomers, as a key driver for rising precious metal prices. With China's declining workforce and the anticipated global depression between 2030 and 2036 by ITR economics, economic challenges loom. The current environment of high inflation and geopolitical tension may lead governments to print more money, possibly devaluing the dollar.

The Federal Reserve's restrictive monetary policy, aimed at combating inflation, has raised interest rates significantly since March 2022, impacting gold prices. Market insiders are closely watching for signs of the end of this rate hike cycle, which would bolster gold's value. Meanwhile, escalating global tensions, especially Russia's invasion of Ukraine and conflicts in the Middle East, are further influencing gold's surge. As of October 9, following an Israeli invasion, gold nears $2,000 per ounce. These gold price increases are set against a backdrop of significant global unrest and tragedy.

Prime Minister Datuk Seri Anwar Ibrahim revealed plans to explore the gold dinar as a reserve currency. This move aims to strengthen trade and reduce US dollar dependence. With the halal industry surpassing USD1 trillion, the dinar's significance is growing. Anwar noted the positive response to using local currencies in trade with countries like China, Indonesia, and Thailand.

In the backdrop of potential U.S. sanctions, Chinese experts highlight the strategic importance of gold. Researchers suggest strengthening gold reserves and pushing for gold-denominated trade to bolster the yuan. Taking cues from Russia's post-sanctions approach, they recommend pivoting towards more gold-centric financial strategies. The country's central bank has consecutively increased its gold reserves for several months, underscoring the metal's significance in China's financial resilience plan.

The US banking industry is facing a severe crisis with rising interest rates and turmoil in real estate, leading to bank branch closures and significant layoffs. Just in the first week of October, 54 bank branches were shut down. Moreover, the number of commercial Chapter 11 bankruptcies increased by 61% this year. Sales of previously owned homes have plunged to 2010 levels, and home foreclosures are up 34% from last year. The worsening economic conditions suggest a deepening recession is on the horizon, exacerbated by potential global conflicts. The situation is dire and expected to escalate.