Precious metals news

Gold is viewed as the safest asset due to its limited supply and historical stability. Although cash is often deemed king during a liquidity crisis, gold stands out because of its finite nature and its role in backing currencies prior to 1971. In contrast, other assets like private businesses, real estate, and even U.S. government bonds present varying degrees of risk. The traditional reliance on paper money and the present-day fiat currency system only highlight gold's enduring value.

US Treasury Secretary Janet Yellen downplayed concerns about the surging borrowing costs and their potential impact on US financial markets. Despite a significant sell-off in the $25tn US government bond market, Yellen asserted that she hasn’t witnessed any signs of dysfunction linked to the rising interest rates. However, the labor market's overheating and the Federal Reserve's decision on future interest rate hikes remain points of contention.

Skyrocketing Treasury yields are stoking anxieties about potential defaults across emerging markets. Currently, 21 of these nations have their sovereign dollar debt approaching distressed thresholds, with their bonds trading at a significant premium to Treasuries. The recent tensions in Israel exacerbate these concerns, as the potential for broader regional conflicts might further dampen investor confidence and elevate debt-related risks in affected countries.

October's spooky historical track record shows it's wise for investors to be prepared.

Following the Golden Week holiday, gold prices in China soared, reaching a premium of over $112 an ounce compared to London's prices. This is the second-highest premium on record, with the gap exacerbated by global bond sell-offs impacting the international benchmark. However, gold's appeal remains strong in China due to economic uncertainties and a weakening currency.

In just three weeks, the US government's debt surged by over half a trillion dollars, raising concerns among leaders and financial experts. Senator Cynthia Lummis warns of the severe implications for future generations if current spending continues. Additionally, billionaire Ray Dalio predicts an impending US fiscal crisis. The Federal Reserve Bank of St. Louis states the government is now paying $909.5 billion in quarterly interest on its debt.

US credit card spending has decreased, sparking worries about the financial stability of consumers and the potential impact on holiday sales. This decline is attributed to consumers grappling with unprecedented interest charges on their credit cards. Additionally, increased interest rates and mounting debt, especially from credit card borrowing, are putting further strain on consumers' finances. Notably, credit card debt in the US has surged recently, surpassing $1 trillion for all citizens.

October 9th might seem like just another day, but 21 years ago, the NASDAQ-100 dropped a staggering 78% from its peak during the Dot-Com mania...

Rising business bankruptcies are sounding alarm bells, especially as they increasingly involve large companies such as SVB Financial, Bed Bath & Beyond, and Yellow. Factors like inflation, supply-chain issues, diminishing government aid, and rising interest rates are cited as key challenges. The trend of big corporations filing for bankruptcy is concerning because it can destabilize financial markets, lead to massive layoffs, and potentially signify an impending economic downturn, as witnessed with Lehman Brothers in 2008.

The 10Y yield spike might lead US banks to incur approximately $140 billion in unrealized debt losses, given their duration exposure of $5.4 trillion at the end of Q2. This would push total cumulative losses to an alarming $700 billion, possibly prompting the Fed to extend its bailout facility. Additionally, the broader fixed income investor community faces significant risk from the rising yields. With these assets often serving as "ultra-safe" collateral in the global repo market, the situation could ignite massive margin calls, threatening financial stability.

The global economy faces a significant threat: the potential onset of a third wave of inflation. As tensions rise in the Middle East, there's a growing concern that energy prices could spike, which would hinder central banks' current efforts to manage inflation. The geopolitical environment has grown notably unstable over recent years, and this makes the outcomes of the current crisis harder to predict. Markets might not be fully prepared for the broad implications of such developments.

American consumers continued to pile up debt on credit cards while borrowing for big-ticket items fell into the basement in August.
This is the behavior of extremely financially stressed people.

The Bureau of Labor Statistics (BLS) released the non-farm payroll report for September on Friday. Once again, the headline numbers didn't reflect reality.
Peter Schiff talked about it in his podcast. He said all of the people like President Biden probably shouldn't be bragging about creating jobs people wish they didn't have to have.

Is the gold and silver price sell-off over?  In this update, I share the charts and fundamentals taking place in the precious metals as well as the oil and natgas market.  While many believe the oil price is heading much lower, I think the opposite is the case...

Coin Price Forecast Center: Forecasting accuracy is a key metric for our customers. We are constantly improving it with the continual introduction of newer data science and machine learning techniques. According to the latest long-term forecast, Silver price will hit $25 by the end of 2023 and then $30 by the end of 2024. Silver will rise to $40 within the year of 2025, $50 in 2026, $60 in 2027, $70 in 2029, $75 in 2030, $80 in 2032, $90 in 2033 and $100 in 2034. Thats without a Financial Crises.

Nikko Asset Management finds gold more appealing after its recent price drop, especially amidst the rising interest rates that increase market unpredictability. Robert Samson, with $1.5 billion under management, has allocated 6%-8% of a Japanese portfolio to gold, benefiting from yen's decline. Despite gold's lowered allure due to the US Federal Reserve's interest rate hikes and the strengthening US dollar, Samson believes gold is now at fair value and offers protection in the current economic environment. He sees gold as a safe asset, especially when interest rates peak and subsequently adjust to potential risks.

Stefan Huth of Junge Welt claims a new global order is emerging, driven by shifts in international politics and economics. The Global South, especially Africa, is reshaping its international role after centuries of colonization. African nations are seeking new partners and trade terms, with Russia and China at the forefront of this change. Huth believes the EU is caught between benefiting from this shift while still clinging to the traditional Western-centric order, resulting in a contradictory stance.

Global economic growth is stalling due to various short-term and long-term challenges, including geopolitical conflicts, high public debt, and aging populations. The Brookings-Financial Times TIGER index reveals a broad weakening in economic activity. Despite earlier positive financial market indicators, global confidence is declining. Developed economies face stagnation or potential recession. Conversely, emerging markets like China and India exhibit more resilience and growth.

Census Bureau data shows median household income has plummeted to $74,580, marking the third consecutive year of decline. Despite this, economist Paul Krugman touts a thriving economy, contradicting the 71% who perceive economic hardships. Rising costs consistently outpace nominal wage growth, with real wages falling 4% since Biden's inauguration. Krugman's inconsistent views on inflation highlight his detachment from the struggles of average Americans. This economic downturn isn't mere chance but a consequence of deliberate policy decisions.

One-third of individuals earning over $150,000 annually report they can't clear their credit card debt this year. The surge in debt among high-income households is attributed to central banking policies and proponents of monetary expansion.