Precious metals news

The Federal Reserve held interest rates steady at the September FOMC meeting, but the committee indicated that it plans to hold rates higher for longer than originally projected.
As you digest the Fed meeting, it's important to remember that there is a big difference between "saying" and "doing."

In a recent conference, renowned economist Jim Rickards shared a promising outlook on the future of the BRICS currency. He highlighted that the new currency might be "gold-linked", emphasizing the strength and stability it would bring to global markets. Rickards clarified that while the US possesses more gold, it wouldn't be advantageous for BRICS to be merely backed by gold. Instead, being "linked to gold" offers an edge, drawing upon gold's consistent value and minimal volatility.

High inflation, escalating credit costs, and a massive debt burden are dampening the economy. The US's inverted yield curve suggests a looming recession. Rising yields depress asset values, notably in real estate, leading to cautious bank lending. As refinance challenges grow, economic contraction looms. Stock valuations are uncertain, with gold and silver becoming attractive. A potential recession and high unemployment are imminent threats.

The Bank for International Settlements (BIS) warns of potential instability in the $25tn US Treasuries market due to leveraged bets by hedge funds. Short positions in Treasury futures are hitting alarming levels, around $600bn. Such high leverage, if unwound abruptly, could cause significant market disruptions. Recent historical events have shown the consequences, and multiple financial bodies are expressing similar concerns. The stability of the massive Treasury market is at risk.

Inflation and currency issues, exacerbated by currency printing during the pandemic and lockdown measures, are emerging as a global crisis. As a response, Central banks and investors are turning to gold as a safer asset. Central banks worldwide are attempting to stabilize economies that have relied heavily on artificial measures. The failure of these measures could precipitate substantial economic downturns.

Global debt skyrocketed to a staggering US$307 trillion in Q2, with a notable US$10 trillion increase in just the first half of 2023, the IIF reported. The global debt-to-GDP ratio hit 336%, reversing a seven-quarter decline. Predominantly, developed countries like the US and Japan contributed to this surge, with emerging markets like China and India also showing significant increases.

Gold prices reached a two-week high on Tuesday, benefiting from a softer U.S. dollar ahead of the Federal Reserve's policy meeting. Spot gold rose to its highest since Sept. 5 at $1,934.40 per ounce, while U.S. gold futures increased by 0.2% to $1,957. The market awaits the central bank's upcoming economic forecasts.

Do you hear that? It's a ticking time bomb.
Last Friday, the national debt quietly blew above $33 trillion.
As of September 15, the outstanding federal debt stood at a cool $33,044,858,730,468.04.

The NAHB sentiment survey hinted at a decline in housing starts, and they indeed dropped significantly by 11.3% MoM in August. In contrast, forward-looking permits unexpectedly rose by 6.9% MoM. This divergence saw the lowest starts since June 2020, while permits reached a peak not seen since October 2022. Notably, multi-family rental starts declined sharply, whereas single-family permits increased for the eighth consecutive month. Despite a drop in homebuilder sentiment, permits are rising, raising questions about the reasons behind this optimism and whether the Federal Reserve will intervene.

The Federal Reserve faces a challenge as it meets to assess economic projections, with inflation proving less predictable than anticipated and an unpredictably robust economy. Their previous forecasts, especially for core inflation, now appear overly optimistic. Despite these uncertainties, rate cuts seem increasingly unlikely, suggesting the Fed may have misjudged the economic landscape. While they are unlikely to increase rates in the upcoming meeting, the unexpected strength of the economy could further disrupt their previous plans for rate reductions next year.

The unending cycle of crisis and bailout has long tormented many poor and middle-income nations, worsened by the pandemic, Russia's Ukraine invasion, and soaring food and fuel costs. The upcoming United Nations General Assembly will address this dire situation. Developing countries are drowning in over $200 billion of debt, risking economic collapse and erasing progress in education and health. Yet, these struggling nations continue to be overlooked by the international community.

McCarthy's 8% spending cut and border wall proposal faced opposition from ultra-conservative GOP members. Lacking support, he dared hardliners to oust him. The added demand to defund the Trump probe and block Ukraine aid, along with the "motion to vacate" rule, complicates his position. A potential compromise with Democrats could be viewed as a GOP defeat, while external factors like energy issues and UAW strikes intensify the challenges.

The US national debt skyrocketed by $1.58 trillion since the debt ceiling was raised, reaching a concerning $33.04 trillion. The bulk of this, $26.2 trillion, is in marketable securities traded globally. Interest rates on these debts are at their highest since 2011, and the overall debt has ballooned 120% since September 2011. The recent $2.2 trillion surge in just a year points to reckless deficit spending, amplifying inflation fears. With interest payments eating up 36.2% of specific tax revenues, the US is on a precarious fiscal path.

After the August CPI data came out, Paul Krugman declared that the inflation war was over. The Biden administration and the Fed won the fight. In his podcast, Peter Schiff said he actually agrees with Krugman, at least in part. The inflation war is over. But who really won?

Are you feeling the pinch of skyrocketing home prices and soaring rents? You're not alone.

Gold prices rose on Monday due to a slight drop in the U.S. dollar, with investors anticipating central bank meetings this week. By 1:46 p.m. EDT, spot gold increased by 0.4% to $1,932.4025 per ounce. With the Federal Reserve expected to maintain interest rates, the U.S. dollar declined by 0.2%. Traders predict a 99% chance that the Fed will keep rates between 5.25% to 5.5%. Chinese gold prices reached record levels last week due to the yuan's depreciation.

China's gold and silver prices in Shanghai consistently surpass Western benchmarks, indicating a resistance to Western price suppression efforts. In September 2023, Shanghai's gold price was $100 per ounce higher than the West's. Similarly, Shanghai's silver prices are significantly higher. China's higher precious metal prices signal to BRICS and other gold/silver producers the benefits of breaking away from Western-imposed prices and challenging the USD's global dominance.

Gold prices have significantly risen, with a kilogram in Saudi Arabia now worth 233,604.13 riyals. This surge is attributed to geopolitical tensions, global economic shifts, and changing investor sentiments. Historically, gold has been a trusted asset during uncertain times, and its recent spike in Saudi Arabia may influence the broader global economic landscape.

The nonprofit watchdog, Better Markets, recently shed light on the alarming corruption in the U.S. financial sector. Professor Anat Admati starkly summarized it: "Corruption has become the system." JPMorgan Chase stands out as a prime example, notorious for its "London Whale" scandal and other malpractices. The bank's unchecked behavior underscores the systemic failures of regulation, allowing such entities to dangerously grow without consequences.

U.S. homebuilder confidence dipped to 45 in September amid a 152% rise in mortgage rates. The index's drop, which followed a 6-point decrease in August, indicates growing caution. Concurrently, the Federal Reserve's balance sheet surpasses $8 trillion due to Covid-related measures.