Precious metals news

Gold market steady around $1,950/ounce, poised to reignite bullish trend. George Milling-Stanley of State Street Global Advisors anticipates increased activity as India's festivals and weddings boost consumer demand. Chinese stimulus could further boost Asian demand. Milling-Stanley sees potential for gold to reach $2,000/ounce by year-end, fueled by rebounding jewelry and consumer demand. Not concerned about 10-year bond yields or Fed rate hikes, he suggests rates could work against the dollar and move the economy closer to recession. Ongoing market risks and anxiety favor gold's strength, and Milling-Stanley believes the market is well positioned for a rally in the coming months.

The global currency plot aims to create a single world fiat currency controlled by a world central bank and privileged elites. Central banks like the Federal Reserve play a key role in this agenda. The US dollar's dominance propels the push for a single global currency, possibly led by a basket of national fiat currencies or a gold-backed unit. However, market-based money, including gold and cryptocurrencies, is advocated as a better alternative for sound money, offering voluntary cooperation and economic freedom. The alternative, if not pursued, is to face the prospects of tyrannical government money and the unsettling possibility of a tyrannical fiat world currency.

Community banks are grappling with a deposit crisis driven by technology and changing demographics. Customer loyalty has eroded, and money now moves swiftly due to lack of trust and the pursuit of higher interest rates. Over half of US banks are trading below book value, signifying widespread distrust in their financial stability. This unsettling trend may lead to further bank failures and consolidations, painting a bleak picture for the banking system's future.

The US is facing a grave debt problem with its gross national debt nearing $33 trillion, equivalent to 122% of its GDP. The speed at which the debt is accumulating is alarming, resulting in soaring interest payments. The Congressional Budget Office (CBO) warns that interest costs could reach around $71 trillion over the next 30 years, consuming 35% of federal revenues by 2053. The CBO projects interest costs to become the largest "program" in the coming decades, a bleak scenario exacerbated by potential higher inflation and interest rate hikes.

Tucker Carlson predicts that the US proxy war against Russia could escalate to an open conflict within a year due to political motivations. He suggests that Democrats seek the war to retain power, and some Republicans support this trajectory. Carlson believes a hot war with Russia is likely, with potential triggers like fabricated incidents. He asserts that the US could prevent conflict by cutting funding to Ukraine, but warns that a war with Russia could have catastrophic consequences, affecting global stability and the US economy. He emphasizes the impact on the American empire and the potential loss of the US dollar's value.

The world may be on the brink of World War III, with escalating conflicts involving major powers such as the U.S., China, and Russia. Ukraine's war against Russia is intensifying, while economic sanctions are damaging the West. France's need for uranium from Niger could lead to military intervention, possibly involving Russia. Other hot zones like Taiwan, the South China Sea, Syria, and Pakistan are also concerning. The current state of global conflicts, combined with the potential for escalation, bears resemblance to the lead-up to World Wars I and II, raising fears of a potential global conflagration with nuclear war looming. The genii may already be out of the bottle.

Argentina battles triple-digit inflation, possibly reaching 200% by year-end, evoking memories of past economic crises. Rising prices, exacerbated by a 20% peso devaluation, harm consumers, increase poverty, and fuel voter anger before October elections. Efforts like interest rate hikes and price freezes struggle to contain inflation. High inflation, predicted by J.P. Morgan to hit 190%, propels outsider candidate Javier Milei, who leads August's primary. He vows to dollarize the economy and blames the political elite for the crisis.

Despite slight relief in inflation, 61% of adults are still living paycheck to paycheck as of July, an increase from last year. Federal Reserve Chair Jerome Powell expressed concern over persistent high inflation and hinted at more interest rate hikes. Central bank officials have already raised rates 11 times, impacting consumers' spending habits. Lower-income workers, hit hardest by rising prices, are struggling to make ends meet. Around 70% of Americans are stressed about finances due to inflation, rising interest rates, and lack of savings. Only 45% have an emergency fund, with 26% having less than $5,000 saved.

US jobless claims fell to 228k, near 6-month lows (from 232k). New York had the largest rise, Ohio remained low due to fraud removal. Continuing claims rose to 1.725mm. Challenger, Gray reported a 217% MoM increase in job cuts in August, with warehousing hit hardest. Job openings are falling, workers reluctant to change jobs post-pandemic. ADP, JOLTS, and Challenger-Gray indicators are weak, but initial claims are strong.

As evidence mounts that the major western economies are heading into a banking and monetary crisis due to contracting credit, we face the consequences of unsound money. The era of fiat is drawing to a close and its death will be painful for the highly indebted advanced economies in North America, Europe, and Japan. History and legal precedent tell us that fiat will die and gold will return to provide an anchor to credit system values.
As always, there are lessons to be learned from monetary history, particularly in the context of credit-dependent post-feudal economies, when a gold standard was expected to support mountains of credit in the forms of bank notes and commercial bank deposits.
In this article, I look at lessons from nineteenth century gold standards and the mistakes made. Mostly, they could have been easily avoided.
The debate over the return of gold backing for credit is becoming urgent, not just because the fiat currency system has run its course, but becau...

Gold is nature’s money.
Aristotle listed four characteristics of sound money: it must be durable, portable, divisible, and have intrinsic value. Gold possesses all of these characteristics, which is why gold has served as money for thousands of years.

In July, US inflation measured by Core PCE Deflator rose to 4.2% YoY, and headline PCE reached 3.3% YoY, the highest since June 2022. Services inflation remained elevated, while Goods saw substantial deflation. Spending rose for the second month, but Personal Income growth slowed. Wage growth declined for both private and government workers. Adjusted for inflation, 'real' personal spending increased by 3.0% YoY. Real disposable income dropped by 0.2% MoM, the largest decline since June 2022. It appears the American consumer is completely tapped out – consumer credit has flatlined (maxx’d out) and now savings are plunging again.

The Biden administration proposes overtime pay for salaried workers earning around $55,000 or less annually, exceeding the current $35,568 threshold. The plan aims to add 3.6 million more workers to eligibility. The rule suggests automatic adjustments every three years based on earnings data, with an initial implementation cost of $1.2 billion for employers. While supporters highlight improved workers' rights, critics argue it will raise the cost of doing business. The proposal faces a regulatory process, potential legal challenges, and varying opinions on its impact on businesses and the modern work landscape.

Will we see a true challenger to the US dollar's dominance with a new BRICS currency?

Mr. Gumede emphasized, "BRICS is poised to exert significant influence over global energy supply. The robustness of the U.S. dollar is intrinsically tied to its role in oil trade, known as the petrodollar, and OPEC members settle transactions in dollars. Expanding BRICS to incorporate oil-producing nations and encouraging them to adopt a new BRICS currency for settlements could be transformative. This move has the potential to expedite the process of de-dollarization worldwide."

A coalition of 1,609 international scientists, including 321 from the US, known as the Global Climate Intelligence Group (CLINTEL), has challenged the climate crisis narrative. They emphasize that there is no climate emergency and stress the beneficial role of carbon dioxide for Earth. CLINTEL dismisses claims of a link between global warming and natural disasters, advocating for adaptation rather than mitigation policies. The scientists critique climate models and call for a more scientific approach to climate science and policies. Meanwhile, the Biden administration's energy efficiency rules, including appliance restrictions and bans, have faced criticism for their impact on consumers.

Labor Day is coming up. That means we will hear a lot about the plight of American workers. And we will undoubtedly hear calls for new policies to help make their lives better. But we don't really need more government policies to help workers.
We need better money.

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Silver, historically undervalued and trading cheap compared to gold, presents an opportunity for a catch-up rally and potential overshooting. Despite its higher volatility, periods of undervaluation can lead to significant gains. The Gold to Silver Ratio (GSR) indicates silver's potential to outperform gold, supported by its deficit and strong demand in sectors like electronics and photovoltaics. With current market conditions pointing toward uncertainty and inflation, silver's value could surge, especially as it faces supply shortages. Investors selling ETF holdings have masked silver's true potential, making it poised for a potential challenge of $50. Amid global economic concerns and monetary tightening, physical silver stands out as an attractive investment option.

Gold climbed to a nearly one-month high due to weak U.S. economic data, suggesting the Fed may pause rate hikes. Spot gold reached $1,943.92 per ounce, supported by lower 10-year yields and a weaker dollar. Bets on unchanged rates in September and a pause in November rose, indicating growing uncertainty. The upcoming PCE price index and nonfarm payrolls report are awaited. Silver stayed near a one-month high at $24.63. Experts see potential for gold to rally further amid economic challenges.