Precious metals news

Singapore boasts an impressive gold vault as part of its foreign reserves, managed by the Monetary Authority of Singapore (MAS). The vault's location remains top secret, with media given rare access under strict confidentiality. Within, gold bars are methodically stacked, each worth nearly US$800,000. Singapore has amassed approximately 222 tonnes of gold since 1968. Luke Chua, a gold dealer, emphasized gold's consistent value, especially during crises. Its worth has significantly appreciated: from US$40 per ounce initially to US$2,000 per ounce. By July 2023, Singapore's gold reserves exceeded S$442 billion.

Governments worldwide, including Washington, are nearing collapse due to unsustainable debts and policies reminiscent of historical empires like Rome. The prevailing financial system is likened to a Ponzi scheme, with real assets being replaced by deceit. Concerns mount over high corporate debt and inverted yield curves hinting at a recession. Despite the faith placed in central banks, a crash seems imminent. As governments move towards Central Bank Digital Currencies (CBDCs), states like Florida and Indiana resist by banning them.

Drought and increased fertilizer prices have led to a surge in Kenya's rice costs. India's recent halt on rice exports exacerbates the shortage, affecting global supplies. Additional strains on global food security come from Russia's wheat restrictions and potential El Nino effects. There's growing concern as more nations may follow India's example, putting vulnerable populations at greater risk.

Mortgage rates exceeding 7% are straining the U.S. housing market with potential to hit 8%. Lawrence Yun of the National Association of Realtors highlights the 30-year rate's precarious position. If the Federal Reserve hikes interest rates again and the 10-year Treasury note continues rising, an 8% mortgage rate could become imminent. Such a surge threatens to stagnate the housing market, potentially driving down sales and home prices, especially if employment falters.

The U.S. bond market faces alarming instability as Treasury yields soar to their highest since 2007 and 2011. Barclays warns of an ongoing selloff, implying that the era of beneficial low rates is ending. Factors such as an assertive U.S. economy, upcoming Federal Reserve rate hikes, and inflation-adjusted yields have intensified concerns. Over a brief six-day period, 10- and 30-year Treasury yields have shockingly surged, culminating in negative returns for this year. This bleak scenario is severely dampening demand across the fixed income sector, and apprehensions about substantial future selloffs loom large.

China is urging the Brics group, comprising Brazil, Russia, India, China, and South Africa, to rival the G7. At an upcoming summit in Johannesburg, multiple countries might be inducted into the bloc, marking its largest expansion since inception. However, India and China are at odds, with debates centering on the bloc's role as an economic entity versus a political challenger to the West. 23 nations have expressed interest in joining, including controversial candidates like Iran, Belarus, and Venezuela, which might be viewed by the West as alignment with Russia and China. Argentina, Saudi Arabia, and Indonesia are top contenders for membership. Expansion criteria are under discussion, with emphasis on trade in local currencies rather than adopting a common currency.

One of the reasons Americans were able to continue spending even as price inflation raged was they saved a lot of money during the pandemic lockdowns. But those savings are nearly depleted, according to a study released by the Federal Reserve Bank of San Francisco.
Aggregate savings peaked at $2.1 trillion in August 2021. As of June, the San Francisco Fed estimated that aggregate savings had dropped to $190 billion.

September marks the beginning of potential economic turmoil in the Western world, driven by: 1. The unveiling of BRICS nations' gold or commodity-backed currency in late August, challenging the U.S. dollar's dominance as the World Reserve Currency. 2. Congress's decision in September regarding the raised debt ceiling and unrestrained spending, diminishing trust in the U.S. dollar's stability. 3. The Petrodollar's decline, bolstering the Yuan and Ruble, but further weakening the U.S. dollar. 4. Continuous congressional spending and a lack of resistance to globalist economic agendas. 5. Most 401ks and pension funds are invested in unstable Chinese markets, where transparency and reporting accuracy are concerns. 6. The looming threat of Central Bank Digital Currencies (CBDCs) that could control individual spending, emphasizing the need for alternative forms of payment, like gold and silver. A combination of global financial shifts, U.S. policy decisions, and the rise of CBDCs may lead to a significant econom...

Central banks are unlikely to collaborate on a global rescue as market instability grows. Reasons include: 1. Divergent national interests prevent coordinated action. 2. The low inflation era and zero-interest rate policies have ended, complicating traditional intervention methods. 3. Persisting inflation continues to strain wage earners despite manipulated statistics. 4. Wages haven't kept pace with inflation, further enriching the top 10% at the expense of the majority. 5. Wealth and income inequality exacerbated by central banks now limit their policy options. In essence, central banks can't indefinitely prevent asset bubble bursts, and their interventions have often worsened economic disparities.

President Biden has imposed new tariffs on can-making metal imports from China, Germany, and Canada, leading to expected price hikes for canned goods. Chinese products face the steepest tariffs at 122.52% due to their alleged ties with the Chinese Communist Party. These tariffs could push canned food prices up by as much as 30%, as predicted by the Consumer Brands Association.

US consumers face a looming crisis as pandemic savings dry up, risking a potential recession. Over two years, they've spent the $2 trillion surplus from the pandemic, struggling with soaring inflation and rapid Federal Reserve interest hikes. With dwindling reserves, many now rely solely on their wages, especially the lower-income groups, leaving them vulnerable and pondering increased debt. Experts fear the upcoming resumption of student loan payments and limited credit access could force consumers to cut back spending, plunging the economy into decline.

Most people now seem to think the Federal Reserve can beat price inflation and guide the economy to a soft landing. In his podcast, Peter Schiff explains why most people are wrong. The Fed is actually in a no-win situation. And if the Fed can't win, gold can't lose.

China's economy is grappling with significant challenges, notably a shaky property market and declining consumer demand. This has ignited global alarms, with both Janet Yellen and Joe Biden emphasizing the potential detrimental spillovers to other economies. Recent data reveals China's weakened industrial output, retail sales, and a troubling youth unemployment rate. Evergrande's bankruptcy intensifies concerns surrounding the property sector. Due to China's central role in global trade, its slowdown threatens the global economic recovery. Additionally, the situation is exporting deflation, and American companies with ties to China are already witnessing the downturn's impact. Reduced Chinese demand may dampen worldwide inflation but could simultaneously strain US exporters. The decline in China's property market affects not only domestic wealth but also presents risks to international investments, raising questions about China's economic resilience and its future growth trajectory.

When we ask ourselves, WHY should we invest in Gold & Silver... the answers will be many, but likely 99% will be wrong.  This is precisely why 99% of people in the world don't invest in precious metals... they don't know the real reason... WHY.  So, WHY invest in Gold & Silver...

Gold recently soared past $2000 an ounce, mirroring its peak during the pandemic's economic unrest. Previously, the robust US dollar limited gold's ascent, supported by the Federal Reserve's early rate hikes. However, with other central banks tightening policies and the dollar's recent weakening, gold prices surged. The anticipation of the Federal Reserve cutting rates due to softer inflation data and gold's reputation as a safe asset further bolsters its price. Other concerns amplifying gold's allure include US debt ceiling debates, political tensions, and global geopolitical strains. Central banks, especially from nations like China, Singapore, and Turkey, have significantly increased gold purchases in 2022 and 2023, possibly hedging against geopolitical uncertainties. As we look ahead, many conditions favoring gold's rise remain.

**Ancient Rome and Today's Currency Challenges:** Central Italy's bronze was to early Rome what traditional currencies are to us now. As Rome expanded, it integrated precious metals, much like today's interest in gold reserves. The denarius, introduced in 211BC, can be likened to a dominant global currency today. As Rome transitioned to Empire, they debased the denarius to finance their expenses, reminiscent of some modern nations printing money, leading to inflation. Despite this, Rome insisted on taxes in pure metals, echoing how some countries still demand debt payments in strong currencies. This unsustainable strategy, paired with overextension like some economies today, signaled Rome's financial downfall.

Reliance on constant borrowing and fiscal stimulus is masking the real issues within the economy. While we're flooded with narratives of economic growth, low unemployment, and rising wages, the underlying foundation is shaky. The belief that central banks and governments can endlessly borrow and spend to fix any problem is misguided. This overconfidence in financial solutions overlooks the real-world consequences, such as debt-induced inflation, increasing wealth inequality, and stagnating economic growth. As more money is thrown at these issues, diminishing returns are evident, and problems are exacerbated instead of resolved. The ever-growing mountain of debt and its consequent interest payments eventually suffocate genuine investment and consumption. Relying solely on financial "tricks" distorts the economy's capacity to address genuine challenges. Eventually, reality will catch up, potentially leading to a market crash and systemic collapse. Blind faith in perpetual borrowing and spending is a dangero...

China's economy teeters on the brink of disaster, and its impending collapse could blow up the global economy. The once-mighty real estate sector is in ruins, with titans like Evergrande and Country Garden sinking under insurmountable debts. Liquidity crises are widespread, with firms like Zhongzhi on life support. The Chinese government's move to obscure crucial data adds to the growing mistrust and suspicion about the true extent of the debacle. The frantic rate cuts by the People's Bank of China scream panic, yet there's a conspicuous absence of a strong stimulus to stabilize the situation. With the warning bells for China's economic implosion ringing loud, diving into its equities is akin to playing with fire.

Wall Street expert Jeremy Grantham predicts that rising interest rates will lead to a recession, contradicting the Federal Reserve's optimistic outlook. He remarked that the Fed has a history of missing recession signals, especially after major market bubbles. Grantham believes the tech stock decline's deflationary effects will combine with the impact of higher rates on sectors like real estate, causing a prolonged economic downturn and stock price drop. He anticipates the S&P 500 to drop significantly by year-end and sees a future of consistently higher inflation and interest rates. In essence, low rates boost asset prices, while high rates depress them.

The sell-off in precious metals which started in late July continued this week, but its momentum slowed with silver even showing a modest gain on the week so far. In early European trading, gold was $1892, having traded down to $1885 yesterday, for a net fall of $19 on the week. Silver was $22.78 having traded down to $22.30 on Tuesday but is up just 10 cents from last Friday’s close. On Comex, turnover in the gold contract was subdued, but in silver it was moderate to healthy.
In silver, the Commitment of Traders report for 8 August showed the Managed Money category was net short 3,781 contracts, with very low levels of longs and shorts making the balance. It seems that the trading community has withdrawn from this contract. And the Swaps unusually are sitting on net longs of 499 contracts. It is the Non-Reported category which has sold down its net long position. This is up next.

With Open Interest on Comex being low (it has been lower recently, down to 114,421 on 3 J...