Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Eventually, the inflationary credit emitted by the Fed works its way through the global economy and comes home to roost in the form of reduced domestic output and rising prices. In this regard, there is no more powerful tell than the round trip of the PCE deflator for durable goods during the past 28 years. As shown in the chart below, prices for durable goods, which are now mostly...
Apr 24, 2023 - 08:50:00 PDT
"Tighter liquidity could exacerbate the ongoing shift to more restrictive credit conditions, weighing on US growth," Fitch Ratings said.
Currently, investors have little to no interest in owning gold (which is a bullish contrarian sign in my book). As my friend Callum Thomas recently pointed out, assets in gold ETFs like GLD are a tiny fraction of those invested in equity ETFs like SPY. However, there’s a good chance that the deteriorating fiscal situation will over time light a fire under investor appetites for precious metals relative to financial assets, just as it did two decades ago. And that’s exactly the sort of thing that could power another major bull market for the precious metal. Got Gold?
Apr 24, 2023 - 06:43:19 PDT
Central bankers who manage trillions in foreign exchange reserves are loading up on gold as geopolitical tensions including the war in Ukraine force them to rethink their investment strategies. An annual poll of 83 central banks, which manage a combined $7tn in foreign exchange assets, found that more than two-thirds of respondents thought their peers would increase their gold holdings in 2023.
Gold prices held in a tight range on Monday as market participants continue to focus on the U.S. Federal Reserve's interest rate strategy in their fight against surging inflation.
Zimbabwe will soon introduce a gold-backed digital currency meant to stabilize the local unit from its continued depreciation against the dollar, state-run Sunday Mail reported, citing central bank governor John Mangudya.
Bolivia's lower house of Congress passed a bill early Friday to purchase gold from miners in an attempt to boost the central bank's foreign reserves as fears over a shortage of dollars rippled through the country.
It's A "Defund-The-Global-Police" Moment, Jen Says De-Dollarization Is Happening At A "Stunning" PaceApr 24, 2023 - 06:35:59 PDT
Over the last few weeks, it has seemed you can't turn a page, blink at a pixel, or hear a news report without some form of de-dollarization headline shrieking at you. From Brazil to Saudi Arabia, and from India to Argentina, and increasing number of nations are 'reportedly' shifting away from the dollar hegemon.
Apr 24, 2023 - 06:27:51 PDT
The government has until the summer to strike a deal.
Defense expenditure increased by 3.7% in real terms to reach a record high of $2.24 trillion in 2022, said the Stockholm International Peace Research Institute.
Apr 24, 2023 - 06:24:21 PDT
Investors are underestimating how high euro zone borrowing costs will rise, the head of Belgium’s central bank has warned, insisting he will only agree to halt interest rate rises once wage growth starts to fall.
Mike is back today with an important update on the conflict between Russia and Ukraine.
Credit Suisse Lost $68 Billion in Assets Last Quarter, Outflows ContinueApr 24, 2023 - 06:17:26 PDT
Credit Suisse said on Monday that 61 billion Swiss francs ($68 billion) in assets left the bank in the first quarter and that outflows were continuing, underscoring the challenge faced by UBS Group in rescuing its rival.
Remote work and e-commerce are reducing demand for office and retail space. Landlords are contending simultaneously with a cyclical market downturn and with secular changes in the way people work, live and shop. The sudden surge in interest rates caused property values to fall, while the rise of remote work and e-commerce are reducing demand for office and retail space.
US central bank officials are considering whether tighter credit conditions offset the need for many more rate rises
US banks are becoming increasingly worried about falling commercial property valuations and the risk they pose to lenders’ balance sheets, senior executives said this week.
Moody’s Downgrades 11 Regional Banks, Including Zions, U.S. Bank, Western Alliance: WSJApr 24, 2023 - 06:06:18 PDT
The recent failures of Silicon Valley Bank and Signature have focused attention on regional lenders’ weaknesses. The downgrades hit lenders including U.S. Bancorp USB -3.57%, with some $682 billion in assets, Zions Bancorp ZION -5.69%, with $89 billion, and Bank of Hawaii Corp., BOH -1.77% with $24 billion.
First Republic Earnings Report to Shed Light on Depth of Bank Crisis: WSJApr 24, 2023 - 06:04:55 PDT
Quarterly results will give investors insight into the extent of the damage after sharp deposit outflows at the bank.
Deposit flight and higher funding costs risk squeezing small businesses and lending beyond big cities.
Federal Reserve officials are on track to raise interest rates a quarter percentage point next month and signal a potential pause from the steepest hiking campaign in decades.