Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Precious metals news
Aug 19, 2022 - 12:58:39 PDT
David Morgan, Founder and Editor of The Morgan Report, discusses the coming supply crunch in silver, why silver demand will rise, and why silver is a solid 'legacy investment.' He also talks about the coming midterm elections, and what they could mean for gold and silver prices.
The world’s nations continue to hold gold reserves in their central banks even as they’ve backed away over the years from considering it in terms of currency. The idea remains among experts that it’s probably a good idea to hold a reserve of the precious metal just in case. Gold has traditionally been seen as a hedge against inflation, which is a major concern of central banks.
Aug 19, 2022 - 12:47:30 PDT
Despite the market-rigging conviction of the chief of its monetary metals trading desk, Michael Nowak, JPMorganChase is still at the center of the world gold business generally and the London Bullion Market Association particularly, Bullion Star's gold researcher, Ronan Manly, writes today.
Despite the recent drop in crude prices and base metals, Wall Street thinks that another rally in commodities is likely, and it will happen before we hit the New Year.
The Fed is lying. They might be lying to themselves. They might be lying to the public. We do not know. But we know one group they are definitely lying to: The politicians who control their current jobs. Why? Because politicians convey to economists all they care about is the next election.
In the July 26 Financial Times article entitled “Is the Dollar about to Take a Turn?,” Barry Eichengreen writes that the US dollar has had a spectacular run, having risen more than 10 percent against other major currencies since the start of the year.
Aug 19, 2022 - 11:51:34 PDT
So – while there is a thicket of ifs, buts and nauseously worded compliance disclaimers around this – it would suggest that should earnings follow historical precedent, there is not a lot of equity upside from here, even under bullish multiple assumptions. This has been no ordinary cycle so it may well be that historical precedents are for the birds. But worth pondering.
The data isn’t fitting Wall Street’s longstanding models very well...
Back to the baseline Taylor Rule Model, forecasts for core inflation and unemployment still prescribe a 7.25% fed funds rate by next summer. Considering fed funds futures, the market obviously doesn’t believe this.
Powell isn't Paul Volker, and this isn't 1982. Many hope a pivot away from monetary tightening will end the bear market, but will it?
Aug 19, 2022 - 11:22:27 PDT
But despite upbeat headlines showering Biden and his fellow Democrats with praise for their accomplishments, there's little reason to think that the particulars of the legislation will make much difference at the polls this November, because it won't live up to the promises it makes.
Poor countries should not be significantly affected by the loss of Ukrainian agricultural products. While Russia’s war has undoubtedly caused real problems in global food markets, they are different and more complex than what most news coverage suggests.
Aug 19, 2022 - 11:08:48 PDT
Payback in the US for extreme property valuations will come in the form of much lower growth going forward.
Stocks Extend Losses, Yields Spike After "Recession" Comments From Fed's BarkinAug 19, 2022 - 08:33:06 PDT
Barkin warned that "The Fed must curb inflation even if this causes a recession," adding that The Fed "needs to raise rates into restrictive territory."
Aug 19, 2022 - 08:28:32 PDT
Just a small number of Americans believe that the Democrats’ Inflation Reduction Act (IRA) will help lower inflation across the country, according to a new poll from The Economist/YouGov.
Crisis Looms Without Big Cuts to Over-Tapped Colorado River, Hydroelectric Turbines May Stop TurningAug 19, 2022 - 08:25:35 PDT
Yet for years, seven states that depend on the river have allowed more water to be taken from it than nature can replenish. Despite widespread recognition of the crisis, the states missed a deadline this week to propose major cuts that the federal government has said are necessary.
What would life be like without products derived from fossil fuels?
Policymakers, lawmakers and insufficient oil and gas sector investments are to blame for high energy prices, not OPEC, the producer group's new Secretary General Haitham Al Ghais told Reuters on Thursday.
Rich Countries Gobble Up Fuel While Poorer Nations Stuck With Brewing UnrestAug 19, 2022 - 07:33:57 PDT
Russia’s war in Ukraine has Europe bracing for a tough winter, but the costs are piling up higher in emerging nations as governments struggle to keep energy flowing to citizens hit by surging inflation.
Aug 19, 2022 - 07:20:23 PDT
For the Western Alliance, financially and economically his timing is particularly awkward, coinciding with the end of a 40-year period of declining interest rates, rising consumer price inflation, and a deepening recession driven by contracting bank credit.