Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Precious metals news
Jul 8, 2022 - 13:21:20 PDT
In Gold We Trust Performance and Inflation Tables.
With all of the factors in place to support a big move higher in the precious metals sector (raging inflation, escalating geopolitical tensions, recessionary economy, etc), the recent market action is frustrating to say the least. To be sure, a certain percentage of the poor performance in gold, silver and mining stocks is attributable to the ongoing decline in the general stock market. It’s a bear market.
Gold has come under considerable pressure of late and has dropped to a nine-month low. However, the slide in the gold price is excessive in the view of economists at Commerzbank, so the yellow metal is expected to recover.
Ex-JPMorgan Traders ‘Ripped Off’ Gold, Silver Metals Market, Prosecutor Says at TrialJul 8, 2022 - 13:00:52 PDT
The tactic involves placing and then quickly canceling buy or sell orders to falsely create the impression of high demand or supply. The three men are accused of using the tactic to manipulate futures on metals such as gold, silver, platinum and palladium between 2008 and 2016.
Jul 8, 2022 - 12:53:53 PDT
For Inflation will surely engulf the world when the paper gold emperor’s clothes are seen for what they really are. Vladimir Putin and Xi Jinping are among those who know the golden rule: “Whoever has the gold makes the rules”. Which also explains why Russia and China are now accelerating their interaction in jointly developing the Russian and Chinese gold markets
Positions as of 5 July, 2022.
Jul 8, 2022 - 12:24:28 PDT
At present levels, commodity prices would have to surge 600% to become overvalued relative to the stock market. If the stock market falls 50%, commodity prices would still have to rise 250% to enter “radically overvalued” territory. Commodities are currently valued below financial assets. That will change because we live in a finite resource extraction challenged world while our demand is growing and infinite.
Former CKE Restaurants CEO Andy Puzder argued there are various solutions to help cool inflation but questioned the Biden administration's willingness to implement any of them.
Well, fast forward one month to the Fed's latest, just released consumer credit data (for the month of May) which confirmed that as expected, US consumers had maxed out their credit cards and the hangover had started.
By aggressively raising rates to curb inflation, the Federal Reserve risks taking a hot labor market affected today by Covid-19 and cooling parts of it off excessively.
The Fed’s Plan To Raise Interest Rates To Combat Inflation Could BackfireJul 8, 2022 - 11:53:36 PDT
Are we headed for very high energy prices? Or, are we headed for a financial system that starts falling apart? The whole economic system may change remarkably. For example, what many people thought was money, or a promised pension plan, may not really be there when the time comes to get value from it. Shelves in stores may be empty when it comes time to make a purchase.
U.S. Treasury Secretary Janet Yellen has a major mission in her upcoming visit to Asia: promote a cap on Russian oil prices.
Capital manager David Hay of Evergreen Gavekal returns for Part 2 of our interview with him to discuss the odds for stagflation, recession and to share which assets he most favors right now given his macro outlook.
Iran, Russia, and China are setting the stage for a series of joint military drills in Latin America, and Venezuela is set to host the drills on its soil in August, a report by the Center for a Secure Free Society (SFS) said. Tehran, Moscow, Beijing, and Caracas will not be the only participants, as nine other nations will "preposition forward-deployed military assets in Latin America and the Caribbean," the SFS report read.
Jul 8, 2022 - 08:54:28 PDT
Inflation is the highest it's been in four decades. Democrats are trying to pass another Build Back Better bill that would only make it worse.
Charles Hugh Smith shows you why he believes the era of cheap energy is over, and why there are no viable replacements for fossil fuels.
Jul 8, 2022 - 08:36:41 PDT
There is no doubt that the US economy is slowing, thanks in part to The Federal Reserve’s sudden crusade to slow inflation (caused by … The Federal Reserve and Federal spending).
My favorite chart is US Average Hourly Earnings YoY. It peaked in March at 5.6% and has been slowing to 5.1% in June. BUT historically high inflation has caused REAL US Average Hourly Earnings YoY to decline to -3.25%.
Something Snaps In The US Labor Market: Full, Part-Time Workers Plunge As Multiple Jobholders SoarJul 8, 2022 - 08:28:29 PDT
Something odd emerges when looking at the June payrolls report. On one hand, the closely followed establishment survey came in red hot, and despite dropping modestly from May, it still printed some 100K above the median consensus expectation, at 372K vs the median consensus of 268K...
Fed’s QT Kicks Off: Total Assets Drop by $74 Billion from Peak, New Era BeginsJul 8, 2022 - 08:02:22 PDT
QE creates money. QT does the opposite: it destroys money.