Gold has all the potential to go unprecedentedly high. But silver will be gold on
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The more the markets focus on the inflation data and central bank action, the more likely it is that we have a bumpy start to the summer in risk sentiment and a strong one for the dollar
The Federal Reserve is about to start shrinking its $8.9 trillion balance sheet, deploying a second tool along side higher interest rates to curb inflation, though officials don’t know just how effective it will be.
Yellen Says the Administration Is Fighting Inflation, Admits She Was Wrong That It Was ‘Transitory’Jun 1, 2022 - 06:05:40 PDT
Treasury Secretary Janet Yellen emphasized that the White House has several strategies that will reduce inflation she conceded is too high on Americans.
European Central Bank policymakers sparred over the size of their upcoming rate increases on Tuesday as data showed euro zone inflation rising to another record high in May. Prices have risen sharply across Europe in the past year, with the ECB initially blaming lingering supply chain problems following the...
The QT plans are well flagged yet, when the world's biggest holder of Treasuries reduces its presence in the market, some nervousness is a given.
Yuan-Ruble Trading Explodes 1,000% in Latest Challenge to U.S. Dollar’s DominanceJun 1, 2022 - 05:50:33 PDT
Of course, it’s also worth noting that there have been a couple of other challenges to the dollar’s hegemony of late – most notably Saudi Arabia’s plan to price some oil contracts in Chinese yuan.
Jun 1, 2022 - 05:48:25 PDT
On Wednesday, the Fed will start to deploy a lesser-known instrument—so-called quantitative tightening. For the next three months, the Fed will stop reinvesting the proceeds from its $9 trillion pile of bonds to reduce the balance sheet by $47.5 billion each month. After Labor Day, the Fed will step up the tightening process to a $95 billion per month rate of...
They are creations of easy credit, beneficiaries of central bank largesse. And now that the era of unconventional monetary policy is over, they’re facing a challenge like never before.
Jeremy Grantham Warns the S&P 500 Will ‘Likely’ Plunge Another 40% MinimumJun 1, 2022 - 05:41:54 PDT
With stocks pulling back substantially from earlier highs, some say that the market could reach a bottom soon. But according to legendary investor Jeremy Grantham, that’s not going to be the case.
The stock market could be pressured further if the bottom drops out of corporate profits this year amid raging inflation and Fed rate hikes, Citi warns.
Fed To Begin Quantitative Tightening: What That Means for Financial MarketsJun 1, 2022 - 05:33:53 PDT
While the precise impact of “quantitative tightening” is still up for debate, analysts tend to agree that it's likely to present a further headwind to stocks.
“What [Biden's] doing with Powell and the op-ed… is basically getting the message out there: ‘Hey we’re fighting inflation. This isn’t really our fault, et cetera,’” said Steve Sosnick, chief strategist at Interactive Brokers.
A lot of investors wonder about the lack of movement in gold and silver, especially given rampant inflation. Why haven't we seen a big rally in precious metals as many expected? Why shouldn't you just give up on gold and silver?Peter Schiff answers these questions in this video.
Consumer confidence hit a 10-year low earlier this year and continues to sag as inflation squeezes wallets.The Conference Board's consumer confidence index for May slipped to 106.4. That was down from 108.6 in April.
BIG ENERGY CRACKS NOW APPEARING IN CHINA: High LNG Prices Forcing China To Burn More CoalJune 1, 2022
While the European economy is facing a severe contraction due to skyrocketing natural gas and energy prices, Big Energy Cracks are now appearing in China. Due to high LNG prices, China has switched to producing and burning more coal. Even with rising coal consumption, China may still suffer from power outages again this summer. This could be bad news for China and the rest of the world...
May 31, 2022 - 13:30:38 PDT
Fun chat with @JrMiningGuy at VRIC! We talked #gold and #silver, how to buy a beachfront property with gold, what I ask when I hear about a good drill result, the "sophisticated" method that's led to my biggest wins (very relevant now), + my top 3 mining investments... Note: Jeff discusses some mining stocks in this video, and they are not intended as investment advice.
Central banks remain a major force in the gold market. They continue to buy gold, making the case that gold prices might go much higher in the months and quarters ahead. Central banks could be a major catalyst that sends gold prices to $3,000 per ounce.
Gold To Be in Demand as a Store of Value Given Expected Record Inflation in EU: CommerzbankMay 31, 2022 - 13:08:08 PDT
Gold has risen slightly to a good $1,860 at the start of the new week of trading. Economists at Commerzbank expect the yellow metal to remain resilient as eurozone inflation is set to hit a new record.
However, Gold and Silver haven’t made much progress over the last two years so if the playbook follows the 1970s they are the standout cheap asset from this starting point, according to Reid, who concludes that while "history never exactly repeats it provides a framework as to how to think about the next few years if inflation remains high even after a Fed-induced recession."
May 31, 2022 - 12:32:42 PDT
Macro analyst & bond market expert Alfonso Peccatiello returns here in Part 2 of our interview with him to reveal which assets he thinks will fare well through the tumult he sees ahead for the rest of 2022.
Alf sees the forces of stagflation & disinflation continuing to weigh on economic growth and financial asset prices. He's currently short stocks (via the S&P), short corporate debt spreads (via HYGH) & short EU credit spreads.