Precious metals news

Mainstream media pundits and politicians generally act unconcerned about the skyrocketing national debt and ever-growing budget deficits, but somebody has taken notice.
On Friday, Moody's Investor Service lowered its outlook on US government credit from "stable" to "negative." This could be a prelude to a downgrade in the country's AAA credit rating. The agency typically resolves an outlook by either revising it back to stable or executing an actual downgrade within 18 to 24 months.

Credit managers are anxiously waiting for upcoming data to reveal if Japan's recent reduction in buying US corporate bonds is temporary or a developing trend. Rising bond yields in Japan, fueled by expectations of a shift away from its ultra-loose monetary policy, might lead Japanese investors to repatriate funds for better domestic returns. This potential shift could impact global market liquidity and increase volatility, especially as US corporate debt has seen diminishing demand from Asian investors, including those in Japan.

The European Union is set to implement "European Digital Identity Wallets," a centralized digital ID system for storing personal and financial data. Despite privacy concerns, the EU is pushing forward with the system and the digital Euro, a central bank digital currency (CBDC). Critics warn of potential government overreach and a shift towards a system similar to China's "social credit score." The initiative awaits formal approval from the European Parliament and Council. Concurrently, the Biden White House released a framework for digital asset development last year, indicating a global trend towards digital identities and currencies.

The concept of a polycrisis highlights how various interconnected crises can amplify each other, creating massive impacts beyond their individual effects. This interplay can lead to catastrophic outcomes, particularly when systemic issues like moral decay, corruption, or unresolvable supply scarcities are involved. Traditional solutions like monetary interventions become ineffective in such scenarios. The inherent fragility of systems designed for isolated challenges becomes exposed, and overconfidence and denial further worsen the situation. By the time these systemic problems are acknowledged, it may be too late for effective resolution.

The Federal Reserve's decision to keep the federal funds rate at 5.5% highlights its uncertain and reactive approach. Struggling to determine the right rate amidst political pressures, the Fed focuses on short-term issues like managing debt costs, inflation, and unemployment. This approach, lacking long-term economic strategy, results in constant policy adjustments based on immediate concerns rather than overall economic stability.

Jeffrey Gundlach expresses concern about the U.S. fiscal situation due to rapidly increasing interest expenses on national debt. This surge is attributed to the maturation of bonds, initially issued at very low yields of 25 to 50 basis points, which are now being reissued at significantly higher yields near 5%. This shift indicates a swift and steep rise in debt servicing costs, underscoring deeper fiscal challenges.

Peter Schiff recently appeared on Real America with Dan Ball to talk about the latest employment data and the state of the real estate market. We know there is a lot of doom and gloom in the headlines, but Peter said the situation is actually doomier and gloomier than the headlines suggest.

Moody's has downgraded the U.S. credit outlook to "negative," citing unmanageable fiscal deficits and worsening debt affordability. Following Fitch's earlier downgrade, this move reflects deepening concerns over the U.S.'s financial health amidst political disputes and rising federal spending. Experts foresee persistent deficits and ballooning interest costs, with little hope for substantial fiscal reform before 2025. This bleak assessment adds pressure on an already strained bond market, raising alarms about potential government shutdowns and the urgent need for lawmakers to tackle the spiraling budget deficits.

Something just doesn't make sense in the oil market when falling global oil inventories and escalating tensions in the Middle East suggest rising, not tumbling, prices... LOL.  Furthermore, global oil demand is actually stronger than last year... SO WHAT GIVES??

Have we seen the beginning of a financial market selloff? Join Mike Maloney and Alan Hibbard as they take a look at the biggest stories in markets and precious metals this week.

The current investment landscape presents a unique opportunity in precious metals, especially silver. Despite having similar physical quantities to gold, silver's significantly lower market cap, combined with its extensive industrial use, positions it for potential price surges. The imbalance between silver's industrial demand and supply suggests an impending price increase. Even a minor shift of investments from gold to silver could dramatically escalate its value, given silver's smaller market capitalization. This scenario sets the stage for a potentially explosive rise in silver prices, marking it as a standout investment opportunity.

BofA's "Biggest Picture" report anticipates the 2020s as a decade of higher inflation, fluctuating interest rates, and recurrent economic disruptions. It forecasts a scenario of US debt and dollar weakening, alongside volatile equity markets influenced by significant societal, policy, geopolitical, and technological shifts. The report suggests a positive environment for precious metals, seen as a stable hedge in an era marked by financial uncertainty, currency debasement, and rising inflationary pressures.

Millions of dollars will soon be given away with no strings attached as guaranteed income programs launch on the west coast. California’s programs join dozens of similar pilots across the country, including St.Louis, Missouri, Ann Arbor, Michigan, Fairfax County, Virginia, and more.

Consumer sentiment in the U.S. has hit a distressing low, dropping to 60.4 in November, the worst level since May and continuing a four-month downward trend. This decline reflects deepening worries over high interest rates and escalating global conflicts. Inflation expectations have risen to alarming levels not seen in over a decade, intensifying concerns about the economy's future. Despite stagnant recent CPI figures, the Federal Reserve acknowledges that the battle against inflation is far from over, underscoring the persistent economic hurdles ahead.

The American consumer, traditionally the pillar of the U.S. economy, is teetering on the brink of a debt crisis. With household debt escalating to an alarming $17.29 trillion and credit card balances hitting $1.08 trillion, the situation is dire. Rising interest rates are exacerbating the burden, particularly for those aged 30 to 39, who are increasingly falling behind on payments. This precarious financial landscape casts a shadow over the future stability of the U.S. economy, heavily reliant on consumer spending, now fueled by unsustainable debt levels.

The US government faces a daunting $1 trillion in interest payments this year, a symptom of growing debt and rising interest rates. This financial strain is prompting discussions about radical policies like yield curve control, historically used in wartime, to manage debt costs. Such extreme measures highlight the gravity of the fiscal situation and the potential for market dysfunction, especially in the crucial US Treasury market. With political deadlock and no easy solutions in sight, the financial stability of the US is increasingly under threat, raising global concerns about the implications of a meltdown in the Treasury market.

This week, gold and silver extended their correction of October’s sharp rise. In European trade this morning, gold was $1953, down $24 from Last Friday, and silver was $22.54, down 66 cents. Comex volume in both contracts was moderate.
Open Interest in both Comex contracts has been on the low side for some considerable time, evidenced in the two charts below.

At the same time, prices have broadly maintained their levels represented by the widening visual gap between prices and Open Interest in the charts above.
Furthermore, gold’s technical chart below is immensely bullish.

Having tested the psychologically important $2000 level, gold has backed off requiring some further consolidation perhaps before another attempt. It could easily decline to test support at $1910—1925, which is where the two moving averages are presently. A move of that sort would certainly wash out weak paper bulls, creating the platform for the next move higher.
Interestingly, the r...

The Great Game of geopolitics faces a new challenge. The new hotspot is Israel and the Muslim Middle East. Ukraine is all but over, and the US is likely to abandon her to her fate — like Afghanistan.
We shall have to see how both will play out. Meanwhile, energy prices are set to keep inflation and interest rates high, undermining governments, banking systems, and businesses dependent on cheap credit.
This article concentrates on the consequences for currencies, which are simply unbacked credit valued by the public’s faith in them. To assist a proper understanding of money, the relationship between gold, which is universally accepted as legal money, and detached fiat currencies is explained as an objective/subjective relationship.
There are a number of moving pieces behind a gathering fiat currency crisis. Putting this jigsaw together reveals an increasingly certain crisis for G7 currencies. There is little doubt that both China and Russia are fully aware of this danger ...

The once unshakable belief in the US Treasury market as the deepest and most liquid is now faltering. With foreign buyers retreating and the U.S. grappling with huge deficits amid high interest rates, the Treasury market is showing signs of distress. This shift is significant, marking a potential breakdown in a critical component of the global financial system, and raising serious concerns about the future stability of what were once considered 'risk-free' US Treasury bonds.

Jamie Dimon's decision to sell $1.2 billion of his JPMorgan Chase stock next year signals a troubling trend among banking executives, breaking a longstanding tradition of holding shares. This shift points to a lack of confidence among top bankers in the face of rising lending rates and uncertain market conditions. Dimon's move, unprecedented in his career, aligns with a wave of executives cashing in on their holdings, raising serious concerns about the stability and future prospects of major financial institutions.