Precious metals news

Inflation has significantly increased mortgage rates by 174% under Biden's tenure, exacerbating the affordability crisis in housing as the tilt effect causes a heavier financial burden early in the mortgage period. Additionally, the 10-year Treasury yield has soared by 402%, complicating the refinancing of the U.S.'s substantial debt. Despite these challenges, record call volume in TLT (iShares 20+ Year Treasury Bond ETF) was observed on Friday, signaling a notable event in the market.

China is likely facing deflation again as October's consumer prices dropped, with a continuous decline in producer prices for over a year. This persistent price weakness suggests a faltering economic recovery and may prompt the central bank to cut reserve requirements to bolster the economy. Despite government efforts to stimulate trade and imports, economic indicators point towards a deepening downturn.

China has reduced its U.S. Treasury holdings to the lowest level in 14 years, fueling speculation about its intentions and contributing to a potential bond rout in the U.S. Some suggest this sell-off is to support the yuan as it faces capital flight and hits its lowest value against the dollar since 2007. Analysts see China's actions, including possible intervention by state banks, as a defense mechanism for the yuan, amidst a broader economic slowdown and decreasing foreign reserves. This trend raises concerns for U.S. bond yields and poses a new challenge for global financial stability.

The U.S. is facing a significant Treasury bond crisis, with yields soaring to levels not seen since the global financial crisis, raising alarms over the country's ability to attract enough buyers for its massive debt issuance. This trend signals a deepening concern about the sustainability of the U.S. fiscal policy, with a budget deficit ballooning to 8% of GDP and no political will to curb spending. Key foreign investors are pulling back, and while domestic buyers are stepping in, the shift may not be enough to stabilize the market. This financial turbulence underscores the pressing need for a reassessment of U.S. debt dynamics.

The price of a currency, crucial in the global economy, is shaped by supply and demand dynamics. Central banks impact short-term interest rates, but the underlying "natural rate of interest" reflects the equilibrium between savings and investment, keeping inflation stable. Over the last 30 years, this natural rate for currencies has fallen, largely due to slower economic growth affecting investment demand.

The global diesel and jet fuel shortage may lead to economic trimming of non-essential sectors and could cause central governments, especially those with large pension obligations, to fail. Political stalemates, like the ones in the U.S., could hasten such collapses, possibly ending federal programs and leaving states to manage independently.

A former White House economist suggests that BRICS nations, with their growing influence and control over global precious metals markets, could threaten the US dollar's supremacy in global trade. Despite the skepticism of some experts, the BRICS' increased economic clout, especially with new members like Saudi Arabia, could chip away at the dollar's dominance.

Home purchase deal cancellations in the U.S. hit a nearly one-year peak at 16.3% in September, driven by rising mortgage rates. According to Redfin, around 53,000 contracts were called off, marking the highest fallout since mortgage rates topped 7% in October 2022. The trend is particularly pronounced in former pandemic hotspots, with some Florida regions experiencing over 20% cancellation rates as mortgage rates approach 8%.

Investors expect rising long-term borrowing costs, pressuring government finances and limiting their crisis response. With interest rates set to stay high, government bond yields have climbed, suggesting increased interest payments that could reach $1.5tn for G7 countries by 2026. Central banks are shifting from quantitative easing to tightening, and with hefty government debt refinancing on the horizon, especially in the US, debt servicing costs are set to surge.

A CBS News-YouGov poll shows a staggering 79% of Americans think their government is not in control, and a bleak 73% of likely voters are pessimistic about the nation's trajectory ahead of the midterms.

While the market is celebrating record production from the Great U.S. Shale Oil Industry, the tremendous efficiency gains are nothing more than a mere ILLUSION.  In reality, the Texas Shale Oil Industry has hit the RED QUEEN SYNDROME...

There is a $33.7 trillion elephant in the living room.
I'm referring to the massive national debt.
It's pretty amazing that we have this massive animal sitting right in the middle of everything and most people are just walking around it as if it isn't there.

Is war and military spending really good for the economy?
A lot of people seem to think so. In fact, President Joe Biden is selling the latest proposal to send military aid to Israel and Ukraine as an economic stimulus plan. But this notion that spending money for war somehow boosts the economy is rooted in a pervasive economic fallacy.

Join Mike Maloney and Alan Hibbard for their weekly wrap-up on gold and silver markets.

Colombia is urgently advancing the recovery of an estimated $20 billion in treasure from the 1708 San Jose shipwreck. President Petro is pushing for quick action through a partnership to salvage the bounty, including gold, silver, and gems, before his term ends. Despite legal wrangling with a U.S. firm claiming half the treasure, the government aims to exhibit the artifacts in a national museum after an extensive archaeological process.

Silver's current underperformance compared to gold since 2011 is a positive indicator of market sentiment shifting from seeking safety to recognizing potential growth opportunities. Historically low prices, when adjusted for inflation, signal that silver is undervalued, offering an attractive entry point for investors. The charts suggest that silver is poised to break out from its long-term consolidation pattern, making it a compelling investment especially as concerns over a potential stock market correction grow. The silver-to-gold ratio further supports the view of silver's substantial upside, positioning it as a prudent hedge in an environment where traditional safe havens like Treasuries may falter.

Ferdinand Lips' book "Gold Wars" and Jim Rickards' insights reveal a persistent battle by central banks to control gold prices. The Gold Anti-Trust Action Committee (GATA) has been highlighting this covert manipulation, with recent data from the Bank for International Settlements (BIS) supporting their claims. Central banks use gold swaps and leases to influence the market, a tactic confirmed by bankers' own admissions. Despite limited media coverage, the tide is turning in favor of gold's integrity in the financial system.

The House recklessly passed a resolution endorsing military action against Iran to thwart its alleged nuclear ambitions, despite U.S. intelligence reports negating Iran's pursuit of nuclear weapons. This aggressive stance ignores facts and flirts dangerously with the prospect of unnecessary war, while hypocritically overlooking Israel's unacknowledged nuclear capabilities. The vote showcases a disturbing eagerness for conflict over diplomacy.

Major U.S. banks including U.S. Bank, Bank of America, Chase, and Wells Fargo are grappling with widespread direct deposit failures, sparking customer outrage. With systems down since early morning, paychecks and transactions hang in limbo. Wells Fargo has confirmed the glitch, offering apologies but no solid timeline for a fix, exacerbating the financial uncertainty for countless individuals.

Corporate leaders are sounding the alarm: today's geopolitical turbulence could rival the chaos preceding World War II. With a string of crises from Afghanistan's fall to Ukraine's invasion, they see a world on the edge. An assertive bloc of autocratic nations challenges U.S. hegemony, raising stakes over Taiwan's fate and threatening global economic stability. History's grim warnings echo, urging decisive U.S. action amidst growing dangers.