Precious metals news

Surging bond yields have heightened concerns over the Federal Reserve's stance and rising U.S. government debt. The yield on 10-year Treasuries recently hit a 15-year high, surpassing 4.8%. As the Fed signals further rate hikes, the national interest on debt is ballooning. By 2033, interest payments could surpass $1.4 trillion annually. Experts warn of an impending unmanageable budget situation if unchecked.

In September, the US added an impressive 336K jobs, doubling the forecasted 170K and marking the highest monthly increase since January. This was a notable deviation from expectations, marking the first 6-sigma beat in a while. Additionally, both July and August saw upward revisions in job numbers, with a combined increase of 119,000 more than initially reported. While the unemployment rate remained at 3.8%, average hourly earnings rose by 0.2%, reflecting a yearly increase of 4.2%. This rise was attributed to an influx of lower-paying jobs.

The mainstream wasn't just wrong about inflation in 2020. It was wildly wrong. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey dissects a 2020 video produced by CNBC to show just how wrong they were. He explains why they were wrong and teaches some economics along the way. He also discusses the carnage in the bond market and tells you who is buying gold.

With more information coming out and confirming our suspensions, the Nails continue to be added to the U.S. & the Global Oil Industry Coffin.  Using newly updated data from a retired petroleum engineer from Total France, the situation does not look good for the USA and the world...

In August, central banks continued their trend of bolstering gold reserves, marking the third consecutive month of such acquisitions. With a substantial 77t addition, a 38% increase from July, it's evident that central banks globally are leaning into gold as a strategic asset. This consistent demand reinforces the ongoing trend and confidence in the enduring appeal of gold for central banks.

In 2023, gold prices faced a decline, dropping over 10% in six months due to rising interest rates. However, experts at the FT Mining Summit expressed optimism for gold's rebound once the Federal Reserve begins reducing interest rates. John Reade from the World Gold Council believes the current situation offers a prime opportunity for gold investment, predicting rate cuts by the Fed to benefit gold prices. Rhona O’Connell, a market analyst, emphasizes the challenges faced by medium-sized banks, suggesting that potential economic stresses in the U.S. will boost gold investments. The mining industry also showed concerns about insufficient exploration for new mines, indicating a future scarcity that could further elevate gold's value.

In 2023, a significant shift was observed in the retail landscape as gold products solidified their preeminence in inventories compared to past years. Heritage gold, along with Hard-Pure products, not only took center stage in retail showcases but also became the primary profit drivers for businesses. This surge in gold's prominence underscores its timeless appeal and growing market demand.

Russia's Finance Ministry is ramping up its foreign currency and gold acquisitions, allocating 398.72 billion rubles for purchases from October 6 to November 7. This marks a substantial increase from previous allocations, emphasizing gold's significance in Russia's financial strategy. The sustained commitment to gold purchases highlights its enduring value in the economic landscape.

The 30-year bond is experiencing a significant selloff reminiscent of the 2007-2009 financial crisis. Driven by concerns over the U.S. deficit and the Fed's anti-inflation stance, bonds from 2020 have dropped by over 50%. Major holders like the Federal Reserve, Vanguard, and BlackRock are particularly impacted. This downturn signals potential systemic vulnerabilities in the financial system.

In this eye-opening video, Mike Maloney delves deep into the claims made by the “Inflation Misinformation Foundation” (IMF) regarding inflation. Join Mike as he dissects their arguments and provides an alternative perspective on this crucial economic topic. Discover how inflation truly works and why government policies play a significant role in its dynamics. Mike also discusses the impact of low interest rates on your savings and borrowing costs. If you're seeking a fresh perspective on inflation, this video is a must-watch.

The FDIC has sounded alarm bells over the concentration of uninsured deposits in a few major U.S. banks. FDIC Chair, Martin Gruenberg, highlighted that some recently failed banks had up to 90% of their deposits uninsured. Disturbingly, JPMorgan Chase, Bank of America, Wells Fargo, and Citibank hold 59% of all uninsured deposits across all 4,645 federally-insured institutions. Particularly, Citibank revealed that a staggering 85.5% of its deposits are uninsured. The precarious concentration of uninsured deposits is a ticking time bomb.

The Fed's oversight in not equating rising home prices with inflation has resulted in a distorted housing market. Despite wages rising, home prices have surged disproportionately, making them about 46% overpriced. The massive QE rounds by the Fed, intending to stimulate inflation, suppressed interest rates, leading to a housing market affordability divide: winners who refinanced at low rates and potential buyers priced out. With mortgage rates nearing 8%, the housing market is paralyzed. Simultaneously, rent has continuously increased, affecting 34% of the nation. The Fed's inability to foresee these repercussions, combined with policies promoting inflation, suggests a bleak outlook.

Recent sharp fluctuations in rates, with the 30Y crossing 5% for the first time since 2007, are raising alarms about financial instability. The dramatic increases, including the largest hike in 30yr yields since 2009, have major banks like Goldman and JPMorgan warning of potential financial disasters. Such events could see JPMorgan profiting from regional bank failures, leaving taxpayers to shoulder the burden of toxic assets.

Perth Mint reported a surge in gold and silver sales in September due to a dip in prices. Gold coin and minted bar sales increased to 36,530 ounces from 34,875 ounces in August, a 59% drop year-on-year. Silver sales soared by 41% monthly to 1,116,779 ounces, but declined 57% annually. Notably, there was a significant demand for 2oz silver coins, particularly in the U.S. Gold and silver prices fell in September by 4.7% and 9.3% respectively, attributed to the U.S. Federal Reserve's hawkish stance on interest rates. Perth Mint is the world's leading producer of newly mined gold and the top refiner in Australasia.

DoubleLine Capital's Jeffrey Gundlach warns of a potential economic decline in 2024 and foresees Americans facing severe financial challenges. He criticized the excessive government stimulus, stating it inevitably led to inflation. Gundlach highlighted the unsustainable rise in credit card spending, describing it as a "death spiral" for personal finances. He also noted that traditional economic indicators predict increased market volatility, with an inverted yield curve and stagnant unemployment rate.

This article looks at the collateral side of financial transactions and some significant problems which are already emerging.
At a time when there is a veritable tsunami of dollar credit in foreign hands overhanging markets, it is obvious that continually falling bond prices will ensure bear markets in all financial asset values leading to dollar liquidation. This unwinding corrects an accumulation of foreign-owned dollars and dollar denominated assets since the Second World War both in and outside the US financial system.
Furthermore, collapsing collateral values, which are increasingly required backing for changing values in over $400 trillion nominal in interest rate swaps are a new driver for the crisis, forcing bond liquidation, driving prices down and yields higher: we are in a doom-loop.
What action can the authorities take to ensure that counterparty risk from widespread failures won’t take out inadequately capitalised regulated exchanges?
It seems that they ...

High interest rates, surging oil prices, and a robust dollar are endangering the economy. U.S. bond yields have skyrocketed, intensifying borrowing costs and home affordability issues. With the Federal Reserve slow to adjust to these economic shifts, the potential for stagflation and financial instability grows. The prolonged high rates suggest the U.S. and the rest of the world could face a severe economic downturn.

Investors are growing concerned as U.S. borrowing skyrockets, posing potential risks to markets and the economy. Historically, the U.S. has been the world's primary lender, stepping in during financial crises. However, the escalating trajectory of U.S. debt and the lack of political intervention now amplify market vulnerabilities. Recent spikes in Treasury yields can't be solely attributed to inflation or short-term rate changes but rather to rising government deficits.

Losses in longer-dated Treasuries are nearing record meltdowns in US market history. Bonds with maturities of 10 years or more have plummeted by 46% since March 2020, almost matching the 49% decline in US stocks after the dot-com crash. The 30-year bonds fared worse, dropping 53%, close to the 57% decline during the 2008 financial crisis. As the Federal Reserve aggressively tightens monetary policy to combat inflation, the combination of low initial yields, long-term debt, and surging rates has been devastating for investors. These bond losses have outpaced the average US equity bear market declines since 1970.

Americans filing for initial jobless benefits remained at a year-to-date low with 207k claims last week, almost consistent with the 205k the previous week. Continuing claims also hit a year-to-date low at 1.664 million. However, discrepancies arise as ADP and BLS job data trends weaker, while initial jobless claims improve, raising questions about the true state of the job market.