Precious metals news

Chinese gold demand improved on multiple fronts in August.
China ranks as the world's biggest gold market.

Four major banks, including JPMorgan, Goldman Sachs, UBS, and Morgan Stanley, are set to pay nearly $499 million to settle a class action lawsuit accusing them of stifling competition in the stock-lending market. Filed by US pension funds in 2017, the lawsuit alleges that the banks aimed to monopolize the market with their EquiLend system, impeding the growth of new platforms for electronic securities lending.

Peter Schiff recently appeared on Nino's Corner with David Nino Rodriguez to talk about the trajectory of the economy. Peter explained why the dollar is doomed to crash and what we can do to prepare. He also emphasized that the powers that be have managed to kick the can down the road for a lot longer than he expected. But you can't kick the can down the road forever. Eventually, you will run out of road.

At the G20 Summit, European Commission President Ursula von der Leyen advocated for a global digital ID system, similar to the COVID-19 vaccine passports. While she praised the EU’s digital certificate, which has been adopted by 51 countries and recognized as a WHO global standard, she also highlighted the EU's move towards a bloc-wide digital identity app that could store personal data including credit cards and passport information. This emphasis on a centralized digital identification system has raised serious concerns about individual privacy and freedoms.

This tour is a vivid showcase of the transformative power of regenerative farming.

Gold's potential to exceed $2,500 an ounce is driven by a combination of factors, including economic uncertainties, weakening dollar momentum, Inflation and consistent demand from central banks and consumers. Analysts are optimistic about gold's performance in the coming years, emphasizing its resilience and safe haven appeal.

Despite the dollar's recent winning streak driven by robust U.S. economic data, silver maintains its safe haven appeal. As investors watch for the Federal Reserve's upcoming policy decision and U.S. inflation data, silver stands ready to shine if inflation persists and an economic slowdown looms. With a cautious bullish sentiment in the market, silver could regain strength in the face of these critical factors.

The reckless spending under Biden and in Congress has plunged the US into a debt crisis. The situation has gotten so dire that US credit default swaps (CDS) are now being priced worse than Spain's CDS. Thanks to the spending binge and economic decline, US Federal debt has skyrocketed to nearly $33 TRILLION. Even more alarming is the staggering $193 TRILLION in unfunded Federal liabilities, a colossal sum nearly six times the current Federal debt burden. It's a fiscal disaster in the making.

In August, the NY Fed's consumer survey showed a worrying shift in the 1-Year inflation expectation, reversing a four-month decline. This indicator typically reflects oil prices (currently at a 2023 high). Moreover, 5-year inflation expectations reached their highest point since March 2022, compounding concerns. Additionally, households grew even more pessimistic about their financial outlook, painting a gloomy economic picture.

Billionaire investor Ray Dalio warns of a massive $73 trillion wealth transfer, primarily to millennials, while central banks' actions have contributed to this shift. The "free money" era of low interest rates has bolstered household and business finances but left governments with poor balance sheets. As deficits grow and debt service costs rise, governments may face "tolerably" slow growth and inflation, potentially leading to a debt spiral and market-imposed limits, forcing central banks to print more money and buy more debt.

Mortgage rates remain elevated, surpassing 7%, in line with the US Treasury 10Y-2Y yield curve. Under "Lunchbox Joe," CPI food prices have surged by 19%, and under "Green Joe,"Gasoline skyrocketed by a staggering 69%. While the American middle class continues to suffer the consequences of Bidenomics, it appears that the focus has shifted towards marketing this economic approach.

The FDIC's Problem Bank List is woefully inadequate in assessing the true issues plaguing the banking sector. Despite recent major bank failures, it shockingly reported no significant changes in the number of problem banks, listing a mere $46 billion in assets for all problem banks in the U.S. This alarming oversight, coupled with credit downgrades by S&P Global and Moody's, and escalating risks within the banking system, raises serious doubts about the FDIC's competence and transparency in safeguarding the financial industry.

In July, the mainstream financial media breathlessly reported that consumer spending was "holding up" based on better-than-expected retail sales. But how did consumers manage to spend all of that money?
They borrowed it.
After a pause in June, American consumers went back to charging up their credit cards in July.

Gold has been trading in a tight range recently due to growing uncertainty surrounding interest rates. It's poised for a potentially significant move after the release of Wednesday's inflation data. Gold bulls have been grappling with strong resistance around the 50-day Exponential Moving Average (EMA) at $1,930. Momentum indicators suggest a sideways trend as investors eagerly await a new economic catalyst.

Amid Russia's sphere of influence, the U.S. has launched joint military exercises with Armenia, a long-standing Russian ally. This marks a shift in geopolitical dynamics linked to Russia's Ukraine conflict. While Armenia traditionally leaned on Moscow for security, recent tensions, including a blocked corridor to Nagorno-Karabakh, have strained the relationship. The U.S. is seemingly seizing opportunities to weaken Russia's grip on former allies, but officials downplay this motive.

The US faces a challenging battle with inflation, and there are concerns it won't ease smoothly. Rising oil and food prices, along with unpredictable core inflation, could disrupt the decline. The Federal Reserve must decide whether to tolerate above-target inflation or risk a recession and financial instability. This complicated situation, combined with uncertainty about policy rates, Fed independence, and the evolving economic landscape, makes achieving the 2% inflation target a daunting task.

Bidenomics resembles a never-ending train wreck. Unlike E. Palestine Ohio's train derailment and toxic spill, Bidenomics persists with alarming trends: 1. US net cash farm income is plummeting, reaching negative growth. 2. US office vacancy rates exceed levels seen during the financial crisis. 3. US debt has surged to nearly $33 trillion, a 19% increase under Biden. 4. The US carries a staggering $194 trillion in unfunded liabilities, a problem left unaddressed by Biden's policies.

Most people think everything is fine. The Fed is getting inflation under control and soon they'll be able to cut interest rates, keeping the economy from falling into a deep recession. In his podcast, Peter Schiff poured cold water on this narrative. He explains why the Fed won't be able to repeat the magic it pulled off after the financial crisis and COVID.

Consumer credit data shows weakening demand for mortgage refinancing as consumers turn to credit cards to cope with rising prices. Credit card debt is increasing rapidly due to inflation and reduced stimulus support. Job revisions have been negative, leading to uncertainty about the strength of the economy. Critics also question the accuracy of GDP numbers and suggest using Gross Domestic Income (GDI) for a more accurate assessment. The Federal Reserve is making decisions based on potentially flawed and frequently revised data, despite a significant increase in M1 Money.

The US is tapping into its Strategic Petroleum Reserve, causing crude oil inventories to hit their lowest levels since 1985. Household spending has been crucial for the US economy, but rising oil and gas prices may push it lower, potentially triggering a recession. Consumer sentiment, particularly concerning gas prices, plays a significant role in economic stability. While one index suggests a bleak outlook,