Precious metals are apparently waking up. And here is where you can find the best deals.
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Given the potential impacts of the ongoing banking crisis, I will start this article with the conclusion.The current banking crisis could not have come at a worse time for the Comex system. Inventories have seen massive depletion over the last 2+ years as investors have slowly been pulling physical out of the vaults. I have previously called this a run on the vault but labeled it as a stealthy one. As though certain investors did not want to raise the alarm, but slowly take possession while inventory was still available.
On silver, the analysts remain medium-term bullish and recommend buying the dip, with a six to 12 month price target of $25 per ounce.
Risk aversion amid the banking crisis and lower US Treasury bond yields continue to boost the demand for the yellow metal. Since March 9, XAU/USD has risen more than $150 or 8%.
Investor sentiment remained fragile on Friday despite massive rescue for the banking sector, leaving global equities under pressure and gold prices at their highest since April and on track for bullion's largest one-week rally in four months.
Crypto Rallies Into Weekend, Bitcoin Heads for Its Best Week Since Early 2021Mar 17, 2023 - 13:06:10 PDT
Cryptocurrencies resumed their rally on Friday, climbing above the $26,000 for the second time this week.
Following the day-to-day twists and turns of a banking crisis can make us lose sight of the bigger picture.
At 6:33 a.m. this morning, this big, bold headline appeared at the very top of Bloomberg News web page: “How Dimon and Yellen Helped Secure $30 Billion Lifeline for First Republic.” This headline is part of a very long, highly questionable promotion of Jamie Dimon by Bloomberg News as the wunderkind of Wall Street banking.
U.S. Treasury Secretary Janet Yellen finds herself in a very dubious position. Under the Dodd-Frank financial reform legislation of 2010, the U.S. Treasury Secretary was given increased powers to oversee financial stability in the U.S. banking system. This increase in power came in response to the 2008 financial crisis – the worst financial collapse since the Great Depression
All together, tenants continued to owe nearly $11 billion in rental debt during the first two weeks of February, according to data by the National Equity Atlas. On average, renters who are behind owe $2,094.
Part of today's banking crisis was instigated by the Federal Reserve whose micro-management of interest rates created a balance sheet gap for some regional banks, institutions that have played a crucial role in powering our economy by working with small and middle size businesses.
"Politicians don’t care whether oil companies are greedy, or altruistic, or neither. Politicians care about using oil companies as a smokescreen to hide from the voters’ wrath." ~ Antony Davies
The Discount Window, Repo and FHLBS - A Guide to Funding Stress: BloombergMar 17, 2023 - 11:31:38 PDT
The scramble for cash over the past week saw US banks tap the Federal Reserve’s emergency facilities for a record amount of money, eclipsing even the levels seen during the 2008 crisis. They’ve also been hitting up the Federal Home Loan Banks system, another vital source of funding, in a way that’s prompted the institution to bolster its war chest in an unprecedented way. And pricing within various money markets from repurchase agreements to forward rate agreements has indicated that all is not well with the world of dollar funding.
I believe what is starting to unfold will be 2008 x five unless the Fed and the other big Central Banks print enough money to monetize the fraud in the banking system. But if the Fed takes that kind of action, the dollar will likely collapse.
US Leading Economic Indicators Tumble For 11th Straight Month, Signal Recession ImminentMar 17, 2023 - 08:27:12 PDT
This is the 11th straight monthly decline in the LEI (and 12th month of 14) - the longest streak of declines since 'Lehman' (22 straight months of declines from June 2007 to April 2008)
We knew this was the endgame more than two weeks ago when we reported that "Credit Suisse Crashes To All Time Low After Boosting Deposit Rates To Reverse Bank Run" in which we reported that after a quarter of "staggering" bank runs, the second largest Swiss bank - clearly panicking - was offering a 6.5% annual rate on new three-month deposits of $5 million or above...
How many times do we have to go down the duration mismatch road with fractional reserve lending and nearly $9 trillion of Fed QE to prove the current banking doesn't work?
Fed Loaned $160 Billion to Banks and $142 billion to FDIC. But QT-Related Roll-off ContinuedMar 17, 2023 - 07:41:23 PDT
At around 4.75%, plus collateral, these are expensive loans for banks.
Mar 17, 2023 - 07:37:37 PDT
Fed Dead Redemption! Flight To Safety As US Treasury 10-Year Yield Drops -16 Basis Points And Fed Discount Window Soars (Wrong Way Yellen Strikes Again!)
Mar 17, 2023 - 07:27:09 PDT
So, the Biden Administration made a horrible error by guaranteeing deposits at Silicon Valley Bank for deposits over $250,000. Essentially, Biden bailed out big tech that kept their deposits at SVB.