Author Archives: MK

USAGOLD Special Report

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Bridging the ‘Fourth Turning’ with Gold
It began in 2008.  It is scheduled to end in 2028.
What happens between now and then?

“Howe designates 2008 as the start date for the current fourth turning. Since turnings typically last 20-23 years, it will end sometime between 2028 and 2031. That puts us about midway through the cycle. At the moment, if the politicians, Wall Street and press accounts on the status of the economy are to be believed, the good times have arrived. For many Americans, though, that arrival has some pretty dark clouds hanging over it – the deep political divisions, the escalating trade wars, the emerging nation debt and currency crisis, the overvalued stock market, the threat of rising interest rates – and that is just a sampling of fourth-turning strata that worries global investors. The nation despite the rosy outlook is a bit unnerved by it all. For his part, Howe, who saw it coming, believes things could get much worse before before they get better.”

–– Full Article ––

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USAGOLD Special Report

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Gold – A reverse bubble in search of a pin
The victim could quickly find itself the beneficiary

“The current COMEX short position in gold is a computer-driven market bubble blown to enormous proportions. Now at a record level, it is a different kind of bubble, though, from the type we usually associate with the term – a reverse bubble brought to life and nurtured through excessive selling rather than buying.  Nevertheless, it is just as deadly and opportunistic as the proverbial kind – a bubble in search of a pin.”

–– Full Article ––

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Blue Line Research’s Bill Baruch sees gold at $1300 in 30-60 days

Bloomberg/Futures in Focus/6-26-2018

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Posted in Today's top gold news and opinion |

NEWS & VIEWS
Forecasts, Commentary & Analysis on the Economy and Precious Metals
Celebrating our 45th year in the gold business

June, 2018


‘Mphm!’
How cultivating a little disdain and a healthy gold diversification
can help you cope with the times

The June issue of News & Views is now out to subscribers. This month we depart from our usual fare of charts, tables and numbers to offer something a bit more philosophical.

[LINK]

[FREE SUBSCRIPTION sign-up]

If you appreciate analysis that is a bit off the beaten track and concentrates on the long term merits of gold and silver ownership, you might appreciate receiving our monthly newsletter on an on-going basis. It is offered free-of-charge as a service to our regular clientele and an incentive to prospective clients.

Source: The Strand, November, 1921


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Gold back below $1290 on mixed market news

Gold dropped back below the $1290 mark in early trading. Silver is up marginally at $16.47. Market news is mixed with the dollar down, bonds steady, the stock market up and Treasury Secretary Mnuchin announcing “very meaningful progress” in the China trade talks. What precisely he means by that remains to be seen, but the stock and gold markets took him at his word – the former rising over 300 points and the latter dropping almost $6 to $1288.50.

Stepping back for a moment, it seems the list of problem areas continues to lengthen even as the White House manages to put a few on hold. The Trump administration has a lot of balls in the air – China, Iran, Europe, Russia and now the emerging countries as a group. Items on the back burner, as we have seen in the past, can move to the front burner in a very short time frame, and areas seemingly under control can go out of control in a heartbeat. Markets, including gold, are likely to remain unstable and on a hair trigger.

Quote of the Day
“Carrying on with current monetary policy brings with it the threat of inflation. And given economists’ lack of understanding of either the level of ‘potential’ or the inflationary process itself, it could easily get out of hand. However, inflation is not the only danger. First, debt ratios have been allowed to rise for decades, even after the crisis began. Moreover, whereas before the crisis this was primarily a problem of the advanced economies, it has since gone global. Second, tolerance of risk-taking threatens future financial stability, as does the narrowing of the profit margins for many traditional financial institutions. Third, the misallocation of real resources by banks and other financial institutions is encouraged by this monetary environment. With markets unable to allocate resources properly, due to the actions of central banks, the likelihood that rising debt commitments will not be honoured has risen sharply.” – William White, chairman of the Paris-based economic and development review committee at the Organization for Economic Co-operation and Development.

Chart of the Day

Chart note: This chart is a follow-up to one posted last week on the performance of gold during the gold standard and fiat money eras. It compares the performances of gold and stocks since 1971. A $10,000 investment in gold in 1971 would be worth about $370,000 today. By comparison, a $10,000 investment in stocks in 1971 would be worth about $280,000 today. We should keep in mind too that gold is in the early stages of recovery from a major sell-off while stocks are trading at all-time highs.

Warren Buffett made a rather noisy argument recently that stocks vastly outperformed gold since 1942. A $10,000 stock investment in 1942, he says, would have become $51 million by 2018 – a figure that took many by surprise. That phenomenal return rests primarily on the compounding effect of reinvested dividends. What Buffett left out of the analysis, though, is the eroding effect of taxes and inflation. Had he included it, those returns would have returned to Earth and the discussion on stocks and gold would have returned to the chart shown above. A comparison between stocks and gold before 1971, when the gold price was fixed at $35 per ounce, is a pointless exercise.

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DMR–Gold continues retreat though less aggressively this morning

DAILY MARKET REPORT

Gold continued its retreat, though less aggressively this morning, down another $2.50 at $1290. Silver is steady at $16.29. Though yesterday’s downside was abrupt, it pays to keep things in perspective. Bloomberg reports this morning that major league hedge fund investors, Ray Dalio and John Paulson, have stayed “loyal to gold” in this period with both maintaining their holdings. In fact their loyalty appears to be part of a general trend among funds and institutions.

“SPDR Gold,” reports Bloomberg, “saw net inflows of $396 million in that period, boosting holdings in all bullion-backed ETFs tracked by Bloomberg to the highest since 2013.” We wouldn’t be surprised to learn that professional money managers have added to their positions on price weakness of the past few days.

In short, it is the long-term that really matters, both in terms of what gold can do for us as investors and the inevitable twists and turns financial markets will take along the way. All of which brings us to quote and chart of the day. . . . . . .

Quote of the Day

“Significant increases in inflation will ultimately increase the price of gold. Investment in gold now is insurance. It’s not for short-term gain, but for long-term protection. I view gold as the primary global currency. It is the only currency, along with silver, that does not require a counter-party signature. Gold, however, has always been far more valuable per ounce than silver. No one refuses gold as payment to discharge an obligation. Credit instruments and fiat currency depend on the credit worthiness of a counter-party. Gold, along with silver, is one of the only currencies that has an intrinsic value. It has always been that way. No one questions its value, and it has always been a valuable commodity, first coined in Asia Minor in 600 BC.” – Alan Greenspan

Chart of the Day

Chart courtesy of MacroTrends.com

Chart note: When the United States abandoned the gold standard in 1971 and freed currencies to float against one another, the fiat money era began. We are still in that era today. This chart shows the performance of gold from the early 1900s to 1971 when gold backed the dollar, and the era from 1971 to present when it did not. Gold has had its ups and down since 1971, but clearly, over the long run, in the absence of an official gold standard, individual investors have been well-served by putting themselves on a private gold standard, as Mr. Greenspan suggests above.

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DMR–Gold continues retreat though less aggressively this morning

DAILY MARKET REPORT

Gold continued its retreat, though less aggressively this morning, down another $2.50 at $1290.  Silver is steady at $16.29.  Though yesterday’s downside was abrupt, it pays to keep things in perspective. Bloomberg reports this morning that major league hedge fund investors, Ray Dalio and John Paulson, have stayed “loyal to gold” in this period with both maintaining their holdings.  In fact their loyalty appears to be part of a general trend among funds and institutions.

“SPDR Gold,” reports Bloomberg, “saw net inflows of $396 million in that period, boosting holdings in all bullion-backed ETFs tracked by Bloomberg to the highest since 2013.” We wouldn’t be surprised to learn that professional money managers have added to their positions on price weakness of the past few days.

In short, it is the long-term that really matters, both in terms of what gold can do for us as investors and the inevitable twists and turns financial markets will take along the way.  All of which brings us to quote and chart of the day. . . . . . .

Quote of the Day

“Significant increases in inflation will ultimately increase the price of gold. Investment in gold now is insurance. It’s not for short-term gain, but for long-term protection. I view gold as the primary global currency. It is the only currency, along with silver, that does not require a counter-party signature. Gold, however, has always been far more valuable per ounce than silver. No one refuses gold as payment to discharge an obligation. Credit instruments and fiat currency depend on the credit worthiness of a counter-party. Gold, along with silver, is one of the only currencies that has an intrinsic value. It has always been that way. No one questions its value, and it has always been a valuable commodity, first coined in Asia Minor in 600 BC.” – Alan Greenspan

Chart of the Day

Chart courtesy of MacroTrends.com

Chart note: When the United States abandoned the gold standard in 1971 and freed currencies to float against one another, the fiat money era began. We are still in that era today. This chart shows the performance of gold from the early 1900s to 1971 when gold backed the dollar, and the era from 1971 to present when it did not. Gold has had its ups and down since 1971, but clearly, over the long run, in the absence of an official gold standard, individual investors have been well-served by putting themselves on a private gold standard, as Mr. Greenspan suggests above.

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DMR–Gold support levels collapse sending it down $21 in early trading

Gold support levels collapsed in early trading taking the metal below the $1300 mark at $1293 and down $21 on the day. Silver is also off sharply – down 32¢ at $16.24. The metals have been under constant pressure the past few weeks as dollar support strengthened the result of continued monetary easing by the Bank of Japan and the European Central Bank and tightening in the United States. The 10-year Treasury note pushed over the psychologically important 3% mark yesterday adding to gold’s discomfort. The Dow Jones Industrial Average is also taking a hit this morning – down 181 as this posted, also responding to rising yields on Treasury paper. Today’s gold chart is showing the kind of waterfall drop usually associated with momentum driven technical selling in the futures’ markets, though the volume thus far today has been surprisingly middle range.

Quote of the Day
“A few years ago, the government paid less than 1.5% on its 10-year Treasury note. Today the rate has doubled. This has a profound impact on Uncle Sam’s cash flow: they have to borrow MORE money just to pay interest on the money they’ve already borrowed… and spend a larger and larger share of the budget on debt service. It’s a financial death spiral. Think about it: if the government is having this much trouble making ends meet when they’re paying 2% interest on $21 trillion in debt, what’s going to happen when they’re paying 5% on $30 trillion? It’s foolish to think that this trend has a consequence-free outcome. No nation in history has ever become prosperous by borrowing record amounts of debt to finance reckless spending.” – Simon Black, SovereignMan.com

Chart of the Day

Chart note: This chart zeroes-in on why the national debt matters to ordinary Americans and does not require a lot of embellishment. Please note, though, the strong growth in interest payments from 2008 forward at a time when rates were abnormally low. Rising interest rates and massive growth in the federal debt will push these numbers much higher – so much so that the expenditure to service the debt will soon exceed what the nation spends on national defense.

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DMR–Gold support levels collapse sending it down $21 in early trading

Gold support levels collapsed in early trading taking the metal below the $1300 mark at $1293 and down $21 on the day.  Silver is also off sharply – down 32¢ at $16.24.  The metals have been under constant pressure the past few weeks as dollar support strengthened the result of continued monetary easing by the Bank of Japan and the European Central Bank and tightening in the United States.  The 10-year Treasury note pushed over the psychologically important 3% mark yesterday adding to gold’s discomfort.  The Dow Jones Industrial Average is also taking a hit this morning – down 181 as this posted, also responding to rising yields on Treasury paper. Today’s gold chart is showing the kind of waterfall drop usually associated with momentum driven technical selling in the futures’ markets, though the volume thus far today has been surprisingly middle range.

Quote of the Day
“A few years ago, the government paid less than 1.5% on its 10-year Treasury note. Today the rate has doubled. This has a profound impact on Uncle Sam’s cash flow: they have to borrow MORE money just to pay interest on the money they’ve already borrowed… and spend a larger and larger share of the budget on debt service. It’s a financial death spiral. Think about it: if the government is having this much trouble making ends meet when they’re paying 2% interest on $21 trillion in debt, what’s going to happen when they’re paying 5% on $30 trillion? It’s foolish to think that this trend has a consequence-free outcome. No nation in history has ever become prosperous by borrowing record amounts of debt to finance reckless spending.” – Simon Black, SovereignMan.com

Chart of the Day

Chart note:  This chart zeroes-in on why the national debt matters to ordinary Americans and does not require a lot of embellishment. Please note, though, the strong growth in interest payments from 2008 forward at a time when rates were abnormally low.  Rising interest rates and massive growth in the federal debt will push these numbers much higher – so much so that the expenditure to service the debt will soon exceed what the nation spends on national defense.

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Gold attempting to gain some traction amidst mounting geopolitical concerns

Gold is attempting to gain some traction this morning trading up a little over $2 at $1321. Silver is up 4¢ at $16.68. There is much on financial markets’ plate as we begin the week and most of it revolves around growing geopolitical tensions – the Middle East, Iran, Italy and last, but not least, the festering currency and debt problems among emerging countries.

On that last score, Ethan Harris, head of global economics research at Bank of America Merrill Lynch in New York told Bloomberg that “It’s a bit like that old saying: The U.S. sneezes and the rest of the world catches a cold.” And while primary attention is focused on the other matters listed, and few others we left out, we should also keep an eye on the emerging country issues on the back burner.

Remember the Asian flu?. . . That cold to which BOA’s Harris refers can make the rounds and come back to where it started as something worse. On October, 27 1997, the year many feel sent warning shots across the bow on the general stock market dissolution that began a couple of years later, the Dow dropped 7.2% in a single day in response to the Asian contagion. An equivalent drop today would equate to the Dow shedding 1800 points – once again, in a single trading session – a bit of history that leads nicely into our Chart of the Day further below.

Quote of the Day
“I wish Montagu Norman, Philip Snowden and the monetary experts were admirals or generals. I can sink them if necessary. But when I am talking to bankers and economists, after awhile they begin to talk Persian, and then they sink me instead.” – Winston Churchill, 1924

Chart of the Day

Chart courtesy of MacroTrends.net

Chart note: This chart shows how many ounces of gold it took to buy the Dow Jones Industrial average from 1918 to present. At current prices, as you can see, the Dow is more expensive in terms of gold than in 1929, but less so with respect to the 1965 and 2000 peaks. It took just under 20 ounces of gold to buy the Dow in 1929 and right at 20 ounces at the present. Whether or not the ratio has room to expand is a matter of debate, but for the prudent planner who understands the value of not having all one’s eggs in the same basket, the current levels are inducement enough to encourage some judicious readjustment.

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Gold attempting to gain some traction amidst mounting geopolitical concerns

Gold is attempting to gain some traction this morning trading up a little over $2 at $1321.  Silver is up 4¢ at $16.68.  There is much on financial markets’ plate as we begin the week and most of it revolves around growing geopolitical tensions – the Middle East, Iran, Italy and last, but not least, the festering currency and debt problems among emerging countries.

On that last score, Ethan Harris, head of global economics research at Bank of America Merrill Lynch in New York told Bloomberg that “It’s a bit like that old saying: The U.S. sneezes and the rest of the world catches a cold.”  And while primary attention is focused on the other matters listed, and few others we left out, we should also keep an eye on the emerging country issues on the back burner.

Remember the Asian flu?. . . That cold to which BOA’s Harris refers can make the rounds and come back to where it started as something worse. On October, 27 1997, the year many feel sent warning shots across the bow on the general stock market dissolution that began a couple of years later, the Dow dropped 7.2% in a single day in response to the Asian contagion. An equivalent drop today would equate to the Dow shedding 1800 points – once again, in a single trading session – a bit of history that leads nicely into our Chart of the Day further below.

Quote of the Day
“I wish Montagu Norman, Philip Snowden and the monetary experts were admirals or generals. I can sink them if necessary. But when I am talking to bankers and economists, after awhile they begin to talk Persian, and then they sink me instead.” – Winston Churchill, 1924

Chart of the Day

Chart courtesy of MacroTrends.net

Chart note: This chart shows how many ounces of gold it took to buy the Dow Jones Industrial average from 1918 to present.  At current prices, as you can see, the Dow is more expensive in terms of gold than in 1929, but less so with respect to the 1965 and 2000 peaks.  It took just under 20 ounces of gold to buy the Dow in 1929 and right at 20 ounces at the present. Whether or not the ratio has room to expand is a matter of debate, but for the prudent planner who understands the value of not having all one’s eggs in the same basket, the current levels are inducement enough to encourage some judicious readjustment.

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Gold recovering quickly from $1302 low posted just three days ago, now at $1325

DAILY MARKET REPORT

Gold is pushing higher this morning – up $3.50 at $1325 as we move into the COMEX open. Silver is also higher – up 10¢ at $16.81. The dollar is lower this morning and oil is holding steady above the $71 per barrel mark in response to uncertainties in the Middle East and escalating tensions between Israel and Iran. (See below). Commodities in general continue to move higher. The CRB Index is up almost 23% since last July.

Gold is demonstrating once again how quickly it can recover from its periodic treks near the $1300 level. It was just three days ago that it visited the $1302 level where it found support and began turning to the upside. Today, it pushed over $1325 briefly and is now trading at $1324. Gold has spent 2018 oscillating in a range between $1300 and $1370 with a number of chart technicians predicting that it is coiling to break out of the range.

“Gold has been under pressure from a strengthening U.S. dollar,” says U.S. Global Investors Frank Holmes, “and May has historically delivered lower prices. As I’ve pointed out before, this makes it an ideal entry point in anticipation of a late summer rally before Diwali and the Indian wedding season, during which gifts of gold jewelry are considered auspicious. Demand in China for the remainder of the year also looks promising.” Given the circumstances, we might have a different kind of May in 2018.

Quote of the Day
“We sometimes forget that central banking, as we know it today, is, in fact, largely an invention of the past hundred years or so, even though a few central banks can trace their ancestry back to the early nineteenth century or before. It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. By and large, if the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with “free banking.” The truly unique power of a central bank, after all, is the power to create money, and ultimately the power to create is the power to destroy.” – Paul Volcker

Chart of the Day

Chart note: The annual rate of return on gold since 2001: 14 years of positive returns, one year level, two years of negative returns. Not a bad track record after all is said and done during times of rapid, and often unexpected changes in the financial markets and the economy.
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Gold recovering quickly from $1302 low posted just three days ago, now at $1325

DAILY MARKET REPORT

Gold is pushing higher this morning – up $3.50 at $1325 as we move into the COMEX open.  Silver is also higher – up 10¢ at $16.81.  The dollar is lower this morning and oil is holding steady above the $71 per barrel mark in response to uncertainties in the Middle East and escalating tensions between Israel and Iran. (See below). Commodities in general continue to move higher. The CRB Index is up almost 23% since last July.

Gold is demonstrating once again how quickly it can recover from its periodic treks near the $1300 level.  It was just three days ago that it visited the $1302 level where it found support and began turning to the upside. Today, it pushed over $1325 briefly and is now trading at $1324.  Gold has spent 2018 oscillating in a range between $1300 and $1370 with a number of chart technicians predicting that it is coiling to break out of the range.

“Gold has been under pressure from a strengthening U.S. dollar,” says U.S. Global Investors Frank Holmes, “and May has historically delivered lower prices. As I’ve pointed out before, this makes it an ideal entry point in anticipation of a late summer rally before Diwali and the Indian wedding season, during which gifts of gold jewelry are considered auspicious. Demand in China for the remainder of the year also looks promising.” Given the circumstances, we might have a different kind of May in 2018.

Quote of the Day
“We sometimes forget that central banking, as we know it today, is, in fact, largely an invention of the past hundred years or so, even though a few central banks can trace their ancestry back to the early nineteenth century or before. It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. By and large, if the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with “free banking.” The truly unique power of a central bank, after all, is the power to create money, and ultimately the power to create is the power to destroy.” – Paul Volcker

Chart of the Day

Chart note:  The annual rate of return on gold since 2001:  14 years of positive returns, one year level, two years of negative returns.  Not a bad track record after all is said and done during times of rapid, and often unexpected changes in the financial markets and the economy.
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Gold up on rising global geopolitical, economic tensions

DAILY MARKET REPORT

Gold was off to a rousing start this morning after a strong showing in Europe overnight then ran into resistance at the COMEX open. It is still up nearly $6 on the day at $1318.50, but got as high as $1322.50 in European trading. Silver is up 20¢ at $16.72.

In Europe, concerns are elevated that the U.S. has the power to enforce sanctions against European companies doing business in Iran and, as a result, put pressure on oil prices. Beyond the sanctions themselves, the threat of a military confrontation between the United States and/or Saudi Arabia or Israel and Iran has given markets globally a case of the jitters. Too, the consumer price index came in low dampening accelerated rate hike expectations. Even before Iran situation moved front and center, demand for gold was rising at the gold ETFs according to the World Gold Council. Funds and institutions are hedging their bets against what many see as an overvalued stock market and general geopolitical and economic instability on a number of fronts globally.

Quote of the Day
“There is a reason so many investors are increasingly becoming workaholics. We are operating in a world where feelings always run high and ideas instantly become ideologies. Yet, no one really seems to believe in much of anything. . . .Go away for a few days and it has become almost a parlor trick to be able to guess where markets will be…And the worst mistake you can make in trying to pull that off is following the news, but not the price action, while away.” – Richard Breslow, Bloomberg strategist

Chart of the Day

Chart courtesy of GoldChartsRUs.com

 

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Gold up on rising global geopolitical, economic tensions

DAILY MARKET REPORT

Gold was off to a rousing start this morning after a strong showing in Europe overnight then ran into resistance at the COMEX open.  It is still up nearly $6 on the day at $1318.50, but got as high as $1322.50 in European trading. Silver is up 20¢ at $16.72.

In Europe, concerns are elevated that the U.S. has the power to enforce sanctions against European companies doing business in Iran and, as a result, put pressure on oil prices. Beyond the sanctions themselves, the threat of a military confrontation between the United States and/or Saudi Arabia or Israel and Iran has given markets globally a case of the jitters.  Too, the consumer price index came in low dampening accelerated rate hike expectations.  Even before Iran situation moved front and center, demand for gold was rising at the gold ETFs according to the World Gold Council.  Funds and institutions are hedging their bets against what many see as an overvalued stock market and general geopolitical and economic instability on a number of fronts globally.

Quote of the Day
“There is a reason so many investors are increasingly becoming workaholics. We are operating in a world where feelings always run high and ideas instantly become ideologies. Yet, no one really seems to believe in much of anything. . . .Go away for a few days and it has become almost a parlor trick to be able to guess where markets will be…And the worst mistake you can make in trying to pull that off is following the news, but not the price action, while away.” – Richard Breslow, Bloomberg strategist

Chart of the Day

Chart courtesy of GoldChartsRUs.com

Chart note:  An article in today’s Financial Times raises concerns that in the months and years ahead gold mining companies will face the dual threat of rising oil prices and “shifting politics” in the countries where their mines are located. This chart illustrates that gold miners – as represented in the HUI and XAU indices – have not kept up with gold since the 2008 financial crisis.  “If I have a view that I want to hedge against inflation,” Neuberger Berman’s Hadan Kaya told FT, “I wouldn’t do it with miners. . .If you’re really worried about inflation and if you want to hedge yourself, the underlying is the purer bet – instead of exposing yourself to further stock market volatility through miners.”

 

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The dollar plagued world now has another currency to worry about

Bloomberg/Sid Verma/5-10-2018

“While investors have been focused on a strengthening U.S. dollar and rising Treasury yields, a weaker Chinese yuan also threatens to heap pressure on emerging market assets that have already wiped out their gains for the year.”

MK note:  Given the increasing frequency and severity of these international currency imbroglios, it is not difficult to visualize more and more nation states following the China’s example of national gold acquisitions. One recalls Charles DeGaulle’s famous criterion speech on gold in this context.  Though such a holding would not cure internal problems derived from excessive debt and the debasement of their own currencies, it would offer something of a shield to the devaluation/revaluation policies of other nation states.

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Gold trading steady in an increasingly complicated national and international scenario

DAILY MARKET REPORT

Gold is trading steady at $1316 after hitting an overnight low of $1305 in Asian and European trading. Silver is up 9¢ at $16.5p. The precious metals are reacting to a mix of news this morning that includes advancing oil prices, a weaker than expected producer price index and a falling dollar.

Iran weighs heavily on all markets this morning with oil hitting a three year high at over $70 per barrel. Though the sanctions aspect of the Trump decision may turn out to be a non-starter (China and the European Union – the two largest destinations for Iran’s oil – are unlikely to participate), there is the greater danger of the U.S. deploying militarily to enforce those measures, or an overt Iranian retaliation of some kind.

As for the inflation outlook, weaker producer prices, i.e., the absence of inflation, is likely to figure into the Fed’s interest rate deliberations. Yield on the 10-year Treasury this morning topped the 3% benchmark once again and the dollar index is dropping precipitously.

All in all, a complicated set of circumstances that encourages a watchful eye. . . . . . .There could come at some point a flash point (or flash points) that leads to a cascading response in financial markets and it could come from any one of several potential sources.

Quote of the Day
“Why then is so much writing on the subject of money so needlessly complicated, with dense, impenetrable language and equations that make sense to only a handful of academicians? And why do so many people insist that bad ideas about monetary policy, like ‘inflation is needed to increase employment,’ are as settled and unassailable as scientific principles?” – Steve Forbes and Elizabeth Ames, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It

Chart of the Day

Chart note: The gold price remains above its rising trend line since early 2016 and technically still showing signs of a possible breakout. “[S]ince bottoming in December 2015,” says a recent NASDAQ report on gold, “there has also been a clearly defined rising support line which is now converging very closely towards the 1,345 resistance. Typically this implies a breakout, up or down, is likely to occur soon. Given the long duration and size of this consolidation which strongly resembles a head & shoulder bottoming pattern, a breakout would likely to be accompanied by strong, accelerating momentum. And while the dollar has shown strength over the last three months, it looks more like a relief rally following 2017’s sharp decline. In time if the dollar resumes its downtrend, that could very well be the trigger for an upside breakout in gold which could be quite powerful.”

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Gold trading steady in an increasingly complicated national and international scenario

DAILY MARKET REPORT

Gold is trading steady at $1316 after hitting an overnight low of $1305 in Asian and European trading. Silver is up 9¢ at $16.5p.  The precious metals are reacting to a mix of news this morning that includes advancing oil prices, a weaker than expected producer price index and a falling dollar.

Iran weighs heavily on all markets this morning with oil hitting a three year high at over $70 per barrel.  Though the sanctions aspect of the Trump decision may turn out to be a non-starter (China and the European Union – the two largest destinations for Iran’s oil – are unlikely to participate), there is the greater danger of the U.S. deploying militarily to enforce those measures, or an overt Iranian retaliation of some kind.

As for the inflation outlook, weaker producer prices, i.e., the absence of inflation, is likely to figure into the Fed’s interest rate deliberations. Yield on the 10-year Treasury this morning topped the 3% benchmark once again and the dollar index is dropping precipitously.

All in all, a complicated set of circumstances that encourages a watchful eye. . . . . . .There could come at some point a flash point (or flash points) that leads to a cascading response in financial  markets and it could come from any one of several potential sources.

Quote of the Day
“Why then is so much writing on the subject of money so needlessly complicated, with dense, impenetrable language and equations that make sense to only a handful of academicians? And why do so many people insist that bad ideas about monetary policy, like ‘inflation is needed to increase employment,’ are as settled and unassailable as scientific principles?” – Steve Forbes and Elizabeth Ames, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It

Chart of the Day

Chart note: The gold price remains above its rising trend line since early 2016 and technically still showing signs of a possible breakout. “[S]ince bottoming in December 2015,” says a recent NASDAQ report on gold, “there has also been a clearly defined rising support line which is now converging very closely towards the 1,345 resistance. Typically this implies a breakout, up or down, is likely to occur soon. Given the long duration and size of this consolidation which strongly resembles a head & shoulder bottoming pattern, a breakout would likely to be accompanied by strong, accelerating momentum. And while the dollar has shown strength over the last three months, it looks more like a relief rally following 2017’s sharp decline. In time if the dollar resumes its downtrend, that could very well be the trigger for an upside breakout in gold which could be quite powerful.”

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Gold continues to grind lower on dollar strength

Gold continued to grind lower this morning – down $8 at $13.08 – mostly under pressure from a strengthening dollar, now trading near its high on the year. Silver is down 10¢ at $16.41. The dollar drag though could turn to a boost when President Trump announces the decision on the Iran nuclear deal and the resumption of sanctions. Those sanctions in turn could push oil prices higher though oddly, as this is written, oil is down on the day.

“A stronger dollar has created headwinds for gold but we don’t see the dollar going much higher on a medium term basis and in terms of geopolitics there are some factors to keep an eye on,” said Jens Pederson, senior analyst at Danske Bank, told CNBC. “It’s not our base case that the (Trump Iran announcement) will turn out to be a big market moving event but the risk (is there) that Iran will be hit with sanctions and (so we) could see gold buying again.” Meanwhile, the problem with emerging country currencies and debt continues to fester in the background the result of the dollar’s rapid rise the past few weeks. Argentina’s peso and Turkey’s lira both dropped to record lows against the dollar.

Quote[s] of the Day
“You know, so as you noted, the—what we’ve said in the longer-run statement of goals and monetary policy strategy is that we would be concerned with sustained or persistent deviations of inflation either above or below. We’ve also said—in minutes and in speeches and things like that—that that is a symmetric objective. So, that’s how we think of it. And, I think it’s—I wouldn’t characterize what we’ve done over the last five years as tolerating, you know, an undershoot of inflation.” – Jerome Powell, Fed chairman (Press conference 3/21/2-18)

“I would go back to the thought that, you know, we made one decision at this meeting, and that decision was to raise the federal funds rate by 25 basis points. The projections are really just individual projections that are submitted and then compiled. And, you know, you’re mentioning the median as being, you know, three and four being close, but, you know, I think, like any set of forecasts, those forecasts will change over time, and they’ll change depending on the way the outlook for the economy changes. So that’s really all I can say. It could change up. It could change down.” – Jerome Powell, Fed chairman (Press conference 3/21/2-18)

Chart[s] of the Day

Charts courtesy of MacroTrends.com

MK note: Three charts at the heart of the two-front – trans-Pacific and trans-Atlantic – trade war.

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Gold continues to grind lower on dollar strength

Gold continued to grind lower this morning – down $8 at $13.08 – mostly under pressure from a strengthening dollar, now trading near its high on the year.  Silver is down 10¢ at $16.41.  The dollar drag though could turn to a boost when President Trump announces the decision on the Iran nuclear deal and the resumption of sanctions. Those sanctions in turn could push oil prices higher though oddly, as this is written, oil is down on the day.

“A stronger dollar has created headwinds for gold but we don’t see the dollar going much higher on a medium term basis and in terms of geopolitics there are some factors to keep an eye on,” said Jens Pederson, senior analyst at Danske Bank, told CNBC. “It’s not our base case that the (Trump Iran announcement) will turn out to be a big market moving event but the risk (is there) that Iran will be hit with sanctions and (so we) could see gold buying again.”  Meanwhile, the problem with emerging country currencies and debt continues to fester in the background the result of the dollar’s rapid rise the past few weeks.  Argentina’s peso and Turkey’s lira both dropped to record lows against the dollar.

Quote[s] of the Day
“You know, so as you noted, the—what we’ve said in the longer-run statement of goals and monetary policy strategy is that we would be concerned with sustained or persistent deviations of inflation either above or below. We’ve also said—in minutes and in speeches and things like that—that that is a symmetric objective. So, that’s how we think of it. And, I think it’s—I wouldn’t characterize what we’ve done over the last five years as tolerating, you know, an undershoot of inflation.” – Jerome Powell, Fed chairman (Press conference 3/21/2-18)

“I would go back to the thought that, you know, we made one decision at this meeting, and that decision was to raise the federal funds rate by 25 basis points. The projections are really just individual projections that are submitted and then compiled. And, you know, you’re mentioning the median as being, you know, three and four being close, but, you know, I think, like any set of forecasts, those forecasts will change over time, and they’ll change depending on the way the outlook for the economy changes. So that’s really all I can say. It could change up. It could change down.” – Jerome Powell, Fed chairman (Press conference 3/21/2-18)

Chart[s] of the Day

Charts courtesy of MacroTrends.com

MK note: Three charts at the heart of the two-front – trans-Pacific and trans-Atlantic – trade war.

 

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Posted in Today's top gold news and opinion |

Gold continues to trade in tight range, eyes trade problems and recent dollar strength

DAILY MARKET REPORT

Gold continued to trade in a tight range this morning with the price down $3 on the day at $1312. Silver is down 7¢ at $1645.

Markets, including gold, are attempting to decipher whether or not there would be any lasting effect from the breakdown in the China trade talks and recent strength in the dollar. A potential emerging country currency crisis moved front and center late last week when Argentina announced raising interest rates to 40% to stem the flow of capital out of the country. Some analysts blame gold’s range-bound price behavior on short-covering in the dollar – a trend driving the dollar up and gold down.

Quote of the Day
“You have to choose (as a voter) between trusting to the natural stability of gold and the natural stability and intelligence of the government. And with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold.” – George Bernard Shaw (1856–1950)

Chart of the Day

Chart note: We do beg the forgiveness of those who have seen this chart before, but we think it worth re-posting on a regular basis to demonstrate gold’s strong performance as a portfolio holding over a long period of time – especially for newcomers. It also fits well with today’s Quote of the Day. It shows the average annual price of gold since 1970. It is meant to dispel the notion that gold is somehow volatile or unpredictable and as a result unreliable as a long-term portfolio safe haven. To the contrary, it shows gold living up to its reputation as precisely the opposite – stable in the face of rapidly changing economic circumstances, predictable in that it reacts directly to those circumstances and reliable in that it performs as advertised when held quietly in well-protected corner of the investment portfolio.

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Gold continues to trade in tight range, eyes trade problems and recent dollar strength

DAILY MARKET REPORT

Gold continued to trade in a tight range this morning with the price down $3 on the day at $1312. Silver is down 7¢ at $1645.

Markets, including gold, are attempting to decipher whether or not there would be any lasting effect from the breakdown in the China trade talks and recent strength in the dollar. A potential emerging country currency crisis moved front and center late last week when Argentina announced raising interest rates to 40% to stem the flow of capital out of the country. Some analysts blame gold’s range-bound price behavior on short-covering in the dollar – a trend driving the dollar up and gold down.

Quote of the Day
“You have to choose (as a voter) between trusting to the natural stability of gold and the natural stability and intelligence of the government. And with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold.” – George Bernard Shaw (1856–1950)

Chart of the Day 

Chart note: We do beg the forgiveness of those who have seen this chart before, but we think it worth re-posting on a regular basis to demonstrate gold’s strong performance as a portfolio holding over a long period of time – especially for newcomers.  It also fits well with today’s Quote of the Day. It shows the average annual price of gold since 1970. It is meant to dispel the notion that gold is somehow volatile or unpredictable and as a result unreliable as a long-term portfolio safe haven. To the contrary, it shows gold living up to its reputation as precisely the opposite – stable in the face of rapidly changing economic circumstances, predictable in that it reacts directly to those circumstances and reliable in that it performs as advertised when held quietly in well-protected corner of the investment portfolio.

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Posted in Today's top gold news and opinion |

Gold trading nervously on trade talks deadlock, jobs report miss

DAILY MARKET REPORT

Gold is trading nervously this morning unable to make heads or tails from the combination of deadlocked trade talks between the U.S. and China and an employment report that fell short of expectations.  At the moment, it is trading at $1308 level after hitting $1314 just after the jobs report release and down $4 on the day. Silver is down 4¢ on the day at $16.46.

Of the two developments, the China talks breakdown is by far the bigger of the two issues and one global markets will attempt to sort out over the next several days. Based on the warnings coming from both sides, we would suspect that more tariffs and retaliations are likely with the possibility of a response coming from the White House as early as today.

Jameel Ahmad, the head of currency strategy at FXTM, offered some interesting comments on the current gold market in an article at Scrap Hedge this morning. “The ability of gold to defend the psychological support level of $1,300,” he said, “will encourage investors to consider adding gold to their portfolio around its current levels.” He then added that “if the trade talks between the United States and China do hit a wall, as many anticipate, during the early phases, it would provide encouragement for investors to search for gold as a safe-haven asset. The Japanese yen would also likely benefit if the trade talks between the U.S. and China did lead to a period of renewed uncertainty in the market.”

Quote of the Day
“If I were trying to create a deflationary bust, I would do exactly what the world’s central bankers have been doing the past six years. I shudder to think of the malinvestment that has occurred. Corporate debt has soared but most was used for financial engineering. Bankruptcies have been minimal, but who know has many corprorate zombies free money is keeping alive? Individuals have plowed ever-increasing sums into assets at every-increasing prices. Of all the interventions by the not-so-invisible hand of government, not allowing the market to set the hurdle rate for investment is the one I see with the highest costs.” – Stanley Druckenmiller, Duquesne Family Office (Wall Street Journal opinion column)

Chart of the Day

Chart note: This chart illustrates the solid real rate of return gold has delivered against goods and services in twelve of the past sixteen years. In seven of those years, gold’s appreciation significantly outstripped the inflation rate. With gold currently trading at cyclical lows, you can now combine hedging the worst-case scenario with the extra advantage of securing an asset that is generally viewed as undervalued. This chart stands in stark contrast to the one we posted yesterday on the real rate of return on dollar-based savings, and reinforces gold’s role as an alternative savings vehicle for the times.

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Gold trading nervously on trade talks deadlock, jobs report miss

DAILY MARKET REPORT

Gold is trading nervously this morning unable to make heads or tails from the combination of deadlocked trade talks between the U.S. and China and an employment report that fell short of expectations.  At the moment, it is trading at $1308 level after hitting $1314 just after the jobs report release and down $4 on the day. Silver is down 4¢ on the day at $16.46.

Of the two developments, the China talks breakdown is by far the bigger of the two issues and one global markets will attempt to sort out over the next several days. Based on the warnings coming from both sides, we would suspect that more tariffs and retaliations are likely with the possibility of a response coming from the White House as early as today.

Jameel Ahmad, the head of currency strategy at FXTM, offered some interesting comments on the current gold market in an article at Scrap Hedge this morning. “The ability of gold to defend the psychological support level of $1,300,” he said, “will encourage investors to consider adding gold to their portfolio around its current levels.” He then added that “if the trade talks between the United States and China do hit a wall, as many anticipate, during the early phases, it would provide encouragement for investors to search for gold as a safe-haven asset. The Japanese yen would also likely benefit if the trade talks between the U.S. and China did lead to a period of renewed uncertainty in the market.”

Quote of the Day
“If I were trying to create a deflationary bust, I would do exactly what the world’s central bankers have been doing the past six years.  I shudder to think of the malinvestment that has occurred.  Corporate debt has soared but most was used for financial engineering.  Bankruptcies have been minimal, but who know has many corprorate zombies free money is keeping alive?  Individuals have plowed ever-increasing sums into assets at every-increasing prices.  Of all the interventions by the not-so-invisible hand of government, not allowing the market to set the hurdle rate for investment is the one I see with the highest costs.” – Stanley Druckenmiller, Duquesne Family Office (Wall Street Journal opinion column)

Chart of the Day

Chart note:  This chart illustrates the solid real rate of return gold has delivered against goods and services in twelve of the past sixteen years. In seven of those years, gold’s appreciation significantly outstripped the inflation rate. With gold currently trading at cyclical lows, you can now combine hedging the worst-case scenario with the extra advantage of securing an asset that is generally viewed as undervalued.  This chart stands in stark contrast to the one we posted yesterday on the real rate of return on dollar-based savings, and reinforces gold’s role as an alternative savings vehicle for the times.

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Posted in Today's top gold news and opinion |

Gold reverses course, Beijing negotiations loom, Fed adjourns

DAILY MARKET REPORT

Gold reversed course overnight and is trading $9 higher this morning at $1315 once again repeating the Fed Week pattern we have all come to know and understand. As we pointed out on Monday, when the market opened sharply lower – Quite often, Fed Week ends much differently than it begins. It looks like this rendition will follow the script though it is still early in the game. Silver is trading higher as well – up 13¢ at $16.54.

Aiding gold in its recovery are concerns about the upcoming trade talks in Beijing. The United States is threatening deeper restrictions on Chinese exports including telecommunication products, China, for its part, is doing what it can to weaken the yuan against the U.S. dollar. Both actions look like preliminary shots across the other’s bow. A CNBC headline reflected the consensus opinion on the Beijing negotiations: “Stocks are heading for a tumble at the open on waning hopes of real progress in the US-China trade talks”.


Quote of the Day
“A lot of the bank issues in the United States and around the world have been solved. But migrating the problem to the sovereign balance sheets. So the banks look pretty good, but the Fed has $4 trillion of debt on its balance sheet. And it’s even more, we are not in a European audience. In Europe they would really know what they meant because all the European banking system is fixed but Europeans are all also buying up all the debt. The budget deficits haven’t contracted, they’ve widened. The banks buy the debt, then walk over to the European Central bank, finance it. Get new money, so they can buy the next round of debt. So, you have countries with way bigger deficits, as a percentage of GDP than the U.S., that are borrowing money for ten years, at 3.0% or 2.5%. Really? And the banks look OK. It is the sovereigns that look risky, like Greece. You wonder is the next crisis going to be a sovereign crisis? And if it is, it will just be a continuation. People will look back and say ‘what we really did, we didn’t fix the outcome of the financial crisis. We left that open and as a result, its really been a thirty-year workout.’” – Lloyd Blankfein, Goldman Sachs [Source: CNBC]


Chart of the Day

Chart note: During that 18-year period from 2000 to present, the one-year Treasury provided a positive real rate of return in only six years.  The rest of the time, the real rate of return was negative.  The real rate of return is also important in the context of Federal Reserve interest rate policy in that it signals the performance of the dollar against other currencies and gold.  At the moment, the consensus opinion is that the Fed will keep interest rates below the inflation rate in order to keep the economy from swinging into a downturn, a situation causing some analysts to question the longer-term staying power of the recent rally in the dollar.  Tomorrow we will take a look at the real rate of return on gold.

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Gold reverses course, Beijing negotiations loom, Fed adjourns

DAILY MARKET REPORT

Gold reversed course overnight and is trading $9 higher this morning at $1315 once again repeating the Fed Week pattern we have all come to know and understand. As we pointed out on Monday, when the market opened sharply lower – Quite often, Fed Week ends much differently than it begins.  It looks like this rendition will follow the script though it is still early in the game. Silver is trading higher as well – up 13¢ at $16.54.

Aiding gold in its recovery are concerns about the upcoming trade talks in Beijing.  The United States is threatening deeper restrictions on Chinese exports including telecommunication products, China, for its part, is doing what it can to weaken the yuan against the U.S. dollar. Both actions look like preliminary shots across the other’s bow. A CNBC headline reflected the consensus opinion on the Beijing negotiations:  “Stocks are heading for a tumble at the open on waning hopes of real progress in the US-China trade talks”.


Quote of the Day
“A lot of the bank issues in the United States and around the world have been solved. But migrating the problem to the sovereign balance sheets. So the banks look pretty good, but the Fed has $4 trillion of debt on its balance sheet. And it’s even more, we are not in a European audience. In Europe they would really know what they meant because all the European banking system is fixed but Europeans are all also buying up all the debt. The budget deficits haven’t contracted, they’ve widened. The banks buy the debt, then walk over to the European Central bank, finance it. Get new money, so they can buy the next round of debt. So, you have countries with way bigger deficits, as a percentage of GDP than the U.S., that are borrowing money for ten years, at 3.0% or 2.5%. Really? And the banks look OK. It is the sovereigns that look risky, like Greece. You wonder is the next crisis going to be a sovereign crisis? And if it is, it will just be a continuation. People will look back and say ‘what we really did, we didn’t fix the outcome of the financial crisis. We left that open and as a result, its really been a thirty-year workout.’” – Lloyd Blankfein, Goldman Sachs [Source: CNBC]


Chart of the Day

Chart note:  During that 18-year period from 2000 to present, the one-year Treasury provided a positive real rate of return in only six years.  The rest of the time, the real rate of return was negative.  The real rate of return is also important in the context of Federal Reserve interest rate policy in that it signals the performance of the dollar against other currencies and gold.  At the moment, the consensus opinion is that the Fed will keep interest rates below the inflation rate in order to keep the economy from swinging into a downturn, a situation causing some analysts to question the longer-term staying power of the recent rally in the dollar.  Tomorrow we will take a look at the real rate of return on gold.

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Gold trading sideways awaiting Fed; Bloomberg says U.S. debt outlook “bleaker than even Italy”

DAILY MARKET REPORT

Note: Today we return to our regular format of a single Daily Market Report, instead of the two we have been posting over the past few months. Both the Chart of the Day and Quote of the Day will be included in the morning report. We will post LATE DAY UPDATES when warranted, so check back late afternoon, early evening.

Gold is trading sideways this morning at $1305.50 waiting, like the rest of the financial markets, to see if the Fed will spring any surprises in its announcement this afternoon. Silver, though, has sprung a bit of a surprise of its own, up 24¢ at $16.42 this morning. Silver is vastly under-priced against gold at yesterday’s ratio of 80.5 to one and technical traders might be finally latching on to that opportunity at current lows.

Though the markets seem to have fully priced-in the Fed interest rate policy – at least for now – it has not even begun to take into account the immense problems associated with the rapidly growing national debt. In an article meant to alert readers that the Treasury Department intended to raise the quarterly long-term debt schedule from $39 billion to $73 billion – a small number in the scheme of things – it also slips in a somewhat scathing observation:

“The country’s debt load is seen spiraling compared with the rest of the world, with forecasts showing that in five years it will have a bleaker outlook than even Italy, the perennial poor man of the Group of Seven industrial nations.”

Over the past 12 months, the federal government has added $1.225 trillion to the national debt. Over the last 90 days, it has added an astonishing $574 billion to the national debt pile. On a number of occasions, we have posted charts on the direct connection between the national debt and gold since 1971. That correlation looks poised to enter a new realm, but few are paying attention to it. . .once again, at least for now.


Chart of the Day

Chart note: This chart zeroes-in on why the national debt matters to ordinary Americans. Rising interest rates and massive growth in the gross debt will push these number much higher – so much so that it will exceed in the near future what the nation spends on national defense. . . .and the higher interest rates grow the greater the problem will become. At some point one would think that like Italy or Greence, at some point, the level of debt and interest payments will affect the national credit rating.


Quote of the Day
“Investors who owned Russian stocks in 1917 or Chinese stocks in 1949 lost everything. London Business School market historians Elroy Dimson, Paul Marsh and Mike Staunton calculate that shares in Austria—which lost two wars and an empire—lost money after inflation over 97 years, even when counting dividends. Shareholders in Belgium, Germany, Italy, France and Japan were down in real terms for more than half a century, as were Spanish investors, who endured a destructive civil war and dictatorship.” – James Mackintosh, Wall Street Journal

 

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Gold trading sideways awaiting Fed; Bloomberg says U.S. debt outlook “bleaker than even Italy”

DAILY MARKET REPORT

Note:  Today we return to our regular format of a single Daily Market Report, instead of the two we have been posting over the past few months.  Both the Chart of the Day and Quote of the Day will be included in the morning report.  We will post LATE DAY UPDATES when warranted, so check back late afternoon, early evening.

Gold is trading sideways this morning at $1305.50 waiting, like the rest of the financial markets, to see if the Fed will spring any surprises in its announcement this afternoon.  Silver, though, has sprung a bit of a surprise of its own, up 24¢ at $16.42 this morning. Silver is vastly under-priced against gold at yesterday’s ratio of 80.5 to one and technical traders might be finally latching on to that opportunity at current lows.

Though the markets seem to have fully priced-in the Fed interest rate policy – at least for now – it has not even begun to take into account the immense problems associated with the rapidly growing national debt.  In an article meant to alert readers that the Treasury Department intended to raise the quarterly long-term debt schedule from $39 billion to $73 billion – a small number in the scheme of things – it also slips in a somewhat scathing observation:

“The country’s debt load is seen spiraling compared with the rest of the world, with forecasts showing that in five years it will have a bleaker outlook than even Italy, the perennial poor man of the Group of Seven industrial nations.”

Over the past 12 months, the federal government has added $1.225 trillion to the national debt.  Over the last 90 days, it has added an astonishing $574 billion to the national debt pile.  On a number of occasions, we have posted charts on the direct connection between the national debt and gold since 1971.  That correlation looks poised to enter a new realm, but few are paying attention to it. . .once again, at least for now.


Chart of the Day

Chart note:  This chart zeroes-in on why the national debt matters to ordinary Americans.  Rising interest rates and massive growth in the gross debt will push these number much higher – so much so that it will exceed in the near future what the nation spends on national defense. . . .and the higher interest rates grow the greater the problem will become.  At some point one would think that like Italy or Greence, at some point, the level of debt and interest payments will affect the national credit rating.


Quote of the Day
“Investors who owned Russian stocks in 1917 or Chinese stocks in 1949 lost everything. London Business School market historians Elroy Dimson, Paul Marsh and Mike Staunton calculate that shares in Austria—which lost two wars and an empire—lost money after inflation over 97 years, even when counting dividends. Shareholders in Belgium, Germany, Italy, France and Japan were down in real terms for more than half a century, as were Spanish investors, who endured a destructive civil war and dictatorship.” – James Mackintosh, Wall Street Journal

 

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Posted in Today's top gold news and opinion |

Gold continues south, Fed week happy campers few and far between

LATE REPORT

Gold continued the southerly trek begun this morning finishing at a two-month low of $1305 and down $11 on the day.  Silver did not fare much better ending down 20¢ on the day at $16.17. As reported earlier today, tomorrow’s Fed meeting figures largely into gold’s performance the past two days.

Gold was not alone today in feeling the pain. Oil also took a hit today as did the rest of the commodities complex, and it has not been a good two days in the stock market either.   In short, Fed Week happy campers have been few and far between. Only the dollar has a smile on its face – up over 3% the past two days.

Most likely, we will get a feel as to where gold sentiment truly lies after the Fed publishes its announcement tomorrow afternoon – for better or worse, but hopefully for better.  My guess is we could see some short covering as early as tonight during Asian market hours.

Quote of the Day
“Fed speakers have done little to push back against this expectation … we expect no fireworks.”  – Michael Feroli, JP Morgan (in a note to clients today)


“A customer of mine who is 55 years old recently asked if it was not too late for him to get into precious metals. The answer is no—it is not too late to invest in gold and make a profit at any age. Quite the contrary, with the market showing the early signs of a correction, it is, in my humble opinion, a perfect time to invest in precious metals.”  – Oliver Garret, Forbes

What you need to know before you
launch your gold and silver IRA

Hedging economic uncertainty in your retirement plan

As the ultimate asset preservation vehicle, gold is also an important retirement investment especially in these precarious times. Find safe harbor –– and some retirement peace of mind.

To end right, start right.
Choose the right portfolio mix with the right firm at the right price.
Choose USAGOLD serving gold and silver investors since 1973

We have helped hundreds of investors include precious metals in their IRA and other retirement plans. We can help you.

1-800-869-5115
Ext#100

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Posted in Today's top gold news and opinion |

Gold continues south, Fed week happy campers few and far between

LATE REPORT

Gold continued the southerly trek begun this morning finishing at a two-month low of $1305 and down $11 on the day. Silver did not fare much better ending down 20¢ on the day at $16.17. As reported earlier today, tomorrow’s Fed meeting figures largely into gold’s performance the past two days.

Gold was not alone today in feeling the pain. Oil also took a hit today as did the rest of the commodities complex, and it has not been a good two days in the stock market either. In short, Fed Week happy campers have been few and far between. Only the dollar has a smile on its face – up over 3% the past two days.

Most likely, we will get a feel as to where gold sentiment truly lies after the Fed publishes its announcement tomorrow afternoon – for better or worse, but hopefully for better. My guess is we could see some short covering as early as tonight during Asian market hours.

Quote of the Day
“Fed speakers have done little to push back against this expectation … we expect no fireworks.” – Michael Feroli, JP Morgan (in a note to clients today)


“A customer of mine who is 55 years old recently asked if it was not too late for him to get into precious metals. The answer is no—it is not too late to invest in gold and make a profit at any age. Quite the contrary, with the market showing the early signs of a correction, it is, in my humble opinion, a perfect time to invest in precious metals.” – Oliver Garret, Forbes

What you need to know before you
launch your gold and silver IRA

Hedging economic uncertainty in your retirement plan

As the ultimate asset preservation vehicle, gold is also an important retirement investment especially in these precarious times. Find safe harbor –– and some retirement peace of mind.

To end right, start right.
Choose the right portfolio mix with the right firm at the right price.
Choose USAGOLD serving gold and silver investors since 1973

We have helped hundreds of investors include precious metals in their IRA and other retirement plans. We can help you.

1-800-869-5115
Ext#100

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Posted in dailyquotes |