Author Archives: USAGOLD

Blunt Fed tips gold see-saw higher

LATE REPORT

Gold was up today continuing the mercurial, see-saw performance that has dominated its price action over the past several weeks.  Finishing at $1292, gold was up $11.50 on the day and pretty much ended this shortened week (for all intents and purposes) where it started.  Silver was up 20¢ on the day finishing at $17.15, but down about 14¢ on the shortened week.

The minutes to the most recent Federal Reserve meeting reveal a governing committee genuinely concerned about the price levels in the stock market and the possibility for “a sharp reversal in asset prices [that] could have damaging effects on the economy.” Blunt as it is, that assessment is likely to stick in both peoples’ minds and the financial markets’ repertoire for weeks to come as we move to the end of 2017.  The gold market seems to have taken it as a caution on raising interest rates as well as a warning from on high.

Quote of the Day
“In a goldilocks scenario of low interest rates, abundant liquidity, stable growth and a focus on the ‘good’ Trump, investors continue to push asset prices, volatility and leverage to historical extremes. Yet, a low volatility carry environment with rather extreme positioning is a dangerous combination, which we recently likened to dancing on the rim of a volcano.” – Alain Bokobza, head of global asset allocation, Societe Generale


What is this important chart telling us about future Fed policy?
And what does it mean for the gold market?

Find out in the current issue of our newsletter.
We cover the gold market with the gold owner in mind.

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Newcomers, prospective clientele. . . . We welcome your interest.


News & Views
Forecasts, Commentary & Analysis
on the Economy and Precious Metals


 

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Gold reverses Friday’s gains, another mysterious mega-trade

Gold reversed today what it gained on Friday finishing down $17.25 at $1276.63.  Silver followed suit giving up 39¢ and finishing the day at $16.89.  Again today, gold and the Japanese yen were traveling partners, and now with the yen recovering in Asian trading gold has perked up as well (up $3 in the overnight market at $1279.50).  There was little in the way of news to justify the price drop – just a huge 15,000 contract dump  in a matter of seconds at the COMEX open reminiscent of a similar mysterious mega-trade last week. By the way, the U.S. federal government just went over $80 billion in additions to the national debt in November – quite a pace as we move to the end of 2017.

Quote of the Day
“Gold traders are having to grow more accustomed to surges in trading volume as spikes that began surfacing around mid-year become more frequent. In the 10 minutes ended 3:10 a.m. in New York on Tuesday, when most North American traders were probably still asleep, contracts representing more than 2 million ounces of the metal changed hands on the Comex, sending prices down as much as 0.7 percent. The bulls responded hours later, with trades covering more than 3.5 million ounces at around 10 a.m., helping to push the price higher.” – Luzi-Ann Javier, Bloomberg


From the October, 2017 issue of News & Views. . . . .

“In fact, institutional involvement may be unprecedented at this juncture and it is not just the high-profile gold advocates like Ray Dalio, Stanley Druckenmiller and David Einhorn pumping capital into the market, but hundreds of funds and institutions from one end to the globe to the other.

It came to light this past month, for example, that almost 3000 tonnes* of gold in physical form sit on the balance sheets of Chinese commercial banks and financial institutions – a surprising revelation. In the West, inventories at gold ETFs, the favored gold ownership vehicle for professional investors, have gone from 2050 tonnes in late 2015 to just under 2770 tonnes now – a gain of 720 tonnes or 35%. Last month, the World Gold Council (WGC) published a report showing that European funds accounted for 79% of the overall growth in gold ETFs in 2017 with German funds and institutions accounting for half of those inflows.”

We cover the gold market with the gold owner in mind.
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News & Views
Forecasts, Commentary & Analysis on the Economy and Precious Metals


 

 

 

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Gold up today in stellar fashion

LATE REPORT

Gold finished the day in stellar fashion – up $15.41 from yesterday’s close at $1293.87.  It finished the week up $18.52.  Silver also had a good day up 22¢ to finish at $17.27.  It was up 41¢ on the week.  As reported here, the upside push began last evening when it bolted higher in concert with the Japanese yen in Asian trading.  It sustained the upside in Europe early today then bled over to the U.S. market with the strongest part of the move coming in today’s COMEX trading.

Some gave credit to the tax bill, but with gold holding its own in recent weeks despite heavy paper selling, the shorts look like they are beginning to lose heart. Reports of heavy buying in the physical market by Bridgewater [Ray Dalio] might also have given short speculators cause for re-evaluation.  What is he factoring into the gold equation that they are not?

In the background, you have the clampdown in Saudi Arabia on big money players, including asset confiscations. (That had to turn a few heads among the moneyed elite in far-off places.) You also have North Korea back making unsettling assertions about its need to build a nuclear arsenal.  Then there is the small matter this past week of wholesale inflation suddenly registering something other than a faint pulse.

Quote of the Day
“The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” – Ernest Hemingway

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Gold bolts higher in overnight, Asian trading. . . . .

LATE REPORT

After a quiet day today in Stateside trading, gold is bolting higher in the overnight, Asian market – up about $6 at $1284.  The yen is pushing higher as well, a scenario that raises questions about the yen/gold relationship mentioned in these reports several times over the past few months.  The dollar, in fact, is down across the boards in overnight trading.  Here’s a snapshot on tonight’s trading, i.e., the yen-gold correlation.  There is a reason for the Japanese yen heading North and it’s made an impression on gold.  That reason is not evident at the moment.  We might know more as the evening unfolds.

Quote of the Day
“In a matter of only 2 quarters, Bridgewater has accumulated 3.894 million shares of GLD, which are worth $473M today and 11.3 million IAU shares, which are worth $140M today. Put together, Bridgewater is betting $613M of clients’ money that gold will perform well, and we know the benchmark is 21%, so Mr. [Ray]Dalio has a conservative outlook that gold prices will reach $1,556 by the end of 2018. . .gold has weathered through huge paper smashes that have proven to bears that demand is too strong right now. . . Gold held above its 200-DMA. It’s now trading above its 100-DMA and is on the brink of moving higher than the 50-DMA. ” – Wealth Research Group


If you are looking for a quick snapshot of the day’s events with respect to gold, or if you are attempting to put together an explanation as to why gold is up or down at any given point in time, you would gain from bookmarking our GOLD TODAY! page.  This page is heavily traveled and always has been.  We invite you to take advantage of this service provided by USAGOLD and check back here regularly for our take when the market breaks in one direction or the other.

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Gold up on PPI surprise, massive paper trade volume

LATE REPORT

Gold finished up $2 from yesterday’s close at $1280, but it was up $8 from the intraday low. Silver was down 2¢ at $17, but up 12¢ from the intraday low. Today’s upside in the gold market might well be the first signs of inflation affecting the price of the precious metal. It is too early to draw any strong conclusions, but the timing in concert with today’s release of the producer price index is worth noting. The sudden uptick in the PPI to 4.8% caught many Wall Streeters by surprise. A massive $4.5 billion in paper trades hit the COMEX market as the price dropped near the 200-day moving average and the PPI print hit computer screens.

Quote of the Day
“Money, again, has often been a cause of the delusion of multitudes. Sober nations have all at once become desperate gamblers, and risked almost their existence upon the turn of a piece of paper. To trace the history of the most prominent of these delusions is the object of the present pages. Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.” Charles Mackay Extraordinary Popular Delusions or the Madness of Crowds (1841)


NOVEMBER SPECIAL OFFER

In a world where stocks march ever higher, real estate prices remain strong, and fads like Bitcoin steal headlines, it’s admittedly easy to overlook the gold market. Yet, it is this very environment that has created unprecedented opportunities like our November offer. When it comes to investing, time and time again, it is those that buck the trend, that see the stampede and go the opposite direction, that are the most handsomely rewarded.

So, if you are among the contrarians out there saying, “I just don’t believe it”, or “Something’s gotta give”, you might be looking for ways to benefit when the inevitable rebalancing of asset values takes shape. In a gold market ripe with opportunity, the most compelling area of all is historic US $20 gold pieces, and more specifically the St. Gaudens in Mint State 63 grade – the focus of our November Special Offer.

TO LEARN MORE
$20 St. Gaudens Mint State 63
Only 250 coins available

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Gold down today under mysterious circumstances

LATE REPORT

Gold dropped $10 today under mysterious circumstances. It finished the day at $1275.35  turning a fairly good week a bit upside down.  Silver went along for the ride finishing the day at $16.86 – down 10¢ on the day.  As it is gold finished up $5.60 for the week, silver up 4¢.

Seasonax’ Dmitri Speck has tracked daily gold movement since 2000 and has come to an interesting conclusion about Fridays.  “. . .[P]rices”, he says, “essentially tended to move sideways over the first four days of the week. Only in 2009 did Wednesday manage to generate a somewhat stronger average return as well. The gains in the gold price over the entire period of almost 17 years were primarily achieved on Fridays. . . On Friday prices frequently even managed to rise even when the gold price declined overall in the course of the year, such as e.g. in 2014. In short, Friday is indeed quite an unusual day.”

This Friday (today) was markedly different from Mr. Speck’s finding, and it all happened when some entity dumped 40,000 contracts on the New York Comex – four million ounces.  The price immediately dropped $10.  No one has come forward to admit the dirty deed, but its not the first time we have had one of these mysterious waterfall drops in the gold price sans a logical explanation.  The mystery of it all was proclaimed at several news sources including Reuters, Bloomberg and CNBC.


Quote of the Day
“The bullion market has seen similar mysterious trades in the past few months. Last month, contracts covering more than 2 million ounces of gold traded in just five minutes, sending prices higher. Two months earlier, contracts for a similar amount traded in a minute, propelling the metal higher. In June, the market saw trades for over 1.8 million ounces posted in just a minute.” – Luzi-Ann Javier, Bloomberg (article linked above)


News & Views is the contemporary, web-based version of our client letter which traces its beginnings to the early 1990s as a hard-copy newsletter mailed to our clientele. The “Big Breakout of 1999” headlined in the November, 1999 issue of our newsletter moved the gold price from $250 to $325 per ounce. It was a major event.  To put it in perspective, the same upward move today would put the gold price at better than $1650 per ounce.

The times have changed, but our mission has not. Simply put, it is to deliver value to our readers in the form of cutting-edge Forecasts, Commentary and Analysis on the Economy and Precious Metals. The very same mission that has been displayed in our banner for over twenty-five years.

If you are looking for commentary on the gold market without the negative mainstream media spin, you will find News & Views a viable and valuable partner in that endeavor. We invite you to sign-up for FREE immediate access to our current newsletter as well as future publications. You never know with gold.  The next big breakout could be right around the corner.

November’s feature article:

Government Finances and Gold
A cautionary tale told in four straightforward charts


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Investment gold demand up 17%

LATE REPORT

Gold continued higher today – quietly finishing up another $3.78 at $1284.90.  Silver was down 4¢ on the day finishing at $16.96. Concerns about a ramp-up in Middle East geopolitical tensions along with the crackdown on many of Saudi Arabia’s wealthiest citizens have focused attention on the precious metals. The Gulf States have always been a strong market for physical gold and what is going on there now could fuel capital flight and even more demand.

The World Gold Council is out with its quarterly report on gold demand.  The headline – “Gold demand in Q3 at eight year low” – tells only part of the story.  Flagging jewelry sales in India led overall demand lower, and even then, the reduced demand is traced directly to India’s continuing attempts to artificially dampen demand through regulation. Central bank and private physical demand in the form of coins and bars, on the other hand, posted some fairly healthy numbers, up 25% and 17% year over year respectively.  China led the way – a steady source of strong physical demand.  All told, gold demand is holding up pretty well globally despite strong stock markets and central bank jawboning on interest rate and economic outlook expectations.

Quote of the Day
“Kuwait has unveiled a plan to build a massive gold city. The project which will cover 100,000 square meters will be the biggest of its kind in the region, according to Al Qabas newspaper. The Ministry of Commerce and Industry has submitted a demand to the Municipality of Kuwait City to assign the land for work on the mega project. The complex would include a building for precious metals, a VIP lobby, administrative facilities, car parks, jewelry testing labs, 1,500 jewelry workshops and 2,000 shops. The mega project will also include an exhibition hall, a permanent jewelry museum, a bourse for trading in gems and precious metals and another hall for holding auctions.” – MenaFN


The only “Why Gold” infographic
you will ever need

If you want a clear understanding of just what makes gold such a valuable portfolio alternative,  the link above is for you. This five part infographic will educate and delight prospective and experienced gold owners alike. Not the stuff of dry economics, it reveals in roughly 15-minutes viewing time how gold came to be mankind’s most revered form of money and safe haven asset, and why it is likely to remain so for a long time to come.

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Gold unstuck, moving ahead

LATE REPORT

Gold pushed higher today adding another $6 to the price and finishing at $1281.12.  Silver finished 9¢ higher at $17.00. Last week we talked about the metals running in place.  Now we are starting to get a little forward movement.   With everything that has occurred in the financial markets since election night, it is easy to overlook the fact that gold is still up 11% on the year and silver, though trailing, has managed to gain 7%.  By way of comparison, the S&P 500, which has been the beneficiary of a tremendous amount of positive publicity, is up a little over 15% thus far this year.

Jon Hussman (Hussman Strategic Advisors), who has a habit of calling major market turns, had some interesting advice for his clients recently. “For now, it’s enough to refrain from capitulating at record valuations,” he writes. “There’s no need to take a hard-negative outlook here, but don’t allow impatience, fear of missing out, or the illusion of permanently rising stock prices to entice you into entrusting your financial future to the single most overvalued market extreme in history.”  I interpret that message as a call to diversify.  Trees, as Richard Russell used to say, do not grow to the sky.

Quote of the Day
“Madness is rare in individuals – but in groups, parties, nations, and ages it is the rule.” – Friedrich Nietzsche


Should I buy a gold ETF?

You decide that the time has come to include gold in your investment portfolio. You contact your investment advisor and he or she puts you into a gold ETF. Did you do the right thing? In this article posted at USAGOLD’s Gilded Opinion page, Olivier Garret tells why gold coins and bullion owned outright are the better option.  Be aware: For the true asset preservation investor, hidden dangers lurk in the gold and silver ETFs.


 

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Turkey prices prove inflation not dead

Those of you who believe that inflation is dead are in for a big surprise when it comes time to plunk down your debit card to buy this year’s Thanksgiving Day featured table guest.  The price of turkey has spiked – up nearly 30% over last year.

 

 

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Gold off to healthy start for the week

LATE REPORT

Gold got off to a healthy start for the week today registering a $12.o5 gain to close at $1281.80  Similarly silver posted a 40¢ gain to close at $17.21.  As mentioned in the Friday LATE REPORT, it seems the precious metals were simply interested in getting past some of the overhanging questions, i.e., Fed policy and personnel, federal government numbers, etc., before deciding a direction.  It seems they leaned on “higher” once the Beltway smoke cleared and here we are. . . .The general instability in the Middle East is worth mentioning as the region is a long-standing market for the metals in physical form – particularly in the suddenly volatile Gulf oil states.

Quote of the Day
“It is beyond belief that we know so little about how people get rich or poor, about how it is they come to dwell in comfort and health or die in penury and disease. Financial markets are the machines in which much of human welfare is decided; yet we know more about how our car engines work than about how our global financial system functions. We lurch from crisis to crisis; so little is our knowledge that we resort not to science but to shamans.”  – Benoit Mandelbrat, Mathematician


If you are a chart enthusiast, we have a couple pages at the USAGOLD website worth bookmarking. These charts are presented in conjunction with the St. Louis Federal Reserve (FRED) and update automatically through the magic of the internet.

Both pages are handy references used often to settle after-dinner disputes among family members about the direction of the economy and the gold market. [smile]

Gold trends and indicators in chart form

Monetary trends and indicators in chart form

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Gold, silver running in place

LATE REPORT

Gold was down $6.10 today finishing at $1269.75.  It was down $3.89 on the week.  Silver was down 26¢ on the day and 3¢ on the week.  The precious metals have been pretty much running in place the past several weeks with little in the way of news or developments to push prices forcibly one direction or the other.  Gold started the month of October at $1270.76 and finished it at $1270.86.  Silver similarly started October at $16.55 and finished it at $16.67.  The noisy headlines belied the quiet price action all month – not unusual for the precious metals markets which attract a lot of attention even when things are quiet. We will be looking to get some traction next week now that some of the outstanding market questions have found at least temporary resolution. . . . .

Quote of the Day
“Amid this mania for investment, the stock market has begun self – cannibalizing … literally. Since 2009, US companies have spent a record $3.8 trillion on share buy-backs financed by historic levels of debt issuance. Share buy backs are a form of financial alchemy that uses balance sheet leverage to reduce liquidity generating the illusion of growth. A shocking +40% of the earning-per-share growth and +30% of the stock market gains since 2009 are from share buy-backs. Absent this financial engineering we would already be in an earnings recession.” – Chris Cole, Artemis Capital


News & Views is the contemporary, web-based version of our client letter which traces its beginnings to the early 1990s as a hard-copy newsletter mailed to our clientele. The “Big Breakout of 1999” headlined in the November, 1999 issue of our newsletter moved the gold price from $250 to $325 per ounce. It was a major event.

The times have changed, but our mission has not. Simply put, it is to deliver value to our readers in the form of cutting-edge Forecasts, Commentary and Analysis on the Economy and Precious Metals. The very same mission that has been displayed in our banner for over twenty-five years.

This month’s lead article, Government Finances and Gold, is published below, but there are few other nuggets of wisdom and perspective in the current edition that will be of interest to current and would-be gold owners.

FREE SUBSCRIPTION
Immediate access.

Prospective client?  We invite your no obligation interest.


 

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Gold pumped by Fed chairman decision

LATE REPORT

Gold was up today in Fed-related trading.  It finished the day at $1274.49 up $3.63 from yesterday’s closing number.  It is up another $6 in overnight trading.  Silver had an even better day, up 43¢ and back over the $17 mark at $17.10.  It is up another 6¢ in the overnight market.  Pushing the market was a Wall Street Journal report that the president had appointed Jerome Powell chairman of the Federal Reserve. Powell is generally considered dovish on interest rates.  Adding to the gold-positive tone was a report from the China Gold Association that bar demand there was up 15.49% through the first three quarters of the year. Gold is up 6% in yuan terms so far this year.

Quote of the Day
“We think the final break with precious metal currency systems from the early 1970s (after centuries of adhering to such regimes) and to a fiat currency world has encouraged budget deficits, rising debts, huge credit creation, ultra loose monetary policy, global build-up of imbalances, financial deregulation and more unstable markets. The various breaks with gold based currencies over the last century or so has correlated well with our financial shocks/crises indicator. It shows that you are more likely to see crises/shocks when we break from hard currency systems. Some of the devaluation to Gold has been mindboggling over the last 100 years.” – Jim Reid, Deutsche Bank


If our Quote of the Day resonates, you will find the lead article for our November newsletter of interest. Please scroll below to “Government Finances and Gold–A cautionary tale told in four straightforward charts” and a link to signing-up for the rest of the newsletter (which we believe you will find equally interesting).
 

 

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Government Finances and Gold

A cautionary tale told in four straightforward charts

by Michael J. Kosares
Author:  The ABCs of Gold Investing–How To Protect & Build Your Wealth with Gold
Founder:  USAGOLD
“President Trump, in complete contradiction to candidate Trump, has praised Yellen for being a ‘low-interest-rate-person.’ One reason Trump may have changed his position is that, like most first-term presidents, he thinks low interest rates will help him win reelection. Trump may also realize that his welfare and warfare spending plans require an accommodative Fed to monetize the federal debt. The truth is President Trump’s embrace of status quo monetary policy could prove fatal to both his presidency and the American economy.” – Ron Paul, Institute for Peace and Prosperity
Editor’s note: This issue of our newsletter features several interactive, live charts offered in conjunction with the St. Louis Federal Reserve and the ICE Benchmark Administration/LBMA. You can access statistical details by moving your cursor over the charts. If the chart does not automatically update, please move the toggle button on the year bar all the way to the right. We invite you to bookmark this edition for future reference.

CHART 1: Sustained by both political parties, the national debt has taken on a life of its own

(Click to enlarge)

Since the early 1970s, the logic for gold ownership has been inextricably bound to the cash flow problems of the federal government. As the national debt increased so did the well-documented damage associated with it – to the dollar, to financial markets and to the economy in general. Simultaneously, gold’s role as an inversely correlated portfolio hedge grew over that nearly one-half century as well.

As you can see from the chart above, which shows the percent change in the national debt from the previous year, those problems do not favor any particular political party or president. In a certain sense, it has taken on a life of its own, marching to over $20 trillion without regard to party ideology. I mention that for the benefit of those who might think that somehow things might be different under a Trump administration. In fact, the greatest percentage growth in the national debt occured surprisingly during Republican administrations.

“As GOP lawmakers are struggling to enact an agenda of spending and tax reform,” says one journalist, “they continue to face the painful reminder that Trump has no ideological drive to tame the deficit. The President has made clear that he doesn’t mind if deep tax cuts result in a ballooning of the national debt.”

CHART 2: How the national debt and the Fed could bankrupt the nation

DEFICITS MATTER!

Democrat Franklin Delano Roosevelt was the first to publicly declare that deficits did not matter since, he reasoned, we owe the money to ourselves. Dick Cheney, who should have known better, made the same claim on behalf of Republican deficits. Deficit denial has never held water simply because holders of government paper, foreign or domestic, intend to be repaid and with interest. It’s that part about creditors demanding interest that blows a hole in the “deficits-do-not-matter” argument. One of the stand-out features of the chart above is that, as interest rates have declined over the last several years, the interest paid by the federal government has increased markedly due to the rapid growth in size of the accumulated debt.

Some quick background:

* * * In 2008 when the national debt stood at $10 trillion, the federal government paid $336 billion in interest. For a measuring stick, the ten-year Treasury bill drew an average interest rate at the time of around 3.66%.

* * * In 2012 when the debt crossed the $16 trillion threshold, the interest payment was almost $456 billion. The ten-year Treasury bill drew an average interest rate of 1.80%.

* * * In 2016 with the national debt approaching the $20 trillion mark, the interest payment was $497 billion. The ten-year Treasury bill drew an average interest rate of 1.84%. It is difficult to overlook the fact that 2016’s interest payment was an all-time record at the second lowest rate on the 46-year chart.

* * * If the ten-year Treasury bill were to rise to 2.82% (the average since 2007), the implied interest payment would exceed $750 billion, 20% more than what the United States spends annually on the national defense.

* * * If the average interest rate were to double from current levels (about 3.7% on the ten year Treasury bill), the United States would pay almost $1 trillion annually in interest on the national debt, or nearly one-third of 2016 tax revenues ($3.27 trillion). At that point, markets might begin to question the solvency of the U.S. federal government.

The exercise above points up the limitations on the Federal Reserve with respect to raising interest rates. It is a cautionary tale told in some very big numbers that promise to become even larger. In short, the onerous public debt has hamstrung the Fed in ways that policy-makers are loathe to discuss publicly. The Federal Reserve either keeps a leash on interest rates, or it bankrupts the nation.

CHART 3: The national debt is the ultimate threat to the dollar’s reserve currency status

In the worst-case scenario, the accumulated debt and interest payments reach levels the markets find intolerable, threatening the dollar’s reserve currency status and foreign creditors’ confidence in U.S. Treasury paper. We came perilously close to that in 2011 when Standard & Poor’s downgraded America’s credit status citing the lack of “effectiveness, stability and predictability of American policymaking and political institutions.” Since then, an argument could be made that things have only gotten worse. Not only has the red ink flowed at an unprecedented rate, the U.S. debt to GDP ratio has gone from 62% in 2007 to 105% now. Among the G-20 nations, the United States now has the third worst debt-to-GDP ratio. Only Japan and Italy have worse. One cannot help but wonder what might lie ahead as we enter a new round of Washington wrangling over government finances.

CHART 4: The national debt has made gold a superstar

Few correlations in the financial markets ring truer and more consistently than the one between the federal debt and gold. That relationship between the two is about as fundamental as it gets because it goes to the heart of what’s wrong with the debt-based fiat money system. As the federal government borrows more and more dollars into existence and the banking system pushes those dollars through the global monetary system, it diminishes the value of all the other dollars already being held somewhere by somebody – domestic private investors, financial institutions, foreign governments and central banks, et al.

With respect to foreign holders of the U.S. sovereign debt, the process begins with trade imbalances that are later converted to Treasury paper in order to earn a yield. This process of replication simultaneously showcases gold, which cannot be replicated at will, as the dollar’s counterpoint and chief competitor – a superstar portfolio holding for reasons French president Charles DeGaulle famously outlined in his “Criterion” speech delivered in 1965. France set the tone and strategy for dealing with the “export” of dollars, as he described it, by converting those imbalances to gold and taking delivery within French borders.

From that time forward global investors, both private and public, have followed the French model with China’s current gold acquisition program the most notable recent example. The result is what you see on the chart. For those with capital preservation as the goal, gold has been a stalwart and productive ally since the United States went off the gold standard in 1971 and launched the era of fiat money, federal deficits and the massive federal debt.

As for the future, we should keep in mind that the very same conditions which created the long-term secular trend for both the national debt and gold are still in place today – nothing has changed fundamentally. As long as that is the case, we can assume gold will continue to attract capital as a long-term portfolio hedge just as it has, to varying degrees, through the first 46 years of the fiat money system. Please note, too, that gold is trading below the federal debt’s trend line, an indication that it might have some catching up to do in the months and years ahead.


If you would like to broaden your view of gold market, we invite you to sign-up for our regular newsletter and receive quality commentary like what you have just read. It’s free of charge and comes by e-mail. You can opt out at any time.

News & Views is the contemporary, web-based version of our client letter which traces its beginnings to the early 1990s as a hard-copy newsletter mailed to our clientele. The “Big Breakout of 1999” headlined in the November, 1999 issue of our newsletter moved the gold price from $250 to $325 per ounce. It was a major event.

The times have changed, but our mission has not. Simply put, it is to deliver value to our readers in the form of cutting-edge Forecasts, Commentary and Analysis on the Economy and Precious Metals. The very same mission that has been displayed in our banner for over 25 years.

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Gold down today picking up where it left off Friday

Gold was down today picking up where it left off Friday by giving up another $5.14 and finishing the day at $1270.86.  Silver finished off 15¢ at $16.67. Most of the downside occurred in the Asian market and simultaneously (again) with depreciation in the Japanese yen against the dollar.  Gold and silver both leveled out in U.S. trading. Gold and silver are down marginally in overnight trading. Generally speaking, most of the downside in gold the past few weeks is related to speculation about who might end up chairing the Fed and future interest rate policy.  An announcement on the next Fed chair is due before the end of the week.

Quote of the Day
“A financial strategist at a major investment bank in Europe recently told me he keeps two-thirds of his personal investment portfolio in a global stock portfolio and the remaining third in gold bullion. He’s not a crazy, far-right conspiracy nut or classic gold bug either. So why all the gold? ‘Political risk,’ he says. ‘It’s my insurance against the world’s governments or central banks screwing things up.'” – Brett Arends, MarketWatch


Happy Halloween everyone!


If you would like a different perspective on the economy and the financial markets – one distinctly separate from what is bandied about in the financial press as the daily regimen – you would probably enjoy our newsletter.

In the November issue (to be released soon) . . . .
Government finances and gold (in-depth)
What does it take to garner a real rate of return on your money these days
Four steps to becoming a successful gold and silver investor
And more. . . . .

It is available free of charge  to our current and prospective clientele, and we invite you to sign up here.  Immediate access to our October issue.

 

 

 

 

 

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Gold continues southward trek, euro in tailspin

LATE REPORT

Gold continued its trek southward today with a drop of $10.37 finishing at $1266.86. Silver in similar fashion finished the day down 15¢ at $16.77. Today’s downside came the result of speculation that the next Fed chairman would bring a hawkish tone to interest rate and monetary policy, but that decision is still very much up in the air.  Also the European Central Bank announced it would halve its bond buying program from 60 billion to 30 billion euros per month, but undercut the reduction by extending the time frame 9 months from January to September, 2018.  The announcement sent the euro into a tailspin, the dollar higher and gold lower.


Small Observation
A situation that may or may not occur combines with a different situation likely to inspire strong precious metals demand among the local citizenry.  The two somehow conspire to drive prices lower. Contrarians, please take note.


Quote of the Day
“[T]he time had come, as in all periods of speculation, when men sought not to be persuaded by the reality of things but to find excuses for escaping into the new world of fantasy.” – John Kenneth Galbraith, The Great Crash of 1929


Market Anecdote
Bernard Baruch, the famous early 20th century stock speculator, in explaining the behavior of markets:

“Have you ever seen in some wood, on a sunny quiet day, a cloud of flying midges — thousands of them — hovering, apparently motionless, in a sunbeam? …Yes? …Well, did you ever see the whole flight — each mite apparently preserving its distance from all others — suddenly move, say three feet, to one side or the other? Well, what made them do that? A breeze? I said a quiet day. But try to recall — did you ever see them move directly back again in the same unison? Well, what made them do that? Great human mass movements are slower of inception but much more effective.”

This is the same Bernard Baruch who just before the stock market crash of 1929 liquidated his stock holdings and put his money into bonds and cash, and then later, after the crash, dumped a good portion of his fortune into gold. When asked why he would do such a thing by the Secretary of the Treasury, Baruch replied that he was “commencing to have doubts about the currency.”

While others banked on the 1920’s stock mania, Baruch’s intuition was telling him that there was something amiss. There are times when it pays to distinguish yourself from the crowd – the midge that flies in the other direction.


If you are commencing to have doubts about the currency, or at the very least, if you are commencing to have doubts about the stock market perhaps the time has come to speak with a USAGOLD representative about hedging your portfolio with the precious metals.

In the meantime, if you would like a different perspective on the economy and the financial markets – one distinctly separate from what is bandied about in the financial press as the daily regimen – you would probably enjoy our newsletter.

November issue (to be released next week)
Government finances and gold (revisited)
What does it take to garner a real rate of return on your money these days
Four steps to becoming a successful gold and silver investor
And more. . . . .

It is available free of charge  to our current and prospective clientele, and we invite you to sign up here.  Immediate access to our October issue.


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Gold marginally higher on Fed chair speculation

LATE REPORT

Gold finished marginally higher today at $1282.04 up $1.71. Silver also traded sideways.  In Asian trading last night gold sunk toward $1270 level on Shinzo’s Abe’s victory in Japan’s parliamentary elections, a win interpreted as yen negative (dollar positive).  It rebouned during U.S. trading following a Bloomberg article raising the the possibility Jerome Powell, who is widely seen as an interest rate dove, might become the next Fed chairman.  Silver traded sideways today.

Quote of the Day
“Gold has worked down from Alexander’s time. . .When something holds good for two thousand years, I do not believe it can be so because of prejudice or mistaken theory.” – Bernard Baruch


“USAGOLD is a delightful & refreshing company. Their website contains extremely valuable information for experts as well as novices. Checking gold & silver spot prices and trends are easy from my smart phone. The folks with whom I’ve dealt are extremely knowledgeable & patient with explanation of details. The office promptly provides an invoice & confirmation of receipt of funds. The metals are shipped timely as promised and follow-through is impeccable. I have proudly recommended USAGold to family, friends & business associates.” – Eleanor D. (Better Business Bureau five-star rating)

For your first or next purchase, give us a try and see why thousands of investors have chosen USAGOLD as their gold firm.


 

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Fence sitters looking for a sign

LATE REPORT

Gold gave up all of yesterday’s gains today to close out the week.  Silver was similarly disposed.  For the day gold was down $9.54 at $1280.33.  For the week, it was down $23.60.  Silver was down 21¢ on the day and 37¢ on the week.

Sharps Pixley’s Lawrie Williams sums up current market conditions as follows:  “The key factor here appears to have been the dollar index which has shown a minor degree of strength after a prolonged period of weakness, but we’re not convinced this ‘strength’ will last. Strength in the dollar tends to mean weakness in the gold price in dollar terms at least. There have been no net sales or purchases in or out of the big GLD gold ETF over the past few days either – and these tend to be a pointer to institutional investment interest in gold – suggesting that the players in this sector are sitting on the fence awaiting some indication of significant price movement in one direction or the other.”

Quote of the Day
“It is only relatively recently that Western capital markets have become aware that Chinese demand for physical gold absorbs large quantities of annual mine production, and that the country is now the largest mining nation by far, extracting it at a rate of over 450 tonnes per annum. Knowledge of China’s overall demand is restricted to deliveries out of the Shanghai Gold Exchange’s vault into public hands, running at about 2,000 tonnes per annum, which with India’s public demand accounts for nearly all global mine extraction of about 3,000 tonnes.” – Alasdair Macleod, GoldMoney


Lawrie Williams alludes to the slack ETF gold demand this past week as an indicator that institutional investors are sitting on the fence.  In this month’s News & Views, we take a close look at the important role professional investors now play in the gold market under the headline: How professional investors radically altered the gold market.

To learn more, we invite you to sign-up for our free monthly newsletter with appreciation to our current and prospective clientele. Immediate access.


 

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Quiet day for gold, but up 11% on year

Gold traded marginally lower today – down $4.07 at $1280.90.  Silver was off 2¢ today finishing at $16.97.  With little in the way of news today, we thought it would be a good time to review the daily chart on gold.  As you can see, the uptrend on the year remains in place with gold still trading above the trend line.  Gold is up 11% on the year.  Silver is up 6.7%.

Quote of the Day
“Precious metals remain a relevant asset class in modern portfolios, despite their lack of yield.  They are neither a historic accident or a relic. . . Gold tends to preserve its real purchasing power over the very long run (albeit with substantial short-term deviations). Since Roman times, the real value of gold has remained more or less unchanged in the face of wars and political, social and technological shocks. Many investors therefore see gold as a way to hedge against structural tail risks, which could potentially erase the real value of all other financial assets.” – Jeffrey Currie and Michael Hinds, Goldman Sachs commodity analysts


If you are new to the USAGOLD website, we invite you to kick back and stay awhile. Do a little interest-driven browsing. We launched this website in 1997 and it has dutifully been providing guidance and market information to investors ever since. One of the most highly referenced and visited web portals in the gold business, this website goes deep. People are often surprised just how deep it goes. WELCOME!

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Gold, silver downtrends tracked to speculation on next Fed chair

Gold continued its downtrend today shedding another $10 at $1284.97.  Silver tagged along losing 20¢ on the day at $17.19.

There is some evidence that weakness in the gold market is associated with speculation about who might end taking the reins at the Federal Reserve come February, 2018.  Yesterday, reports surfaced that the John Taylor, the Stanford economist and perceived to be a policy hawk, made a favorable impression on the president in an interview for the Fed chair position last week.  The precious metals markets turned quickly to the downside following a Bloomberg report on the Taylor interview early yesterday. Any trading on who might be the next Fed chairman, though, is decidedly premature.  The president says he will make a decision over the next couple of weeks.

Gold is trading marginally higher in the overnight market.

Quote of the Day
“By 2020–2022 we would see record high gold prices in terms of nominal annual average prices. For the annual average price to be $1,650 or $1,700, that means that you’re going to have gold prices knocking on the door of $2,000.” – Jeffrey Christian, CPM Group, Managing Director


The October, 2017 issue of USAGOLD’s News & Views:

“Funds and institutions, so-called professional investors, are pouring large amounts of capital into gold through ETFs, straight-up physical ownership in the form of bullion, and paper ownership in the form of futures and options. In fact, institutional involvement may be unprecedented at this juncture and it is not just the high-profile gold advocates like Ray Dalio, Stanley Druckenmiller and David Einhorn pumping capital into the market, but hundreds of funds and institutions from one end to the globe to the other.”

Why is it important that gold is up all the major currencies?  Why are professional investors globally going for gold??  Is a new bull trend already underway as Jeffrey Christian suggests???

To learn more, we invite you to sign-up for our free monthly newsletter. Please keep us in mind if the time has come for you to either begin or add to your precious metals holdings.


 

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Gold tracks south in market skirmish at the $1300 mark

Gold suddenly took a turn south earlier today and ended the day down $8.68 at $1294.92.  Silver similarly turned to the downside losing 16¢ on the day at $17.19. After-hours both metals are moving sideways and lacking conviction. In the absence of any plausible explanation for today’s downside, we will go with the bulls and bears fighting it out in the paper gold arena over the $1300 price level and leave it that for the time being.

Quote of the Day
“In 1999 gold began to rally, and few could figure why. Anticipating proximate causes for major price trends is only speculation. Gold was well into a major upswing before the dot-com bust, 9/11, ultra-low interest rates, the housing bubble and mortgage-backed securities debacle, and the 2008 credit crash. These headlines of course fueled a bull trend that was already well underway. At the end of the day, price makes news and the headlines follow. The obvious lesson is that all markets, including gold, discount future events and that the development of prices in the absence of easily articulated causes must be respected.” – John Hathaway, Tocqueville Capital


The October, 2017 issue of USAGOLD’s News & Views:

“Funds and institutions, so-called professional investors, are pouring large amounts of capital into gold through ETFs, straight-up physical ownership in the form of bullion, and paper ownership in the form of futures and options. In fact, institutional involvement may be unprecedented at this juncture and it is not just the high-profile gold advocates like Ray Dalio, Stanley Druckenmiller and David Einhorn pumping capital into the market, but hundreds of funds and institutions from one end to the globe to the other.”

Why is it important that gold is up all the major currencies?  Why are professional investors globally going for gold??  Is a new bull trend already underway as John Hathaway suggests???

To learn more, we invite you to sign-up for our free monthly newsletter. Please keep us in mind if the time has come for you to either begin or add to your precious metals holdings.


 

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Gold pushes past $1300 mark, silver moving towards $17.50

Gold continued its march to higher ground today finishing above the $1300 mark at $1303.60.  Gold is up $10.00 on the day and $27 on the week, or 2.1%.  Silver followed suit up 16¢ on the day at $17.38, and 59¢ on the week, or 3.5%. Gold’s rise this week has taken investment markets by surprise and it will probably take some time to sort out the reasons for the sudden resurgence of interest in the precious metals.  Inquiries and sales are both up at USAGOLD over the past week, and investors are citing concerns about the long-term value of the dollar.

Quote of the Day
“In a lot of cultures, the word for money derives from the word for gold. In China, the ideogram for money is the ideogram for gold.” – Peter Oakley, Royal College of Arts (UK)


Commonality is probably something you would not expect to find as an attribute of a brokerage firm, but when it comes to gold it is an important one. Having a similar world view goes a long way in establishing the common ground essential to a good working relationship. For over 40 years we have resolutely advocated owning gold for asset preservation purposes. Admittedly, this philosophy does not resonate with all prospective gold owners, but if it does with you, we think you will find USAGOLD a kindred spirit.
If the time has come for you to begin or extend your gold and silver ownership plans – if you are raising the red flag – we invite you contact us and find out why thousands have chosen us as their gold firm.
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Gold continues uptrend begun on Friday, silver shines

Gold continued an uptrend that began on Friday registering a nearly $8 gain today at $1283.83, but that only tells part of the story.  Since the yellow metal hit bottom early Friday at $1260, it is up almost $24 (+2%).  Silver recorded an even stronger gain from its early Friday bottom – up 67¢ at $16.93 (+4%).  It was up 14¢ today.  Both metals are trading higher in the overnight market.

We will stick with our long-stated view that most of the downside in both metals over the past nearly 30 days has been the result of technical trading.  Likewise, the past two days’ upside appears technical as well with support coming-in near the 200-day moving average at $1254.  In the meanwhile, opportunistic physical investors continue to load up.

Quote of the Day
“The really exciting thing is gold’s October seasonal bottom is the last one before this metal’s strongest seasonal rally of the year. On average gold’s winter rally propels it 9.5% higher in bull-market years by late February. That 9.5% winter rally well outguns the 6.9% average autumn rally that recently ended, and dwarfs the 3.8% average spring rally. We are right at gold’s most-bullish time of the year seasonally! Gold has real potential to enjoy a monster winter rally this year, especially if these insane stock markets start to roll over under the Fed’s just-unleashed quantitative-tightening juggernaut.” – Adam Hamilton, Zeal LLC


If you are new to the USAGOLD website, we invite you to kick back and stay awhile. Do a little interest-driven browsing. We launched this website in 1997 and it has dutifully been providing guidance and market information to investors ever since.
One of the most highly referenced and visited web portals in the gold business, this website goes deep. People are often surprised just how deep it goes. As a launchpad, we offer a quick website tour that hits the high points and suggests links, but it’s the depth, practicality and ease of use that will keep you coming back.
WELCOME!  And please keep us in mind for your next precious metals purchase.

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Gold Week in Review (Video), October 06, 2017

Related links:

CME FedWatch Tool

Germany’s golden decade

Gold Market Is In ‘Very Good Shape’ – Rick Rule

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Gold down today on trend continuation

Gold was down today on a continuation of trends in place since mid-September. It finished at $1268.17 off $6.55 on the day.  Silver also tracked lower finishing the day at $16.57, down 4¢.  Both metals have had trouble finding solid footing amidst the unwinding of commodity exchange long positions and some short-selling.

Meanwhile, the World Gold Council reported earlier today that ETF inflows continued unabated as the price dropped in September. Thus far this year ETFs have added 192 tonnes of gold to their holdings. ETFs are the favored vehicle for funds and institutions  globally. In short, as speculators unloaded paper positions, physical accumulators loaded up.

Quote of the Day
“With its long history as a store of value independent of the financial system, gold is a natural investment for many German investors. In 2016, Kantar TNS surveyed more than 2,000 German investors on our behalf, revealing that:

• 59% of respondents agreed with the statement that gold will never lose its value in the long-term
• 48% agreed with the statement that owning gold makes me feel secure for the long-term • 42% agreed with the statement I trust gold more than the currencies of countries.

When asked why they invested in gold, 57% of bar and coin investors said it was to protect their wealth and 28% said it was to make good returns in the long-term. It is clear gold fulfils an important long-term, wealth preservation role in German investors’ portfolios.” – World Gold Council, Germany’s Golden Decade

In keeping with that quote from the World Gold Council, new visitors might be interested to know that USAGOLD agrees with German investors on gold’s role in the long-term investment portfolio.  Here is a page posted for high net worth investors that outlines our philosophy in that regard. . . .From that page:

Commonality is probably something you would not expect to find as an attribute of a brokerage firm, but when it comes to gold it is an important one. Having a similar world view goes a long way in establishing the common ground essential to a good working relationship. For over 40 years we have resolutely advocated owning gold for asset preservation purposes. Admittedly, this philosophy does not resonate with all prospective gold owners, but if it does with you, we think you will find our firm a kindred spirit.”


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Gold is up this year not just in dollars but in every major currency

Why it’s important to the typical gold investor

by Michael J. Kosares
Author: The ABCs of Gold Investing
Founder: USAGOLD

“Even those of us who have been tracking gold’s progress for decades frequently give in to the ease of quoting gold’s value in terms of fiat currency – most commonly in US dollars. And yet, we have it the wrong way round. Gold is in fact the centre of the economic universe, and all the fiat currencies (including cryptocurrencies) revolve around gold.” – Jeff Thomas, InternationalMan.com

Most gold investors are aware that major national currencies have been in an uptrend against the dollar since the beginning of the year. What might be surprising is the degree they are up against the dollar. Here is the scorecard:

Euro –– +10.3%
Japanese yen –– + 4.2%
Chinese yuan –– + 4.5%
Swiss franc –– + 5.1%
British pound –– + 8.9%
Australian dollar –– + 9.0%
Canadian dollar –– + 7.2%
(As of 9/27/2017)

Even more surprising is the degree to which gold has strengthened against those same currencies. Here is that scorecard:

Euro –– + 1.1%
Japanese yen –– + 8.0%
Chinese yuan –– + 6.5%
Swiss franc –– + 6.1%
British pound –– + 3.4%
Australian dollar –– + 2.1%
Canadian dollar –– + 3.2%
U.S. dollar –– + 11.5%
(As of 9/27/2017. See charts below.)

Gold and the dollar are often referred to as safe havens in the same breath, but what these numbers tell us is that – at least for now – gold increasingly has become the safe haven of choice. It is too early to know whether or not the across-the-board uptrend in gold will continue, but it is worth noting and monitoring. Clearly, significant capital is finding its way to the gold market globally and we suspect that institutional investors and funds have played the dominant role.

Why is gold’s appreciation against domestic national currencies important to the individual American gold investor?

It identifies an important trend in gold ownership taking hold in the top economies around the world – a developing investor mindset and response to host country monetary policies that could be of immense importance going forward. It is revealing that the same phenomenon has taken root concurrently in all eight of the countries represented by the currencies listed above.

The pattern reflects concern about central banks’ ability to lift local economies out of a persistent disinflationary malaise. It also suggests that for many investors gold, not the U.S. dollar, looks to be the safer and more productive alternative should things take a turn for the worse.

As long as the low interest rate environment and concerns about overvaluation in the stock and bond markets persist, asset managers and investors are likely to continue shifting resources to underpriced gold (and silver). Given forward guidance provided by the central banks, it appears those policies and concerns will be with us for years to come.

Thus far, gold’s performance against major currencies has flown under the radar in financial circles and outside the notice of the mainstream media. That is not likely to remain the case for long.


In the October issue of News & Views, we pick up where this article leaves off with a very important companion piece: How Professional Investors Radically Altered the Gold Market.  We also explore what has brought the Old Guard back into the precious metals market.  Last, we include a CLIENT SPECIAL ADVISORY in conjunction with the 20th anniversary of The ABCs of Gold Investing.
We invite you to sign-up for our free monthly newsletter with appreciation to our current and prospective clientele. Immediate access to this month’s edition.

Charts courtesy of Gold Charts$Us/Nick Laird.  With thanks.
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Gold sideways today, but up in Asian market

Late Report

Gold tracked sideways all day today with little to mention in the way of news or unusual trading activity.  Silver followed suit.  In Asia, however, both metals have registered a pulse.  Gold is up $2.60 at $1275.35 as this is posted.  Silver is up 7¢ at $16.72.

Quote of the Day
“Time is the soul of money, the long-view — its immortality. Hard assets are forever, even when destroyed by the cataclysms of history. It is the outlook that perpetuated the most competent and powerful aristocracies in continental Europe, well up through World War I and, in certain prominent cases, beyond; it is the mindset that has sustained the most fiscally serious democratic republic in the Western world, that of Switzerland. . .” – Marcia Christoff-Kurapovna, the Mises Institute

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September’s final numbers not as bad as some would have us believe

LATE REPORT

Gold finished the day down $8.94 at $1270.70.  Silver was down 8¢ at $16.55. The final numbers on the week and the month ending 9/29 are not as bad as some would have us believe:

Gold
Week:  Down $30.83 at $1279.70 [- 2.4%]
Month:  Down $ $41.51 at $1279.70 [- 3.1%]

Silver
Week:  Down 52¢ at $16.63 [- 3.0%]
Month:  Down 92¢ at $16.63 [- 5.2%]

Blame for the downside has been cast wide and far, but in the end, the corrections in both metals had more to do with profit-taking and a little piling-on here and there from the short side of the market than much else.  In keeping with that analysis, the CFTC reports in its Commitment of Traders report that large speculators cut their positions by a little over 10% last week. Over the past two weeks, large specs have cut their positions by about 20% following eight successive weeks of gains.

We should keep in mind that gold and silver registered their highs for the year at the beginning of the month before turning south.  The metals are trading sideways in Asia as this is posted.

Quote of the day
“Central banks must feel like they have stepped through a mirror, and who can blame them? They used to struggle to bring inflation down or keep it under control; now they toil to push it up. They used to fear wage increases; now they urge them on . They used to dread fiscal expansion; now they sometimes invoke it. Fighting inflation defined a generation of postwar central bankers; encouraging it could define the current one.

What is going on in this topsy-turvy world? Could it be that inflation is like a compass with a broken needle? That would be a dreadful prospect – central bankers’ worst nightmare. And what would be the broader implications for central banking?” – Claudio Borio, chief economist,  the Bank for International Settlements


In the October issue of News & Views, we explore how professional investors radically altered the gold market, why gold is up in every major currency and  what has brought the Old Guard back into the precious metals market.

We invite you to sign-up for our free monthly newsletter with appreciation to our current and prospective clientele. Immediate access to this month’s edition.


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Gold lifts itself from the canvas today, posts a gain

LATE REPORT

Gold lifted itself from the canvas today settling $5 higher at $1287.00 and up $10.50 from its intra-day bottom at $1276.50.  Silver was 4¢ higher at $12.83. Gold has spent most of September tracking to the downside from its $1356 high for the year posted at the beginning of the month.

More proof of professional investors buying the dip surfaced today when Lipper, the fund research firm, reported that precious metals commodity funds took in $977 million over the past week, their highest level of capital investment since July, 2016.  Gold ETFs also reflect investors buying on the correction. By contrast, Lipper reported, stock mutual funds and ETFs suffered almost $10 billion in withdrawals.

Quote of the Day
“In an interview with Bloomberg, [World Gold Council’s Randall] Oliphant cited global political risks as impacting supply, yet countered that robust purchases from India and China should keep demand high. This, in his view, should push prices to as high as $1,400 an ounce in the near term and to record highs in the medium term. For context, gold peaked at an intraday high of just over $1,927 an ounce back in September 2011, and I would presume the “medium term” suggests a price target within the next two to five years, although Oliphant didn’t specify.”


News & Views – Forecasts, Commentary & Analysis on the Economy and Precious Metals
In-depth, cutting-edge coverage of the gold and silver markets for nearly 30 years. Valued for their insight, accuracy and reliability, our publications are linked and reprinted by a large number of websites both in the United States and around the globe.

We invite you to sign-up for our free newsletter available with appreciation to our current and prospective clientele. Immediate access to the September issue.  Access to the October issue will arrive by e-mail early next week.  It covers some interesting terrain.


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Gold continued its downtrend today

LATE REPORT

Gold continued its downtrend today shedding another $11.34 and finishing at $1282.61.  Silver held its own losing only 4¢ and finishing the day at $16.73.  Both metals are trading quietly early in Asian markets.  Both yesterday and today, gold spiked lower at precisely midnight ET.  The Japanese yen and Chinese yuan both chased gold lower oddly at the exact same time.  The whole move had the look of structured trading, but there is no way to verify the cause of the triple declines, i.e., the yen, the yuan and gold. Scroll down for a chart depicting the event, and we will leave it to you  to make your own call. . . . .

Quote of the Day
“[Y]ou can’t afford to try to time the market. What you have to do is study the long term elements, and you have to have a diversification plan that protects you when you’re wrong.” – Tony Robbins


Recent BBB client review
(One of 35 five star reviews published at the BBB website)

A trusted friend referred me to USAGOLD. As a novice, I was interested in their offer to teach. I got a good education. USAGOLD can be taken at their word, as good as gold – as the apt saying goes – a reliable, honest company. Comparing major online dealers often, still surprised what USAGOLD’s competitors do – higher prices, gimmicky products, odd procedures. . . I went slow and got it right, avoiding unaffordable mistakes. USAGOLD’s website, methods, and 4 Staff members on the phone with me – all models of clarity. I recommend USAGOLD continuing as a satisfied, now smarter, customer.” – M. Norman


 

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