Gold stalls for second day, Jim Rogers says ‘inflows into gold and silver will increase’

(USAGOLD – 5/5/2020) – Gold stalled for a second day at just above the $1700 mark while government officials and investors alike cautiously monitored the results of various regions around the world opening for business. Beyond the political tussle over the reopenings, financial markets are trading cautiously awaiting some sign that the aggressive fiscal and monetary measures deployed in recent weeks (Please see our Chart of the Day) are going to reach beyond Wall Street to the rest of the economy.  Gold is down $2 in the early going at $1709.  Silver is up 7¢ at $14.97.

Popular financial commentator and commodities expert Jim Rogers, now 77 years old, hasn’t always been an advocate of buying precious metals but he is now. “He firmly believes,” reports FT in an article published Saturday, “that inflows into gold and silver will increase as voters lose confidence in governments’ money-printing experiments. He added to his personal holdings of both in April. ‘I have never sold any gold that I have bought. I stopped in 2010 and restarted in 2019. The gold-silver price ratio is near its record high and so I prefer silver to gold because it is cheaper [on a relative basis].” He goes on to say that the United States is making the same mistakes Britain did in the 1920s by going ever-deeper into debt. “Nobody,” he says, “seems to learn the lessons of history.”

Chart of the Day

bar chart showing change in Fed's ownership of U.S. Treasuries and mortgage-backed securities now again sharply on the rise

Sources:  Board of Governors of the Federal Reserve System (US), St. Louis Federal Reserve [FRED]

Chart note:  After a four-year hiatus, the Fed’s balance sheet is one again in a growth phase courtesy of the virus-associated economic breakdown.  You are not misreading the chart.  It was up almost $1.8 trillion in April – the largest single monthly gain in Federal Reserve history. This chart along with several others of interest to precious metals’ owners is a constantly updating feature at USAGOLD’s  Monetary Trends and Indicators page.  We invite your interest and bookmark.

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