Monthly Archives: April 2021
Red lights flashing in credit markets as Huarong concern grows
Yahoo!Finance/Kyungji Cho and Ameya Karve
Repost from 4-14-2021
“Credit markets in Asia have been shaken by a selloff in one of China’s largest bad-debt managers, raising concern that other heavily leveraged borrowers may also stumble.”
USAGOLD note: The next crisis does not necessarily have to begin in the United States. In this era of interlocking counterparty risk the financial breakdown that surfaces in Shanghai, or Tokyo, or Dubai can quickly make landfall in London or New York.
No DMR today. We will be back Monday.
Gold trading on a positive note this morning, Krauth sees $100 silver as ‘within reach’
(USAGOLD – 4/1/2021) – Gold is trading on a positive note this morning after turning higher early yesterday at the $1680 level – a support zone with a history going back to June of last year. It is up $9 this morning at $1718 after closing $30 off its lows yesterday. Silver is up 4¢ at $24.53 after finding support yesterday just below the $24 mark. Though silver is down almost 12% year to date, it is up almost 75% over the past 12 months, even with the correction taken into account. Market analyst Peter Krauth sees encouraging signs for the metal based on its long-term, inflation-adjusted price history.
“If we account for inflation,” he says in an analysis posted at FX Empire, “and that’s massively understated ‘official inflation’, then silver prices peaked at $120 in 1980 and around $57 in 2011. (Please see our Chart of the Day below.) Today’s price near $24 is still well below those levels, suggesting a lot of upside remains ahead. In fact at $24 today versus the inflation-adjusted $120 in 1980, silver is currently about 80% below that peak. … Looking at silver from a technical perspective, in my view we are either at or near a final bottom for this correction. …It’s time to be a silver contrarian. History has rewarded us repeatedly. $100 silver is well within reach.”
Chart of the Day
Chart courtesy of MacroTrends.net • • • Click to enlarge
Chart note: The silver price, as Krauth points out in today’s report (above), is 80% below its 1980 inflation-adjusted high. As a matter of interest, the current gold price is 25% below its 1980 inflation-adjusted high.