Gold flat to close out the week
Where seldom is heard an encouraging word, Druckenmiller says ‘I like darkness.’

(USAGOLD – 9/16/2022) – As we close out the week and first half of September, finding an encouraging word on the gold and silver markets isn’t easy. At $1667 and level on the day, gold has broken below important chart support levels. After starting September with a promising move to the upside, silver has reversed course over the past few days. It is down 11¢ at $19.14 on the day and off almost $1 from recent highs. Of course, the precious metals are not alone in nursing deep, Fed-inflicted wounds. Year to date, stocks (S&P 500) are down 19%; bonds (TLT) are down 25%, and crypto (Bitcoin) is down 57%. On that roster, silver (down 17%) looks respectable, and gold (down 7.5%) downright admirable.

Only the US dollar – up 14% – has been able to keep its head above water in 2022, but that gain is measured against the rest of the world’s lowly currencies. In the real world, where consumers must meet their living expenses and investors scramble to retain value, the US dollar has lost 8% of its purchasing power over the past two years. Stanley Druckenmiller weighed in this morning on the future of stocks. He says we are in for a long (in fact, very long) flat market like the period from 1966 through 1982. “I like darkness,” he says in an interview featured at Yahoo. And so it is, we actually do find something encouraging to add to this morning’s report – though in a roundabout way. That dark period for stocks from the mid-1960s to the early 1980s is a time when gold and silver shone brightly.

Some humor (and encouraging news) from Mr. Ramirez to end the week:

cartoon showing Uncle Sam bearing the burden of crushing inflationCartoon courtesy of MichaelPRamirez.com

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