Daily Gold Market Report

Gold edges higher as an uneasy lull settles over markets
Will Rhind: Crisis in confidence driving investors to ‘the most famous safe have in the world’

(USAGOLD – 3/16/2023) – Gold edged higher as an uneasy lull settled over markets. It is up $6 at $1927. Silver is up 24¢ at $22.09. John Authers makes an important point about the bank crisis in his Bloomberg column this morning – one that’s been overlooked in much of the analysis so far. The issre in the banking system thus far, he explains, has been one of liquidity, but that is only part of the problem banks face: “The logic of the Fed’s tightening campaign is that it will eventually create solvency issues for banks — as in, their customers won’t be able to repay loans.”

Granite Shares’ Will Rhind says the gold market is signaling the beginning of a broader crisis. “What we’re seeing,” he says in a Yahoo!Finance interview yesterday, “is just a classic crisis of confidence. And when you see a crisis of confidence, but particularly in our financial system and our banking sector, people rush for safe havens. And arguably, there’s no more famous safe haven in the world than gold. It’s one of the highest quality assets out there with no counterparty or credit risk. So in other words, gold can’t go bankrupt, unlike a bank, and that’s very appealing at this particular point in time.”

Ramirez cartoon showing bank teller holding up a customer at gunpoint
Cartoon courtesy of MichaelPRamerez.com

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