Latest Gold & Silver Price News
Rising Debt Means a Weaker Dollar
Americans appear to be growing more concerned about the skyrocketing national debt level – officially $28.1 trillion and counting. The Peter G. Peterson Foundation’s monthly Fiscal Confidence Index recently shed five points, dropping to a level of 47, in the wake of the Biden Administration’s latest $2 trillion stimulus package. That $2 trillion bill is simply piled on top of already massive budget deficits. And it adds furthers to concerns over the country’s currency, the Federal Reserve Note “dollar.” Federal debt is currently the largest as a percentage of the economy since World War II. Given that no amount of tax hikes will yield enough capital to cover the debt, […]
Don’t Be Fooled by the Stock Market Rally
Markets tend to move in cycles. They typically experience cyclical pullbacks after trending higher for a long period of time. Rarely do markets move straight up or straight down. The stock market has, however, essentially moved straight up since the March 2020 mini-crash. As the market moves higher, an increasing number of “analysts” are calling for even higher equity prices. Just last week, in fact, an analyst called for the broad market S&P 500 index to double by 2030. Calls for an 8000 S&P do not seem quite as farfetched as they did just a year ago. That is the power of greed (and wishful thinking) at work. It is […]
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit
Central bankers and their comrades in Washington DC changed course in 2020. The policy shifted from “print money and hand it to Wall Street” to “helicopter money” in the form of direct payments and loans to citizens. The fiscal stimulus, like the Fed’s monetary stimulus before it, provided a fix that addicted markets needed to stay high. The helicopter money represents another “temporary” measure that will almost certainly become permanent. Much like Quantitative Easing and Zero Interest Rate Policy, bureaucrats will have a very hard time stopping what they have started. Direct payments to Americans undermine free markets and the dollar. They represent the next major advance in the effort […]
Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending
Gold and silver markets sprung higher on Thursday as April and second quarter trading kicked off. After suffering losses in the first quarter, precious metals may now be due for a spring rally. The U.S. Dollar Index was up slightly this week. Regardless of how the dollar fares against other fiat currencies, investors can expect massive depreciation ahead in real terms. There is no end in sight to the inflationary cycle of spending, borrowing, and printing in Washington. This week, President Joe Biden promoted a so-called infrastructure package that comes in at more than $2 trillion. That’s on top of $1.9 trillion in bailouts and giveaways finalized last month. Much […]
Why Dave Ramsey and Other Financial Gurus Are WRONG About Gold
Longtime gold bashers are gloating over the precious metal’s recent price slump. Gold prices have declined more than 10% in the first quarter of 2021. But the perma-bears shouldn’t feel vindicated. After all, anyone who heeded their advice missed out on gold’s record run in 2020 – and on many years of outperformance since 2001. While gold bugs are often accused of having an unhealthy obsession with the metal, the “anti-gold” bugs reveal a deep-seated bias that can only be explained as irrational or dishonest. Financial Advisers Don’t Get Fees Recommending Physical Gold It’s no mystery why many who work in the financial industry hate gold. They are in the business of […]
What Biden’s Big Infrastructure Push Means for Silver
The federal government is spending and redistributing newly created cash so rapidly, it’s becoming difficult to keep track of which trillions are going where. This week, President Joe Biden will pitch a $3 trillion “green” infrastructure package. That’s on top of the $1.9 trillion economic “relief” bill he recently signed into law. Next month, Biden is expected to roll out plans for additional trillions to be spent on healthcare, education, housing, and more. Republicans in Congress may object to some of the proposed spending. But they have a lousy track record – even during times when they were the majority – when it comes to actually reining in federal outlays. […]
Magflation: An Unexpected Gold and Silver Driver
he 1970’s, the U.S. experienced a decade of below-trend economic growth combined with rising interest rates – and eventually – massively higher gold and silver prices. Some sectors boomed while others lagged, and then as now, the majority of the population struggled with rising home and commodity prices, bookmarked by lofty interest rates. This stilted and challenging environment, which came to be called stagflation, eventually drove the more perceptive people into gold and silver. The result? Gold, having been freed from its long-term tether of $35, first rose to $200, then dropped to $100 before rocketing to an all-time nominal high of $850. As per usual on a percentage basis, silver rose […]
Signs of a Bottom in Gold and Silver Prices
The U.S. dollar’s value is set to get diluted by another $1.9 trillion. On Saturday, Senate Democrats narrowly passed their massive COVID relief bill on a party line vote. It includes $1,400 in additional free-money handouts for most Americans, $350 billion in aid to state and local governments, and hundreds of billions more for various other pet programs. Upon approval by the House of Representatives and President Joe Biden’s signature, expected later this week, another wave of government-induced inflation will cycle through the economy. The impact on commodity and precious metals markets won’t necessarily be felt immediately. But investors who can see what’s coming will want to position themselves ahead […]
Bond Yields Roil Markets, Gold/Silver Drop
As financial markets sold off this week, precious metals got dragged down in the selling. The culprit, once again, was rising bond yields. On Thursday, the 10-year Treasury climbed above 1.5%. While still low on a historical range, the upside momentum has investors concerned. Over the past seven months, the 10-year yield has tripled from a low of just 52 basis points. The 10-year note serves as a benchmark for mortgage rates as well as risk premiums in the equity markets. Elevated price-to-earnings ratios in the S&P 500 are more difficult to justify in a higher interest rate environment. As we’ve noted, real interest rates are also a headwind to […]
The Great Reset Is Coming for the Currency
As the Great Reset proceeds from globalist think tanks and technology billionaires to allied media elites, governments, schools, and Woke corporations, what will be “reset” next? Supporters of the World Economic Forum’s all-encompassing Great Reset agenda are eyeing BIG changes for the global monetary system. Plans that might once have been dismissed as pure speculation or conspiracy theories are now being openly pushed by people who occupy the highest levels of power. President Joe Biden’s economic policies were grafted directly from the “build back better” language of the Great Reset’s authors. Biden’s agenda for the economy is now being spearheaded by Treasury Secretary Janet Yellen. The former Federal Reserve chair […]
Bullion Banks Sell Even More Silver: Do They Have It?
Anyone with a naked short in the silver futures market risks getting squeezed by physical buying. Demand for delivery of COMEX silver bars is rising, even as the paper price of the metal fell more than 4.5% last week. Silver shorts sold contracts representing a whole lot more silver than they have available to deliver again last week. The disconnect between paper prices and physical demand is getting more ridiculous by the day. It is also getting more dangerous for COMEX market participants – long and short. The COMEX functions on confidence, which can vanish suddenly. It will happen when long contract holders discover, en masse, the paper they bought […]
Fed Grilled about Its Unsound Currency, Digital Currency Schemes
As financial markets gyrated this week, Federal Reserve chairman Jerome Powell touted the U.S. dollar as a form of “sound money.” More on that incredible take in a moment. But first, let’s review this week’s market action. Inflation fears helped drive another spike in long-term bond yields, and by Thursday that began to spook Wall Street. The Treasury market is now off to one of its roughest starts to a year on record. As a result, calls are mounting for the Fed to up its bond purchases. A steepening yield curve is helping to depress precious metals prices. Rising real interest rates tend to be negative for the gold market. […]
Is the Reckoning Nigh for Silver Shorts?
Investors are buying silver in vast quantities – in whatever form they can get it. Smaller silver bugs are buying it a few ounces at a time from scarce retail inventories. Whales are accumulating millions of ounces via the silver ETFs or by standing for delivery of COMEX futures contracts. Unless the bullion banks and other shorts can finally engineer a price smash, they may have to stop selling paper and start buying a lot of physical. If the short sellers are naked, i.e., not hedged with long positions elsewhere, a genuine short squeeze driving prices higher could commence. Over the past several trading days, the silver market has simply been resilient. […]
Fed: “We’re Not Going to Take This Punchbowl Away”
Meanwhile, Are Central Banks Considering a Ban on Private Crypto Currencies? Precious metals markets are struggling against the headwind of a rising U.S. dollar this week. The dollar index broke out to a four-month high on Thursday. Neither a much-awaited fall in bond yields nor dovish remarks from Federal Reserve officials dissuaded currency traders from buying Greenbacks and selling other fiat currencies. Commodities and precious metals markets also saw some selling. Despite choppy trading in metals markets so far in 2021, intense demand for coins, bars, and rounds continues to strain supply chains in the bullion market. Some mints and dealers are simply unable to deliver product to their customers […]
