Author Archive: GoldSilverWorlds

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Nervous Fed to Give Precious Metals Markets a Boost

Nervous Fed to Give Precious Metals Markets a Boost

The Fed’s Open Markets Committee met last week and left policy unchanged – at least for the moment. No one expected central banking officials to make rate adjustments last week with equity prices rubbing up against all-time highs and the economic recovery narrative still dominant. Central bankers are likely getting nervous, however. Treasury yields are surging, and it is only a matter of time before stimulus addicted markets throw another tantrum. In fact, the S&P 500 index fell after Wednesday’s announcement and each of the following two days. Rising yields are also creating headwinds for precious metals, at least in the futures markets. Prices are having trouble getting anything going […]

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Volatility Increases as Markets Worry about Higher Rates

Volatility Increases as Markets Worry about Higher Rates

Hard assets quietly strengthen as attention focuses on blockchain and other crazes Gold and silver markets gyrated up and down following the Federal Reserve’s policy meeting on Wednesday. Fed chairman Jay Powell recommitted to keeping the central bank’s benchmark funds rate near zero. This, even as surging bond yields seem to be sending a market signal that rates need to move higher across the board. Fed policymakers are insisting they won’t hike rates at all this year and most likely not in 2022, either. Powell vowed that accommodative monetary policy will remain in force until the Fed sees official inflation rates persist above 2% over an unspecified period of time […]

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Silver Setting Up for a BIG Move Following Fed

Silver Setting Up for a BIG Move Following Fed

Precious metals markets traded into an important technical juncture ahead of Wednesday’s Federal Reserve policy announcement. Bank of America analysts stated that this week’s meeting is “one of the most critical events for the Fed in some time.” The Fed faces mounting pressure to intervene in the bond market as yields continue to rise. It will likely reiterate its commitment to keeping its benchmark rate near zero and vow to continue buying at least $120 billion in bonds per month. Critics of Fed chairman Jerome Powell’s easy-money stance are warning that monetary and fiscal policy are too loose. The federal government’s recent $1.9 trillion spending package, combined with ongoing “emergency” […]

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Owning Real Assets Amid Surreal Markets

| February 18, 2021 | Articles: Insights
Owning Real Assets Amid Surreal Markets

In the current market environment, little else matters other than momentum. What’s moving up gets chased higher still by investors. And what can be moved up by any means is pursued by speculators who hope to jump-start a momentum trade. It’s all being fueled by cheap money and government “stimulus.” The consequences? The U.S. stock market trades at an historically high premium to GDP (the so-called “Buffett indicator”). Speculative trading frenzies in stocks such as GameStop defy any kind of fundamental analysis. Manic up moves in unbacked cryptocurrencies such as Bitcoin (which hit a record high today and is nearing a total market value of $1 trillion) seem to suggest […]

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Could Silver “Do a Palladium”?

Could Silver “Do a Palladium”?

Palladium was manipulated for years. It had the largest short position relative to its size, while physical demand rose inversely to decreasing supply. In 2018, demand became so large that it overwhelmed the shorts. Physical palladium could not meet the market’s needs and prices exploded. Shorts eventually decreased their positions until they got to a more sustainable level. For many years, the platinum/palladium ratio, shown on proprietary charts, averaged 2.4 to 1 in favor of platinum, stretched as high as 5:1 in 2009, but then collapsed for a decade into 2020, to where 1 ounce of palladium would buy 5 ounces of platinum! Today, much like what was the case with […]

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Major Optimism for Platinum, Silver, and Copper

Major Optimism for Platinum, Silver, and Copper

Attention in the metals markets shifted this week from silver to copper and platinum. While big moves in silver and gold prices may be coming down the road, the monetary metals are currently taking a back seat to electrical and automotive metals. A massive push by the Biden administration to replace gasoline vehicles with electric vehicles is helping to crank up demand for copper. Anything involving electricity involves copper – and lots of it. Electric vehicles and their massive batteries contain an average of 180 pounds of the metal.  That’s six times the copper that’s used in gasoline cars. Even larger quantities of copper are required for EV charging stations […]

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Idaho House Votes to Encourage Holding Physical Gold and Silver to Protect State Reserves

| February 11, 2021 | Articles: General

Boise, Idaho (February 11, 2021) — The Idaho State House today overwhelmingly approved a bill which enables the State Treasurer to protect state reserve funds from inflation and financial risk by holding physical gold and silver. State representatives voted 51-19 to pass House Bill 7, the Idaho Sound Money Reserves bill, sending the measure introduced by Representative Ron Nate (R-Rexburg) and Assistant Senate Majority Leader Steve Vick (R-Dalton Gardens) to the Senate for a hearing. Backed by the Sound Money Defense League and others, HB 7 would permit – but not require – the State Treasurer to hold some portion of state funds in physical gold and silver to help […]

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Energy Metals Lead the Charge

| February 11, 2021 | Articles: General
Energy Metals Lead the Charge

Gold and silver aren’t the only viable plays in the metals space – and they aren’t currently the leaders. On Wednesday, both copper and platinum rallied up to multi-year highs. Rhodium, meanwhile, currently commands $21,000 per ounce – yes, per ounce – making it one of the most valuable elements on the planet. What’s driving these “energy” metals? Besides ongoing currency depreciation and the risks of higher inflation, which will help boost all hard assets over time, rising demand for electricity in general and electric vehicles in particular. President Joe Biden recently decreed that the federal government must transition its entire fleet of cars, vans, and trucks to electric motors. […]

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How Precious Metals Generate Positive Real Returns

How Precious Metals Generate Positive Real Returns

One of the most bullish backdrops for precious metals is an environment of negative real interest rates – that is, when bonds and cash yield less than the inflation rate. With inflationary pressures picking up and the Federal Reserve showing no signs of lifting its benchmark rate anytime soon, real short-term rates could fall even further into negative territory in the months ahead. Long-term yields, however, have been moving slightly higher in nominal terms. Higher bond yields have helped lift the U.S. Dollar Index and restrain gold and silver prices so far in 2021. The 30-year yield rose to nearly 2% on Friday. While still quite low historically, a breakout […]

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Be Patient, Silver Investors… It’s Only a Matter of Time

Be Patient, Silver Investors… It’s Only a Matter of Time

A wild week of trading across asset markets has left investors wondering what represents real value – and whether it even matters anymore. Stratospheric GameStop shares came crashing back to earth after their gravity-defying run up.  The stock had clearly been pumped to ridiculously overvalued levels based on all conventional metrics. But that didn’t deter buyers who believed they could push it to $1,000 per share before cashing out. After dropping over 85% its nominal price peak, perhaps the GameStop craze has ended just as abruptly as it began. Meanwhile, some online speculators have jumped aboard other bizarre market frenzies. For example, the crypto token Dogecoin – which launched a […]

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How to Survive a Silver-Gold Sucker Punch

How to Survive a Silver-Gold Sucker Punch

Anyone who owns precious metals, mining shares or metals’ ETFs knows the drill. First, gold and silver begin to establish an uptrend on the charts. Analysts (like us) start writing about how prices are getting ready to make an upside run. Then “out of nowhere” thousands of highly margined futures contracts hit the market on the short side, “re-painting” the charts, sending terror into the hearts of stackers and those who believe in “honest money.” The reality is that honest money is being manipulated for personal gain by dishonest traders, enabled by “regulators” who, to put it charitably, look the other way. It can be disheartening. It can make you […]

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Investors Prepare for the Incoming Regime in Washington

| January 18, 2021 | Articles: Freedom
Investors Prepare for the Incoming Regime in Washington

Last year provided extraordinary challenges to Americans as well as people around the world. Hundreds of thousands of deaths were attributed to the Chinese coronavirus. The economic carnage and the attendant death and suffering along with the loss of civil liberties was grossly underreported. We’ve seen one economic recession already and are likely in the early stages of a more extended depression. 2020 was capped by a rancorous presidential election with lots of allegations (and at least some evidence) of vote fraud glossed over by the legislatures, courts, media, and official investigators responsible for guaranteeing fair elections. Americans enter 2021 more divided than at any time since the Civil War. […]

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Biden Bailout, Democrat Takeover to Drive Americans into Gold

| January 15, 2021 | Articles: General
Biden Bailout, Democrat Takeover to Drive Americans into Gold

As investors await the incoming Biden administration and the uncertainties that a transition of power may bring, precious metals markets regained some ground through Thursday’s close but have pulled back again on Friday, especially silver and platinum. Precious metals prices and financial markets have seemingly been unaffected by recent political turmoil. Investors have been nonchalant in the face of Capitol unrest and a second impeachment of President Donald Trump – not to mention fresh new records in daily COVID deaths. Against this unfavorable backdrop, the stock market continues to hit new highs on an almost daily basis. Fundamental analysts are left scratching their heads as to what’s fueling such elevated […]

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Time to ‘Reset’ Your Investment Portfolio in 2021?

Time to ‘Reset’ Your Investment Portfolio in 2021?

World Economic Forum chairman Klaus Schwab vows, “a renewed focus on public health and resilience, net-zero pledges and the arrival of Stakeholder Capitalism Metrics—all but ensure that 2021 will be a new ‘Year Zero.’” If global elites have their way, 2021 will be the year of the “Great Reset.” They believe now, after the coronavirus and lockdown policies have inflicted a heavy toll on the public, is the perfect opportunity to implement their technocratic vision. Their longstanding plans to transform economies in the name of various “sustainability” and “equity” goals are being aggressively implemented. The reset that is coming may not necessarily be the one that globalist central planners are trying […]

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