RSSCategory: Category: Economy

Magflation: An Unexpected Gold and Silver Driver

| March 26, 2021 | Category: Economy
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 […]

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“Is Your State Destroying Your Money?” Asks 2020 Sound Money Index, Released Today

| December 22, 2020 | Category: Economy
“Is Your State Destroying Your Money?” Asks 2020 Sound Money Index, Released Today

Precious Metals Dealer, Sound Money Group Rank all 50 States’ Gold and Silver Policies Charlotte, NC (December 16, 2020) — Wyoming, Texas, and Utah are the three most pro-sound money states in the United States, according to the 2020 Sound Money Index. Released today for 2020, the Sound Money Index is the first index of its kind and uses 12 different criteria to determine which states maintain the most pro- and anti-sound money policies in the nation. The Sound Money Index evaluates each state’s sales and income tax policies involving precious metals, whether a state recognizes the monetary role of gold and silver under the U.S. Constitution, whether a state […]

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Fed Recommits to Misleading the Public About Inflation

| December 17, 2020 | Category: Economy
Fed Recommits to Misleading the Public About Inflation

Did the Federal Reserve just usher in the next phase of the U.S. dollar’s decline? On Wednesday, the central bank recommitted to leaving its benchmark interest rate near zero for the foreseeable future. Fed officials also vowed to keep pumping cash into financial markets. Following Fed chairman Jerome Powell’s remarks, the wavering U.S. Dollar Index turned down – hitting a fresh new low for the year. Gold gained modestly on the day while silver got a bigger boost to close solidly above $25/oz, promptly heading to $26/oz the day following. Precious metals markets have been basing out over the past several weeks. They are struggling to attract safe-haven demand amid […]

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Markets Rallying on Hope, but Higher Taxes and Inflation Loom

| December 11, 2020 | Category: Economy
Markets Rallying on Hope, but Higher Taxes and Inflation Loom

For months, including this past week, markets have rallied on hopes for a vaccine and more stimulus – even as the real economy is suffering under expanding virus restrictions and as a stimulus deal keeps getting thwarted by partisans in Washington. Negative divergences are showing up, with market momentum waning and volume thinning in the major averages. Another threat markets seem to be overlooking – at least for now – is that of tax hikes under an incoming Joe Biden administration. More on that in a moment. But first, let’s review this week’s price moves in metals markets. Gold and silver attempted a rally early in the week, but bulls […]

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Beat the Coming ‘Taxflation’ Tsunami with Precious Metals

| December 10, 2020 | Category: Economy
Beat the Coming ‘Taxflation’ Tsunami with Precious Metals

The final weeks of the tumultuous year that has been 2020 present opportunities for investors to get their financial houses in order ahead of the New Year. Nobody knows what 2021 will bring. But new political risks are likely to emerge – including the threats of higher taxes and a more punitive IRS. With control of the U.S. Senate still up for grabs pending runoff elections in Georgia next month, and the final outcome of the presidential race still in dispute, an environment of uncertainty will reign for the remainder of the year. President Donald Trump continues to pursue a longshot campaign to rescind fraudulent election results in multiple states […]

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What Happens When Confidence Falls Apart?

| December 7, 2020 | Category: Economy
What Happens When Confidence Falls Apart?

There are intriguing interconnections between the election, the virus, and the markets. While we may never know how deep and wide the political elites’ effort to gain control over our government goes, it appears to be vast. Although it’s still unknown whether fraud altered the overall election outcome, the evidence of fraud is real. Corrupt poll workers and election officials have been identified in numerous locations along with voting machine “glitches.” Some judges seem to be ignoring evidence while affirming Joe Biden’s victory. All the while, the corporate media plus the major social media platforms are working overtime to convince people the “evidence of widespread fraud doesn’t exist.” Some of […]

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Get Ready for a Post-Election ‘Fed Wave’ of Inflation

| November 5, 2020 | Category: Economy
Get Ready for a Post-Election ‘Fed Wave’ of Inflation

As accusations of voting irregularities mount, President Donald Trump’s legal team is descending on Pennsylvania and Georgia as well as multiple battleground states that have been called by media outlets for Joe Biden. It will be an uphill battle for Trump to get to 270 electoral votes. As of this writing on Thursday morning, the final outcome of the presidential election remains uncertain. One thing that is now certain: Voters denied Democrats the “blue wave” many pollsters and pundits had been forecasting. Instead of a Biden landslide, a takeover of the Senate, and an expanded House majority, Democrats will instead have to share power with Republicans. The promise of divided […]

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Goldman Sachs Likes Silver; Trump Wants Even More Stimulus

| October 16, 2020 | Category: Economy
Goldman Sachs Likes Silver; Trump Wants Even More Stimulus

Gold and silver markets slumped this week as stimulus talks faltered again in Washington. Even though the White House upped its offer to $1.8 trillion, House Speaker Nancy Pelosi refused it – not wanting to give President Trump any kind of political victory ahead of the election. Meanwhile, the President continues to campaign for stimulus. He is bucking Senate Republicans by offering to go even higher than $1.8 trillion. Here’s what President Trump told Stuart Varney of Fox Business on Thursday: Stuart Varney: You don’t expect a phone call from Speaker Pelosi, but you would go higher. How much higher would you go? How much higher would you go? President […]

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The Fed’s Quest for Higher Inflation: What Could Go Wrong?

| October 8, 2020 | Category: Economy
The Fed’s Quest for Higher Inflation: What Could Go Wrong?

The Federal Reserve is warning investors in no uncertain terms that higher rates of inflation are coming. Yet markets, for the most part, have disregarded that warning. Bond yields, for example, remain well below 2% across the entire duration range. Stock market valuations continue to reflect a sanguine outlook for inflation. And crude oil futures suggest limited upside pressure on prices. It seems the Fed has a credibility problem. In August, Fed Chairman Jerome Powell announced that the central bank would begin targeting an inflation “average” of 2%. By the Fed’s measures, inflation has been running below 2% in recent years. So getting to a 2% average in the years […]

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Billionaire Hedge Fund Manager Warns of 10% Inflation

| September 11, 2020 | Category: Economy
Billionaire Hedge Fund Manager Warns of 10% Inflation

Over the past month, gold has traded in a range with support around $1,900. Bulls have made a couple unsuccessful attempts to retake and hold above the $2,000 level following the sharp plunge below it on August 11th. But we are likely to see a more decisive move in the gold market one way or the other in the days ahead. The near-term outlook for precious metals markets may be determined by where the U.S. Dollar Index heads next. It has been basing out since August after trending lower earlier in the summer. The Federal Reserve Note appreciated modestly against foreign currencies ahead of the European Central Bank’s policy meeting […]

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Fed Chairman: “We’re Not Even Thinking about Thinking About Raising Rates”

Fed Chairman: “We’re Not Even Thinking about Thinking About Raising Rates”

Market volatility has suddenly spiked in recent days came after the Federal Reserve vowed last Wednesday to keep its benchmark rate near zero through 2022. That’s an unusually long period for the Fed to be projecting rate policy. It reflects the fact that it will take many months and perhaps years for the tens of millions of jobs that were recently lost to return. During his press conference, Chairman Powell stumbled and stammered his way into stating that he would be happy to let inflation continue to rise until the economy approaches full employment. Jerome Powell: We’d be looking to get inflation back up and we’d be prepared to tolerate, uh, […]

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What’s Next, Trillion-Dollar Coins?

What’s Next, Trillion-Dollar Coins?

The massive set of stimulus measures rolled out last month by the Treasury Department and Federal Reserve has left many Americans wanting more… and politicians scheming for new ways to dole out additional trillions in cash. Most taxpayers have already received their $1,200 “stimulus” payments. However, that one-time payment will do little to repair the long-term financial health of the 26 million (and rising) who are newly unemployed. And it surely won’t bail out all the small business owners who were callously deemed “non-essential” and forced to shut down during this pandemic. A national WalletHub survey found that 84% of Americans want another stimulus check. The idea of getting free money is […]

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Markets Completely Decouple from Reality

Markets Completely Decouple from Reality

Investment demand for physical gold and silver is unrelenting. Buying activity actually picked up slightly last week as paper gold and silver prices drifted sideways to lower. Once again, anyone simply watching the gold price on CNBC would be shocked to know just how many people are buying gold. The Fed, and the cabal of Wall Street Banks it represents, are undoubtedly relieved to have metals prices under control. But they have a serious problem and it is bigger than the gold market. The disconnect between virtually all paper asset prices and real-world fundamentals has never been greater. The screen capture below pretty well sums it up: The ponies at […]

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Supply, Demand, and Depreciation: Key Drivers for Metals as the Economy Reopens

Supply, Demand, and Depreciation: Key Drivers for Metals as the Economy Reopens

The metals markets are being pulled in multiple directions simultaneously like never before. The global virus-triggered economic freeze has caused industrial demand for all commodities to crater. At the same time, mining output is also crashing as virus fears force many mines around the world to suspend operations. What is the “right” equilibrium price for copper, silver, gold, and other metals in an environment of such extreme and unstable supply and demand stresses? The verdict of the market changes – often dramatically – day by day. In March, hard assets tumbled along with stocks as investors priced in increasingly dire scenarios for the economy. A double-digit contraction in U.S. GDP and double-digit spike […]

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