Tag: COVID-19

Trump’s Covid Infection, Bailout Negotiations Raise Uncertainties

| October 2, 2020 | Articles: Freedom
Trump’s Covid Infection, Bailout Negotiations Raise Uncertainties

Precious metals markets are advancing this week as a massive new stimulus bill makes its way through Congress. On Thursday evening the House of Representatives passed a $2.2 trillion coronavirus relief bill on a party line vote. It’s a big deal whenever Congress commits to spending that kind of cash, especially when it’s money that has to be borrowed into existence.  These days, though, it’s not that unusual for Washington to dole out trillions of dollars at a time. The bill in its current form will almost surely die in the Republican-controlled Senate. Meanwhile, negotiations on a compromise bill are expected to continue. Both the White House and Democrat leaders […]

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Americans Just Can’t Get Enough Gold & Silver

| May 1, 2020 | COVID-19
Americans Just Can’t Get Enough Gold & Silver

Precious metals markets enter the month of May with some mixed signals near term.  But the long-term picture continues to look constructive.  All the metals appear to have put in major bottoms during the panic selling of mid to late March. Barring another wave of virus outbreaks and economic lockdowns, the gradual reopening of state, local, and national economies should start to unleash more industrial and jewelry demand in the not too distant future. And the extraordinary fiscal and monetary stimulus being pumped into the financial system will, if nothing else, work toward the debasement of the U.S. dollar. Earlier this week, the Federal Open Market Committee met and pledged […]

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Monster Gains in Mining Stocks Bode Well for Gold and Silver

Monster Gains in Mining Stocks Bode Well for Gold and Silver

April marks a second month of truly extraordinary developments in markets – from negatively priced crude oil futures to a record spike in unemployment claims to a lockdown-defying rally in stocks. The financial media is touting the S&P 500’s surge of more than 13% in April – the biggest one-month gain for the index since 1974. While stock market investors have made up a big chunk of their 2020 losses, the major averages and nearly all sectors within them are still down significantly for the year. One exception is the mining sector. The GDX Gold Miners ETF (NYSE:GDX) exploded 42% higher in April to make fresh new 7-year highs. For […]

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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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Is Physical Money on the Verge of Elimination?

Is Physical Money on the Verge of Elimination?

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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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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All of the Economic Recovery Models Will Be Wrong Too

All of the Economic Recovery Models Will Be Wrong Too

“All of the projection models were wrong. All of them,” admitted New York Governor Andrew Cuomo in an interview last week with MSNBC. Governor Cuomo had been issuing frantic demands for tens of thousands of ventilators… that turned out not to be needed as the rate of new hospitalizations for COVID-19 infections in New York plunged with surprising speed. Governor Cuomo had warned America that New York City was the canary in the coal mine, that other cities would soon suffer similar death rates. And based on models cited by Dr. Anthony Fauci just a few days ago, the United States was expected to rack up around 200,000 deaths from […]

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Federal Reserve Notes Are Now “Backed” by Junk Bonds

Federal Reserve Notes Are Now “Backed” by Junk Bonds

Wild price action and unprecedented interventions once again characterized this holiday-shortened trading week. Oil prices whipsawed lower Thursday on concerns about expected oil production cuts from Russia and Saudi Arabia.  But the general trend for most other assets, including metals and equities, was up – way up. Stocks finished out the week with the major averages posting their biggest weekly gains in decades in the space of just four trading days.  Investors went on a buying spree based on hopes that we will soon see a definitive peak in coronavirus cases and begin the process of restarting the economy. The stock market also got another boost from the Federal Reserve.  […]

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