Gold and Silver Industry & Investing News
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TOP NEWSHere's the Roadmap For Gold & Silver
U.S. Treasuries are now more volatile than gold for the first time in 45 years and that could mean trouble for your portfolio...
Inside the Extreme Real Estate Bubble: Mortgage vs Rent
Are you feeling the pinch of skyrocketing home prices and soaring rents? You're not alone.
READ MOREThe Escalating Impact of China on Gold Prices
China, in a strategic move, increased its gold reserves in August, positioning itself positively in the global market. While global gold ETFs saw outflows, Chinese ETFs recorded inflows, highlighting the nation's strong inclination towards the precious metal. The Shanghai Premium, an indicator I've monitored, has been consistently bullish, reflecting China's burgeoning demand for gold. With the launch of the Shanghai Gold Exchange in 2014 and steady growth in official reserves, China's influence in the gold market has undeniably risen. This move not only showcases the public's trust in gold as a safe-haven asset but also emphasizes China's vision to play a dominant role in the gold sector.
READ MORERussia Becomes UAE’s Main Important Gold Supplier
Following Western sanctions due to Russia's incursion into Ukraine, the UAE's primary gold supplier in the past year was Russia. According to the UN's Comtrade database, the UAE imported 96.4 tons of Russian gold, constituting about a third of Russia's yearly mining output and marking over a 15-fold yearly surge in gold imports from Russia to the UAE.
READ MOREHouse Committee Advances Bill to Block FED's CBDC Creation
The House Financial Services Committee approved a bill banning the Fed from developing a US central bank digital currency (CBDC). Introduced by Congressman Tom Emmer, the bill highlights concerns about privacy and individual sovereignty. Despite many countries progressing with their own CBDCs, the U.S. remains divided. While the bill's fate in the House is uncertain, its prospects in the Democrat-led Senate appear grim. Rep. Maxine Waters warns the bill could hinder the U.S., especially if the dollar loses its global dominance. The House's decision on the bill remains awaited.
READ MOREHere's How the United States Punishes it's Own People for Being Poor
The U.S. penalizes the homeless, poor, and mentally ill for merely trying to survive. Despite a housing crisis, laws against basic survival activities rise. The bail system jails those who can't pay, ruining lives. Many can't handle minor emergencies financially, yet face crippling bails and fines. Instead of aiding the mentally ill, the U.S. imprisons them. These harmful policies deepen societal rifts, showcasing the nation's misplaced priorities.
READ MOREThe Changing the Way America Does Business: Flash Mob Robberies
Rising flash mob thefts across the U.S. are devastating retailers, forcing many to lock up goods reminiscent of restrictive shopping eras. Crimes like the $300,000 heist at a Los Angeles Nordstrom are becoming commonplace. This criminal surge, combined with staff cuts and increased costs, is endangering the traditional shopping experience. The situation reflects a failing system due to misguided policies favoring criminals over law enforcement.
READ MORENearly Half of US Young Adults Living With Parents
Amid pandemic lockdowns, record inflation, mounting student debt, and an unstable job market, more young adults are living with their families than striking out on their own. The American Dream seems shattered, with 45% of Americans aged 18 to 29 living with family. This dismal economic situation, reminiscent of the 1940s post-Great Depression era, suggests the current landscape is stacked against young people, rendering financial success nearly unattainable.
READ MOREIs the Gig Economy Nearing Its Demise?
New interventionist policies threaten to choke the gig economy, imposing burdens like fixed minimum wages. While most gig workers value their independence, these changes risk excluding many, especially the less competitive. The red tape and rising costs will hit businesses and consumers, with food service prices set to surge.
READ MOREUS Existing Home Sales Collapse In August As Fed to Cut Rates In Future
The Federal Reserve failed to raise rates, despite previous intentions to curb inflation. Their projections even indicate a potential rate decline in 2024. On the housing side, existing-home sales dropped in August, with a significant 15.3% year-over-year decline, suggesting a weakening housing market.
READ MOREMore Money Printing Coming for U.S. Amid Rapid Debt Accumulation
Billionaire Ray Dalio warns of the U.S. resorting to printing more money as its debt escalates, leading to potential economic instability. As debt surpasses income, consumption gets strained, pushing the government towards quantitative easing to increase dollar supply. The current national debt is at $33.044 trillion. Dalio also points out a looming risk: if the U.S. prints more money, leading to a drop in the dollar's value, bondholders might liquidate their holdings due to reduced bond value.
READ MOREThe De-dollarization Drive Is Spreading Wider as Indonesia Is the Latest Nation to Join
Indonesia has taken steps against the dollar's global dominance, launching a National Task Force to promote local currency transactions with partner nations. This move is in line with the growing trend of "de-dollarization," with countries like China, Russia, and India seeking alternatives to the dollar in global trade. The push to distance from the U.S. dollar is seen as an irreversible shift, as stated by Russian president Vladimir Putin.
READ MOREHere’s Why You Should Be Worried About the US $33 Trillion Debt, No Matter What Biden & Yellen Say
The U.S. Senate's last-minute move to raise the debt ceiling only delays the looming crisis as the national debt soars past $33 trillion. Treasury Secretary Yellen's attempts to downplay concerns ring hollow, especially as the deficit balloons by a staggering 61% from last year, pushing inflation. This reckless financial path risks our global position, diminishes our economic agility, and threatens to saddle future generations with insurmountable financial burdens.
READ MOREContinuing Jobless Claims Maintain Downward Trend. Revisions?
First-time jobless claims in the U.S. dropped to 201k last week, marking the lowest since January. This decline wasn't influenced by previous irregularities from Ohio and Minnesota. Continuing claims fell below 1.7 million, also a low since January. This robust employment data supports Powell's hawkish position.
READ MOREPhilly Fed Business Survey Shows Stagflation
September's Manufacturing Business Outlook Survey from the Philly Fed indicated a decline, moving back into contraction. The headline index fell sharply from +12 to -13.5, with significant decreases in new orders and shipments. Despite low jobless claims, the employment index contracted for the sixth consecutive month. Firms reported price increases, with 22% expecting the impacts of COVID-19 measures to intensify. Signs suggest building stagflationary pressures with slowing growth and rising prices.
READ MOREGlobal Stocks, Gold Tumble As Markets Reel After Fed's Hawkish Pause
Futures are significantly down following the Fed's decision to keep rates unchanged, a move mirrored by the SNB and BOE, surprising markets and leading to declines in the franc and sterling. Meanwhile, Riksbank, Norges, and Turkey raised their rates. As of 7:45am, S&P futures fell 0.7% and Nasdaq 100 futures were down 1%. Treasury yields generally rose, with the dollar strengthening against most major currencies. Brent crude prices dropped, and gold and Bitcoin also saw declines.
READ MOREBRICS Expands Its Global Energy and Gold Reserves Footprint with New Members
The BRICS group is expanding, with Saudi Arabia, UAE, Egypt, Iran, Argentina, and Ethiopia joining, strengthening its global economic and population influence. Post-expansion, the group will control around 41% of global oil production, boosted by the inclusion of significant Middle East oil producers. The bloc also has a combined gold reserve of 5,493 tonnes. The aim is to form a powerful coalition representing the Global South's interests, especially against Western dominance.
READ MORERedefining 60/40 Portfolios with Gold: Crescat Capital
Equities and US Treasuries are now historically overvalued, indicating limited returns ahead, especially in an inflationary environment. As traditional 60/40 portfolios (equities/bonds) undergo reassessment, gold is gaining prominence. With Treasuries showing greater volatility than gold for the first time in 45 years, and central banks accumulating gold for stability, it's time to consider incorporating gold into the 60/40 portfolio for enhanced security and returns.
READ MOREBond King Jeffrey Gundlach: Warns on Stocks, Dollar Crash, and Recession in 2024
The CEO of DoubleLine Capital, a billionaire, warns of a weakening US economy due to factors like corporate layoffs, high credit-card debt, and increased mortgage rates affecting housing. He also expressed concerns about small businesses refinancing their debts at steeper rates. Gundlach, known as the "Bond King," anticipates a potential recession next year and believes the current economic growth is fueled by unsustainable government spending. With the Federal Reserve's rate hikes, the interest on government debt is set to surge significantly.
READ MOREA New Default Cycle Has Already Started: Default Rates on All US Corporate Bonds Have Nearly Tripled
Apollo reports that a fresh default cycle has begun, with soaring default rates. U.S. corporate bond default rates have surged from roughly 1% in 2021 to 3% following the Fed's rate hikes. For speculative grade bonds, the default rates have climbed from 1.5% to 5% within a year. If the Fed manages to prevent a recession, it would be remarkable, especially as historical patterns suggest an impending recession.
READ MOREFOMC Keeps Rates Unchanged, Points to Hawkish 2024 Outlook
The Federal Reserve maintained rates within the target range of 5.25%-5.5%, a 22-year high. Despite this, they indicated a 'soft landing' and increased growth forecasts. The 'Dot plot' reveals policymakers predict one more rate hike this year. By 2024 and 2025, rate projections increased by half a percentage point, indicating prolonged high rates. The growth forecast for 2023 is now 2.1%, up from the 1% predicted in June. Unemployment is expected to peak at 4.1%, down from the earlier 4.5% estimate. Since the last FOMC statement, the dollar has risen, while bitcoin and bonds have declined, gold rises.
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