Saturday, April 10, 2021

Gold to Rise to $2,000 on Low Rates, Weak Dollar: Aberdeen Standard Investments

from Birch Gold Group:

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Gold’s road back to $2,000, India’s gold imports reach a monthly record, and why silver deserves the commodity spotlight.

Rising bond yields could pave the way for $2,000 gold

In an interview with Kitco, Aberdeen Standard Investments’ head of exchange-traded products Steve Dunn spoke about why gold appears to find itself in temporary rut, and why the fundamentals could soon shift things in the metal’s favor. While hardly a precipitous fall, gold has inched downwards gradually from its all-time high of $2,070 set in August and is now trading around the $1,700 level.

Undesirable Unallocated Unavailability

by Craig Hemke, Sprott Money:

Two weeks ago in this space, we brought to your attention a looming and growing problem within the fractional reserve bullion industry. The situation has seemingly gotten more dire in the past few days, so we thought we should write about it again today.

First of all, if you missed the post from last month, you should read it now. It contains all sorts of relevant information for today’s update: When “Unallocated” Becomes Unavailable

But let’s stop there. In the two weeks since, even more content on this subject has been added to this site and others. So for further background, you might check these links as well:

Bank of Canada Now Owns 40% of Government of Canada Bonds. Fed a Saint in Comparison. Taper on the Table

by Wolf Richter, Wolf Street:

“Makes you wonder if there’s a potential mid-QE-life crisis taking shape in Ottawa”: strategists at the National Bank of Canada in a note that would be hilarious if it weren’t so serious.

The Economics and Strategy shop at the National Bank of Canada, the country’s sixth largest bank, sent a missive to clients today that would be hilarious if it weren’t pointing at such a serious and massive issue: It celebrated “40,” referencing a 40th birthday, but instead of a birthday, it referred to the Bank of Canada’s ballooning holdings of Government of Canada (GoC) bonds, which will hit a stunning 40% of all GoC bonds outstanding this Friday.

Did Gold Hit the Physical Floor Again? with Craig Hemke

by Kerry Lutz, Financial Survival Network:

Craig Hemke is back… There’s a point at which even the banks cannot drive the price lower. You get to a point where you can’t allow too large a divergence or you risk the system imploding. We’ve seen it numerous times, most recently March 2020 and again last week. Many technical and fundamental reasons why it’s probably going higher. Dollar peaked. Bond market double topped. At some point the down trend lines end. Coupon code LUTZ and save 50% off your first month at TFMetalsReport.com.

Yellen’s Seeks a Global Minimum Tax to Support Biden’s Massive Spending Plans

by Mish Shedlock, The Street:

Treasury Secretary Janet Yellen has her eyes on your pocketbook and the pocketbook of corporations too.
Tax Some, Spend More

To support president Biden’s $2.3 trillion infrastructure proposal, Yellen Pushes for Global Minimum Tax Rate on Multinational Corporations.

Treasury Secretary Janet Yellen argued for a global minimum corporate tax rate Monday, seeking international cooperation that is crucial to funding the administration’s $2.3 trillion infrastructure proposal.

War on Cash: The Next Phase

by Jim Rickards, Daily Reckoning:

With so much news about an economic reopening, a border crisis, massive government spending and exploding deficits, it’s easy to overlook the ongoing war on cash.

That’s a mistake because it has serious implications not only for your money, but for your privacy and personal freedom, as you’ll see today.

Cash prevents central banks from imposing negative interest rates because if they did, people would withdraw their cash from the banking system.

Yes, the Fed Will Cover Biden’s $4 Trillion Deficit

by Clint Siegner, Money Metals:

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.

Office Slump Gets Ugly in Houston, San Francisco, Los Angeles, Manhattan, Chicago, Washington DC

by Wolf Richter, Wolf Street:

Houston has been for years the toughest major office market for landlords, after a historic office-tower construction boom collided with the Great American Oil Bust that started in 2015 and reached a crazy paroxysm in April 2020, with benchmark crude oil grade WTI collapsing briefly to minus $37 a barrel in the futures market. During 2020, hundreds of oil and gas companies filed for bankruptcy, most of them in Texas. On top of it came the Pandemic’s shift to working from home.

It is becoming increasingly clear, as companies announced their plans, that there is a long-term shift to a hybrid model, with some employees working permanently from home, others working in the office nearly all the time, and many others working from home part of the time, and showing up at the office part of the time, with hot-desking and big lounge-type meeting areas taking over desk farms. And companies can reduce their office footprints.

88 YEARS AGO, FDR BANNED GOLD. WILL A BITCOIN BAN BE NEXT?

by Tho Bishop, Mises Institute:

Today is the eighty-eighth anniversary of Executive Order 6102signed by President Franklin Delano Roosevelt, “forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States.” The order was one of the several disastrous responses to the Great Depression that succeeded in escalating the financial crisis. Later in the year, the US Congress would pass a resolution retroactively supporting the legislation; however, it was the determined autocratic leadership of FDR that made way for these unprecedented measures. It would be a crime for Americans to hold gold for over forty years, until President Gerald Ford reversed the order in 1974.