Friday, July 10, 2020

$2,000 Gold and the Secret Gold Rally Hiding in Plain Sight

by Marin Katusa, Katusa Research:

What if I were to tell you that gold is within earshot of all-time highs. You’d call me crazy. But I’m not.

Below is a chart which shows gold prices denominated in Canadian, Australian and U.S. dollars.

Fed’s Powell: Balance Sheet to be “Substantially Smaller.” How Small? He Gave Big Clues. My Dive into the Dynamics & Charts

by Wolf Richter, Wolf Street:

In fact, QE started reversing at the end of 2014.

The Fed’s balance sheet would be “substantially smaller” after the Fed gets done with its QE unwind, Fed Chairman Jerome Powell said on Thursday. How far the Fed might go in shedding assets is a red-hot topic right now that causes a lot of fretting and howling on Wall Street and in the White House. Here is what Powell said at the Economic Club of Washington, D.C – and then we get into the dynamics and charts of what he described and what “substantially smaller” might mean:

The Crash Of The “Everything Bubble” Started In 2018 – Here’s What Comes Next In 2019

by Brandon Smith, Alt Market:

In 2018, a very significant economic change occurred which sealed the fate of the U.S. economy as well as numerous other economies around the globe. This change was the reversal of central bank policy. The era of stimulus and artificial support of various markets, including stocks, is beginning to fade away as the Federal Reserve pursues policy tightening, including higher interest rates and larger cuts to its balance sheet.

I warned of this change under new Chairman Jerome Powell at the beginning of 2018 in my article ‘New Fed Chairman Will Trigger Stock Market Crash In 2018’. The crash had a false start in February/March, as stocks were saved by massive corporate buybacks through the 2nd and 3rd quarters. However, as interest rates edged higher and Trump’s tax cut cash ran thin, corporate stock buybacks began to dwindle in the final quarter of the year.

GOLD UP $2.30/SILVER UP 4 CENTS AS THE BANKERS DO EVERYTHING POSSIBLE TO CONTAIN OUR TWO PRECIOUS METALS

by Harvey Organ, Harvey Organ Blog:

ALASDAIR MACLEOD: A GREAT COMMENTARY ON THE UPCOMING DEMISE OF THE EU/ERDOGAN PUTS HIS FORCES ON THE BORDER WITH SYRIA: AN ATTACK IS IMMINENT/MORE SWAMP STORIES FOR YOU TONIGHT

GOLD: $1289.30 UP $2.30 (COMEX TO COMEX CLOSINGS)

Silver: $15.63 UP 4 CENTS (COMEX TO COMEX CLOSING)

TIMES A-CHANGIN’ – BUT GOLD PERMANENT

by Egon Von Greyerz, Gold Switzerland:

Long term holders of gold have a different perspective of the world. They are not believers in instant gratification. Nor do they believe that a world based on money printing and debt can create sustainable wealth. They also know that the socialism which has spread like a plague in the Western world only works until you run out of other people’s money.

What makes gold the most obvious wealth preservation investment and insurance against a false financial system is its permanence. The proof of this is indisputable since gold is the only money that has survived for 5,000 years. Ephemeral financial systems and currencies come and go, so do empires. But gold survives them all. As JP Morgan stated: “Money is gold and nothing else”.

China’s Yuan Could Challenge Dollar as Reserve Currency – BoE Governor

from Sputnik News:

Chinese national currency could one day rival the dollar as the global reserve currency, the governor of the Bank of England (BoE), Mark Carney said.

“I think it is likely that we will ultimately have reserve currencies other than the US dollar,” the UK top financial official said during an online Q and A session during the Bank of England’s Future Forum on Thursday, RT reported.

Silver Outperforms Key Markets, Metals & Energy

by Clint Siegner, Money Metals:

While December was a horrible month for the broader markets, that wasn’t the case for the precious metals. As the Dow Jones and S&P 500 Indexes suffered the worst December since the Great Depression, the silver price enjoyed quite a healthy rally. The notion of rising precious metals prices during a market selloff ran counter to most analysts who forecasted falling asset values across the board.

However, that’s exactly what took place in December. I stated, since the beginning of 2018, that when the markets really started to decline the precious metals would likely disconnect and rally higher. Over the past month, the silver price jumped by 10% and gold 5%, while most of the broader indexes, base metals, and energy suffered declines.

Russia Backs Away From Dollar AGAIN: Shifts $100 Billion To Yuan, Yen, And Euro

by Mac Slavo, SHTF Plan:

Russia is continuing to ramp up its efforts to move away from the American dollar.  The country just shifted $100 billion of its reserves to the yuan, the yen, and the euro in their ongoing effort to ditch the dollar.

The Central Bank of Russia has moved further away from its reliance on the United States dollar and has axed its share in the country’s foreign reserves to a historic low, transferring about $100 billion into euro, Japanese yen, and Chinese yuan according to a report by RTThe share of the U.S. dollar in Russia’s international reserves portfolio has dramatically decreased in just three months between March and June 2018.  The holding decreased from 43.7 percent to a new low of 21.9 percent, according to the Central Bank’s latest quarterly report, which is issued with a six-month lag.