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Corona Strikes Back In Europe. Will It Boost Gold?

4 days ago

The number of new daily infections in Europe is rapidly increasing, even reaching new heights in several countries. That is just another reminder that the second wave in fall or winter is upon us.
Yes, I know. You are all fed up reading about the coronavirus. And yet, the coronavirus is not fed up with spreading around the globe. The number of new daily infections keeps going up, as the chart below shows.

Most significantly, the coronavirus cases are in a dramatic rise across Europe. The weekly cases have now exceeded the reported levels when the pandemic first peaked in Europe back in March. Furthermore, the number of new daily infections has also reached record highs in several countries, such as Spain or France, as shown in the chart below.

Without a doubt, the improved testing

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Is Silver the Next Tesla?

12 days ago

Jeff Clark, Senior Analyst, GoldSilver.com SEP 14, 2020

It’s no secret that one of the Nasdaq’s best performing stocks this year has been Tesla. Its meteoric rise, until recently, flashed dollar signs in the dreams of its investors.
Given silver’s historical volatility, a question dawned on me: could silver log a similar runaway price advance in the not-too-distant future?
It’s a fair question. Not only can silver be highly volatile, but potentially life-changing catalysts are staring us in the face. So let’s have a little fun and see if silver could have a comparable parabolic run…
The Core Reason for Silver’s Volatility
Long-time silver investors already know this, but the primary reason the silver price is so volatile is because it’s a teeny tiny market. It takes less cash coming in

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Unemployment Rate Drops. Will It Drag Gold Down?

18 days ago

The U.S. labor market improved in August, although headlines paint too rosy a picture. What does it all mean for the gold market?
Great news for the U.S. labor market: according to the BLS, the American economy regained 1.4 million jobs, while the unemployment rate fell below 10 percent for the first time in the pandemic era! To be more precise, the unemployment rate declined from 10.2 percent in July to 8.4 percent in August, as the chart below shows.

Importantly, the fall in the unemployment rate was bigger than expected – and it was accompanied by an increase in the labor-force participation rate, from 61.4 to 61.7 percent, which makes the decline in the unemployment rate even better.
The headline numbers are, thus, negative for the gold market. They reflect improvements in the labor

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Pension Funds Join the Gold Party

22 days ago

Things Are About to Get Interesting

Jeff Clark, Senior Analyst, GoldSilver SEP 4, 2020

Today, institutional participation – the enormous Wall St and global wealth management and investment firms and their clients from hedge funds to pension funds – in the gold market is minimal.
But with interest rates near zero globally, we’re seeing signs that this is changing rapidly.
The latest such news was first brought to our attention by our investor, Gold Bullion International, who services institutions like these: the Ohio Police and Fire Pension fund announced it will allocate 5% of its assets to gold.
This follows on the heels of other institutional investors that bought gold or silver in Q2, but it’s the first major pension fund this year to publicly announce it has entered the gold

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Gold Needs to “Glow Up”

August 27, 2020

BY Peter Grosskopf | Tuesday, August 25, 2020
As of August 24, gold bullion1 has gained 27.13% YTD and 39.74% YOY. Gold mining equities (SGDM)2 are up 38.85% YTD and 61.54% YOY. This compares to 7.55% YTD and 11.96% YOY returns for the S&P 500 TR Index.3  Silver has posted outsized gains, climbing 49.03% YTD and 50.00% YOY.
Gold is a Mandatory Portfolio Asset
Now that gold has powered over $2,000, it’s an excellent time to take stock of what has been accomplished by the monetary metal and what may lie next. As for my Gen-Z “Glow Up” reference (and more below), conversations with my 16-year-old daughter are a constant reminder that I, too, like the gold market, need some updating and modernization.   
Most importantly, in our view, it has been established as a baseline that a diversified

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FOMC Minutes Push Gold Down

August 25, 2020

July FOMC minutes hit the gold prices. But what’s next for the yellow metal?
The key event last week was the publication of the minutes from the FOMC meeting in July. After their release, the U.S. dollar jumped, while the price of gold dropped, as the chart below shows. Why? Well, the Fed officials disappointed investors who expected some clues about upgrading the U.S. central bank’s forward guidance in September. In other words, the Fed failed to provide any new guidance as to the interest rate expectations.

And, perhaps even more importantly, the discussion among the FOMC members shows that they do not want to introduce the yield curve control, at least not now, as costs outweigh benefits:
Of those participants who discussed this option, most judged that yield caps and targets would

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What the Upcoming Wealth Transfer Could Look Like

July 14, 2020

Jeff Clark, Senior Precious Metals Analyst JUL 14, 2020

With gold up 20% year-to-date and silver breaking through the $19 barrier for the first time in almost a year, it’s time to consider what a gold and silver mania might look like. If Mike Maloney is right about what’s ahead, we’ll soon be part of a life-changing shift. Have you thought about how the wealth transfer might play out? Not like this you haven’t…
You grab a calculator for the third time that day, multiplying your gold and silver ounces by the price of each… the total staggers you all over again, even though you checked it just a few hours ago. Precious metals prices have been screaming higher for weeks now, jumping 5% to 10% every day, frequently higher. One day last week gold was up 20% and silver a whopping 36%, just

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Into Darkness (System hurtling Towards Breakdown)

July 1, 2020

On January 23, 2020, our close friend Chris Martenson at Peak Prosperity issued an alert warning people to prepare for a coming pandemic, the likes of which we hadn’t seen in generations…
We now know Chris was right.
And unfortunately, 99% of Americans ignored Covid-19 until it was too late.
Now, Chris has issued another warning. 
A threat not to our health… but our wealth.
If you look closely, the warning signs are everywhere. 
The social upheaval… the wealth gap… the dysfunction in government… it’s all tied to a greater economic trend that according to Chris most members of the media are just flat out getting wrong… at the worst possible time.
To find out the truth about what’s really happening in the markets, the economy and how Chris is preparing today, read his full

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Daily Gold News: Monday, June 22 – Gold Closer to Medium-Term High

June 22, 2020

The gold futures contract gained 1.27% on Friday, as it broke slightly above the price level of $1,750. Last week’s Powell’s testimonies on Wednesday, Thursday and his Friday’s speech didn’t bring any new surprises for the financial markets. But gold got closer to its medium-term highs. However, it continues to trade within a consolidation, as we can see on the daily chart:

Gold is 0.2% higher this morning, as it is trading along Friday’s daily high. What about the other precious metals? Silver gained 1.94% on Friday and today it is 1.1% higher. Platinum gained 1.86% and today it is up 1.0%. Palladium lost 0.01% on Friday and today it is 0.5% higher. So precious metals’ prices are gaining today.
Last Thursday’s Philly Fed Manufacturing Index has been much better-than-expected but the

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Daily Gold News: Wednesday, June 17 – Gold Price Bouncing Back and Forth

June 17, 2020

The gold futures contract gained 0.54% on Tuesday, as it retraced most of its Monday’s decline of 0.58%. The price has been breaking above $1,750 mark recently. But it came back closer to $1,700 on Monday. Last Wednesday’s FOMC Statement came out as a short-term game-changer. Stock prices reversed lower and gold spiked higher. However, it is still trading within a medium-term consolidation, as we can see on the daily chart:

Gold is trading 0.4% lower this morning. What about the other precious metals? Silver gained 1.45% on Tuesday and today it is 0.1% higher. Platinum gained 2.70% and today it is 1.4% lower. Palladium gained 0.5% yesterday and today it is trading 0.2% lower. So precious metals extend their short-term fluctuations this morning.
Yesterday’s U.S. Retail Sales release with a

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Daily Gold News: Wednesday, June 10 – Gold Still Gaining, FOMC Ahead

June 10, 2020

The gold futures contract gained 0.99% on Tuesday, as it retraced its Friday’s decline following much better than expected U.S. monthly jobs data release. Global markets went risk-on and gold has sold off as a safe-haven asset. On Monday a week ago the price has reached slightly above $1,760 and Friday’s daily low fell at $1,671.70. But the gold price is gaining again this week. However, it is still trading within a medium-term consolidation, as we can see on the daily chart:

Gold is up 0.6% this morning, as it extends its short-term uptrend. Financial markets remain in risk-on mode, as stocks continue to hover along their medium-term highs. What about the other precious metals? Silver lost 0.55% on Tuesday and today it is 2.3% higher. Platinum lost 0.07% and today it is unchanged.

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Will Great Unlock Push Gold Prices Down?

June 5, 2020

As Great Lockdown was positive for the gold prices, the Great Unlock will be bad, right? We invite you to read our today’s article about the Great Unlock and find out whether it really must be negative for the gold prices.
It’s all government’s fault, right? After all, the Great Lockdown was introduced by the federal and state governments introduced, wasn’t? Well, not quite.
Before I will explain why, let me clear one thing up: I’m a liberty lover and I’m skeptical about the government regulations. And the economic shutdown was obviously untenable – the only reason to shut down the economy was to buy some time to prepare the healthcare system for better handling of the epidemic. So, it’s good that the Great Lockdown is ending.
However, the truth is that the economic shutdown was only

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Daily Gold News: Wednesday, June 3 – Gold Lower After Positive U.S. Data

June 3, 2020

The gold futures contract lost 0.93% on Tuesday, as it retraced most of Friday’s advance of 1.35%. On Monday the price has reached slightly above $1,760. Yesterday’s daily low was at $1,728 and today it’s getting close to $1,700. Gold is still trading within its medium-term consolidation, as we can see on the daily chart:

Gold is 1.1% lower this morning following better-than-expected U.S. economic data releases. Financial markets remain in risk-on mode, as stocks continue to hover along their medium-term highs. What about the other precious metals? Silver lost 3.01% on Tuesday and today it is 2.2% lower. Platinum lost 3.60% and today is 2.1% lower. Palladium lost 0.29% yesterday and today it is 0.3% higher. So precious metals are trading lower this morning.
The recent economic data

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How Would Gold Perform In a Second Stock Market Crash?

May 26, 2020

Jeff Clark, Senior Analyst, GoldSilver.com MAY 22, 2020

1929… the 1970s… 2000… 2008… and now 2020?
In the biggest stock bear markets over the past nine decades, there was an initial crash… followed by a big bounce… and then a more severe selloff, a “second leg down” if you will.
Could it happen again?
As Mark Twain said, “history doesn’t repeat itself but it often rhymes.”
And some of the world’s most successful hedge fund managers are convinced a second drop is coming…
Billionaire David Tepper, considered one of the world’s most successful hedge fund managers, said last month that “stocks are the most overvalued I’ve seen in my career.”
Stanley Druckenmiller, whose net worth is $4.7 billion, says “the risk-reward for equities is maybe as bad as I’ve seen it in my career.”
So-called

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Stagflation Is Coming

May 20, 2020

Interview with Michael Pento 
May 18, 2020 04:30 pm
Recorded: May 14, 2020
INTERVIEW TRANSCRIPT (EDITED)
Albert Lu: It’s been way too long. How are you?
Michael Pento: I’m doing fine. I hope you’re holding up well, Albert.
AL: I’m very well. You know that discussion we had was over three years ago. It feels like we’re just picking up from where we left off in many ways. What are your thoughts on what’s gone on in the last three years and obviously especially over the last two months?
MP: So, it would take longer than the duration of this interview for me to cover what happened in the past three years, but I’ll tell you what I am concentrated on. Since the breakout of this Wuhan virus, we’ve seen debt levels surge and balance sheets destroyed across the entire planet. You look at the

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Will Havoc in the Labor Market and (Dis)Inflation Make Gold Shine?

May 19, 2020

There is a true havoc in the US labor market, while inflation rate has declined. What does it mean for the gold market?
True Pandemonium Emerges in the US Labor Market
This week was full of economic data. Let’s analyze them, starting, as usual, from the initial jobless claims, which became one of the most carefully studied indicator during the coronavirus crisis. As the chart below shows, in the week from May 2 to May 9, three millions of Americans applied for unemployment benefits.
Chart 1: US Initial Jobless Claims from April 6, 2019 to May 9, 2020
           
            It implies two important things. First, the total number of people who applied for the unemployment benefit surpassed 36 million in the United States. It means that the implied naïve unemployment rate (which assumes no

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Gold Daily News: Wednesday, May 13

May 13, 2020

The gold futures contract gained 0.52% on Tuesday as it continued to fluctuate within a short-term consolidation. The market remains close to the price level of $1,700. Gold is still trading within a flat correction after its April’s advance. On April 14 it was the highest since November of 2012 and the high was at $1,788.80. Since then we’ve seen some profit-taking action and a potential medium-term downward reversal.
The price of gold is basically going sideways along $1,700 mark since early to mid April and it’s trading above February-March local highs. So it still looks like a consolidation within a medium-term uptrend.

Gold  is gaining 0.6% this morning, as it continues to trade above $1,700 mark. Global financial markets remain in a risk-on mode, as stocks are hovering close to

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Gold Daily News: Friday, May 8

May 8, 2020

The gold futures contract gained 2.21% on Thursday, as it retraced Wednesday’s decline and got above $1,700 price level again. Gold is still trading within a flat correction following April’s advance. On April 14 it was the highest since November of 2012 and the high was at $1,788.80. Since then we’ve seen some profit-taking action and a potential downward reversal.
The price of gold is basically going sideways along $1,700 mark since early to mid April and it’s trading above February-March local highs. So it still looks like a consolidation within a medium-term uptrend.

The price of gold is down 0.2% this morning, as it fluctuates following yesterday’s advance. Global financial markets remain in a risk-on mode, as stocks hover along their medium-term local highs. What about the other

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Is sudden and soaring inflation right around the corner?

April 22, 2020

Jeff Clark, Senior Analyst, GoldSilver APR 22, 2020

Here’s How High Inflation Could Soar and How Quickly It Could Get There
With deflation engulfing the world right now, is there really any reason to worry about inflation?
Yes. As I’ll show below, not only has inflation started abruptly many times throughout history, the current actions of the Fed and other central bankers are the very actions that have caused high inflation in the past.
We have some research on inflation that we haven’t seen elsewhere, research that can potentially be very useful to all of us in preparing for what is likely ahead.
The Setup
You’ve undoubtedly heard about the unprecedented level of fiscal and monetary stimulus governments and central bankers have undertaken. The response to the virus has been

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GOLD in the New Financial Landscape

April 21, 2020

Apr 20, 2020 12:42 pmThis article was originally published at Sprott.com

If you have trouble viewing the webcast above, please try this: RIA Replay Link.
Sprott’s Ed Coyne, Whitney George and John Hathaway provide in-depth analysis on gold and gold equities. The COVID-19 pandemic has created a new financial landscape, where returns from traditional financial assets could be subpar for many years. By contrast, the crisis continues to highlight gold’s value as a safe haven investment.
Topic: The COVID-19 pandemic has created a new financial landscape, where returns from traditional financial assets, in real terms, could be subpar for many years. By contrast, this crisis continues to highlight gold’s value as a safe haven investment. 
We discussed:
Gold is one of the few assets that offers

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Is the Extreme High in the Gold/Silver Ratio Setting Up For an Extreme Reversal?

April 20, 2020

By Jeff Clark, Senior Analyst, GoldSilver.com APR 20, 2020

There are a few times in an investor’s life where, as Jim Rogers once put it, you see a pile of money sitting in a corner and you can go pick it up. In other words, an investment opportunity that’s not just obvious, but has a high reward-to-risk ratio.
It may not have been expected by many investors, but the gold/silver ratio (gold price divided by the silver price) has stretched to never-before-seen levels. It’s soared to not just a generational high, but a historic high. As in 5,000 years of history.
Does this extreme reading suggest there is a pile of money sitting in a corner that we can go pick up? At a minimum it suggests a highly compelling investment opportunity.
Let’s take a look at the ratio and see what message

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Steven Feldman On Why Goldman Sachs Is Mistaken About Gold

April 14, 2020

The following article appeared at https://goldsilver.com/blog/why-goldman-sachs-is-mistaken-about-gold/ and shows the views on gold of a retired Goldman Sachs partner.

APR 14, 2020

By: Steven FeldmanCEO, Gold Bullion International ( www.bullioninternational.com)CEO, Auvere ( www.auvere.com)Retired partner, Goldman SachsCurrent Wealth Management Client, Goldman Sachs Private Bank
As a former partner of Goldman Sachs (GS) and current gold industry executive, it came as no surprise when dozens of customers and colleagues reached out to me this week to get my take on the latest research note from GS’s Investment Strategy Group (ISG).  In its note, ISG responds to a number of GS’s wealth management clients who had inquired about adding gold to their portfolios during these unprecedented

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March Roars in Like a Lion (Sprott Insights)

April 8, 2020

Gold continued to deliver strong relative performance and was up 3.95% on a year-to-date basis through March 31, 2020. This compares to a -19.60% first-quarter return for the S&P 500 Total Return Index.
Month of March 2020
Indicator
3/31/2020
2/29/2020
Change
% Chg
Analysis
Gold Bullion
$1,577
$1,586
($8.51)
(0.54)%
Gold flat in market chaos
Silver Bullion
$13.97
$16.67
($2.69)
(16.15)%
Silver more economic sensitive
Gold Equities (SGDM)1
$19.86
$22.66
($2.80)
(12.36)%
Gold equities in market storm
Gold Equities (GDX)2
$23.04
$26.22
($3.18)
(12.13)%
same as above
DXY US Dollar Index3
99.05
98.13
0.92
0.01%
U.S. dollar funding stress & hoarding
U.S. Treasury 10 YR Yield
0.67%
1.15%
(0.48)%
(47.71)%
U.S. Fed goes to zero rate policy
German Bund 10 YR Yield
(0.47)%
(0.61)%
0.14%
18.03%

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Market News Report: April 6, 2020 – April 10, 2020

April 6, 2020

The economic data releases are starting to show coronavirus crisis impact on the economy. Last week’s Thursday’s Unemployment Claims number has reached almost 7 million! And we will likely get more bad economic data this week. Let’s take a look at the details.
The week behind
Last week’s economic data releases have been overshadowed by the ongoing corona virus crisis developments again. And it wasn’t that surprising. However, Thursday’s weekly Unemployment Claims number hit record high again as it got close to 7 million! In the previous week it has been the first data to show impact of the pandemic on the U.S. economy. Last Friday’s Nonfarm Payrolls number release has also been worse than expected. However, the markets will pay much more attention to the next jobs data for the month of

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Germany Hoarding Gold – Anticipation of Currency Changes?

April 2, 2020

The following article appeared at https://www.voimagold.com/insight/germany-hoarding-gold-to-prepare-for-currency-reform-italy-dishoards:

Germany Hoarding Gold to Prepare For Currency Reform, Italy Dishoards

The Germans are hoarding gold. I estimate that the Germans own 9000 tonnes in private gold—nearly as much gold as the French and Italians have combined. What is their motivation?

World Gold Council (WGC) states there are roughly 198,000 tonnes of gold above ground, of which 35,000 tonnes is held by central banks. Who owns the remaining 155,000 tonnes? And where it is located? In a previous article I estimated that China holds over 20,000 tonnes in private gold (in China called the “People’s Gold”). Today, we will have a look at the largest economies in Europe: Germany, France,

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Gold Daily News: Tuesday, March 31

March 31, 2020

The gold futures contract lost 0.66% on Monday, as it continued to fluctuate following last week’s Monday’s – Tuesday’s rally. The market reacted to the previous Sunday’s Fed unlimited Quantitative Easing announcement. Yellow metal has retraced all of the previous sell-off, as it got back close to March 9 medium-term high of $1,704.30. Since then, gold is trading within the mentioned short-term consolidation.

Gold is down 2.0% this morning, as it retraces some more of the recent rally. What about the other precious metals? Silver lost 2.77% on Monday and today it is 0.7% lower. Platinum lost 2.40% yesterday and today it is trading 1.1% lower. Palladium was unchanged on Monday. Today it is also unchanged. So precious metals are backing down slightly following last week’s rally.
Investors

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James Grant: Nobody Knows Anything

March 28, 2020

James Grant, editor of Grant’s Interest Rate Observer
Recorded: March 24, 2020
[T]his introduces the possibility of everything that gold bugs have been praying for.
INTERVIEW TRANSCRIPT (EDITED)
Albert Lu: It’s another day of volatility for investors, as hope for a government stimulus package pushes the Dow Jones Industrial Average back above the 20,000 point mark. But how long will [it] last?
Joining me now is the editor of Grant’s Interest Rate Observer and the author of several books, including The Forgotten Depression: 1921: The Crash That Cured Itself.
Jim Grant, welcome. It’s a pleasure to have you on and I promised you just now that I will not require you to answer that question but I’m sure we’ll have plenty of things to talk about. How are you?
James Grant: I’m fine. Thank you,

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Sunshine Profits: Gold Daily News – Tuesday, March 24

March 24, 2020

The gold futures contract gained 5.59% on Monday following Sunday’s Fed unlimited Quantitative Easing announcement. Yellow metal has retraced almost half of its recent sell-off, as it got back above the $1,550 level yesterday. Today, gold is extending that short-term rally and it gets closer to March 9 medium-term high of $1,704.30.

Gold is rallying 7.0% today following Euro vs. U.S. dollar advance, among other factors. It gets closer to the mentioned medium-term high. What about the other precious metals? Silver gained 7.07% on Monday and today it is gaining an additional 5.0%. Platinum has gained just 0.8% yesterday and today it is gaining 6.7%. Palladium gained 1.08% on Monday and today it rallies by almost 12%.
The financial markets react to the mentioned Sunday’s Fed announcement.

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Point of No Return

March 20, 2020

By John Hathaway
Credit Deflation and Gold
Gold and precious metals mining shares are casualties of panic selling across all financial markets. The scenario is similar to what happened in 2008 during the global financial crisis (GFC). When the general selling exhausted itself in late 2008, gold and mining shares delivered superior absolute and relative performance for the following three years. We believe that this pattern is likely to repeat following this sell-off.
While COVID-19 outbreak is grabbing the headlines, the far bigger story is the deflation of financial assets that it has triggered and the resulting loss of investment confidence. Markets that had been priced for perfection must now reckon with a likely recession, soaring fiscal deficits and the very real possibility of a

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