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Sprott Gold Report: It’s Show Time for the Fed

7 days ago

BY John Hathaway | Monday, October 18, 2021

Despite lackluster third quarter and year-to-date performance for gold, the fundamental backdrop for precious metals and related mining share prices continues to strengthen in our opinion. Here’s why we believe this: 
Inflation has become increasingly problematic and more persistent than previous sanguine assessments by Federal Reserve Board (Fed) Chairman Jay Powell and other Fed officials.1
Real interest rates remain deeply negative, a positive for gold. The average annual return on gold during periods of negative real interest rates has been a stellar 21.12%.2
Monetary policy continues to be highly accommodative. The bearish case for gold rests on the deteriorating probability of the Fed tapering asset purchases in November.3
The global

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Neil Howe On The Fourth Turning: What Will Happen Next?

11 days ago

They say that history rhymes. 
That civilizations and societies tend to follow cycles — boom/bust, feast/famine, war/peace, cultural experimentation/a retrenchment to the “old ways”.
Famed demographer Neil Howe, the author of the best-selling book The Fourth Turning, lays out his prediction that today’s society has entered the “bust” part of our current cycle — where the status quo falls apart, often chaotically — to be replaced by a new, hopefully better, order.What should we expect from this period of disruption?
How bad will things get? How long will it last?
And are there steps we can take now to improve our odds of persevering?
In this new interview, Neil provides a highly-detailed picture of what to expect from the coming decade-plus of disruption.
This kind of

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Gold looks poised for a run eerily similar to the 1970s

12 days ago

1976 Says Silver & Gold Have Been In This Exact Place Before

It’s frustrating to watch gold and silver languish when they’re surrounded by major catalysts and since, well, everything else is going up. More than frustrating, it’s bewildering.
But what if I told you gold and silver have been in a near identical scenario before. And that it led to one of their biggest gains in history…

Gold’s Déjà vu

In the mid-1970s, inflation was soaring, unemployment was high, the US was in a recession, an energy crisis had just kicked off, and there were both political and geopolitical issues. 
Sound familiar?
And yet, from 1974 to 1976, the gold price fell by over 40%, stretched over a two-year period of time.
A falling gold price with major catalysts in play that at the time

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Inflation Finally Meets Wall Street’s Ears! Is Gold Next?

20 days ago

At last, something is happening! Rising oil and gas prices sparked inflation worries among investors. However, gold hasn’t benefited so far…
It took Wall Street a while to find out about inflation above 5%, but it seems that investors have finally noticed that we live now in a world of elevated inflation. I have always known that only the smartest minds work on Wall Street! So, right after they finally learned how to operate a computer and found the BLS website, they got scared and started selling equities. As a consequence, the U.S. stock index futures declined yesterday morning.
All right, I was a bit mean to the Wall Street traders. They panicked not because of the CPI rates but because of soaring oil prices. As the chart below shows, the WTI crude oil has recently approached $80 per

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Death By Inflation Or Debt Defaults?

25 days ago

The US currently spends 111% of its tax receipts on the true cost of servicing its debt. 
And the Fed is now chained to printing up the difference — forever.
This is a no-win situation.
Which is why highly-respected macro analyst Luke Gromen states that the US and other major world economies either better “get busy inflating or get busy defaulting”.
This is why he’s confident that our central planners will print, and print and print from here — as the carnage of defaults that would otherwise ripple through today’s hyper-indebted economy is too horrific for officials to stomach.
But while that’s the endgame he predicts, the path we’ll take to get there is much less certain.
And he’s worried there are a number of building pressures that could trigger a painful correction in

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Contagion! Evergrande, Inflation, Shortages & Fed Taper To Worsen Slowing Economy

September 25, 2021

The world has become a lot more volatile over the past few weeks. 
Markets are lurching up & down as investors have become suddenly concerned about contagion.
And not just from the new COVID variants. But contagion from the failure of big players in China, like Evergrande, and contagion from rising input costs caused by both stimulus and snarled global supply chains.
The bottom line is this: a mind-boggling amount of money — tens of $trillions worth of monetary & fiscal stimulus — has been issued around the world since the pandemic broke out last year. But the global economy is slowing fast.
How can the boost from such a massive flood of money already be over?In this new video, highly-respected macro researcher Jim Bianco details out the dynamics in play, what their

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‘Worst Bear Market Of Our Lifetime’ Is Fast Approaching

September 18, 2021

Legendary investor Jim Rogers has seen more market ups & downs than most people alive today — making a LOT of money in the process. 
But given today’s macro environment, he’s more concerned about the market’s future prospects than he’s ever been before.
In fact, he now confidently predicts we will experience a massive economic and financial correction that will result in the biggest bear market of our lifetime.
Too much debt. Rising inflation. Currency debasement. Malinvestment. Central bank intervention. Geopolitical stress. The current macroeconomic environment has it all.
Rogers forecasts that the collapse will begin in the weaker countries/companies first (Evergrande, anyone?), creating a cascade that eventually will plunge the entire global economy into deep

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Simon Black says Money Printing Won’t End, History Predicts

September 11, 2021

They say those who do not understand the lessons of history are condemned to repeat them. 
This isn’t the first time that authorities have intentionally devalued their currency in desperate attempt to stimulate economic growth.
Yet right now the world’s central banks – the Federal Reserve, the ECB, the BoJ and the PBoC – are all aggressively expanding their money supplies through inflation & deficit spending.
And they are fast approaching the point where their only available option to service the expanding pile of debt is to keep printing – ever more, ever faster.
What does history suggest will be the outcome from these efforts?
And what implications will they have for those looking to preserve their wealth?
Global investor, entrepreneur and scholar of history James

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Weak August Payrolls: Why We Should Care

September 7, 2021

A disappointing nonfarm payrolls report came. If the Fed postpones the tapering announcement considerably, gold might be able to rally for longer.
They say that September is a good time for gold. Indeed, historically, gold used to shine during the ninth month, and the yellow metal also started this year’s September on a good note. As the chart below shows, it jumped above $1,800 on the last day of August, and it has continued its rebound since then.

So, what happened? Well, on Friday, the newest report on the US labor market was revealed. The publication showed that the American economy added only 235,000 jobs in August, as one can see in the chart below. The number came much below expectations (of more than 700,000) and much below the impressive gains in July (above one million, after an

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Market Meltdown Ahead?

July 31, 2021

It’s looking increasingly clear folks: 
The economy has taken on too much debt.
Interest rates can’t rise substantially without threatening to crash the entire system.
But instead of exercising concern, Wall Street is partying hard with today’s cheap liquidity in a speculative orgy.
Unless the situation changes dramatically, investment manager Lance Roberts foresees an approaching ‘Minsky Moment’ for the markets that will shatter the complacency of today’s investors and send prices into melt-down.
In this chart-rich interview, Lance decodes the implications of what Jerome Powell said at the latest Federal Reserve press conference, explains why inflation will and will not be “transitory”, and argues why volatility in financial assets like stocks and bonds will be

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Market Implosion Inevitable

July 28, 2021

Suddenly investors are panicked that inflation is taking over. 
But what if they’re wrong?
Well, that could be a costly mistake if they’re betting their portfolio’s future on it.
Because there’s a strong case to be made that we’re now actually entering a period of dis-inflation, one that has a high risk of tipping into outright deflation by next year.
Investment manager Mento Pento pulls no punches in arguing why this is indeed the inevitable path we’re now on.
In this hard-hitting interview, Michael explains why the Fed and Congress don’t have the air cover to continue the same magnitude of stimulus that the market is now addicted to — and thus won’t be able to resume it until after the next painful market correction arrives.

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Gold’s Behavior in Various Parallel Inflation Universes

July 23, 2021

The current high inflation could theoretically transform into hyperinflation, disinflation, stagflation, or deflation. What does each mean for gold?
Inflation, inflation, inflation. We all know that prices have surged recently. And we all know that high inflation is likely to stay with us for a while, even if we assume that the CPI annual rate has already peaked, which is not so obvious. But let’s look beyond the nearest horizon and think about what lies ahead after months of high inflation, and what consequences it could have for the gold market.
From the logical point of view, there are three options. Inflation rates could accelerate further, leading to hyperinflation in an extreme case. They could remain more or less the same, resulting possibly in stagflation when the pace of GDP

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Is Cash Trash? Economic Analyst Lyn Alden Weighs In

July 10, 2021

With global central banks printing trillions of new currency these days, the voices claiming that “Cash Is trash” appear to have a valid point. 
Banks give us no return on cash savings. And inflation is swiftly eating away at its purchasing power. 
So what is the future outlook for the world’s major fiat currencies? 
And are there better stores of value we should consider using instead of paper cash? 
We invited economic analyst Lyn Alden to answer these very questions. 
She sees the US dollar continuing to lose its prominence against other global currencies as the world moves to de-dollarize. 
And she sees ALL fiat currencies devaluing against other assets, particularly tangible ones. 
To understand the implications of this erosion of fiat purchasing power, watch

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The Fiat Free-For-All: Currency Creation vs. Gold and Silver Production

June 29, 2021

Jeff Clark, Senior Analyst, GoldSilver.com JUN 28, 2021

Most headlines about the Fed’s open market committee (FOMC) announcement focused on the potential change in interest rates. What went largely ignored was that it will continue to purchase $120 billion in bonds every month.
The central bank said it “might” raise rates in 2023, but there was NO hesitation to continue full steam ahead with its aggressive bond-buying program.
This QE program amounts to $1.44 TRILLION annually in new bank reserves (which are used to purchase Treasuries). And it’s all created out of thin air.
To put that amount into perspective, the market capitalization of IBM is $130 billion. So the Fed creates the currency equivalent of another IBM nearly every month.
That’s a lot of currency. If you live to 95 you

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INFLATION SPIKES! How Will That Impact Your Wealth?

June 15, 2021

Inflation just took a massive spike higher. 
Just-released data shows core inflation has suddenly soared to levels not seen since the early 1990s. 
High inflation is a wealth-killer. Draining the purchasing power of your income and savings, while crushing you under a rising cost of living. 
How worried should you be about it now? 
To answer that, we brought in an expert: a former advisor to the Federal Reserve (whose $trillions in monetary stimulus over the past year are a primary cause of the inflation surge we’re seeing today). 
In this video, Danielle DiMartino Booth breaks down the recent massive spike higher in the core inflation rate data.
She also shares which asset classes appear prudent given the highly uncertain environment now facing today’s investors

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Rising Cost Pressure – What Will Mr. Powell and Mr. Gold Do?

May 26, 2021

The latest IHS Markit Flash U.S. Composite PMI signals very fast economic expansion – but also strong inflationary pressure. Good news for gold, overall.
On Friday, the recent IHS Markit Flash U.S. Composite PMI has been published . There are two pieces of news for gold – one good and one bad. Let’s start with the negative information. The report signals an unprecedentedly fast expansion in business activity in May. Indeed, the composite index surge from 63.5 in April to 68.1 this month established a new record.
More importantly, both manufacturing and services sectors’ markets have shown strong growth. The former index rose from 60.5 in April to 61.5 in May (also a new record), while the PMI for services soared from 64.7 to 70.1, marking the sharpest jump since data collection for the

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Commodities Boom Only In ‘Early Innings’

May 16, 2021

This perspective on the markets is from our friend Adam Taggart at the newly-launched Wealthion channel; we hope you enjoy it.

Back in December, Saxo Bank’s Steen Jakobsen predicted a massive boom in commodity prices was dead ahead.
Not many others shared that view back then.
But, boy, was he ever right.
Commodity prices have exploded in the five months since that interview was recorded.
And more important, in his eyes we ain’t seen nothin’ yet. He predicts commodity prices are going to continue heading higher, a LOT higher, from here.
Why?
Infrastructure around the world is being rebuilt — much of it badly needed — to the tune of tens of $trillions over the coming decade.
And in the more immediate future, Steen calculates weakening GDP growth will force

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Sprott’s “Nature’s First Green is Silver”

May 6, 2021

BY Paul Wong | Tuesday, May 4, 2021

Gold Gains 3.60%, Silver Climbs 6.14%
April provided precious metals markets redemption from a challenging first quarter, with gold finishing the month at $1,769.13 per ounce, rising 3.60%. Silver rose 6.14%, platinum climbed 1.34% and palladium gained 11.95%. Gold mining equities added 6.16%. For the twelve-month period ended April 30, 2021, gold climbed 4.90%, silver gained 73.13%, platinum rose 54.85%, palladium returned 49.25% and gold equities gained 0.77%.1,4
Month of April 2021
Indicator
4/30/2021
3/31/2021
Change
Mo % Chg
YTD % Chg
Analysis on April
Gold Bullion2
$1,769.13
$1,707.71
$61.42
3.60%
(6.81)%
Held support, small base pattern
Silver Bullion3
$25.92
$24.42
$1.50
6.14%
(1.84)%
Maintaining high level correction
Gold Senior Equities

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Gold Sings a “Hot N Cold” Song

April 30, 2021

Although spring has begun, we can still find ourselves in winter, or even summer. Gold may benefit from such a seasonal aberration.
Oh, how wonderful, spring has finally started, hasn’t it? We have April, after all. Well, in calendar terms, it’s indeed spring, but economically it can be summer already or still the beginning of winter. How so? I refer here to Kondratiev cycles (also known as Kondratieff cycles or Kondratyev cycles).
As a reminder, Nikolai Kondratiev was a Russian economist who noted in the 1920s that capitalist economies experience long super-cycles, lasting 40-60 years (yup, it’s not a very precise concept). His idea was that capitalism was not on an inevitable path to destruction, but that it was rather sustainable and cyclical in nature. Stalin didn’t like this

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Will Powell Lull Gold Bulls to Sweet Sleep?

April 29, 2021

The Fed left its monetary policy unchanged. However, the lack of any action amid economic recovery is dovish – good news for gold.
On Wednesday (Apr. 28), the FOMC has published its newest statement on monetary policy. The statement wasn’t significantly altered. The main change is that the Fed has noticed the progress on vaccinations and strong policy support, and that, in consequence, the economic outlook has improved.
Previously, the US central bank said that indicators of economic activity and employment “have turned up recently, although the sectors most adversely affected by the pandemic remain weak”, while now these indicators “have strengthened”, while “the sectors most adversely affected by the pandemic remain weak but have shown improvement”. So, the Fed acknowledged the fact that

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Will Euro and Gold Go Up With Pandemic Upturn in Euro Area?

April 27, 2021

The worst may already be behind the euro area’s economy. This bodes well – both the euro, as well as gold, can benefit from it.
The Governing Council of the European Central Bank met last week, keeping its monetary policy unchanged. The inaction was widely expected – no surprises here. The June meeting could be much more interesting as the ECB will have to decide whether or not to slow its bond buying under the Pandemic Emergency Purchase Programme that was accelerated in the second quarter of the year. Given the dovish stance of the European policymakers, and the bank’s pledge to provide the markets with favorable financing conditions during the pandemic, we shouldn’t expect any tapering soon.
Certainly, there are important dovish parts of the latest ECB’s statement on its monetary policy

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Will a Fiscal Revolution Raise Gold to the Throne?

April 23, 2021

Revolution, baby! There is growing acceptance for an aggressive fiscal policy, which could be supportive for gold prices from the fundamental, long-term point of view.
We live in turbulent times. The pandemic is still raging and will most likely have lost lasting effects on our society. But a revolution is also happening right before our eyes. And I don’t mean another storming of the U.S. Capitol or the clash of individual investors with big fish on Wall Street. I have in mind something less spectacular but potentially more influential: a macroeconomic revolution.
I refer here to the growing acceptance of easy fiscal policy . In the aftermath of the Great Recession , the central banks adopted an aggressive monetary policy , slashing interest rates to almost zero and introducing

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“This Looks Like The Market Peak”

April 3, 2021

Stocks, houses, commodities, Bitcoin – the price of nearly everything is up double digits vs last years pre-coronavirus highs. 
Have the trillions in stimulus ushered in a new bull market in, well, everything? Or have they helped blow the biggest asset price bubble in history?
Macro analyst Wolf Richter suspects the latter. And he doesn’t think we have much time left before it bursts.
In an interview with our friend Adam Taggart, Wolf concludes we’re seeing a mania that will likely pop in the same manner as all that have preceded it, he has another reason for expecting lower asset prices ahead.
We are clearly heading down the path towards much higher inflation. 
And in Wolf’s eyes, that will eventually force the Federal Reserve to start tightening at this point —

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Want To Invest In Farmland? Here’s How

March 27, 2021

Adam Taggart, PeakProsperity.com MAR 26, 2021

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Farmland is a “holy grail” asset class for many investors.
It’s tangible, produces income, and has inherent underlying value — making it a great inflation hedge.
It’s supply constrained. Mother Nature isn’t making any more of it… and in total, farm acreage around the world is being lost to development, drought, etc.
Historically it’s an asset class that produces double-digit annual returns while remaining largely uncorrelated with the stock market, making it a valuable component for portfolio diversification.
And even better, it offers the chance to do well by doing good. There are increasing opportunities to convert poorly-managed conventional farmland to organic status through sustainable practices AND command much

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After The Fed Week – What’s Next? Part II

March 22, 2021

In the first part of this research article, we shared more detail related to the Excess Phase Peak technical pattern that is setting up in the NASDAQ and to highlight the validity of our Gann/Fibonacci Technical research which suggested a peak in the markets may set up sometime after April 1, 2021.  We’ve received many questions and comments from our readers and followers related to these articles.  Many people seem to believe we are calling for an April 1 market peak based on this research, yet the technical patterns we are highlighting suggest a longer-term market peak may already be setting up. 
In this second part of our more detailed “what next” article, my research team and I will highlight exactly why we believe traders and investors need to be prepared for an extended technical

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The Stock Market Crash Prep Kit for Silver & Gold Investors

March 17, 2021

Jeff Clark, Senior Analyst, GoldSilver.com MAR 17, 2021

When the topic of a stock market crash comes up, the #1 question we get from gold and silver investors is this: won’t gold and silver crash, too? And if so, should I sell my bullion now and rebuy after the crash?
It’s an important topic, because while Mike and I are convinced gold and silver are headed much higher, one’s strategy can impact how much they profit. Or how little.
We don’t know how big a crash might be, and we don’t pretend to know the timing, but let’s look at the best ways for gold and silver investors to prepare for this likelihood.
The best place to start is by asking this question…
Should Gold & Silver Investors Fear a Stock Market Crash?
While no two selloffs are identical, the best clue we have about how gold

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Inflation Or Deflation? Here’s How It Will All End

March 8, 2021

Adam Taggart, PeakProsperity.com MAR 5, 2021

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Our friend Adam Taggart interviews highly-respected market researcher Luke Gromen about the three massive threats facing the global economy at this unique period in history:
1. The first bursting global sovereign debt bubble in over 100 years…
2. The first time in 50+ years that foreign central banks are no longer financing the US economy (i.e., they have stopped growing their holdings of US Treasurys)…
3. The US’ long-standing “petrodollar” advantage is eroding as other countries increasingly strike deals to trade key commodities in non-USD currencies…
As these challenges mount, how will they resolve?
Will increasing weakness cause defaults on the debts that can’t be serviced? (“deflation”) Or will the central planners “do

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A Market Crash AND High Inflation?

February 13, 2021

Adam Taggart, PeakProsperity.com FEB 12, 2021

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Imagine for a moment that the price of all your investments — your stocks, your retirement portfolio, your house — suddenly drop in half this year. Now imagine that on top of that inflation suddenly picks up, making your cost of living skyrocket.
That would be pretty awful, right?
Well, this might not be just some theoretical thought exercise.
Our friend Adam Taggart recently sat down with highly respected financial researcher Jesse Felder to discuss how the twin dangers of a market crash and higher inflation actually could indeed happen in the near future.
For many months Mike Maloney and Adam Taggart both have been sharing the mounting abundance of data points that reveal

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STOCK WARS! The People Rise Up Against Wall Street

January 30, 2021

Adam Taggart, PeakProsperity.com JAN 29, 2021

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An epic David-vs-Goliath battle has erupted on Wall Street.
Millions of individual investors have banded together using Reddit chat boards, Twitter and other forms of social media to wage concentrated attacks against large hedge funds who were recklessly (and possibly illegally) over-shorting the stocks of weak companies.
This has resulted in a series of “Infinite Short Squeezes” that has rocketed the prices of previously-troubled stocks like GameStop (GME) and AMC Entertainment Holdings (AMC) by thousands of percent over the past two weeks, creating massive losses for the over-exposed hedge funds — a number of whom now find themselves at risk of insolvency from the damage.
To break down exactly what’s going on here, our

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2021 Gold Price Prediction, Trends, and 5-Year Forecast

January 18, 2021

Jeff Clark, Senior Analyst, GoldSilver 

Most price forecasts aren’t worth more than an umbrella in a hurricane. There are so many factors, so many ever-changing variables, that even the experts usually miss the mark.
Further, some forecasters base their predictions on one issue. “Interest rates will rise so gold will fall.” That’s not even an accurate statement, let alone a sensible prediction (it’s the real rate that affects gold prices, as I’ll show below).
But there is value in considering predictions. It can solidify why one has invested, offer factors that may have been overlooked, or even cause one to revise their expectations.
So while we take predictions with a grain of salt, let’s look at what might be ahead for gold price in 2021 and the next 5 years. We’ll first summarize

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