It’s time to buy the dips. . .
. . . not in stocks but in gold and silver. Actually, it’s been the right move to buy dips in the metals since 2016. But now the reasons for buying are evident.
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Category: Federal Reserve
Gold and silver prices explode
Gold and silver prices have exploded. Gold’s up $390 since its March low, silver up $10.60. Silver’s gain is 87% versus gold’s 26%. This is what was supposed to happen being that the GSR (gold silver price ratio) topped 100. Silver has still more catching up to do.
Bailouts forever?
The government’s reaction to the coronavirus has caused financial problems of monumental proportions. With the shutdown of businesses and massive layoffs, states and municipalities suffered huge losses in revenue. Two-thirds of state revenues come from income taxes or sales taxes.
Fed chairman admits flooding the market with money
This past Sunday, Scott Pelley interviewed Fed Chairman Jerome Powell on 60 Minutes. Below are some excerpts. PELLEY: Fair to say you simply flooded the system with money? POWELL: Yes. We did. That’s another way to think about it. We did.
If there were ever a time to buy gold and silver, this is it
Goldman Sachs forecasts a federal deficit of $3.6 trillion for the current fiscal year. Last year’s deficit was a mere $984 billion, for a 3.6- fold increase. Fedgov’s fiscal year ends September 30.
Central bank gold buying in 1st half set record
“Central Banks only hold gold because of tradition (if you believe their nonsense), so it probably comes as some surprise to many that central banks bought more of this ‘traditional’ asset in the first half of 2019 than they have done in any other first half on record.
The dollar and the euro on the road to destruction
The US Federal Reserve and the European Union’s central bank recently announced plans to inject massive liquidity into their respective money markets. However, the Fed denies that its buying is another quantitative easing program while the ECB admits that it is.
Fed rate hikes and reversals
In 2018 the Fed imposed four rate hikes, and stocks were virtually flat for the year. Actually, in the fall of 2018, stocks took a huge tumble.
Heavy hitters take positions in gold
Some of the world’s most famous and successful investors have taken positions in gold. It pays to note what successful people do with their money. “Some regard [gold] as a metal, we regard it as a currency, and it remains our largest currency allocation… – Stanley Druckenmiller. Druckenmiller was chairman and president of Duquesne Capital,
Negative interest rates are a serious problem
Incredibly, a bank in Denmark is offering home buyers 10-year mortgages at an interest rate of -0.5%. Borrowers who opt for these mortgages will pay back less than the amount borrowed. This has come about because of the massive money creation by the world’s central banks.