Gold and COVID-19

[Here’s a post from a guy I read occasionally. His style (to say the least) is quite over-the-top. Believe what you choose and discard the rest.  –Bob]

By Jim Willie – Re-Blogged From Gold Eagle

The entire global financial structure is in the process of faltering, breaking, and crumbling. It is better described as sabotage by the Globalist cabal in league with their fascist partners. As the entire economy fractures, as all debt faces failure, as most assets break down, as countless households struggle, the King Dollar faces a certain sunset, true safe haven will be uniformly sought. Correspondingly, the Gold price is ready to launch onward and upward. It will light the fuse on the Silver price in sequence. Demand will skyrocket, while supply has been limited. Behold the greatest fraud and hoax in the history of mankind behind the corona virus. It is named after the Queen of England, a primary funding partner. She filed a corona virus patent in December 2018, from engineered creation. The COVID-19 entity is far more a fascist project to force political change than actually a virus at all. The disease is a mirage, and exaggerated agent of deep fear and fright. Let it be known that not 5% of the population know what a virus is, how it works, the method to identify, or the best prevention. Ignorance is a great ally to the global cabal.

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Gold Summer Doldrums 3

By Adam Hamilton – Re-Blogged From Gold Eagle

Gold, silver, and their miners’ stocks suffer their weakest seasonals of the year in early summers.  With traders’ attention normally diverted to vacations and summer fun, interest in and demand for precious metals usually wane.  Without outsized investment demand, gold tends to drift sideways dragging silver and miners’ stocks with it.  Feared as the summer doldrums, sometimes unusual catalysts short-circuit them.

This doldrums term is very apt for gold’s summer predicament.  It describes a zone in the world’s oceans surrounding the equator.  There hot air is constantly rising, creating long-lived low-pressure areas.  They are often calm, with little or no prevailing winds.  History is full of accounts of sailing ships getting trapped in this zone for days or weeks, unable to make headway.  The doldrums were murder on ships’ morale.

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Trampoline Cliff Diving

By Michael Pento – Re-Blogged From Pentoport

We start this week’s commentary with some rather depressing news from Reuters:

The ratio of downgrades to upgrades in the credit ratings of leveraged loans has spiked to a record level, five times above that hit during the last global financial crisis, reflecting the unprecedented stress in risky assets due to the coronavirus pandemic. Leveraged loans, which are loans taken out by companies that have very high levels of debt, usually with non-investment grade credit ratings–tend to be used by private equity firms as a way to fund acquisitions of such companies. The U.S. leveraged lending market has grown to more than $2 trillion, up 80% since the early 2010s, according to credit rating agency Moody’s Investors Service.

Add in the $1.2 trillion junk bond market and the $3.2 trillion in BBB debt, which is just barely above the junk category, and you end up with nearly six and a half-trillion dollars’ worth of corporate debt that is primed for varying degrees of default. The catalyst for this default is the worst economy since the Great Depression.

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Gold Stocks Still Undervalued

By Adam Hamilton – Re-Blogged From Gold Eagle

Gold miners’ stocks rocketed out of mid-March’s stock panic, breaking out to major new bull-market highs in mid-May. Such blisteringly-fast gains, and gold stocks’ upleg stalling out since, have left many traders nervous about this sector. Calls for a serious selloff are mounting. But arguing in favor for more near-term gains to come, gold stocks never grew overvalued in this post-panic upleg and are still undervalued today.

The recent gold-stock action is best understood through this sector’s most-popular benchmark, the GDX VanEck Vectors Gold Miners ETF. Holding the world’s biggest and best gold miners, it dominates gold-stock-ETF capital flows. GDX’s world-leading $15.1b in net assets this week are triple the size of its little-brother GDXJ mid-tier gold miners ETF! No other gold-stock ETFs come remotely close to GDX’s scale.

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2020 Economic Predictions: This Series of Unfortunate Events Guarantees the Epocalypse

Look at the plethora of problems in my list of 2020 economic predictions, which are so severe and so likely to get even worse that it’s more difficult to imagine they won’t get worse than to believe they will. Some are so bad that just a few of them would plunge us into an abyss of social and financial catastrophes.

Here are my economic predictions for the remainder of 2020

This list of economic predictions is not hard to come up with. It is, however, the fact that it is so easy to predict these things this year that makes this year’s list so important.

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Gold, Copper And Silver Are Must-Own Metals

Gold surged on Monday after a spike in coronavirus cases worldwide dashed hopes of a quick economic recovery. Within 24-hours the number of infections globally rose 183,020, a new record, the World Health Organization reported, Reuters said the US saw a 25% increase in new COVID-19 cases over the week ending June 21st.

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Gold-Futures Firepower Mounts

By Adam Hamilton – Re-Blogged From Gold Eagle

Gold’s powerful post-stock-panic upleg hasn’t enjoyed buying support from the gold-futures speculators.  These influential traders often drive and even dominate major gold-price trends.  But they’ve been subtly selling into gold’s sharp recent rally.  Their dogged skepticism is actually very bullish for gold in coming months.  Gold-futures speculators are amassing big gold-futures-buying firepower that will be unleashed.

The maelstrom of extreme fear spawned by mid-March’s stock panic even briefly sucked in gold.  It had surged to a 7.1-year secular high of $1675 during the initial weeks of that heavy stock-market selling.  But once that went panic-grade, which is major stock indexes plummeting 20%+ in 2 weeks or less, even gold was dumped in the frantic dash for cash.  Similar to prior panics, gold plunged 12.1% in just 8 trading days.

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The Law-Of-Diminishing Returns Is Taking Hold Of The FOMC’s “Monetary Policy”

By Mark J Lundeen – Re-Blogged From Gold Eagle

I had excellent timing for my vacation, with not much happening until this week; and what happened this week? On Monday’s close the Dow Jones came within 7% of its last all-time high (BEV Zero). What could go wrong and prevent the Dow Jones from making a historic new all-time high sometime in the coming weeks? Only Mr Bear, who in the next three days began clawing back market valuation with relish.

On Thursday the venerable Dow Jones began upchucking dollars, coughing up 1,862 of them in a single NYSE trading session, taking the Dow Jones all the way back down to its BEV -15% line in the chart below. Last Monday, it appeared the BEV -17.5% line was no longer a technically important level. The question in my mind now is will the Dow Jones once again advance into single digits in the BEV chart below, or find itself closing below its BEV -17.5% line?

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Silver Is Going To Have A Sudden, Massive Move To $50 That Everyone Will Be Surprised Over

By Mike Gleason – Re-Blogged From Silver Phoenix

Mike Gleason: It is my privilege now to welcome back Michael Pento president and founder of Pento Portfolio Services. Michael is a well-known money manager, market commentator, and author of the book, The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market. He’s been a regular guest with us over the years, and it’s always a pleasure to have him on with us.

Well, Michael, it’s been a few months since we’ve had you on last and just a little bit has been going on in the world. COVID-19 has hit the states to say the least and caused major disruptions in the economy. Governors have instituted stay-home orders. Tens of millions of people have filed for unemployment. Now we’re seeing major rioting and social unrest in many cities throughout the country over the police killing of a black man in Minnesota last week.

And in the face of all that, the markets are seemingly doing just fine. Stocks are still rallying and it doesn’t seem like Wall Street is all that concerned about any of this. So, let’s get your take on what’s going on there, Michael, because it’s pretty hard to connect the dots between Wall Street and Main Street these days. Help us out there.

Michael Pento: Yeah. So nothing is going on that much this year at all, right? It’s been pretty boring. </sarc>  The divide between the rich and the poor, which was already humongous coming into this year has grown exponentially. And you have to ask yourself the question, gee, if GDP, according to the Atlanta Fed is going to drop in the second quarter by over 52%, that is a seasonally adjusted annual rate, Mike. GDP is going to be cut in more than half during the second quarter of 2020, how in God’s name could it be possible that stocks are close to all-time record highs? And by evaluation metric at all-time record highs. There are about over 150% of GDP.

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Gold Investment Strong

By Adam Hamilton – Re-Blogged From Gold Eagle

Gold investment demand remains strong, buoying the yellow metal and its miners’ stocks. Investors have continued actively diversifying into gold despite soaring stock markets and weaker summer seasonals. The Fed’s extreme money printing fueling these precarious stock-market heights is perilously inflationary, making upping gold portfolio allocations essential. This ongoing capital shift is likely to keep pushing gold higher.

The dominant driver of gold’s major price trends is investment demand. While it isn’t the largest demand category, it varies greatly depending on global-financial-market conditions. The best global gold supply-and-demand data is only published quarterly by the venerable World Gold Council, in its must-read Gold Demand Trends reports. They highlight the big volatility inherent in gold investment demand in recent years.

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I Believe In The Stupidity Of The Stock Market

By David Haggith – Re-Blogged From Silver Phoenix

Michael Pento: “Central Banks Have Jumped The Shark,” May Even Buy Stocks

By Mike Gleason – Re-Blogged From Silver Phoenix

Mike Gleason: It is my privilege now to welcome back Michael Pento president and founder of Pento Portfolio Services. Michael is a well-known money manager, market commentator, and author of the book, The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market. He’s been a regular guest with us over the years, and it’s always a pleasure to have him on with us.

Michael, thanks for the time again today and welcome back.

Michael Pento: Thank you so much for having me back on Mike.

Mike Gleason: Well, Michael, it’s been a few months since we’ve had you on last and just a little bit has been going on in the world. COVID-19 has hit the states to say the least and caused major disruptions in the economy. Governors have instituted stay-home orders. Tens of millions of people have filed for unemployment. Now we’re seeing major rioting and social unrest in many cities throughout the country over the police killing of a black man in Minnesota last week.

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Gold-Stock Upleg Healthy

By Adam Hamilton – Re-Blogged From Gold Eagle

The gold miners’ stocks just rolled over into a correction, raising concerns about the staying power of their massive post-panic upleg.  These higher prevailing gold prices have driven very-strong fundamentals at the gold miners.  But they are entering the seasonally-weak summer doldrums.  And current sentiment and technicals play major roles in governing when uplegs remain healthy or ready to give up their ghosts.

The GDX VanEck Vectors Gold Miners ETF remains the leading and dominant benchmark for this small contrarian sector.  Its $14.3b in net assets this week were a colossal 33.2x bigger than those of its next-largest 1x-long major-gold-miners-ETF competitor!  GDX’s only real rival is its little-brother GDXJ mid-tier gold-miners ETF, which is only about one-third of GDX’s size.  The GDX gold stocks have sure had a wild ride.

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Will Great Unlock Push Gold Prices Down?

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

As Great Lockdown was positive for the gold prices, the Great Unlock will be bad, right? We invite you to read 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, wasn’t it? 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.

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Orphaned Silver Is Finding Its Parent

Introduction

So far this year, the story in precious metals markets has been all about gold. Speculators have this idea that gold is a hedge against inflation. They don’t question it, don’t theorise; they just assume. And when every central bank issuing a respectable currency says they will print like billy-ho, the punters buy gold derivatives.

These normally tameable punters are now breaking the establishment’s control system. On Comex, the bullion establishment does not regard gold and silver as money, just an idea to suck in the punters. The punters are no longer the suckers. With their newly promised infinite monetary expansion, central banks are confirming their inflationary fears.

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Is America Headed For A Post-Apocalyptic Currency Collapse?

By Stefan Gleason – Re-Blogged From Silver Phoenix

Just when it seemed as though America may be turning the corner after months of lockdown… just when it seemed as though we were on a path to reopening and gradually returning to normalcy… just when the prospects of panic-induced social unrest seemed to be behind us…

…America’s cities erupted into flames.

Antifa and BLM-organized rioting, looting, violence, and mayhem have pushed cities across the country into pandemonium. Even if the insurrections are soon quelled – as President Donald Trump promised to do in a speech in front of the White House on Monday – the consequences won’t soon go away.

Silver Miners’ Q1’20 Fundamentals

By Adam Hamilton – Re-Blogged From Silver Phoenix

The silver miners’ stocks have surged higher since mid-March’s COVID-19 stock panic, clocking in some big and fast gains.  Nevertheless, this long-struggling sector remains vexing.  By mid-May as their latest earnings season was wrapping up, the silver stocks were lagging the gold stocks’ powerful upleg.  And the silver miners’ Q1’20 operational and financial results were disappointing compared to the gold miners’.

Silver and its miners’ stocks have had one heck of a roller-coaster ride in recent months.  With primary silver miners a dying breed, and silver stocks languishing deeply out of favor for years, there are only a couple silver-stock ETFs trading in the US.  The leading one remains the SIL Global X Silver Miners ETF.  And it is still tiny, a rounding error with just $527m in net assets in mid-May.  Silver stocks are left for dead.

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The Anatomy Of A Gold Stock Bull Market (Part 2)

By Rambus – Re-Blogged From Gold Eagle

Before we look at today’s charts I would like to go over some challenges that we’ll face as the current impulse move in the PM complex continues to move higher. It’s not every day that you will find yourself getting in close to the bottom of a multi month rally. One of the biggest problems I’ve witnessed over the years, especially with PM stock investors, is they grow complacent as the rally phase starts maturing. They believe they are invincible as their profits rise and everything is right with the world. That complacency usually means not getting out close to the end of the impulse move which is extremely hard to do even if you’re looking for a top. They will either sell in panic as the correction takes hold or hang on to their positions during the entire correction which is emotionally hard to do.

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Gold: The Never Normal

By John Ing – Re-Blogged From Gold Eagle

During the Great Depression, stocks lost 90 percent of their value, people lost savings and jobs. Today there are a record 33 million jobless Americans, double the 15 million jobless in the Thirties or 25 percent of the population then. And today, there are long food lines that rival those of the Great Depression. Yet looking at the stock market and its robust snapback rally, the juxtaposition between the comeback and an economy in freefall is contradictory. Of interest is that at the onset of the Great Depression, stocks actually rallied 50 percent, before losing 90 percent of their value three years later. And, looking for clues about the future from the bond market is futile given the Fed’s dominant presence. While there are similarities, they are differences.

Yet few are putting forward the consequences of the inexorable rise in debt to save the world and fewer are looking at a “never normal” future.

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Gold Mid-Tiers’ Q1’20 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The mid-tier gold miners in the sweet spot for stock-price upside potential have enjoyed a massive run since mid-March’s stock-panic lows.  They’ve already more than doubled in the couple months since!  Their just-released Q1’20 operational and financial results reveal whether these huge gains are righteous fundamentally, whether this uptrend is likely to persist, and how COVID-19 shutdowns are affecting gold miners.

Interestingly the leading mid-tier gold-stock ETF is the famous GDXJ VanEck Vectors Junior Gold Miners ETF.  Despite its misleading name, GDXJ is overwhelmingly dominated by mid-tier gold miners.  They produce 300k to 1m ounces of gold annually, between the smaller juniors and larger majors.  The mid-tiers offer an excellent mix of sizable diversified production, output-growth potential, and smaller market caps.

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World Now Faces ‘Monetary Armageddon’

By Mike Gleason – Re-Blogged From Gold Eagle

Mike Gleason (Money Metals Exchange): It is my privilege now to interview our good friend, Greg Weldon, CEO and President of Weldon Financial. Greg has decades of market research and trading experience specializing in the metals and commodity markets and he even authored a book back in 2006 titled Gold Trading Boot Camp where we accurately predicted the implosion of the U.S. credit market and urged people to buy gold when it was only $550 an ounce. He’s made some fantastic calls over the last few years here on our podcast and it’s great to have him back with us.

We did speak to you back at the end of February before all this madness started. At the time, COVID-19 had begun seriously impacting economic activity in global markets, maybe not so much in the U.S. Now, just two months later, more than 30 million people have filed for unemployment, GDP was deeply negative in the first quarter and figures to be even worse here in Q2. But the equity markets are acting as if the worst is behind us. We got a major correction followed by an almost relentless rally. Our take is that equity markets are completely disconnected from reality. They are hitched, instead, to the Fed’s magic money machine. What is your take on how stock markets are behaving here, Greg?

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Gold Miners’ Q1’20 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The major gold miners’ stocks have rallied dramatically out of mid-March’s stock-panic lows, soaring to new bull-market highs. Their just-reported Q1’20 operational and financial results reveal whether today’s higher gold-stock prices are fundamentally justified. They also illuminate whether this gold-stock upleg is likely to continue powering higher, despite the catastrophic economic damage from governments’ lockdowns.

With officials around the world waging a scorched-earth war against this COVID-19 pandemic, the gold miners’ latest quarterly results are more important than ever. While this earnings season covered Q1’20, most gold companies didn’t release their quarterly reports until the last couple weeks. In them they had to disclose the ongoing impact of governments’ COVID-19 lockdowns current to those quarterlies’ release dates.

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Will Job Market From Hell Support Gold?

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

April job report shows a terrible US labor market. Coronavirus destroyed 20.5 million jobs, pushing the unemployment rate to almost 15 percent. How far does the number reflect reality – and what does it actually mean for the gold market?

Apocalypse in the US Labor Market

14.7 percent. Remember this value well, as it will go down in history. This is the official US unemployment rate for April calculated by the Bureau of Labor Statistics. The unemployment rate soared from 3.5 percent in February and 4.4 percent in March. As the chart below shows, the spike is really historic, as such high level has not been seen in modern history.

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Rates Eye Negative Territory As Capital Prepares For Slow Death

By Mike Gleason – Re-Blogged From Silver Phoenix

Precious metals markets appear to be gearing up for another leg higher. On Thursday, the metals complex rose sharply across the board. Gold gained about 2.5% while silver packed on nearly 4%.

Both of the monetary metals showed signs of breaking out of the sideways trading ranges they’ve been stuck in over the past four weeks. Silver price closed solidly above its 50-day moving average for the first time since late February.

Bulls will be looking for confirmation with strong weekly closes today and then follow-through early next week.

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Fed Now Owns All Markets

Since the Great Recession hit in 2008, central banks have been in the business of keeping insolvent governments from defaulting through the process of pegging borrowing costs near zero. These money printers are now in the practice of propping up corporations–even those of the junk and zombie variety–by ensuring their cost of funds bears absolutely zero relationship to the credit quality of the issuer. To be clear, central banks have been falsifying public and now private bond prices to historic and monumental degrees just as the intensity of issuances and insolvency deepens.

And now, the Fed is bailing out bankrupt consumers with helicopter money in the form of enhanced and extended unemployment, grants through the Payroll Protection Plan and direct UBI to consumers through the CARES Act Recovery Rebates clause. All together there has been about $2.8 trillion worth of deficit spending so far.

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Will COVID-19 Reset the Global Monetary Order?

By Andrew Moran – Re-Blogged From Liberty Nation

In response to the Great Recession a decade ago, the international community fired off the big guns to stave off the inevitable decay of the global economy that had been manipulated and distorted through the Keynesian doctrine. Despite the massive fiscal and monetary stimulus at the time, many countries failed to recover from the financial crisis – and those that survived the market meltdown are still paying for the spending and bailouts. After pulling the trigger on the Coronavirus-targeted bazookas, the world’s pockets are empty, potentially creating a scenario for a reset in the global monetary order. On the other side of the lockdown, who will stand tall and reign supreme? If history is any indicator, it will either be the country with a lifetime supply of printing press ink or the one with a vault full of gold.

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Big US Stocks’ Q1’20 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

With the stock markets near a critical juncture during the most-extreme economic dislocations of our lifetimes, big US stocks’ fundamentals have never been more important.  After plummeting in a brutal stock panic on the catastrophic economic damage caused by governments’ draconian lockdowns to fight COVID-19, stocks have skyrocketed in a monster rally.  Are these gains righteous or doomed to fail?

Mid-February feels lifetimes ago, when the flagship US S&P 500 stock index (SPX) surged to a series of new all-time-record highs.  The last one at 3386.2 capped an epic secular bull that powered 400.5% higher over 11.0 years.  That proved the second-largest and first-longest in all of US stock-market history, freakishly huge.  Then COVID-19 viciously slammed the markets like a sledgehammer to the skull.

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Money Printing Is The New Mother’s Milk Of Stocks

By Michael Pento – Re-Blogged From Silver Phoenix

My friend Larry Kudlow always says that Profits are the mother’s milk of stocks. That used to be true when we had a real economy. But sadly, that is no longer factual because we now have a global equity market that is totally controlled by central banks. To prove this point, let’s look at the last few years of earnings. During the year 2018, the EPS growth for the S&P 500 was 20%; yet the S&P 500 Index was down 7% over that same time-frame.

Conversely, during 2019, the S&P 500 EPS growth was a dismal 1%; yet the Index surged by nearly 30%. What could possibly account for such a huge divergence between EPS growth and market performance? We need only to view Fed actions for the simple answer: it was the degree to which our central bank was willing to falsify asset prices.

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Barron’s Confidence Index Is Collapsing

By Mark J Lundeen – Re-Blogged From Gold Eagle

The week closed with the Dow Jones’ BEV -17.5% line of resistance holding, though on Wednesday the Dow Jones did close above this critical level, for a few hours anyway.  Friday’s close found the Dow Jones at its lows for the week.  But for the bulls out there, hope springs eternal as there is always next week.

What if the Dow Jones clears this line of resistance?  I’ll just have to find another important BEV level in the chart below to see if it’s willing to perform as a proper line of resistance, better than the BEV -17.5% level has.  What BEV level had for years provided a line of support during the bull market’s advance that can now perform as a line of resistance?

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Fiercest Economic Collapse In History Is Best Month For Stock Market

By David Haggith – Re-Blogged From Silver Phoenix

It was the best of times, it was the worst of times. April closed as the best month for the US stock market since the V-shaped recovery that followed the Black Monday stock market crash of 1987. April also delivered the deepest, broadest economic collapse of any month in history.

The economic collapse was simultaneously global. What is written here about the US can pretty well be said for all nations in the world. The collapse crushed jobs, personal income, consumer spending, consumer sentiment, car sales, and general economic activity more than any month in the history of the nation. Some of those sharpest declines happened in March, but April relentlessly drove to to greater depths. But stocks rose.

Silver’s Epic Mean Reversion

By Adam Hamilton – Re-Blogged From Silver Phoenix

Silver is powering higher in a new bull market after getting clobbered in March’s stock panic.  Investors have been flocking back to silver in the aftermath of that ultra-rare extreme-fear event.  That brutal selloff also utterly wiped out speculators’ upside bets in silver futures, giving them massive room to buy back in.  After being pummeled to record-low levels relative to gold, an epic silver mean reversion higher is underway.

A couple weeks ago, I wrote a popular essay “Big Silver Bull Running!”.  It explained what happened to silver in this recent COVID-19 stock panic, and why silver soared in its wake.  Sucked into that blinding fear maelstrom, silver was thrashed to a miserable 10.9-year low.  This metal plummeted in a near-crash, fueled by speculators’ fastest long purge ever witnessed!  That exhausted their selling, totally resetting longs.

That meant these super-leveraged traders’ capital firepower was fully available to buy back into silver.  And much more bullish than that, strong and relentless silver investment demand emerged since that mid-March collapse.  That’s evident in the soaring silver-bullion holdings of silver’s leading exchange-traded fund, the SLV iShares Silver Trust!  This dominant silver ETF is the best daily proxy for global investment demand.

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Gold Shoulder Build And Stock Market Collapse

By Stewart Thomson – Re-Blogged From Gold Eagle

Gold, Crouching Silver And Hidden Oil Market

By Keith Weiner – Re-Blogged From Gold Eagle

The price of gold has been up steadily for the last 30 days (with a few zigs and zags), now re-attaining the high it achieved prior to the big drop in March. Gold ended the week at $1,662. Alas, it’s not quite the same story in silver, whose price drop was bigger. Now its price blip is smaller. Silver ended the week at $15.19.

One does not need to look to the gold-silver ratio, which is currently off the charts, to see that the world has gone mad. Silver, it has long been understood, has both industrial as well as monetary demand. With the plunge in economic activity of all kinds due to the response to the coronavirus, the industrial component of silver demand is drastically reduced.

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The Extreme High In The Gold/Silver Ratio

By Jeff Clark – Re-Blogged From Gold Eagle

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 it might be sending…

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Coronapocalypse Is Deeper Than The Great Recession

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

The recent economic reports show that the current coronavirus crisis will be bigger than the Great Recession. What does it imply for the gold market?

US Economic Data Paints a Gloomy Picture

This week was full of new reports about the US economy. And guess what, I don’t have good news… First of all, let’s start with the update about the weekly initial unemployment benefits. In normal times, the initial claims are not too keenly watched by investors. But in times of a pandemic, they are very informative. The spike in the initial claims may even become the symbol of this crisis. Anyway, the number of new claims for the unemployment benefits declined from 6.6 million in the previous week to 5.2 million in the week from April 4 to April 11, as the chart below shows.

Chart 1: Initial jobless claims from April 2019 to April 2020

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If There Are No Bulls, Who Are The Buyers?

By Rick Ackerman – Re-Blogged From Silver Phoenix

Pay Close Attention To This Data

By Marin Katusa – Re-Blogged From Gold Eagle

Interest in gold and gold stocks has skyrocketed in the last 2 weeks. And for good reason.

Let’s recap what we’ve just seen in short order…

  • Explosive price gains – check.
  • Massive changes in investor sentiment – check.
  • Retail calling stockbrokers (and vice versa) about highly speculative junior gold stocks – check.

Gold surged from $1,470 during the peak of the March Meltdown to over $1,750 this week. Gold is getting hot again.

Stockbrokers that were all cannabis and blockchain oriented the last few years are now calling their clients about the next “hot” junior gold stock.

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China, Trade, And Carona Virus

By Rick Mills – Re-Blogged From Ahead of the Herd

As a general rule, the most successful man in life is the man who has the best information

“Today the House of Representatives has taken an historic step toward continued prosperity in America, reform in China, and peace in the world. . . it will open new doors of trade for America and new hope for change in China.”

That was President Bill Clinton, commenting on the spring, 2000 vote in the US House of Representatives, to normalize relations with China. The vote was effectively a US endorsement of China joining the World Trade Organization (WTO), and confirmed the pro-accession stance of the White House.

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A Massive GOLD Bull Market Is Building

Imagine, if you will, there was no coronavirus. No haz-mat suits, medical masks & gloves, no make-shift morgues. No terminally ill patients hooked up to ventilators, no horrible deaths without love ones close, no lockdowns, no social distancing, no deserted streets, no bailouts, no emergency wage supplements, just a regular spring with birds chirping and flowers blooming.

Of course there is no getting away from the covid-19 pandemic that has slammed into populations and economies like a “God of chaos” comet. It seems to have permeated civilization, threatening lives, livelihoods, and the way we conduct ourselves professionally and socially.

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Does Gold Really Care Whether Coronavirus Brings Us Deflation Or Inflation?

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

One of the many bothering issues about the coronavirus crisis, is whether it will turn out to be inflationary or deflationary. What do both of these scenarios mean for gold ahead?

US Inflation Rate Declines in March

Many people are afraid that the coronavirus crisis will spur inflation. After all, the increased demand for food and hygiene products raised the prices of these goods. Moreover, the supply-side disruptions can reduce the availability of many goods, contributing to their increasing prices.

On the other hand, the current crisis results not only from a negative supply shock, but also from a negative demand shock. As a result of uncertainty, people cling to cash and forego unnecessary expenses. In addition, social distancing means reduced household spending on many goods and services, which exerts deflationary pressure. The most prominent example is crude oil, whose price has temporarily dropped to just $20 a barrel (although this was partly due to the lack of agreement between OPEC and Russia). Lower fuel prices will translate into lower CPI inflation rate. Entrepreneurs, especially those with large stocks of goods, will probably lower prices to encourage shopping. Moreover, the appreciation of the US dollar means lower prices of imported goods.

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The Four Horsemen Hate Silver

The Four Horsemen of the Apocalypse bring pain and reset expectations. They are, according to some sources, pestilence, war, famine, and death.

Pestilence: News stories besiege us about the dangers of COVID-19, the pestilence released upon the world by (take your choice) bats, the United States, China, or a bioweapon lab. This pandemic is creating trauma for everyone. Confidence in governments and health agencies will decline. Trust in central banks will, hopefully, reset to much lower levels. Paper assets and fake money will be unmasked and understood for what they are. Real money will (someday) be appreciated as the only money without counter-party risk. But until that day… the paper derivative exchanges on COMEX “manage” prices.

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COMEX Search And Seizure

By Craig Hemke – Re-Blogged From Gold Eagle

These are dark times for The Bullion Banks. Their Fractional Reserve and Digital Derivative Pricing Scheme is in great peril as refineries, miners, and mints all shut down in response to the coronavirus pandemic. Will these Banks be able to scrounge up enough physical metal to keep their scheme afloat through June? That remains an open question.

You may recall that we’ve been warning of the outrageous volume of COMEX EFPs (Exchange For Physical) for years. For the calendar years 2018 and 2019, the COMEX swapped out over 14,000 metric tonnes of contracts for alleged “physical metal” in London. And this process grew even more extreme in 2020, as the first three weeks of the month saw 290,000 COMEX gold contracts “exchanged” this way. Here’s the link from the last post dedicated to this subject, written on March 10: https://www.sprottmoney.com/Blog/comex-gold-efp-us…

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Inflationary And Insolvency Implosion Of The Bond Market

We are all praying for the Wuhan virus to die. But there is something the virus can actually “cure” itself: deflation. I put the word cure in quotes because it’s not an actual issue in reality. Low inflation and disinflation are actually great conditions to enjoy and help an economy thrive. Increasing the purchasing power of consumers is something that should be cherished and targeted goal. Increases in productivity, along with a strong currency, raises your standard of living. In sharp contrast, Central Banks think any rate of inflation that is less than 2% is a deadly economic disease that must be vanquished faster than the Wuhan virus.

Many Austrian economists believed the money printing that occurred during the Great Recession of 2008 would engender massive inflation. That indeed turned out to be the case; but only with asset price inflation. The Fed’s balance sheet expansion left Consumer Price Inflation (CPI) far behind. This is because the Fed bailed out banks, not consumers. Mr. Bernanke printed trillions of new dollars to purchase bad assets from banks’ balance sheets. Thus, it gave banks credit in exchange for those assets; and that base money was primarily parked back at the Federal Reserve. In other words, there was a huge increase in Fed credit but not in loans that would have led to an increase in the broader monetary aggregates—the kind of money supply increase that leads to rising CPI. What money that was lent out arrived directly to Wall Street by the process of banks selling MBS, ABS and other troubles assets and then using that credit to buy more bonds and stocks. The rich got richer and the lower classes were, for the most part, left out in a big way.

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Welcome To The Hyperinflationary Depression

By Clive Maund – Re-Blogged From Silver Phoenix

The title of Leo Tolstoy’s massive tome, War and Peace, which many have heard of but few have read, implies a cyclical alternation between these conditions, which never ends, no matter how great the level of technological advance, because of the nature of men, which does not change.

It is the same with the great economic cycles which alternate between boom and bust. Once a parasitic overclass gain absolute power and a society is riven with corruption, decadence, graft and nepotism then its downfall is assured and is only a matter of time – and what empowers the parasitic overclass more than anything else is a fiat money system, which enables them to award themselves unlimited funds the better to live off the backs of the labor of everyone else, and no entity on the planet provides a more graphic example of this than the US Federal Reserve.

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If Bulls Had Wings They Could Fly

Today the bulls did it it again. This market remains deeply entrenched in denial, soaring even as unemployment soars higher toward the grand summits of the Great Depression and with certain knowledge that many jobs will not return.

The U.S. stock market secured another strong advance on Thursday, despite an economic bombshell of historic proportions. The Dow Jones Industrial Average (DJIA) soared nearly 500 points after this morning’s jobless claims revealed a further 6.6 million unemployed. A gut-wrenching 16 million Americans have now filed for unemployment over the last three weeks…. Some investors are beginning to doubt the ongoing relief rally with many holding out for new lows.

Gold Investment Soaring!

By Adam Hamilton – Re-Blogged From Gold Eagle

Gold investment demand is soaring in the wake of the COVID-19 stock panic! Investors are rushing back into gold to diversify after seeing mind-boggling central-bank money printing and government spending. Since that epic monetary inflation won’t be unwound, and investors were radically underinvested in gold before the panic, this trend is likely to persist for years. It will catapult gold and its miners’ stocks far higher.

The most comprehensive look into global gold investment demand is published quarterly by the World Gold Council. Its experts have been deeply studying the gold markets for decades, which shows in their outstanding Gold Demand Trends reports. These must-read analyses are released about a month after calendar quarters end. But while that data is invaluable, in fast-moving markets like these it simply isn’t enough.

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Global Shutdown And Gold

Arkadiusz Sieroń – Re-Blogged From Gold Eagle

Have you read Ayn Rand’s novel Atlas Shrugged? The main theme of the book is that – overwhelmed by growing statism – entrepreneurs at one point say finally “basta!” and announce a strike. They disappear, leaving their businesses to their fate. The symbolic Atlas who carries the world, shrugs. As a result, the economy collapses, plunging the world into chaos.

This what we are observing right now. The workers do not go to work. Shopping malls are closed. Restaurateurs shut down their premises. Theatres, cinemas, gyms, swimming pools – they all are out of service. Other companies reduce their activities or even go dormant. The global economy freezes. The only difference from the Rand’s novel that it is not because of the strike but because of a self-defense effort. People want to protect themselves and others against a contagious pathogen. But the result is the same. The collapse of the economy.

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Crisis Ready Investment Portfolio

Michael Kosares – Re-Blogged From Gold Eagle

In a recent essay published at Project Syndicate, Harvard economics professor Kenneth Rogoff sets an ominous tone. Humanity, he says “is facing something akin to alien invasion” – an apt analogy, we thought. “With each passing day,” he goes on, “the 2008 global financial crisis increasingly looks like a mere dry run for today’s economic catastrophe. The short-term collapse in global output now underway already seems likely to rival or exceed that of any recession in the last 150 years.”

At the moment, as shown in the chart below, the level of stress in financial markets is at its highest point since the credit crisis of 2008. Keep in mind the current high reading is without the impetus of any financial institution or fund of consequence reporting serious difficulties and/or requesting a bailout. Note with that in mind the acceleration in the index after the Bear Stearns and Lehman failures in 2008.

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What A Secular Bear Market In The 2020s Could Look Like

Can the U.S. economy actually be turned on and off like a light switch? What are the implications for investors if it can’t?

The shutdown of much of the American economy in response to the COVID-19 pandemic has already created what is by far the single largest increase in unemployment in U.S. history in such a short period of time.

We are experiencing two quite distinct but interrelated forms of supply shortages that may just be in their early stages. One is the combined result of the collective (and very short-sighted) decision to make much of the world’s supply chain dependent on one nation, that of communist China, even while slashing the supply of inventory down to “just in time” levels, with no room for error.

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Will Fed And President Trump Save The US Economy

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

The Trump administration will seek an additional $250 billion to support small businesses hurt by the widespread economic shutdown and slowdown. Will the government and the Fed save the US economy? What would be the consequences for the gold market?

US Epidemiological Update

As of April 7, more than 360,000 people were confirmed to be infected by the coronavirus in the US, and more than 10,000 out of them died because of the COVID-19, as the chart below shows. Actually, the US is entering the worst period of the epidemic, as hospitals are struggling to maintain and expand capacity to care for infected patients.

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