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Key Gold Headlines

POSTED ON March 18, 2016  - POSTED IN Data Dependent Series, Key Gold Headlines

No matter how much data you point to showing the health of the US economy isn’t as good as advertised, you will inevitably hear the refrain, “But look at the jobs numbers!”

Just the other day, Peter Schiff appeared on Fox Business and said the US economy is likely already in recession. Peter repeated his prediction that the Fed wasn’t going to raise rates again, but would instead drop them to zero. National Alliance Securities Global strategist Andy Brenner was having none of that. He insisted the Fed would raise rates at least two more times this year because the economy is doing OK. And what was his proof? You guessed it – jobs!

Peter made mincemeat out of Brenner’s argument, pointing out that most of the new jobs in the February report were part-time and low paying.

Eighty percent of these jobs are service-sector jobs, many of them are minimum wage jobs. You can’t raise a family on these jobs. Many kids can’t even move out of their parents’ houses because they can’t get a job.”

discourage

POSTED ON March 16, 2016  - POSTED IN Key Gold Headlines

Shaky economic news, negative interest rates, and stock market turmoil have helped drive the recent gold rally, but an even more fundamental principle underlies the yellow metal’s surge – simple supply and demand.

As a recent CNBC report put it:

Consumers are lapping up gold at a time supply is declining, helping underpin a rally in the precious metal.”

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While China’s central bank continues to buy gold, adding another 0.6% to its holdings in February, the Chinese people are also pulling money out of stocks and investing it in gold, according to Padraig Seif, chief executive of Hong Kong-based trading firm, Finemetal Asia.

POSTED ON March 15, 2016  - POSTED IN Key Gold Headlines

Over the last several weeks, we’ve been building the case that negative interest rates are good for gold, and mainstream analysts have echoed our thoughts.

japan gold

Last week, Britain’s largest bank, HSBC, issued a statement saying the longer the world’s central banks continue to experiment with negative interest rates, the better the outlook for gold. James Steel, HSBC’s chief precious-metals analyst, cited a Bank of International Settlements report to bolster his case:

How does this play out for gold? Positively we think. The imposition of negative rates is a sign of distress, which is gold-bullish. Furthermore, the uncertainty surrounding the long run impact of negative rates as outlined in the BIS report is also supportive of gold. The BIS report seems to say that negative rates have brought uncertainty, especially as regards their impact on financial intermediaries, but have not delivered hoped for gains for households and businesses. This is to gold’s benefit.”

POSTED ON March 14, 2016  - POSTED IN Key Gold Headlines

The Silver Institute has released its latest issue of Silver News. This edition spotlights a growing silver market deficit that is expected to widen further in 2016 due to increased demand and shrinking supply.

The silver market deficit (total supply less total demand) is expected to widen in 2016, drawing down on above-ground stocks. The larger deficit is expected to be driven by a contraction in supply.”

silver etching

In what would represent the first reduction in global silver mine production since 2002, mining output is projected to fall by as much as 5% year-on-year in 2016. Scrap supply is also expected to weaken further in 2016. It has been on the decline for the last several years.

POSTED ON March 10, 2016  - POSTED IN Key Gold Headlines

While there’s been a lot of attention focused on gold over the last few months, silver has remained in the shadows. The white metal has lagged a bit behind as the gold market turned bullish over the last few months. But there are some good reasons to take a close look at silver.

silver bars

According to Bloomberg, silver has advanced 10% since the first of the year while gold surged 18%. But dynamics look good for silver to close that gap:

Silver hasn’t been so cheap relative to gold for more than seven years and with mine supplies forecast to contract this year that may be a sign it’s ready to come out of the yellow metal’s shadow.”

POSTED ON March 9, 2016  - POSTED IN Data Dependent Series, Key Gold Headlines

No matter what kind of negative economic data comes out, President Obama, central bankers, and media analysts gloss over it and point to the “great” jobs numbers as evidence the US economy is doing well. But in reality, it’s all smoke and mirrors.

unemployed

Last Friday, the media reported “better than expected” labor numbers with more than 200,000 jobs added in February and a low 4.9% unemployment. But as Peter Schiff pointed out in his Schiff Report video blog over the weekend, it was really a terrible jobs report.

The reports are only good superficially. Once you look beneath the surface, and believe me, it’s a very thin layer, you find out how meaningless the numbers are.”

Despite the added jobs, average hourly earnings dropped. Analysts expected the number to rise 0.2%. Instead, hourly earnings dropped 0.1. On top of that, hours worked fell from 34.6 hours to 34.4. Looking at the data together shows weekly earnings fell 0.7%. That represents the biggest drop in weekly earnings ever.

POSTED ON March 7, 2016  - POSTED IN Key Gold Headlines

The world’s largest asset manager has temporarily suspended the creation of new shares of its gold ETF due to the demand for physical gold.

BlackRock announced it would temporarily stop issuing new shares of Gold Trust (IAU) on Friday:

Since the start of 2016, in response to global macroeconomic conditions, demand for gold and for IAU has surged among global investors. IAU has $8 billion in assets under management, and has expanded $1.4 billion year to date. February marked its largest creation activity in the last decade. This surge in demand has led to the temporary exhaustion of IAU shares currently registered under the ’33 Act.”

gold etf

As ZeroHedge pointed out, this is an ominous sign.

It appears the huge demand for physical gold (and lack of supply) is finally catching up with the manipulation of paper prices. If this is anything other than a brief technical suspension, it could well unleash panic-buying as we already pointed out – there is no physical gold.”

POSTED ON March 4, 2016  - POSTED IN Data Dependent Series, Key Gold Headlines

Media and government officials keep telling us the economy looks great, but a peek behind the curtain tells a different story.

White-House-GDP-2

Some people do see the writing on the wall. Peter Schiff has been saying the US may well have already entered a recession. Last month, Jim Grant echoed Peter, saying the US economy likely went into recession in December 2015. And in a recent interview, Rogers Holdings Chairman Jim Rogers said there is a 100% probability the US will be in a downturn within a year:

It’s been seven years, eight years since we had the last recession in the US, and normally, historically we have them every four to seven years for whatever reason—at least we always have. It doesn’t have to happen in four to seven years, but look at the debt, the debt is staggering.”

POSTED ON February 29, 2016  - POSTED IN Key Gold Headlines

Just a few months ago, mainstream analysts were calling gold a “barbaric relic.” Now all of a sudden, they are saying, “Buy gold!”

Last Friday, Deutsche Bank issued a note asserting that with emerging economic risks and market turmoil, signs point in gold’s favor:

There are rising stresses in the global financial system…Buying some gold as ‘insurance’ is warranted.”

gold rally

Deutsche Bank isn’t alone in singing gold’s praises. A Bloomberg report crowned gold “the biggest winner of 2016,” noting it’s posted 15% gains so far in 2016:

Turmoil across global equity and currency markets has sparked demand for a haven. Speculators raised their net-long position in gold to the highest in a year.”

POSTED ON February 26, 2016  - POSTED IN Key Gold Headlines

The demand for gold and silver bullion coins surged in the last half of 2015, and it has not abated so far this year, despite a rally in the price of both metals.

Last year, demand was so strong the US Mint sold out of American Silver Eagles in July. Inventory was replenished in August, but the coins were on weekly allocations of roughly 1 million ounces for the rest of the year. The mint set a record for Silver Eagle sales in 2015, with the final total coming in at 47 million ounces.

silver eagle

The demand for American Gold Eagles was equally brisk in the last half of 2015. The US Mint announced it had sold out of one-ounce coins in late November and halted production for the year. It sold out of smaller sized Gold Eagles earlier that month.

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