Holdings of silver in silver-backed Exchange-Trade Products (ETPs) rose by 297 million ounces through the first three quarters of 2020, according to data released by the Silver Institute. That’s nearly triple the level of silver inflows seen during the same period in 2019. Meanwhile, investors also had a strong appetite for silver bullion coins and bars.
Well-known management consultant Peter Drucker perfectly described the predicament faced by central bankers.
You can’t manage what you can’t measure.”
So why do we put so much faith in central bankers?
The fiscal 2020 budget shortfall totaled $3.13 trillion as Uncle Sam added another $124.6 billion to the deficit in September, according to the latest Monthly Treasury Statement.
That more than doubles the previous record deficit of $1.4 trillion set in 2009 at the height of the Great Recession.
As we get closer to the 2020 election, analysts are starting to look at how various outcomes could affect the markets and the broader economy. Some of them are actually bullish on total Democratic Party control of the government.
In a recent podcast, Peter Schiff broke down what the analysts are saying and explains why he believes that the best possible outcome is gridlock.
I spent a little time at Jekyll Island, Georgia, last weekend. I looked hard, but I didn’t find the mythical creature from Jekyll Island. From what I hear, it’s taken up permanent residence in Washington D.C. But I did locate its birthplace.
If you don’t get the reference, I’m referring to the Federal Reserve.
It’s been months since the US started to reopen after the government-imposed coronavirus shutdowns and yet hundreds of thousands of Americans continue to file for unemployment every week. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey takes a close look at the labor market and concludes that a lot of these jobs are never coming back. He also talks a little about the upcoming presidential election and makes a prediction about the outcome.
In response to any economic downturn, the Federal Reserve cranks up the money printing press. The reaction to the economic chaos caused by the government response to the coronavirus pandemic was no different. The Fed launched what many have called “QE infinity,” and has increased the money supply at a record pace. A lot of politicians and pundits see no problem with this approach. After all, “inflation” remains muted despite the money printing.
It’s true that by some measures, we haven’t seen the rising prices you would expect after injecting trillions of dollars created out of thin air into the economy. But that doesn’t mean there isn’t inflation. In fact, defined correctly, increasing the money supply is inflation. And with our without rising consumer prices, inflation has pernicious effects.
When governments across the US forced businesses to close down in response to the coronavirus pandemic, everybody assumed the layoffs would be temporary. Despite the huge surge in unemployment, the expectation was people would quickly return to work once the crisis passed and the economy opened up again. But as the pandemic stretches into its eighth month, millions of Americans remain out of work and economists say many of those “temporary” job losses have become permanent.
Sell dollars and buy silver. That’s Goldman Sachs’ recommendation.
Peter Schiff has been warning about a dollar collapse and now the mainstream is even getting bearish on the dollar.
Peter Schiff appeared on Kitco News with David Lin to talk about the investment implications of the upcoming US elections.
Peter said he doesn’t feel good about the election and that he thinks Biden will likely win. He said the Democrats may even gain control of the Senate. So, what would a Biden win mean for the economy?