Gold demand was up 3% in the third quarter, coming in at 1,107. 9 tons, according to the Gold Demand Trends Q3 2019 report put out by the World Gold Council.
Gold mine output dropped slightly, but a surge in recycling drove a modest gain in supply.
The central bank gold-buying spree shows no sign of letting up as countries seek to diversify their reserves away from the US dollar.
There were no significant gold sales by central banks in September.
The stock market keeps hitting new highs and employment reports continue to look good. President Trump and central bankers at the Fed like to point to this and tell us that the economy is doing good. But as Peter Schiff explained in his latest podcast, the markets aren’t making highs because the economy is good. It’s making highs because of the Federal Reserve’s easy-money policies.
Despite the fact that the economic data is deteriorating. Despite the fact that corporate earnings are falling, it is the Fed that is pushing this market to new highs by cutting interest rates, by indicating to the markets that they don’t have to worry about rate hikes no matter what happens with inflation. The Fed’s not going to raise interest rates. Oh, and by the way, they’re doing quantitative easing, and they’re going to print as much money as they have to keep the markets going up and to keep the economy propped up.”
In a recent article published at the Mises Wire, Ryan McMaken adds another layer of analysis. He says that despite the Fed’s positive rhetoric, it’s actually worried about liquidity and growth. In fact, McMaken believes it is operating from a position of fear.
Silver investment in three major categories is up so far this year, according to a report highlighted in the latest edition of Silver News.
Silver held in ETFs hit an all-time high this year. Year-on-year through mid-August, 736.9 million ounces of metal were held in silver-backed ETFs. Meanwhile, global mint silver bullion coin sales rose 30% year-on-year through July.
The Nasdaq and the S&P 500 closed on record highs Friday after a stronger than expected jobs report. But in his podcast, Peter Schiff said that the stock markets aren’t surging because of a great economy. They’re surging because of bad monetary policy.
Last week, the Federal Reserve cut interest rates for the third time. And the Fed isn’t alone. A majority of the world’s central banks have slashed rates this year. A World Gold Council report says this new regime of easy monetary policy will likely push bond yields down even lower, making gold a more attractive portfolio diversifier.
As negative yielding debt increases alongside stock-to-yield valuations to all-time highs, gold may become an attractive and more effective diversifier than bonds, justifying a higher portfolio allocation than historical performance suggests.”
Since moving to Florida, I’ve been able to spend a little bit of time on the beach. It’s interesting watching what people pick up. You can kind of categorize people based on their haul of beach-combing treasures.
First-timers to the beach will basically pick up anything. Broken cockle-shells are worthy of the newbies’ treasure bag, as are sticks, feathers and generic rocks. Hey – it came out of the ocean. It’s probably a whale bone!
As expected, the Federal Reserve cut rates for the third time this year. We’re now down to 1.5%. The Fed hinted that cuts are likely on pause for now. But should we believe it? Was this the end of a mid-cycle adjustment? Or should we expect more moves by the central bank? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey breaks down rate cut 3.0 and what it could mean for the precious metals markets.
As expected, the Federal Reserve cut interest rates another 25 basis points on Wednesday.
The mainstream read the post FOMC meeting comments to be relatively hawkish, saying Powell and Company seemed to indicate that future rate cutting is on pause.
Peter Schiff opened up his podcast reminding us that just one year ago, the Fed was raising rates and telling us it would continue to do so through 2019. It also claimed that quantitative tightening was on “autopilot.”
Last Tuesday, the S&P 500 made a record high as markets anticipated another Fed rate cut. Some analysts say the big risk is that we’re seeing a boost in asset prices but no real uptick in the actual economy. Peter Schiff appeared on RT Boom Bust to talk about it. He said investors buying onto all of this Wall Street hype are in for a painful awakening.