Last week, we got data on the producer price index. It came in at o.6%, a much hotter number than expected. It was the biggest jump in the PPI in six years. Year-over-year, producer prices are up 2.8%.
Analysts expected the monthly increase to come in at half that – 0.3%. While the Fed typically looks at consumer prices to gauge inflation, producer prices are also significant. After all, the cost of production is ultimately passed on to the consumer.
As soon as that PPI number came out, the price of gold dropped about $10. As Peter Schiff pointed out in a recent podcast, this is because the markets still don’t get it. They are playing checkers instead of chess.
Central bankers and politicians actively intervene in the gold market. This may sound like a tin foil hat conspiracy theory, but there is plenty of evidence right out in the open. Chris Powell co-founded the Gold Anti-Trust Action League (GATA) to expose the scheme. In this episode of It’s Your Dime, host Mike Maharrey and Powell talk about how government’s and central banks manipulate the market using “paper gold,” and what it means to you.
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
Last Friday, I told you where you can get coffee with real gold mixed into it. It’s part of this trend of edible gold. People are mixing gold into all kinds of foods — even beer and chicken wings. Like I said last week, I think people like to eat gold because it seems indulgent and decadent. Not my thing, but I get it. But you know what? There’s a more pragmatic reason to eat gold.
Transportation.
Gold production in South Africa dropped by 19% year-on-year in September, according to a report at Fin24.
This continues a trend of monthly gold mine production drops. South African gold output fell by 15% in August and 15.5% in July.
The country once led the world in gold production. The precipitous drop in output over the last few years could signal an overall drop in global mine output.
Gold holdings in gold-backed ETFs rose globally by 16.5 tons in October. It was the first monthly net inflow of the yellow metal into ETFs in four months.
According to a report by the World Gold Council, positive gold price performance for the month (+2.3% in USD) was a key driver of inflows in North American and European funds. Global assets under management rose by 3.1% in US dollars relative to September.
For centuries, gold jewelry was not only something beautiful to wear, it was also a store of wealth and value. But the 14-karat gold jewelry found in your local store isn’t the best option for investment. Now there is an alternative for people who want to own beautiful jewelry that will also serve as a store of value.
Mene is an ancient word for money. A new company by that name prices its jewelry by weight and a transparent premium. Mene also allows customers to track the value of their jewelry like an investment portfolio and sell back or exchange pieces back to the company.
In this special episode of the Schiff Report, Peter Schiff interviews Mene founder and CEO Roy Sebag. They not only talk about the company and this unique way to invest, but they also talk about the fundamental reasons you want to own gold.
Demand for gold in technology and industrial sectors grew for the eighth consecutive quarter in Q3, according to the World Gold Council Global Demand Trends Q3 report.
Overall, gold used in technological applications grew 1% to 85.3 tons in the third quarter. That marked the eighth consecutive quarter of year-on-year growth. Strong demand in the electronics sector helped drive overall industrial and tech demand for the yellow metal higher.
Happy Friday!
Pull up a chair and grab a cup of coffee because it’s time for some Fun on Friday. And if you really want to enjoy that cup of Joe, I highly recommend adding some gold.
Actually, I don’t recommend that at all. As I’ve made clear in several Fun on Friday posts, I don’t really get the appeal of eating gold.
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
