This week, the IMF undercut the Fed’s “transitory” inflation narrative, warning about the possibility of sustained inflation in the US. But the real question remains unanswered – what will the Fed do about it? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the options on the table. None of them seem particularly good. That raises another question: how long can the politicians and central bankers keep this thing going?
Gold-backed ETFs globally added 40.7 tons of gold in the second quarter of 2021, reversing a trend of significant outflows in Q1.
In 2020, gold-backed ETFs recorded record net inflows of gold. Funds added nearly 231 more tons in 2020 than they did during the previous record year (2009/646 tons). But with declines in the price of gold and investors pivoting to riskier investments as economies improve, gold flowed out of ETFs in the first quarter. That trend reversed in May.
Central banks globally added another net 56.7 tons of gold to their reserves in May as more banks dip into the gold market, according to the latest data compiled by the World Gold Council.
Gold-buying by central banks slowed last year from the record pace we saw in 2018 and 2019. That trend has continued into 2021, but buying is ahead of last year’s pace as many countries continue to load up on the yellow metal.
Will the Federal Reserve tighten monetary policy to fight inflation? Or will it keep its loose monetary policy in place to support the fake recovery? The central bank has a profound influence on the economy, for better or for worse. But should the Federal Reserve even exist? In this episode of the Friday Gold Wrap, host Mike Maharrey argues that it shouldn’t – not if you follow the original meaning of the Constitution. He makes his case with an interesting history lesson on the creation of the First Bank of the United States.
Have you ever stopped to think about the sheer volume of Federal Reserve money creation? Comparing fiat money creation to real money creation will give you some perspective.
“Officer, I need to report my wife. She lost her gold necklaces.”
That’s basically what happened in Strongsville, Ohio, recently.
Yesterday, President Joe Biden announced Republicans and Democrats have come up with a $1.2 trillion infrastructure deal. But where is Uncle Sam going to come up with the money? And what does this tell you about the likely trajectory of Federal Reserve monetary policy? Host Mike Maharrey talks about it in this episode of the Friday Gold Wrap podcast. He also discusses the latest talk, talk, talk coming out of the Fed.
Who produces the world’s gold?
Gold production fell again in 2020. According to the World Gold Council, gold production came in at 3,478 tons last year. That compares with mine output of 3,597 tons in 2019.
The Federal Reserve wrapped up its June meeting this week. The markets are convinced Jerome Powell has gone hawkish. Has he though? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the messaging coming out of the FOMC meeting and reaches a completely different conclusion. He also compares and contrasts three competing narratives about the trajectory of Fed monetary policy.
A US coin with a face value of $20 just sold for $18.9 million.
That’s quite a nice little bit of appreciation right there. Or one heck of a premium, depending on how you look at it.
It shouldn’t shock you to know it was a gold coin.
