Gold and silver got hammered (along with stocks) this week as the dollar strengthened with a sudden bout of risk-off sentiment. Rising numbers of coronavirus cases have ignited fears of new economic restrictions and markets have fretted about the lack of additional stimulus. Gold is at a 2-month low. So, is it time to panic? On this episode of the Friday Gold Wrap podcast, host Mike Maharry tries to answer that question and looks at all that you have to believe in order to claim the gold bull run is dead.
The markets got clobbered again on Wednesday (Sept. 23) with the exception of the US dollar, which hit a 2-month high. Not even the bond market managed to rally even with the stock market selling off and a strong dollar. Gold was down nearly $40 on the day and silver hit a 7-week low.
One of the big drivers of the sell-off was the perception that the Fed might be done with stimulus. In his podcast, Peter said this notion is wrong — at least in the long-term. But even if the markets were right, the stock market needs Fed stimulus a lot more than gold and silver do.
Gold had another precipitous drop on Wednesday (Sept. 23), falling through the support level at $1,900 to a 2-month low. That has led some to ask – is the gold bull dead?
The concern is understandable but I think it’s too early to declare last rites. In order to believe the gold bull run is over, you have to believe the Federal Reserve is actually going to tighten monetary policy and the dollar is going to remain strong.
That seems rather unbelievable.
The Federal Reserve wrapped up another FOMC meeting this week. The central bank delivered pretty much what was expected. The easy money will continue to flow unabated. But it looks like what is expected is no longer enough. The addict wants even more of the monetary drug. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the Fed meeting and the market reaction.
There was a tremendous amount of volatility in the stock market this week with the NASDAQ entering correction territory and then rebounding. Is this just a blip on the radar? Or is the biggest bubble ever running out of steam? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about it. He also digs into what’s going on in the housing market and what it’s telling us about the broader economy.
Globally, gold-holding in ETFs increased for the ninth straight month in August with the appetite for gold notably increasing in Asian markets.
ETFs added a net 39 tons of gold last month, according to the latest data from the World Gold Council.
Peter Schiff recently called the stock market the biggest bubble ever. But he says he should have qualified that by saying it’s the biggest stock market bubble ever. There is an even bigger bubble floating out there – the dollar bubble. Peter talked about that in his podcast.
Peter Schiff recently appeared on RT Boom Bust with Ben Swann to talk about safe-haven assets in the age of COVID-19. Peter made the case for gold, saying if you understand its role as money, you know you should always have some. He also debated Swann on the long-term value of bitcoin.
After rising early in the week on the Fed’s promise of more inflation, gold and silver dipped a bit late in the week with some positive economic data bolstering hopes of a quick economic recovery. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey reiterates that what’s going on isn’t fundamentally about the coronavirus. He takes a deep dive into the Fed’s new inflation policy and makes the case that this was all in play long before the pandemic.
Adrian Day did an interview with Kitco News and said gold will finish the year over $2,000 an ounce and investors shouldn’t worry about short-term profit-taking and consolidation. Why? Because the Federal Reserve is out of control.
Day is the CEO of Adrian Day Asset Management and also works with Peter Schiff as the portfolio manager of EuroPacific’s gold fund.