Gold has had a pretty solid month, but silver has been going up like it’s on rocket fuel.
In this episode of the Friday Gold Wrap, host Mike Maharrey takes a close look at the silver market and what’s going on there. He talks a little trade war, saying that maybe we shouldn’t be talking so much about the trade war. And he also touches on some economic news that came out the week.
Earlier this week, Spencer Schiff wrote an article noting the importance of consumer spending to the US economy and the consequences that will follow if Americans suddenly tighten up their wallets. Schiff isn’t alone in his concern. A mainstream economist sounded a similar warning during a recent CNBC interview.
This week has been relatively quiet in the markets. Gold has drifted up and down as traders wait to see what kind of message Fed Chair Jerome Powell will deliver during his Jackson Hole speech. In this episode of the Friday Gold Wrap, host Mike Maharrey covers some tidbits of news and speculates about what Powell will say. Then he pivots and talks a little bit about President Trump and the strange economic tightrope that he’s trying to walk.
Trump economic adviser Larry Kudlow said nobody saw the 2008 crash coming. Of course, Peter Schiff did. And he said so more than once on Larry’s own show.
Last week, the yield curve inverted, with the yield on the 10-year Treasury falling below the yield on the 2-year for the first time in 12 years. This has historically been a good predictor of recessions. US stock markets sold off on the news, with the Dow shedding 800 points. As Peter Schiff noted in his most recent podcast, the mainstream also suddenly started talking about the possibility of an economic downturn.
As Peter put it, the media has flipped the narrative on Trump.
Markets have been yo-yoing and analysts have been debating what it all means. Peter Schiff appeared on RT Boom Bust on Aug 19 to talk about what’s going on in the global economy and more specifically in the gold market. Peter said now is an ideal time to get into gold.
Peter started out the interview asserting that all of these interest rates that we’re seeing from central banks around the world aren’t going to help the economic situation.
The out of control spending and spiraling deficits are concerning enough on their own terms, but they become absolutely horrifying when you consider that these budget shortfalls are happening during an economic expansion. You would normally expect numbers like this during a major recession.
That raises an important question: what’s going to happen when the recession hits?
Peter Schiff appeared on Fox Business After the Bell last week after the yield curve inverted and the Dow dove 800 points. Peter said the looming economic disaster for the US will turn into a political disaster for Pres. Trump.
Peter started out the interview asserting that everything the Federal Reserve has done since the 2008 financial crisis was a mistake.
The bond market flashed a major recession warning sign as the yield curve inverted this week. Meanwhile, Trump whipsawed markets when he appeared to blink in the never-ending trade war with China. That made for an interesting week for gold. In this week’s Friday Gold Wrap podcast, host Mike Maharrey breaks down the events of the last few days and their impact on precious metals. He also remembers an important day in history that went mostly unnoticed in the mainstream.
The yield on the 10-year Treasury fell below the yield on the 2-year for the first time in 12 years, stoking recession fears and tanking stock markets.
Yield curve inversions have preceded all nine recessions since 1955. This was the first time the 10-year Treasury yield has dropped below the 2-year yield since June 2007 – the cusp of the Great Recession.