Gold and Silver Experience Stunning Gains, Just the Tip of the Iceberg

Gold and silver just experienced a stunning week, in which they surged higher, based purely on real, solid fundamentals and of which truly spectacular gains are yet to come.

This comes in stark contrast to the truly mind boggling actions seen over the last few years in the broader markets, whose gains were based largely on illusions, huge injections of fiat money, debt creation and all around tomfoolery.

It is going to take time for people to adjust to this reality, to understand that this rally in both gold and silver bullion are based on overwhelmingly strong fundamentals, as it has been so long since the financial world has operated in such a manner, however, once this change in mindset occurs, we are going to experience one of the greatest bull markets this world has ever seen, with precious metals taking off to what some would believe unobtainable levels based on today's pricing.

(Chart Sources, goldprice.org)

This weeks trading action in the metals was a just a sample of what is to come, with both of the metals leaping to new levels, as I predicted they would after breaking through key resistance levels just a few short weeks ago, carried higher first by true fundamentals, then propelled even further by the Wall Street algorithms, with both feeding upon the other in a revolving cycle.

However, as stated last week and as we are seeing in today's trading action, pull backs are going to occur and this is a good thing. We do not want a runaway break out, a straight up parabolic rise such as that seen during the Bitcoin mania, as that leads to weak hands and an inevitable crash lower.

A steady, healthy increase higher, with new "floors" being set is what we want to see, as that will ultimately result in long term, more sustainable gains, with stronger hands staying with precious metals as they inevitably climb higher.

This pull back in precious metal prices comes on the heels of a strong payroll numbers report being released, as 1.76 million jobs were added, according to officially reported figures by the Bureau of Labor Statistics.

However, this data is lagging and may be short lived, as already more and more States are imposing renewed lockdown due to the resurgence of COVID-19 in many locations.

Even so, a return to a strong work force, which is coming, will not change the fundamentals for precious metals in a meaningful way in the long term, as the historic amount of debt creation and fiat money printing that we have experienced since the pandemic began is not simply going to erase itself. 

(Chart Source, Federal Reserve)

This newly created "money" is out there and is not going way. Gold and silver bullion are accounting for this and they are ultimately going much higher as a result. 

This is not going to change and is only going to accelerate as we move forward and as more and more institutional investors join the ranks of Central Banks, buying gold hand over fist moving forward, hopping aboard the train, hoping to ride the strong fundamentals of precious metals higher until a true blow off top occurs.

The Next Catalyst For Precious Metals Moving Higher

Another upcoming event that I keep pointing out and of which seemingly many are simply discounting is the extreme unrest within the United States that is coming in November of this year, following the results of the Presidential Elections.

The DNC seems hell bent on sending Joe Biden out to a massacre, which is baffling a large amount of people on the left, right and those staunchly in the center, the latter of which I consider myself a part of.

This is even more odd, given the fact that the Democratic party seems to be taking a full blown campaign strategy, based purely on "orange man bad", choosing to hide Biden from the public eye almost entirely, likely due to the fact that when allowed to speak, he appears disorientated and confused, showing as many have pointed out, clear signs of cognitive decline.

This is made even more concerning given the fact that Biden himself has stated that "he is being constantly tested", which is an odd thing to say, but yet, will not release the results of those tests, as previous Presidential candidates have done.

Even the mainstream media, who predominately hates Trump, has even started to take notice and point these issues out.

I personally don't agree with everything President Trump has done, or stated while in office, however, I cannot see how Joe Biden is expected to go toe to toe with President Trump on the debate stage, without it resulting in a complete disaster for the Democrats.

Perhaps this is why the DNC is attempting to get the number of Presidential debates reduced, while the RNC is looking to get more debates scheduled.

Even though the official polls have Biden leading slightly over Trump if the election were to take place today, as we saw in the 2016 elections, these polls are far from accurate and typically are largely skewed towards the candidate who is deemed "socially" acceptable in the mainstream narratives eyes. Given the fact that many believe they cannot openly voice their support for President Trump, or risk being ridiculed, persecuted or worse.

I believe that ultimately, unless the DNC changes course and chooses to throw Biden under the bus and nominate a different candidate of their choosing, forgoing the primary results (something they can actually do, although unlikely), then I believe it very likely that Donald Trump is going to win re-election by a slight margin, leading to one of the most contested elections ever given the current circumstances ongoing within the United States and given the fact that many States are choosing to go the mail-in ballot route.

This is going to lead to massive unrest and social upheaval, regardless of who is going to win, as I believe neither the far left, nor the far right are going to simply accept the results at face value.

Chaos will be the name of the game, with precious metals moving higher to adjust and account for this increased risk to the system, adding even further to an already rapidly accelerating bull market.

Don't believe me? Just wait and see. Time will reveal all.

Until then, stay safe and as always, keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

Volatile Selloffs Expected Before $10000 Gold and $300 Silver

Tom welcomes back experienced investment professional David Hunter of Contrarian Macro Advisors to the show. 

David believes this cycle will end in a bust, something more significant than a deep recession but not a drawn-out depression. He anticipated a big run from the March lows and says we are poised for another big run soon into a top. 

He cautions that historic debt & derivative exposure will magnify market moves in both directions. Momentum, further stimulus and a V-shaped second half recovery will combine to drive the market to its final top. 

However, much damage has been done and money alone cannot sustain a recovery. David expects a second phase of the bust in 2021 including a global financial crisis and a huge involuntary debt liquidation cycle. He gives his expectations for oil, the U.S. dollar, gold, silver and the miners.

- Source, Palisade Radio

Liberty & Finance: The Elites Are Taking Physical Silver Delivery

​As silver leapt from high teens to $26, holders of record numbers of contracts are standing for physical metal delivery on the COMEX market. 

Will this sea-change break the back of the concentrated short campaign that has been credited with holding silver prices at or near production costs for most of the past decade? 

Andy Schectman, CEO of Miles Franklin Precious Metals Investments, returns to Liberty and Finance / Reluctant Preppers to answer viewers’ questions about the fractured gold & silver supply chain, and the volatile prices and premiums now and going forward.

- Source, Liberty & Finance

Silver is on the Move and is Going a Lot Higher, FED Attempting to Control the Economy

Lior discusses the economy on how gold and silver are going to make higher gains. 

Lior says that gold and silver are not in a bubble and inflation is a future marker, watch the 2% marker that the Fed puts out. 

We are now entering a transition stage, the world is watching.

- Source

Gold Bullion Touches $2000, Sets New All Time High

As I pointed out in last week's article, the price of gold bullion was showing impressive strength, that was threatening to surpass its old all time high of $1,920.70 USD per oz, set previously nine years ago in 2011.

Well, That Didn't Take Long

To say that gold bullion started the week off strong would be an understatement, as it opened with fantastic gains that continued to build momentum into the after hours trading session, with futures hitting a stunning $2000 USD per oz before correcting lower.

(Chart source, Zerohedge)

This significant surge higher was founded on all of the chaos that we have discussed over the past few months, including but not limited to the ongoing COVID-19 pandemic, the trade wars between the United States / China, the political chaos, and of course the ongoing beatings that our economies around the globe continue to take.

However, the spark that truly ignited this move higher was the fact that the United States Mint stated that they were being forced to reduce supply to authorized distributors, due the fact that they cannot meet demand under their new COVID-19 working conditions.

Bloomberg reports;

"The U.S. Mint has reduced the volume of gold and silver coins it’s distributing to authorized purchasers as the coronavirus pandemic slows production, a document seen by Bloomberg shows.

The Mint’s West Point complex in New York is taking measures to prevent the virus from spreading among its employees, and that will probably slow coin production there for the next 12 to 18 months, the document shows. The facility is no longer able to produce gold and silver coins at the same time, forcing it to choose one metal over the other, according to the document, which was presented to companies authorized to buy coins from the Mint last week."

This restriction of only being able to produce either gold or silver coins at one time, but not both together, means that a massive source of new supply entering into the precious metals market is going be greatly diminished, for the foreseeable future.

This comes at a period in time, in which precious metals are entering into a new upward phase of significant strength, as it looks more and more likely with each passing day that we are heading into a strong, new bull market for the metals.

(Chart source, goldprice.org)

Premiums for both gold and silver bullion were already high, with the demand for physical, real precious metals seeing a significant surge since the outbreak of the coronavirus crisis.

However, this large reduction in new supply hitting the precious metals market means that premiums for physical gold and silver bullion are only going to get higher in the coming months, as those seeking safe haven assets continue to chase the price of precious metals higher, hoping to protect themselves from the coming economic and political storms that lay just over the horizon.

At the onset of this year, I stated that both gold and silver bullion appeared to be setting up for a slam dunk of a year, with both likely to experienced sustained and long term demand as both Central Banks continue to buy the metals and as individual / institutional investments begin to join in on the fun, this was before we knew about the COVID-19 pandemic and the havoc that it would inflict upon the world.

(Chart source, goldprice.org)

This has resulted in both the kings metal and the peoples metal experiencing truly impressive gains throughout the year, as gold bullion is posting a 38.08% gain yoy, while silver bullion outdoes even gold, experiencing a 49.01% gain yoy.

To break this down even further, if you began to move into silver bullion a little over a month ago, you would already be up by 35.10%.

What makes these gains even more impressive is the fact that this isn't over. No far from it my friends. 

Remember, strength begets strength in a crazy algorithm controlled market, at least in the short to medium term. This is even more true when that strength is founded on solid, undeniable fundamentals.

Gold and silver's fundamentals couldn't be any stronger in 2020 and thus, I believe that we have only just begun this new bull market cycle. 

Large Investors Are Taking Notice and the Masses are Coming

This means that a wave of fresh money is going to be piling into precious metals in short order, forcing ever increasing new highs as Central Banks around the world continue to print fiat money at a historic rate.

I fully expect silver to go above its old all time highs and trade solidly into the $50 per oz level, meaning that stunning gains still lay in wait for this metal and those who take action sooner, rather than later.

Gold bullion will as always be the rock that weathers the storm and is much more suited for those who cannot stomach the extreme volatility that silver bullion is likely to experience, while also increasing solidly in price as well.

However, this does not mean that prices will go straight up forever, in fact, this is exactly what we do not want to see in the coming months, as a parabolic rise always ends badly. 

We want to see steady, incremental gains, that will set new resistance levels and create a floor for those joining into the party later than those who smartly stacked early, preventing a wash out of "weak hands".

For those that have been steadily taking advantage of dollar cost averaging into both gold and silver bullion over the last few years, while the price of bullion has been artificially depressed, then your patience may soon be rewarded, handsomely.

As always, stay safe and keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

John Rubino: When the Dollar Falls Everything Else Falls Everywhere

Financial writer John Rubino predicts, “We don’t have a tool to fix this if the dollar starts to fall. That is the end game scenario in the financial system. 

When the world’s reserve currency starts to lose value and the central bank that’s managing it doesn’t have any way to stop it, then, basically, everything falls apart everywhere.

When it happens, the early stage of it will feel like the past few months here. I am not predicting we are heading straight to a dollar collapse or a fiat currency collapse, but when it happens, it’s going to start feeling a lot like it is now.” 

In closing, Rubino says, “The reason why so many groups are so angry right now is because the system no longer works for most people. 

We have an aristocracy that is harvesting the rest of us. 1% of the population gets richer and richer year after year at the expense of everybody else.” 

Rubino says look for corrections in the gold and silver markets that will be “pretty scary” but adds, “This is a buy the dip market .

The long term trend for gold and silver are in place, and nothing is going to stop them short of their ultimate fair value.”

- Source, USA Watchdog

Ron Paul: The Fedcoin, A New Scheme for Tyranny and Poverty

Gold Bullion Heads Towards All Time Highs, Shatters $1,900 Ceiling

The record high for gold bullion stands at $1,920.70 USD, reached approximately nine years ago in 2011, a price that stunned traders and investors in the precious metals markets at the time, after it peaked and ended there after a spectacular bull run.

Now, we are closing in on that price and the precious metals bull market of 2020 has only just begun in earnest.

Strap yourselves in and get ready for some phenomenal gains.

(Chart source, goldprice.org)

As it stands at the time of writing, gold bullion has shattered through the $1900 ceiling in rapid succession, this comes after only recently breaking through the $1800 mark a short time ago, a level that was previously acting as resistance and as predicted, once solidly broken through, would result in rapidly increasing gains.

Silver bullion has followed in golds footsteps, also experiencing an impressive and rapid acceleration higher in prices, resting at $22.85 per ounce at the time of writing, with a strong potential of breaking above $23.00 per ounce.

These strong moves higher in both gold and silver bullion come as investors begin to realize just how precarious of a situation the world now finds itself in, as the realization of a prolonged coronavirus pandemic begins to truly set in, with more and more health officials stating that a vaccine is not only not in the foreseeable future, but also not even a likely "fix-all" solution, given the nature of the virus.

This comes as the United States officially surpasses 4 million confirmed COVID-19 cases, with Florida being one of the most heavily hit States in recent days, experiencing a record number of deaths.

What this means is further strains on our already crippled economy, what this means is more money printing and bailouts, what this means is more stress and more uncertainty as we head into the future.

In addition to this, interest rates around the world have plummeted, as Central Banksters ratchet rates to all time lows, some even dipping into negative interest rate territory, doing everything they can to help artificially prop up this flailing economy.

Russia’s central bank was the most recent one to take action, lowering its main interest rate by 0.25%, to 4.25%. Which may seem high when compared to some Western nations, but is in fact a record post-Soviet low for the country.

Mark Mobius, co-founder of Mobius Capital Partners had the following to say in a recent Bloomberg interview about investing in gold at this time;

“When interest rates are zero or near zero, then gold is an attractive medium to have because you don’t have to worry about not getting interest on your gold and you see the gold price will rise as uncertainty in the markets are rising.”

Wall Street is finally taking the blinders off, which is why we have seen the recent pull back in stock prices, coinciding with this sharp increase in safe haven assets, such as precious metals.

(Chart source, google charts)

Throwing gasoline on an already blazing fire, China and the United States have once again renewed their spat, going tit for tat against one another in their most recent hostile exchange.

This renewal in tensions comes after the United States government decided to close a Chinese consulate in Houston Texas, citing "spying" concerns as the reason for doing so.

This of course infuriated the Chinese government, who have denied this accusation and in response shut down a U.S. consulate in kind, the Guardian reports;

"Beijing has ordered the closure of a US consulate in south-western China, in a move that escalates tensions between the two countries to a new level.

On Friday, China’s ministry of foreign affairs said it had ordered the US consulate in Chengdu, in Sichuan province, to cease all operations. Authorities notified the US of China’s decision to revoke its consent for the consulate to operate, according to a notice on the ministry’s website."

The question now remains, how much further are these two countries willing to take this spat? Will it spill over and escalate even further than it already has, ending the hard strides that both parties have made toward improving trade relations? We shall just have to wait and see.

Regardless, the prospects for both gold and silver bullion have never looked better, with the world facing crisis after crisis, on a seemingly daily basis.

Precious metals should continue to increase in demand for the foreseeable future in such a climate and thus will offer some of the only true financial protection that you are going to be able to find moving forward throughout the remainder of 2020 and well into 2021.

As always, stay safe and keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

The Economic And Fiscal Twilight Zone

The latest edition of our finance and property news digest with a distinctively Australian flavour.

- Source, Walk the World

Peak Prosperity: How The Wall Street Casino is Stealing Your Money

Stop me if you've heard this one before. GDP falls -35%, the worst quarterly drop in the history of the US economy.... and the Too Big To Fail banks make record revenues. 

Got that? Over 50 million Americans have lost their jobs as a result of the economic carnage inflicted by the covid-19 pandemic. And yet the big banks are not only unscathed, but positively swimming in profits. We live in a system run by the banks, for the benefit of the banks. 

We, the public, are simply grist for its mill. After all the US Federal Reserve, which wields immense global power and influence as the controller of the world's reserve currency, is owned by its private member banks. 

Should we really be surprised how the banks always seem to come out on top? And while we frequently criticize Fed policy for enriching Wall Street at the expense of Main Street, the banks are also picking our pockets in other ways that the public is largely blind to. 

In today's video, we talk with expert guest Joe Saluzzi of Themis Trading, an expert on high frequency trading (HFT) algorithms. He exposes a whole world of hyperfast technology operating in the markets that most regular investors are completely unaware of and vulnerable to. 

Joe's key takeaway is to realize that the markets, and the financial institutions operating them, are casinos. They have engineered the system to slant the odds in their favor. If you invest your hard-earned capital without clearly understanding the risks in play, then you're the sucker at the poker table. 

And as we do each week, we ask the lead partners at New Harbor Financial, Peak Prosperity’s endorsed financial advisor, to help folks determine how best to invest given the threats Joe details. We also take a close look at the market action since last week, which may have reached the zenith of its "blow-off top" on Monday. 

Big Tech, which has driven the euphoric rally since the March lows, has been struggling all week. 

Netflix just disappointed substantially last night and if more members of the FAANGs release similarly weak guidance in their upcoming earnings reports, the potential sector breakdown we've been concerned about could suddenly follow. 

Suffice it to say, we're monitoring the situation closely.

- Source, Peak Prosperity

Jeff Clark: The Real Crash and How to Hedge with Triple Digit Silver

Tom welcomes a new guest to Palisade, Jeff Clark, who is Senior Precious Metals Analyst of GoldSilver.com. 

Jeff discusses what led him to become interested in mining and metals. He worked and learned from Louis James and Doug Casey and now works with Mike Maloney. 

Jeff cautions that investors should be skeptical of mining companies' claims because they will always place their best foot forward. 

Both Jeff and Mike believe there will be a wealth transfer from fiat-backed assets to precious metals. 

This will overshoot, and that will be the time to pull profits and purchase other discounted assets. 

We could see triple-digit silver since it's a small market and quite volatile. It doesn't take a lot of cash inflows to impact the price. Silver today is valued at $68 billion in above-ground physical metal in coins and bars. 

Compared to the global markets, silver is just a drop in a swimming pool. Jeff discusses the silver mining situation today and the increasingly severe lack of new growth in the industry. 

Investors should consider that it usually takes ten years to bring a new mine online. 

He feels the risk of confiscation is lower today than in the past because gold and silver are no longer part of the monetary base, but it remains a possibility.

- Source, Palisade Radio

Ron Paul: Will the Federal Reserve Cause the Next Riots?

Central Banks Continue to Buy Gold as Global Instability Ratchets Higher

Both gold and silver bullion continue to trade higher at the time of writing, moving in lock step with the ever increasing global instability that the world now faces, with none other than Central Banks leading the charge.

(Chart source, goldprice.org)

The king of metals, gold bullion continues to hold solidly above the $1800 USD per oz mark, with each passing day that its remains above this crucial psychological level helping to underpin its strength.

Meanwhile, the metal of the people, silver bullion has shown even greater strength over this last week, moving sharply higher and now trading above the $19.00 USD per oz level, of which it broke through in rapid succession.

Underpinning these moves higher in both and gold and silver bullion are the plethora of both political and economic instabilities that the world now faces, driven largely due to the incredible strain that the system is experiencing due to the COVID-19 pandemic, of which is diminishing in some parts of the world, while rapidly spiraling out of control in others.

(COVID-19 Daily Change, United States via Google Charts)

Unfortunately, the United States is central to many of these problems, including the rising number of cases of COVID-19, which in many States are now higher than ever before.

This is leading to renewed "lock-downs" in key states, reduced economic activity in others and continued uncertainty in most others.

Meanwhile, the November Presidential Elections are just around the corner, which are expected to end in disaster, no matter which end of the political spectrum comes out on top, as neither side is likely to accept the results willingly.

Central Banks Shore Up Their Defense

With all of this increased uncertainty, it therefore comes as no surprise that Central Banks, as a whole are continuing on with a trend that they have been partaking in over the last number of years, that of being net purchasers of gold bullion.

(Chart source, goldhub)

Chief among these as of lately has been Turkey, of which is experiencing the sharpest percentage point increase in gold reserves, outpacing every other Central Bank in the world by a significant margin.

(Chart source, goldhub)

Throughout the month of May alone, Central Banks added a total of 39.8 tonnes of gold, continuing on with a trend of adding to reserves which was also seen in the months of March and April as well, with the overall average being 35 tonnes per month in 2020.

Although some Central Banks continue to foolishly shed gold reserves, others are only more than delighted to accumulate these sales.

One of these countries, as previously mentioned is Turkey, which acquired a total of 36.8 tonnes in May, while another Uzbekistan, added a total of 6.8 tonnes.

This overall gain in reserves comes at a time when two of the key players, both Russia and China are largely silent and missing from the gold markets, not selling any gold reserves, but also largely not partaking in purchasing as well.

However, this may be misleading, as China oftentimes will go large periods of times without reporting any changes in official reserves, silently accumulating behind the scenes as not to cause a run higher in prices, allowing them to acquire reserves at depressed prices, only then to announce a sharp increase in holdings at a latter date.

Russia on the other hand has been largely missing from the gold markets in 2020, with their Central Bank stating that they are not interested in adding to their position at the moment, however, this may soon be set to change.

The reasoning for this is due to the fact that the Central Bank of Russia recently changed course and acquired a small, however still net positive amount of gold throughout the month of May, totaling approximately half of a ton.

This goes against their recent statements of not needing to add more gold bullion to their reserves and may mark a change in rhetoric, one of which could add significant renewed demand for gold bullion from Russia, throughout the remainder of 2020 and thus send both gold and silver bullion prices to even higher heights.

Expect more demand for both gold and silver bullion throughout the remainder of 2020 and into at least the first quarter of 2021, as uncertainty is surely to only increase in the latter half of this year, increasing the need for safe haven assets, while also increasing uncertainty to all new highs.

Until then, stay safe and keep stacking.

- Source, Nathan McDonald via the Sprott Money Blog

Peak Prosperity: A Titanic Disaster Ahead?

At this point, as go the leading Tech stocks, so go the markets. So much capital has crammed into the tech sector this year that it boggles the mind. 

Tech stocks now make up 40% of the market cap of the S&P 500. And despite their huge size, they continue to race higher. Nearly. Every. Single. Day.

- Source, Peak Prosperity

Nomi Prins: The Banks vs the Price of Silver

Will the Fed, with its “unlimited” power to create currency, save us from an imminent banking crisis, or is it time for each of us to rely on hard assets to save our financial future?

- Source, Liberty & Finance