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John Rubino Discusses Fed Policy, Inflation, The US Dollar, Gold, And The Mining Stocks

Shad Marquitz
November 22, 2021

John Rubino, Founder of the Dollar Collapse website, joins us to comment on the recent news from the Fed and potential policy choices they will face, as well as look at currencies, gold, and the mining stocks. John outlines why it doesn’t really matter who’s at the head of the Fed, when the upcoming rate hiking cycle will be just as much of a tight rope to walk between fighting inflation while not negatively impacting the general US equities markets. Next we discuss the strange environment of the rising US dollar in the midst of high inflation readings, but mostly due to euro weakness on the geopolitical and economic concerns out of Europe.  We wrap up with getting John’s medium to longer term outlook on the precious metals sector, the leverage that mining stocks offer, and why he has been encouraged by the recent M&A activity.

Click here to visit John’s site.

Discussion
39 Comments
    Nov 22, 2021 22:33 PM

    Biden Keeps Powell as Fed Chief, Elevates Brainard to Vice Chair
    .
    Bloomberg – (11/22/2021)
    .
    https://www.investing.com/news/economy/biden-keeps-powell-as-fed-chief-elevates-brainard-to-vice-chair-2686830

    Reply
      Nov 22, 2021 22:37 PM

      S&P 500 Closes Down as Powell Nod Triggers Yield Surge, Dents Tech
      .
      Stock Markets – Nov 22, 2021
      .
      “The S&P 500 give up gains to close lower Monday, led by selloff in tech as investors maintained bets on earlier rate hikes following news that Federal Reserve Chairman Jerome Powell would be nominated for another term.’

      “The S&P 500 fell 0.32%, and had earlier hit an intraday record of 4,743.74, the Dow Jones Industrial Average was up 0.1%, or 17 points, the Nasdaq fell 1.26%.”

      “Treasury yields jumped on the news, suggesting that some had been betting on Brainard, who leans more dovish, which would likely have led to a lower for longer approach on monetary policy. The United States 10-Year surged above 1.6%, helping to stoke a bid on banking stocks.”
      .

      https://www.investing.com/news/stock-market-news/sp-500-closes-down-as-powell-nod-triggers-yield-surge-dents-tech-2687366

      Reply
        Nov 22, 2021 22:44 PM

        Fed’s Bostic: Powell, Brainard Appointments Remove Uncertainty For Fed
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        Reuters – Nov 22, 2021 8
        .
        Atlanta Federal Reserve President Raphael Bostic said on Monday “President Joe Biden’s decision to nominate Jerome Powell for a second term as Fed chair removes uncertainty for policymakers and is a “helpful” development as they approach some critical decisions.”

        “This decision really does take some uncertainty out of the Federal Reserve as an issue, and I think that’s helpful for all of us,” Bostic said in an interview on Bloomberg Television.
        .
        https://www.investing.com/news/economy/feds-bostic-powell-brainard-appointments-remove-uncertainty-for-fed-2687517

        Reply
          Nov 22, 2021 22:50 PM

          Gold Sells Off Sharply As Biden Renominates Powell For Fed Chair
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          Jim Wyckoff – November 22, 2021
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          “Gold prices are under strong selling pressure and hit a two-week low in early U.S. dealings Monday. The yellow metal slumped as the U.S. dollar index rallied to a 15-month high when President Biden announced he has chosen current Fed Chair Jerome Powell to continue in his position for another term. Speculation had been that Biden might chose the more monetary-policy-dovish Lael Brainard as Fed chair. With Powell remaining as chairman of the Federal Reserve, traders and investors reckon U.S. monetary policy will remain on its present course, compared to notions that Brainard as a new Fed chair would have leaned easier on U.S. money policies. Sell stop orders were triggered in gold futures when prices dropped below several key near-term technical support levels, which drove prices still lower. ”
          .
          https://www.kitco.com/news/2021-11-22/Gold-sells-off-sharply-as-Biden-renominates-Powell-for-Fed-chair.html

          Reply
            Nov 22, 2021 22:45 PM

            My guess The Fed threaten to crash the manipulated general markets if Powell not retained. To show their good faith, they hit the metals to support their point.

    Nov 22, 2021 22:47 PM

    Dismissing Gold In The Past Led To Some Hard Lessons
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    Frank Holmes – November 15, 2021
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    “Back in December 1997, the Financial Times ran a now-infamous article titled “Death of Gold.”

    “In it, the author Kenneth Gooding claimed that as an investment, “gold is a goner.” The crises of the past 10 years—the 1987 stock market crash, the Gulf War, Asia’s financial meltdown—had not resulted in higher demand, as one might expect. Gold was now a “mere metal” and a “bad investment,” Gooding concluded.

    “But as it happened, reports of gold’s death were greatly exaggerated. The next decade saw the precious metal steadily rise in price, eventually hitting a then-record $1,921 an ounce in August 2011, for an increase of approximately 580% from when the Times published its obituary.”

    “Fast forward to today, and the same gloomy prognoses are being made about the “barbarous relic,” often by people who least understand it. And just as Gooding was proven wrong, today’s doomsayers will end up with egg on their face, I believe.”
    .

    https://www.usfunds.com/resource/dismissing-gold-in-the-past-led-to-some-hard-lessons/

    Reply
      Nov 23, 2021 23:27 AM

      Sprott Money Ask The Expert, November 2021 – John Rubino
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      Nov 18, 2021 – Sprott Money w/ Craig Hemke
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      “John Rubino publishes DollarCollapse.com. In this podcast, he answers your questions regarding Fed policy, inflation, the dollar and the economy.”
      .
      Topics
      0:00 – Introduction
      2:34 – Next head of the Fed?
      6:10 – Dollar collapse for average person
      10:03 – Best assets for the next Black Swan
      14:32 – Thoughts on dollar collapse being inevitable
      17:09 – Global fiat currency collapse
      20:09 – End of the American Empire
      22:04 – Arrival of dollar collapse and “Big Reset”
      24:20 – Outro
      .
      https://youtu.be/XBl7MWDa-fc

      Reply
      Nov 23, 2021 23:57 AM

      GOTS to have some of that gold in your portfolio…… lol…..
      After the central banks buy it all…..(stockmarket)…..
      they will be greedy enough to pay any price for gold filled teeth…. 🙂

      Today just another lip biting experience for the metals….
      What will we be saying this time next year….. humm…..
      Powell still in office , and Biden-HisTime , what could possibly go wrong… 🙂

      Reply
    Nov 22, 2021 22:01 PM

    Silver, SILJ and a lot of other gold and silver miners went up vs gold today and that is consistent with the action being “all bark and no bite.”
    AU went up 2% vs gold.
    https://stockcharts.com/h-sc/ui?s=AU&p=W&yr=5&mn=5&dy=0&id=p86589677142&a=978937985

    Reply
    Nov 22, 2021 22:13 PM

    GDX tested and held above three relevant fork supports today and the bearish implications of that “curly” and ugly daily MACD sell signal “should” be significantly mitigated by the bullish developments on the weekly and even quarterly charts.
    https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=3&dy=0&id=p51003967057&a=1056562186

    Reply
    Nov 22, 2021 22:17 PM

    Ira Epstein’s Metals #Video (11/22/2021)
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    #TechnicalAnalysis, Gold, Silver, Copper, Platinum
    .
    https://youtu.be/i2Nttfb7r_w

    Reply
    Nov 23, 2021 23:39 AM

    Happy Holidays to all the Fib fans out there!
    .
    Fibonacci Day – November 23, 2021
    .
    “Also known as Leonardo of Pisa and Leonardo Fibonacci, Leonardo Bonacci invented a pattern of counting that continues to influence math and technology today. The pattern is made up of numbers that sum the previous two numbers before them — 1, 1, 2, 3, 5, 8, 13 — and so on. The sequence is used in computing, stock trading, and architecture and design.”

    “Once we discovered the sequence, it started showing up everywhere. Nature is full of Fibonacci patterns, from DNA to hurricanes, leading some to dub the Fibonacci sequence “nature’s secret code.”

    “The Golden Ratio, a proportion associated with the Fibonacci sequence and also frequently found in nature, is roughly 1 to 1.6. This ratio shows up in the branching patterns of trees, the distribution of seeds in berries, the spiral arms of galaxies, and many more natural and human-engineered things.”

    “Fibonacci Day celebrates this important mathematician and gives us an opportunity to marvel at the way math pervades everything around us. The Fibonacci sequence can be used to calculate the proportions of countless things on Earth and beyond, such as animals, plants, weather patterns, and even galaxies. Pause to observe your surroundings and you’ll start to notice the familiar spiral all around you.”
    .

    https://nationaltoday.com/fibonacci-day/

    Reply
    Nov 23, 2021 23:51 AM

    John Quakes @quakes99 3:27 PM · Nov 22, 2021 · Twitter
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    “Yee-Haw! @Sprott has just file an amended Base Shelf Prospectus for its Physical #Uranium Trust raising financing limit from US$1.3B to US$3.5 Billion in Trust Units. Having issued ~$1B worth of units via its ATM so far #SPUT now has $2.5B more for U3O8 stacking.”
    .
    https://twitter.com/quakes99/status/1462925822625411074

    Reply
      Nov 23, 2021 23:54 AM

      That’s a big increase ($2.5 Billion) in the Sprott Physical Uranium Trust #SPUT units being made available to buy more U308 fuel out of the spot markets. Good luck to the utility companies trying to get any from the spot markets. 😉

      Reply
        Nov 23, 2021 23:56 AM

        I nibbled at a few gold & silver stocks into Monday’s weakness, and also did a tiny bit of adding to my uranium stocks, today, taking them up to 75% positions. However in both the PMs and U stocks, I’d like to see -10%-15%+ more corrective moves down in the mining stocks to start adding more. We may see one final round of tax loss selling here as weak hands capitulate, so if there are any exaggerated moves on low volumes where a stock really tanks, then I’ll jump on those kinds of trade setups.

        Reply
    Nov 23, 2021 23:08 AM

    Gold and Silver remain under pressure this morning with gold back down below $1800, and gold futures currently trading at $1787, and silver futures trading at $23.51.
    .
    https://www.investing.com/commodities/real-time-futures

    Reply
      Nov 23, 2021 23:10 AM

      If we see the PM miners really fall out of bed here today, then I’ll likely add to some of my favorite positions into the weakness.

      Reply
      Nov 23, 2021 23:35 AM

      The numbers this Tuesday morning are disheartening for sure but let’s see what next week brings. I sense there is yet another beating to come for metals and mine investors.

      One a different note – I just voted against the Agnico Eagle – Kirkland Lakes merger (I hold Kirkland Lake). I know it’s gonna happen anyway but thought I should express my discontent. I urge other Kirkland Lake owners to do the same.

      Reply
    Nov 23, 2021 23:13 AM

    By the way, isn’t it interesting that we still haven’t seen the date for the Corvus – AngloGold merger yet? I just sold off the last of my KOR shares and converted them to Santacruz Silver (SZSMF) so I’m no longer a player. Time will tell if 11+ SZSMF shares are worth more than 1 KOR share.

    Reply
    Nov 23, 2021 23:21 AM

    GDX day-bottom appears near…My call is 31.88 area of TD9 support…imho….unless this rising trend line holds…but the candle is very bearish strong for now…seeing a small RSI divergence w price on 10 minute gdx…not actionable yet…note that a .786 fibs retracement level is also 31.84…these sort of symmetries are not to be discounted…the allgos love fibs levels to stab at buying…lmao

    https://tos.mx/XqgovqW

    Reply
    BDC
    Nov 23, 2021 23:21 AM

    Target GLD 166 : https://postimg.cc/WtPzg4QQ
    Note declining comparison separation.
    This also closes the final gap.

    Reply
    Nov 23, 2021 23:00 AM

    /GC day…volume….we have much heading into 11/4 bar……in my world ensures a test of TD9 1769.30 breakout level…support? we will see
    https://tos.mx/99VZDbJ

    Reply
    Nov 23, 2021 23:09 AM

    Hats off Doc. And to think some tried to kill the messenger. LOL
    Never expected this second day dumper without at least a whimper up.

    Reply
    Nov 23, 2021 23:16 AM

    Hard to be positive…….. with a world full of realism …. lol……..
    Humm……. realism…. More like planned parenthood…. lol…..

    Reply
    Nov 23, 2021 23:22 AM

    bought NUGT 50.47…what ever…glta

    Reply
    Nov 23, 2021 23:27 AM

    monthly EURO…down looks done a while on down eg .618 retrace hit and DXY rolling over…odds…

    https://tos.mx/7KbMQ3t

    Reply
    Nov 23, 2021 23:28 AM

    NEM day….perfect .786 rapid pullback with MACD signal intact…Is Buffett a good stock picker….hope so…note the single a leg a down and perfect V reversal symmetry…a reaction move rather than a trending move?…me thinks so…glta

    https://tos.mx/85jWqNH

    Reply
    Nov 23, 2021 23:31 AM

    sold nugt at 50.61….did not like the /gc price reversal…sorry…forget most of the above commentary…something is wrong in golds ville…will wait for a better price level or bottom confirmation

    Reply
    Nov 23, 2021 23:26 AM

    X marks the spot? GDX tested uptrend and fork support this morning right where the two crossed and is up about 1% since.
    https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=0&mn=3&dy=18&id=p07527850427&a=1069111411

    Reply
    Nov 23, 2021 23:45 AM

    The silver miners have held up very well relative to the metal they mine. Never mind downside leverage, most are down significantly less than silver. That would not be the case if the big money “price makers” turned bearish along with the easily scared price takers.
    HL vs SLV
    https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=0&mn=3&dy=18&id=p07527850427&a=1069111411

    Reply

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