John Rubino – Precious Metals Will Benefit As Macroeconomic Conditions Continue To Deteriorate
John Rubino, Founder of the Dollar Collapse website and editor of his newsletter over at Substack, joins us for a broad discussion the continued concerning macroeconomic data coming in and how this may further benefit the precious metals sector.
We start off discussing the weaker Fed manufacturing survey details, credit card companies reporting less consumer spending, weakness in commercial and residential real estate, banking sector concerns, and the ongoing debt ceiling ordeal. These kinds of trends as we move toward a contracting economy, and possible recession, should still be a boon for gold, and to a lessor effect, silver and platinum. Generalist investors are starting to position more defensively and this may convert over into a higher allocation to the precious metals sector as things further unfold.
Yes indeed BrianE. That Gallup Poll was the one in reference showing Gold as the 2nd perceived best investment right after real estate, but well ahead of stocks, mutual funds, savings accounts, bonds, and cryptos.
>> Perceived Best Long-Term Investment, With and Without Cryptocurrency Option
Alaska House Passes Bill To Make Gold And Silver Legal Tender
By Sean Maguire – Anchorage Daily News – May 12, 2023
“House Bill 3, introduced by Big Lake Republican Rep. Kevin McCabe, would allow business owners to decide if they want to accept the precious metals as currency. The coin or bar would need to be refined and its value would need to be authenticated, meaning gold dust or nuggets could not be used.”
“McCabe told the House State Affairs Committee earlier in the session that one of his constituents suggested the idea to him because they did not trust the national banking system. More than 10 states have passed similar bills, including Arkansas in April.”
US “Plans” To Buy 3 Million Barrels For SPR Days After It Drained 2.9 Million In One Week
Monday, May 15, 2023
“With oil stubbornly the only asset class that is pricing in if not a depression then certainly a deep recession – even as every other asset is already pricing in the inevitable Fed easing in response to said recession – and the price of WTI tumbling as low as $63 at the start of May, the credibility behind the Biden administration’s promise to restock the recently drained SPR has become the butt of all jokes. As a reminder, last Fall the White House said the aim was to refill the reserve when prices were at or below about $67-$72 per barrel. Since then oil prices had fallen far below without as much as a squeak from Biden’s energy guru, Hunter.”
Oil Dips As Weaker China Economic Data Offsets IEA Demand Forecast
Stephanie Kelly – Reuters – May 15, 2023
“Oil futures edged lower on Tuesday as weaker-than-expected economic data in China offset a forecast of higher global demand from the International Energy Agency (IEA).”
The Inverted Yield Curve Signal a Coming Recession?
Understanding Yield Curves and Business Cycles in Economics
Sebastian Arvedson – May 15, 2023
“An inverted yield curve occurs when the long-term rates are lower than the short-term rates. This phenomenon has been historically linked to a recession, as on average, a recession occurs four to six quarters after the inversion of the yield curve. It’s an ominous warning signal for the economy.”
“The current effective fed funds rate, which is the rate manipulated by the Federal Reserve, is 5.08%. Additionally, the three-month rate is 5.3%, the five-year rate is 3.49%, the 10-year rate is 3.5%, the 20-year rate is 3.9%, and the 30-year rate is 3.8%. This creates a significant disparity, with higher rates on the short end and lower rates on the long end. This level of inversion has not been seen since the summer of 1981.”
The Probability Of A Recession Happening In The Next 12 Months Is The Highest In More Than 40 Years!
May 15, 2023 by Michael
“If they are actually telling us that a recession is coming this time around, how bad is it going to be? In 2008, officials kept assuring us over and over again that there wouldn’t be a recession, and then we plunged into the greatest economic downturn since the Great Depression of the 1930s. But here in 2023, what is coming is so obvious that nobody can deny what is happening. The economy is already starting to come apart at the seams all around us, and the “experts” at the Federal Reserve openly acknowledge that they are making things even worse by hiking interest rates. Pretty much everyone agrees that rougher times are ahead of us, and “a probability model from the New York Federal Reserve” is now projecting that there is a 68.2 percent chance that there will be a recession within the next 12 months…”
Currency Versus Banking
Dan Oliver – Myrmikan Research – May 12, 2023
Consumer Debt Passes $17 Trillion For The First Time Despite Slide In Mortgage Demand
Jeff Cox – Monday, May 15 2023
“Total consumer debt hit a fresh new high in the first quarter of 2023, at just over $17 trillion.”
“New mortgage originations, including refinancings, totaled just $323.5 billion, the lowest level since the second quarter of 2014.”
Karora Resources Reports Record Production, Improved Operating Earnings And Cash Flow In First Quarter 2023
15 May 2023
Wall St Falls As Home Depot, Retail Sales Data Weigh
Shreyashi Sanyal and Shristi Achar – Reuters – May 16, 2023
“U.S. stocks fell on Tuesday after a dour forecast from Home Depot (NYSE:HD) and April retail sales data pointed to consumers feeling the pinch from rising prices and interest rates, ahead of crucial debt limit talks.”
“The Commerce Department reported retail sales rose 0.4% in April, at half the pace against an expected increase of 0.8%.”
Crap is out of sight…………
We have been talking about inflation for years………
Now everyone can just jump right in those big old F150 Chevys for $70,000… and
have themselves a ball………. that be ball and chain… 🙂
Once Upon A Time in a land far far away, there was a Magic Kingdom called USA USA that elected Grownup Humans to Govern them … bah ha ha ha bah ha ha ha (sang to the tune of God Save the Queeen)
We have a municipal election coming up for mayor, and you can guarantee that the socialist candidate will get in, IT’S A SLAM DUNK! In a society of rich and poor, the rich who are 3% of the population don’t vote because they already have everything, private school for their children,✔ access to the best medical care.✔ They hire tax consultants so they pay no tax, ✔ they live in the best real estate,✔ where they can walk to work, ✔ and they choose the candidates that won’t upset their lifestyle.✔ The poor have nothing, so all they want are their entitlements that they think are free although they are the only citizens paying tax. The 97% can’t even afford to buy a home that makes the socialist candidate a shoe in. DT
is this the top…..it looks about right…../nq diverging up w the value line wilshire 5000 russell 3000 not confirming at all…black swan skew number at huge 145…careful
one of the DOCS recommended this gas company…certainly a better buy…I cannot get volume on the toronto exchange…so have no idea if this is a fleece job or sold off on big volumes…..https://tos.mx/OydYaIf
I believe this is the “25% of people view gold as an investment” article you referred too.
A well-written informative article, with surprisingly good graphs !
Real Estate’s Lead as Best Investment Shrinks; Gold Rises
“Meanwhile, the perception that gold is best has nearly doubled, rising from 15% in 2022 to 26% today. As a result, gold has overtaken stocks for second position.”
In the first graph, Bonds, Savings accounts and (most of all) Gold trended higher from 2022-2023; meanwhile, Real Estate and Stocks/Mutual funds trended lower. A really great, simple graph illustrating this amazing trend change.