Precious metals news

The idea that investors should only purchase 5-10% of their assets in gold or silver will become a HUGE MISTAKE going forward.

The Federal Reserve has subjected us to a constant economic roller-coaster ride. By artificially suppressing interest rates, they create illusory economic booms.

Gold futures jumped Friday after a report on U.S. economic growth came in weaker than expected, pushing the dollar lower & providing support for the precious metal

The fight against deflation has seen central banks from Europe to Japan buy up swaths of the bond market, & experiment with negative interest rates

World export volumes reached a plateau at the start of January 2015. The same finding holds if import volume or total volume data are used instead

In case you missed it, here’s what the Fed’s been up to this week.
It was a big week for being fed up with central banking. The Fed's July meeting and the FOMC's statement were on Wednesday. As expected, the plans for a rate increase were put on hold, and the markets had little response with the S&P closing flat. However, investors poured into gold futures, which rallied to their highest level in two weeks on Wednesday, according to MarketWatch.

Last week, we reported on an oft-ignored fundamental in the gold market – the shrinking supply.
Mining.com analyzed the data and concluded there are no more easy gold discoveries. In fact, the number of major gold discoveries is shrinking. This week we have further evidence that the supply of gold is being squeezed. In fact, MarketWatch asserted that we’re heading for “an impending gold production cliff” based on analysis by Sprott Asset Management.

Analysts say gold discoveries peaked in 2007, and a production peak will soon follow. Since that high-point in ’07, discoveries have collapsed, this “despite exploration budgets increasing by 250% from 2009 to 2012,” Sprott’s gold team said in a recent note.
Mining companies have begun to consider upping exploration budges with the price of gold on the rise, but there’s a “lead time to transition a discovery to production,” Sprott analysts said. As a result, “production is forecasted to decline over the next number of ye...

Once again, the Federal Reserve came, saw, and did nothing.
This has become modus operandi for the Fed over the last two years. As each FOMC meeting approaches, speculation about a possible rate hike ramps up and then the Janet Yellen does…nothing. The one exception was last December, and that turned out to be a complete disaster.
The pundits and analysts are already talking about the possibility of a September hike. Odds are, we’ll witness a repeat performance – or should I say non-performance.
Interestingly, the mainstream is starting to catch on to the game.

the gap between 'expectations' (77.8) & 'current conditions' (109.0) is at its highest (least hopeful) since August 2006

Fed rate expectations slip back after dismal Q2'16 US GDP reading.- US DOLLAR Index pacing for worst day since before Brexit.

"There is very little visibility about the future on every front, both macro & geopolitical"

Economists & Politicians are calling for those leading the IMF to resign - or even be sacked

AMID a toxic cocktail of low interest rates & stalling economic growth, the full scale of Europe's banking crisis is set to be laid out this evening

Japan announced announced last week that its TOCOM commodity exchange would begin trading physical gold – like the Shanghai Gold Exchange – on July 25th. The news of this event was […]

"If you ask me which is still the better safe-haven - It is Gold & Not Yen. The BOJ need to do more in order to keep the economy going. That will make yen negative."

A public backlash at the billions of euros spent in bailing out euro zone countries & their banks over the last six years has given rise to a raft of legislation aimed at ensuring private investors share the pain in future defaults

the BOJ now holds more than one third of Japanese government bonds outstanding, with its balance sheet in excess of 80 percent of gross domestic product

What does BREXIT signal for gold bullion and BitGold?  Has a Major Move Been Ignited?

The culprit? A decline in Gross Private Domestic Investment of -9.7% in Q2. Residential investment was down by the most since 2012.

Japan may be running out of options., the bank appears to be acknowledging the limits of its policy tools, & the focus going forward will need to be on a combination of fiscal & monetary stimulus