The Coronavirus and Gold
In mid-January, 2020, COMEX open interest (OI) set a new record of nearly 800,000 contracts. Swap dealers as usual supplied the market by going short 205,679 contracts on January 14, also a record. They probably expected to reduce their risk by purchasing physical at spot to but along came COVID-19 and spot physical supply was suddenly not readily available as refiners and shippers abruptly shut down.
Could the US Become Another Weimar Republic?
The US monetary and fiscal authorities are shoveling trillions of dollars into the US economy to prevent a collapse of the economy and the financial system. Will this money be repaid or otherwise withdrawn from the system? If not, what consequences can we anticipate?
The Fed and the Gold Price: An Update from Seabridge Founders Rudi Fronk and Jim Anthony
Many times a day, we are asked what we think will be the impact on gold prices of the enormous money-printing by the Fed. We think the impact is much greater than you might imagine because it is in combination with huge fiscal stimulus. In a nutshell, we think the current path leads to a new all-time high in gold this year and a crisis of confidence in the dollar. It's baked in the cake, in our view
What is Gold? The role of Gold, why Gold is Relevant now, all of these questions answered in this article of "Why Gold?"
The Federal Reserve's Job 1
Perhaps you think that the Fed's priorities are defined by its official mandate...price stability and full employment. Or, if you have been following the news, you may add the third mandate which has emerged in Chairman Powell's statements...continuing the current economic expansion. Or as a cynic, you might also add the preservation of the banking system because, after all, the commercial banks own the Fed.
The Phony Wealth Effect and Gold
Our contention is that gold is real wealth. Gold is its own final settlement and no one else's liability. What this means is simply that gold stands for itself, it does not depend upon the faith and good credit of any other person or thing...it is universally accepted as final settlement. It has been so for thousands of years.
Gold Has Broken Out
Our Prediction: A New All-Time High Gold Price in 2021
It Looks Normal But it Ain't
Buy equities and sell gold because the economy is strong and the Fed is supportive? Really? We think you should not be fooled by the reigning narrative.
The Logic Behind Buying Gold Now
In our view, the gold story is getting much simpler and much more urgent.
Fed Policy Turns in Favor of Gold
On January 30th, 2019, the Federal Reserve issued a statement confirming an abrupt about face. After five years of promising 'normalization' of monetary policy and a pre-set path that included eight rate hikes and the sale of hundreds of billions of dollars in assets, the Fed paused in mid stride, thereby opening the door for a new gold bull market. The Fed's path to monetary normalization reverted to flexible data-dependency almost overnight. Suddenly, rates could now go up or down and the balance sheet could shrink or grow.