Month: July 2020

Reuters/Lindsay Dunsmuir and Howard Schneider/7-14-2020

“One by one, Fed policymakers have become more downbeat in recent days, resetting expectations on the recovery ahead and cautioning that recent improvement in economic data such as job gains may be fleeting. ‘The pandemic remains the key driver of the economy’s course. A thick fog of uncertainty still surrounds us, and downside risks predominate,’ Fed Governor Lael Brainard said in a speech to a virtual event hosted by the National Association for Business Economics.”

USAGOLD note: Looks like the Fed is crossing out the “V” and replacing it with a “U” – at best.  By now, most of us hoped we would be in for some clear sailing rather than a thick fog. Lael Brainward is the Fed governor seated at the far right in the photo.

Seeking Alpha/Steve Saville/7-14-2020

“We are expecting a modest recovery in economic confidence and a big increase in inflation expectations over the next 12 months, meaning that we are expecting the fundamental backdrop to shift in silver’s favor. As a result, we are intermediate-term bullish on silver relative to gold. We don’t have a specific target in mind, but, as mentioned in the 16th March Weekly Update when the gold/silver ratio was 105 and in upside blow-off mode, it isn’t a stretch to forecast that at some point over the next three years, the gold/silver ratio will trade in the 60s.” [More at the link.]

USAGOLD note:  With gold at $1800, silver would need to trade at $26 to achieve a ratio in the 60s as Saville forecasts – so it still has considerable catching up to do. A number of top analysts have come out in favor of silver ownership over the past few weeks pointing to its undervaluation vis a vis gold and inflation expectations as the primary ownership incentives. The favored vehicle for silver ownership among USAGOLD clientele is one-ounce silver bullion coins like the ones pictured above.

1. Venezuela: amputation, extortion and death amidst booming gold mining racket  UN News
2. UN: Venezuela Doing Little to Stop Criminal Groups’ Abuses  Voice of America
3. U.N. urges Venezuela to dismantle criminal gangs running gold, bauxite mines  Reuters
4. UN asks Venezuela to dismantle crime gangs running gold mines in the Amazon  The Independent
5. View Full Coverage on Google News