Month: August 2020

MarketWatch/Negam Arora/8-18-2020

“Buffett has not been a fan of gold. As a matter of fact, he has often derided the precious metal. To the dismay of gold bugs, Buffett has been the de facto leader of the anti-gold crowd. There has been a belief that investing in gold was akin to betting against America. Buffett deserves credit for shifting his stance to the new reality as a result of the irrational policies of massive borrowing and money printing by U.S. leaders.”

USAGOLD note:  Much debate has grown up around Buffett’s purchase of Barrick Gold stock. Though he did not purchase the real thing, it is the psychological aspect of the position for the rest of the financial community that carries the most importance. At the risk of stating the obvious, even stock ownership sends a signal that Berkshire anticipates accelerated demand for the metals.  Perhaps, like a good many of us, Berkshire sees a long term future for gold the result of widespread interest from the financial sector and central banks.

Dollar Collapse/God, Energy & Tech Stocks/8-16-2020

“Gold’s slight correction of 3.99% this week doesn’t say much. But the $170/oz. decline in about 24 hours certainly did get my attention. And I have to wonder if the 22-basis point rise in the 30-year U.S. Treasury may not have played a role. While 22 basis points seems like kid stuff, it is an 18% rise in the rate of interest just this past week when in fact rates cannot be allowed to rise at all for very long if policymakers hope to keep the next financial implosion from taking place. That’s why the Fed MUST print more and more money faster and faster, which is also why I remain bullish on gold and silver. My confidence in a massive upward trajectory for both gold and silver remains as solid as a rock.”

USAGOLD note: We agree with Jay Taylor that the Fed will be careful to keep market forces from driving rates higher.  Much is at stake.  Any slowdown along the monetary conveyor belt could spell disaster for the economy and financial markets. Gold and silver are likely to respond accordingly.

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CNBC/Vicky McKeever

“[Saxo Bank’s Ole]Hansen described silver as ‘gold with a little bit of a rocket attached,’ as it tends to rally ‘higher and faster” than its pricier peer.  This is due to it lower liquidity, although this can also result in a sharp downturn and ‘really knock you out … when it corrects.’ For example, in March when markets sold off in investors ‘dash for cash’ and hunt for greater liquidity, silver got ‘utterly hammered,’ falling over 30% to trade around $12 an ounce.”

USAGOLD note:  Those who own silver for the long run should prepare themselves for greater volatility in the short run – both up and down. A large proportion of USAGOLD silver investors – particularly those that want to take a large position in the metal – open storage accounts with our Delaware depository for flexibility, liquidity and safety. If the need arises, you can take delivery of all or a portion of the account. Please call our Order Desk (1-800-869-5115 x100) for further information.  It’s easy to set up an account.

Repost from 8-14-2020

1. Mali’s Gold Miners Carry on Digging Despite Coup, Shares Hit  U.S. News & World Report
2. Gold miners’ shares tumble following Mali military coup  Financial Times
3. UPDATE 3-Mali’s gold miners carry on digging despite coup, shares hit  Reuters Africa
4. Gold miners keep operating in Mali despite coup – MINING.COM  MINING.com
5. Mining companies in Mali say gold production continues despite crisis  Yahoo Finance
6. View Full Coverage on Google News

1. Gold and silver prices experience strong selling pressure today  Kitco NEWS
2. Gold prices end lower, decline more than 2% as dollar’s skid abates; copper books highest settlement since 2018  MarketWatch
3. Gold retreats as dollar slide pauses after Fed minutes  CNBC
4. PRECIOUS-Gold tumbles 3% as Fed minutes lift dollar, Treasury yields  Reuters
5. Gold ‘Needs to Price In’ US Military Manoeuvres Near China as Inflation Fears Rise, Bond Yields Don’t | Gold News  BullionVault
6. View Full Coverage on Google News