Month: November 2020

Financial Times/ Michael Mackenzie/10-30-2020

“‘Regardless of the election outcome, the dollar has entered a cycle of relative decline,’ observes Marc Chandler, chief strategist at Bannockburn Global Forex. ‘The old meme of twin deficits is coming back. The dollar becomes a shock absorber for the economy by weakening.”’

USAGOLD note: Chandler’s reference to the “old meme” of trade and fiscal deficits is an interesting one. Later in this article Mackenzie quotes a Deutsche Bank strategist as identifying gold as one choice among a group of alternatives for global money managers.

The post Dollar current sound footing could be fleeting as long term forces stack against it first appeared on Today’s top gold news and opinion.

South China Morning Post/Frank Tang/10-29-2020

USAGOLD note:  Putting the currency on China’s cell phones …… Not sure how a digital yuan undermines dollar reserve sovereignty (since its usage outside China is likely to be problematic) but we pass this report along for your consideration nevertheless. The Chinese yuan is up against the dollar over the last four months as shown in the chart. If it becomes a secular trend, a strong yuan could prove beneficial to the yellow metal.

Chart courtesy of TradingView.com • • • click to enlarge

The post China’s digital yuan aims to halt US ‘dollarisation’ ex-central bank governor says first appeared on Today’s top gold news and opinion.

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The post https://www.usagold.com/cpmforum/2020/11/311021/ first appeared on Today’s top gold news and opinion.

Bloomberg/Jeremy Hill and Max Reyes

“Bankruptcy filings are surging due to the economic fallout of Covid-19, and many lenders are coming to the realization that their claims are almost completely worthless. Instead of recouping, say, 40 cents for every dollar owed, as has been the norm for years, unsecured creditors now face the unenviable prospect of walking away with just pennies — if that.”

USAGOLD note:  In the book The Fourth Turning, Strauss and Howe make repeated reference to what they call a period of “unraveling”.  “An initial spark,” they say, “will trigger a chain reaction of unyielding responses and further emergencies.” As I sift through the daily news, I find more and more evidence of this unraveling – so much that it is easy to lose track. Though each particular instance (like corporate bond defaults) need not be fully parsed and understood, it would be advisable to understand the totality of the Great Unravelling as a phenomenon we need to address in our portfolios. A house of cards, no matter how elaborate, is still a house of cards.

Repost from 10-28-2020

The post Bond defaults deliver creditors 2¢ to 3¢ on the dollar first appeared on Today’s top gold news and opinion.

Clive P. Maund

“With hyperinflation looming, silver has to be one of the best investments of these times, especially as it leverages gold’s gains. This Summer saw a spectacular high volume breakout from the giant base pattern that had been forming for years, as we can see on its latest 13-year chart, which is hardly surprising considering the Fed’s white hot money creation. The breakout triggered a sharp runup that resulted in silver becoming heavily overbought in a zone of quite strong resistance, hence the reaction since early August which is setting it up for the next big run.”

USAGOLD note:  Last week we posted Clive Maund’s latest gold forecast.  Here is what he has to say about silver – minor dip possible before 2nd up leg starts ……

Chart courtesy of CliveMaund.com • • • Click to enlarge

Repost from 10-26-2020

The post Silver market update first appeared on Today’s top gold news and opinion.