Author: Gold News Club

Bloomberg/Ranjeetha Pakiam/7-20-2020

“Bullish factors building in the gold market are set to see prices take out the record set in 2011, according to Citigroup Inc. The metal is benefiting from loose monetary policy, low real yields, record inflows into exchange-traded funds and increased asset allocation, the bank’s analysts including Ed Morse wrote in a report. Gold is expected to climb to an all-time high in the next six-to-nine months, and there’s a 30% probability it’ll top $2,000 an ounce in the next three-to-five months.”

USAGOLD note:  Citi also says silver going to $25 over the next six to twelve months.  We featured this report in yesterday’s DMR and repost the link here for those who may have missed it.

Reuters/Howard Schneider/7-19-2020

“During a blue-sky moment in 2018 near the end of a decade-long economic expansion, it was the United States that helped pull the world along as the extra cash from tax cuts and government spending flowed through domestic and global markets. But if it was U.S. policy that pushed the world higher then, it is U.S. policy that threatens to pull the world under now as the country’s troubled response to the coronavirus pandemic emerges as a chief risk to any sustained global recovery.”

USAGOLD note:  As goes the United States so goes the world.  One wonders how the situation to which Reuters alludes will affect the stability of global stock and bond markets.

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CNBC/Steve Goldstein

“Bank of England monetary-policy committee member Silvana Tenreyro demonstrated that latter point in a speech Wednesday in which she quoted unpublished research on the impact of pandemics on inflation. The Bank of England charted historical inflation data from the U.K. and seven other countries, including the U.S., to estimate the response of inflation to pandemics. These episodes typically led to persistent declines in inflation, she said.”

USAGOLD note:  Of late, we have posted a number of articles and analyses predicting higher inflation down the road tied to massive government and central bank stimulus.  Bank of England’s Tenreyo has a different take.  One glaring determinant, however, can be gleaned from a quick look at the primary chart published with the study (which covers a period 1250 to present). Most of the pandemics occurred when the world was on some version of the gold standard and debasing a currency was a more difficult task for governments and/or central banks to accomplish.

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Repost from 7-16-2020

Two days ago, Forbes ran an article about Senator Elizabeth Warren (Dem-MA) wants to cancel student debt in the next stimulus program.  However, no where in the piece did the writer reveal how much student debt was outstanding.

Further, nothing in the article said anything about what to do about the students who have already paid back the money they borrowed.  House Speaker Nancy Pelosi and other Democrats also support the idea.  It’s all about “free stuff” from fedgov.

And, Warren wants to make public college tuition-free.  No estimates of that cost were discussed in the article.

Student debt is somewhere near $1.5 trillion.  Forbes estimates it to be $1.56 trillion; the Federal Reserve Bank of New York says its lies just short of $1 trillion.

As for the cost of “tuition-free college educations,” that would be $79 billion a year, according to the Department of Education.  That’s a year.  Four years would put it a $316 billion.  And, it would go on forever – until fedgov goes bankrupt.

For the next stimulus program, Pelosi wants $3 trillion in her HEROES Act; Mitch McConnel has said that $1 trillion is his number.  Probably somewhere in the middle and closer to $3 trillion. More recently, Trump has supported a payroll tax cut, which, of course, would reduce fedgov revenue and result in a still larger federal deficit.

Because of the likelihood of still more stimulus spending, gold and silver opened higher today.  Gold above $1840 and silver above $21.  And, the gold/silver ratio dropped to 87, which should give silver investors renewed confidence in their purchases.

Gold mining at Palmer Lake | Caboose Cobwebs | Thetribune  Colorado Springs Gazette

TMAC Provides Regulatory Update on Previously Announced Plan of Arrangement With Shandong Gold Mining Co., Ltd.  Business Wire

1. Gold, silver prices surge to highest levels in years  Fox Business
2. Gold, silver bulls step on the gas, prices hit multi-year highs  Kitco NEWS
3. Gold approaches record as silver hits six-year high  Aljazeera.com
4. Silver Rockets Higher, Gold Near Record in Flight to Havens  Yahoo Finance
5. Gold surges 1.5% as dollar stumbles; silver gathers pace  CNBC
6. View Full Coverage on Google News

Gold prices gearing up to take all-time highs, silver could reach $30 — Citi  Kitco NEWS

Record Gold and Silver Prices Catching Robinhooder Attention—That’s a Big Deal  Kitco NEWS