Category: Silver

Silver Price Forecast – Silver Markets Continue to Pound Into Resistance  FX Empire

There are so many important stories to keep track of in the news these days, but there is one major issue that all Americans should keep an eye on: the massive amount of rapidly growing federal debt.

The Congressional Budget Office just forecasted the federal deficit to increase by $2.2 trillion in 2020.

Many people don’t give much thought to this problem because it seems far away. “Why does this matter to me? I’ve got my own debt problems to worry about!” is a common refrain I often hear.

Personal debt is growing in households across America, so it’s no surprise this is the first thing on everyone’s mind. According to Business Insider, Americans fell behind on almost 18 million credit card and auto loan payments in April. Furthermore, about 2.7 million mortgages are currently in “financial hardship.”

These numbers are speculated to be suppressed because of relief programs and new forbearance options, but the relief could just be kicking the can down the road. At a certain point, lenders are going to expect their money back. The debt isn’t being erased, and neither is the potential for a wave of defaults.

What if the same thing happens to our federal debt?

We can’t kick that can down the road forever, and much of our new debt comes from trillions of dollars in relief acts. While these may grease the wheels of the economy and provide help to millions of people, they are just moving the debt from the pockets of many individuals into a shared pool.

The Federal Reserve has been taking more direct action by scooping up huge quantities of corporate debt. The Fed has also been purchasing treasuries from private holders. This has drawn criticism from former chief IMF economist Ken Rogoff who said “There is almost zero difference between the Fed buying long-term Treasury debt and having the Treasury issue short-term bonds.” In other words, debt is being shifted around and repackaged without being paid off.

All of this debt eventually must be paid off, and that burden will fall into the hands of the taxpayers.

Federal Reserve Bank of Richmond President Thomas Barkin recently cautioned that, “there’s going to be a need for real conversations about how we land in the right place,” when it comes to government spending. St. Louis Fed President James Bullard also cautioned, “This is not manna from heaven. We’re borrowing, and we’re going to have to pay that back in the future, so our future tax burden is that much higher.”

This debt is not some abstract issue that is irrelevant to the average person. It matters to all of us, and it sits on every American taxpayer’s shoulder. Any risk of default has the potential to collapse the savings of every citizen. Keen Americans need to keep a watchful eye on the debt and remember that this weight falls on everyone’s back.

The post Federal Debt and You appeared first on U.S. Money Reserve.

Some market analysts say the U.S. dollar is weakening by the day on the tail of trade tensions and the ballooning national deficit. Other analysts view the dollar as strong; among other reasons, they believe the dollar is the world’s one true reserve currency and will remain such.

But what is the dollar really doing? We look at both sides of the fence.

Strong Dollar vs. Weak Dollar

When we think of “strong” vs. “weak,” we perceive strong as being mighty and weak as being meek. That’s not necessarily the case with the U.S. dollar. When it comes to the dollar, strong isn’t always better, and weak isn’t always worse, according to the Federal Reserve Bank of St. Louis.

As the St. Louis bank explains, a currency appreciates in value, or strengthens, when it can buy more foreign currency than it had been able to before. Meanwhile, a currency depreciates in value, or weakens, when it can buy less of a foreign currency than it had been able to.

“You can likely think of several advantages of being able to buy more foreign currency, but just because a country’s currency is stronger does not mean that everyone in that country is better off,” the Federal Reserve Bank of St. Louis says.

J.P. Morgan Asset Management notes that the U.S. dollar’s exchange rate is critical in shaping returns for financial assets around the world. Furthermore, it affects U.S. inflation and interest rates, as well as global commodities prices.

What Is the Outlook for the Dollar?

Economic uncertainty tends to bode well for the strength of the U.S. dollar. In part, the current economic uncertainty reflected in the volatility of equity markets can boost the dollar in tandem with overall risk aversion.

The outlook for the U.S. dollar “appears increasingly positive,” the DailyFX news website reports. Pricing of the U.S. dollar edged upward in May 2020 after Jerome Powell, chairman of the Federal Reserve, once again signaled reluctance to employ a negative interest policy to help bolster the economy. DailyFX notes that lingering U.S. tensions with China also could be positive for the U.S. dollar.

But while a stronger U.S. dollar reduces the prices of imported goods, it hurts the prices of exported goods, according to the FXStreet news website.

As with so many financial vehicles, the value of the U.S. dollar fluctuates from day to day. In mid-May 2020, for instance, the dollar weakened slightly as signs of economic improvement emerged and risk aversion waned. Still, the U.S. Dollar Index, which gauges the dollar’s strength or weakness compared with a basket of foreign currencies, is up about four percent for the year.

“The dollar is doing better than other currencies right now, but it could pull back as people fear inflation from printing trillions of dollars [to stimulate the economy],” Edmund Moy, former director of the U.S. Mint, told CNN Business.

Gold’s Relationship to the Dollar

In mid-May 2020, the price of gold was on the rise, standing at an eight-year high of around $1,750/ounce. Some experts foresee gold’s price flying past $1,900/ounce to as much as $3,000/ounce.

As noted by CNN Business, gold is viewed “as a safer, steadier place to park money in times of turmoil.” As such, its prices are up nearly 15 percent in 2020, while some other asset classes are floundering.

“Historically, gold prices tend to thrive during times of dollar weakness,” CNN Business reports.

Yet gold prices have climbed at the same time the U.S. Dollar Index has risen. However, some experts believe the dollar will weaken as the Fed continues to print money and federal officials earmark more money to stimulate the economy, driving up the national budget deficit.

An unstable dollar could be positive for you, though. Amid volatility and uncertainty, diversification into tangible assets like gold can help protect you from the instability of the dollar and other asset classes.

Philip N. Diehl, President of U.S. Money Reserve and former director of the U.S. Mint, describes gold as “wealth insurance.”

“Gold [historically] outperforms other asset classes when hard times come and often rises when other assets are crashing. Including gold in your portfolio protects your wealth by offsetting losses in your other assets,” Diehl says.

You’ll need to navigate a variety of risks in the years ahead, no matter which direction the dollar goes. One way to keep pace—and even outpace—an unsteady dollar is through education. Invest in your own knowledge and skills in your professional life, finances, and beyond. Get started with U.S. Money Reserve’s Resource Library, which is full of free Special Reports about everything from portfolio diversification to what the next recession could look like.

The post Is the Dollar Gaining or Losing? You Decide appeared first on U.S. Money Reserve.

Yahoo! Finance: SI=F News

A bad report will sent prices lower. The upside momentum seems to be slowing so we could see a substantial near-term correction.

The post Oil Price Fundamental Daily Forecast – API Report Expected to Show 2.5M Barrel Draw appeared first on WorldSilverNews.

Kitco News

(Kitco News) – Global copper demand is forecast to drop 5.4% to 22.625 million tonnes, said the International Wrought Copper Council today.

The post Copper demand to fall 5.4% in 2020 appeared first on WorldSilverNews.

Kitco News

(Kitco News) – Sienna Resources (CVE:SIE) announced today it acquired the Kuusamo battery metals project which is comprised of two exploration “reservation” properties located adjacent to and near EMX Royalty Corporation’s (NYSE:EMX) Kaukua platinum group elements royalty property in Finland, which is being advanced by Palladium One Mining Inc. (PDM-TSX.v).

The post Sienna Resources acquires PGE-Ni-Cu-Co project In Finland appeared first on WorldSilverNews.

Kitco News

(Kitco News) – Seabridge Gold (TSX:SEA, NYSE:SA) announced today that it completed the acquisition of the 3 Aces gold project in the Yukon, Canada from Golden Predator Mining Corp. for 300,000 Seabridge common shares, potential future cash payments totalling $2.25 million, and continuing royalty participation in the project by Golden Predator.

The post Seabridge Gold completes 3 Aces gold project acquisition appeared first on WorldSilverNews.

Kitco News

(Kitco News) – The yellow metal could be looking at nearing the $5,000 an ounce price tag in a decade and that is a conservative estimate, according to the annual In Gold We Trust Report published by Incrementum AG.

The post Gold to see $5,000-$9,000 price levels in 10 years – In Gold We Trust Report appeared first on WorldSilverNews.

Mining Weekly Silver Mines raises A$12m  Creamer Media’s Mining Weekly

Why Silver Miners SSR, Coeur, First Majestic, and Pan American Jumped 10% or More on Friday  The Motley Fool