Spot Prices and News Summary
Realtime Spot Charts
Market Brief: A multi-year bull market
08/28/2016 The consolidation developed into a correction last week, with a substantial sell-off on Wed leading to the week’s lows on Thu, as the market waited for Janet Yellen’s Friday talk. Fri saw a sharp recovery bleed out through the day as Yellen’s hawkish talk was considered and reconsidered. The dollar rose sharply as the probability increased of a September rate hike. Gold fell $20 for the week closing at 1321, silver fell 66 cents closing at 18.66, and the gold-silver ratio rose to 70.8. Miners closed down 11.5% (HUI).
Friday’s weakness suggests that the correction isn’t over. Gold has yet to test the 1300-1310 area, which may happen early in the week, but a recovery in precious metal prices seems unlikely until after the August employment report on Friday. A weak report would make a September rate hike unlikely, while a strong report could send prices lower. We will take any further sell-off as a buying opportunity in miners — especially smaller producers with solid cash flow and explorers/developers with quality deposits.
The Liberal Theology of Gun Control
Guns are what you talk about to avoid having to talk about Islamist terrorism. “Instead of debating the antiterror policy of the past seven years, we’re all arguing over gun control. Then again, if you were Mr. Obama or Mrs. Clinton, isn’t this the debate you’d prefer?” William McGurn, WSJ (image: Getty)
Why would anyone want a firearm? “Self defense, Locke wrote in his Two Treatises of Government, is a part of the law of nature and in consequence cannot be denied the community, even against the king himself.” Charles C.W. Cooke, National Review
Gold: Barbarous RelicCash or Gold? You decide. Watch full-screen.
"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my Country. Corporations have been enthroned, an era of corruption in high places will follow, and the money power of the Country will endeavor to prolong its reign by working upon the prejudices of the People, until the wealth is aggregated in a few hands, and the Republic is destroyed." — Abraham Lincoln, Nov. 21, 1864
Is America Headed for Bankruptcy? (July 2016)
“America’s exploding deficit is cause for major concern and yet no presidential candidate in the running right now seems to be talking about it.” —Martin Feldstein
The Fed Sets Another Trap "In these days of froth, the persistence of extraordinary policy accommodation in a financial system flooded with liquidity poses a great danger. Indeed, that could well be the lesson of recent equity- and currency-market volatility and, of course, plummeting oil prices. With so much dry kindling, it will not take much to spark the next conflagration." --Stephen S Roach, Dec 23, 2014
The Fed’s balance sheet is a pile of tinder, but it hasn’t been lit … inflation will eventually have to rise.
Where will the price of gold be in 5 years?
Greenspan: “Measurably.” (New Orleans Investment Conference, Oct 25, 2014)
Mercenary Musings: "We should always be cognizant that gold is the only real money and its true value is never subject to the decrees, fiats, machinations, whims, let alone the dreams, fantasies and whimsies of elected and/or autocratic national governments." — Micky Fulp