I see better than 60–70% odds that the robust recovery scenarios many see for the latter half of 2021 will prove too optimistic. I desperately hope to be wrong, but restarting 150,000+ small businesses is no trivial matter.
While certainly uncommon, sharp selloffs naturally freak out traders crushing any bullish sentiment. Serious gold down days are nearly always driven by heavy speculator selling in super-leveraged gold futures.
As investors await the incoming Biden administration and the uncertainties that a transition of power may bring, precious metals markets regained some ground through Thursday’s close but have pulled back again on Friday, especially silver and platinum.
Last week, the London Bullion Market Association (LBMA) published its latest monthly update on gold holdings in the LBMA vaults in London, claiming that there are now record gold stocks of 9452 tonnes of gold held in these vaults.
Supporters of sound money and critics of the Federal Reserve System are apparently treading on thin ice. This week, Facebook temporarily blocked the account of gold advocate and former Congressman Ron Paul for supposed violations of “community standards.”
There have been several headlines in the past week suggesting that investors are selling gold because the yield on the US Treasury has risen above the whopping level of 1%.
Is that really what's happening?
The bond market will fall if interest rates rise (they are) because the Fed’s “fire hose” (plus commercial banking) is squirting fake money by the $trillions into stocks and bonds. Gold, silver, and food prices are going higher.
With The Great Keynesian Experiment barreling toward its inevitable conclusion—and with even higher prices ahead—you'd be wise to continue to add physical precious metal to your stockpile in 2021.
In short, US government elites have been partnering with “Big Tech” overseas for years to decide who has the right to speak and who must be silenced. What has changed now is that this deployment of “soft power” in the service of Washington’s hard power has come home to roost.
