Significant Developments in The Precious Metals Market: Where We Go from Here
The comments above & below is an edited and abridged synopsis of an article by SRSrocco Report
While precious metals investment demand has fallen in the US, it continues to be strong in other parts of the world. As for central banks, Russia takes first place. It now has 1,779.119 tons (57.2 million ounces) of gold. Meanwhile, the US gold market is suffering from another supply deficit.
“The Fed and Wall Street have done a marvelous job in totally lobotomizing the American public in regard to gold as money. American citizens have no idea that the printing cost of $1,300 worth of $100 bills costs $1.95, whereas one ounce of gold valued at $1,300 production cost is $1,150—$1,200. The US dollar was backed by gold up until 1971 but is now backed by the $20+ trillion in debt.”
It was uncanny how the 1-day $318 billion increase in the US debt on September 8 marked the peak in the precious metals prices while the Dow bottomed.
The Dow remained flat until September 8. Since then, it has increased 1,670 points (+8%) while gold fell $85 (-6%) and silver declined $1.30 (-7%). The US hit an astonishing 3% GDP in the third quarter; it’s amazing what debt can do to prop up markets and GDP.
The author discusses US interest expense on its debt hitting a record in 2017, and US stocks setting up for a 1987 ‘market enema’ all over again.