Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20
THE STOCK MARKET BIG PICTURE - Video - 19th Nov 20
Reasons why Bitcoin is Treading at it's Highest Level Since 2017 and a Warning - 19th Nov 20
Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked - 19th Nov 20
DJIA Short-term Stock Market Technical Trend Analysis - 19th Nov 20
Demoncracy Ushers in the Flu World Order How to Survive and Profit From What Is Coming - 19th Nov 20
US Bond Market: "When Investors Should Worry" - 18th Nov 20
Gold Remains the Best Pandemic Insurance - 18th Nov 20
GPU Fan Not Spinning FIX - How to Easily Extend the Life of Your Gaming PC System - 18th Nov 20
Dow Jones E-Mini Futures Tag 30k Twice – Setting Up Stock Market Double Top - 18th Nov 20
Edge Computing Is Leading the Next Great Tech Revolution - 18th Nov 20
This Chart Signals When Gold Stocks Will Explode - 17th Nov 20
Gold Price Momentous ally From 2000 Compared To SPY Stock Market and Nasdaq - 17th Nov 20
Creating Marketing Campaigns Using the Freedom of Information Act - 17th Nov 20
ILLEGITIMATE PRESIDENT - 17th Nov 20
Stock Market Uptrend in Process - 17th Nov 20
How My Friend Made $128,000 Investing in Stocks Without Knowing It - 16th Nov 20
Free-spending Biden and/or continued Fed stimulus will hike Gold prices - 16th Nov 20
Top Cheap Budgie Toys - Every Budgie Owner Should Have These Safe Bird Toys! - 16th Nov 20
Line Up For Your Jab to get your Covaids Freedom Pass and a 5% Work From Home Tax - 16th Nov 20
You May Have Overlooked These “Sleeper” Precious Metals - 16th Nov 20
Demystifying interesting facts about online Casinos - 16th Nov 20
What's Ahead for the Gold Market? - 15th Nov 20
Gold’s Momentous Rally From 2000 Compared To Stock Market SPY & QQQ - 15th Nov 20
Overclockers UK Quality of Custom Gaming System Build - OEM Windows Sticker? - 15th Nov 20
UK GCSE Exams 2021 CANCELLED! Grades Based on Mock Exams and Teacher Assessments - 15th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Goldman Sachs Likes Silver; Trump Wants Even More Stimulus

Commodities / Gold & Silver 2020 Oct 22, 2020 - 07:56 PM GMT

By: MoneyMetals

Commodities

Gold and silver markets slumped this week as stimulus talks faltered again in Washington.

Even though the White House upped its offer to $1.8 trillion, House Speaker Nancy Pelosi refused it – not wanting to give President Trump any kind of political victory ahead of the election.

Meanwhile, the President continues to campaign for stimulus. He is bucking Senate Republicans by offering to go even higher than $1.8 trillion.

Here’s what President Trump told Stuart Varney of Fox Business on Thursday:


Stuart Varney: You don't expect a phone call from Speaker Pelosi, but you would go higher. How much higher would you go? How much higher would you go?

President Trump: Yeah, I would, and the Republicans will too, because we like stimulus, we want stimulus, and we think we should have stimulus because it was China's fault. It was not the American workers' fault or the American people.

Stuart Varney: If you want to up your offer above $1.8 trillion, what would that extra money go to?

President Trump: It would go to the worker. It would go to the people, directly to the people so they can live nicely and their lives won't be shattered because of China.

Stuart Varney: Okay. Have you told the Secretary Mnuchin to get out there and offer more than $1.8 trillion?

President Trump: I've told him. So far, he hasn't come home with the bacon.

Even if an agreement were suddenly reached to bring home the bacon, it would be nearly impossible this late into the calendar for additional relief payments to arrive in Americans’ pockets before they go to vote.

Perhaps that will clear the way for a deal to be reached. It’s a near certainty that more stimulus will be coming sooner or later, one way or the other.

A case can be made that sending cash directly to millions of Americans is a fairer and more efficient way of artificially stimulating the economy than other alternatives. Feeding stimulus through a labyrinth of programs run by federal and state bureaucrats will inevitably produce waste and corruption as a byproduct. Alternatively, having the central bank pick winners and losers by buying up certain types of financial assets would inevitably favor Wall Street over Main Street.

Of course, “free money” however doled out isn’t without cost. The national debt recently topped $27 trillion. That represents an obligation of $216,000 per taxpayer.

It also represents a massive amount of future inflation if policymakers wish to keep kicking the can down the road and putting off the day of reckoning for unpayable debts. 

On Wednesday, the Labor Department reported the producer price index rose in September by 0.4%. That was a bigger increase than economists had been expecting. Food costs surged by 1.2% for the month. That means struggling consumers can expect to pay more for groceries.

This week, though, the U.S. dollar strengthened versus foreign currencies. Gridlock over stimulus is producing de facto fiscal restraint in Washington, however unintentional and temporary it may be.

A rising U.S. Dollar Index put downward pressure on precious metals prices through Thursday’s close.

Will metals markets rally as the election draws nearer? Many analysts think so.

Goldman Sachs recently released a report painting a bullish picture for silver in particular. Goldman strategists believe the “risks are skewed toward dollar weakness” with a possible blue wave in November.

A Biden win and a Democrat takeover of the Senate would clear the way for unimpeded spending. Every item on the left’s wish list would be able to get rammed through with only token opposition from Republicans.

Of course, Democrats now risk being overconfident about Joe Biden’s apparent lead in the national polls. The election will be determined state by state, and Donald Trump seems to remain competitive in the key battleground states he won last time around.

In 2016, most pollsters completely missed Trump’s hidden strength in states like Pennsylvania, Michigan, and Wisconsin. He could afford to lose two of those three this time around and still be able to recreate a winning electoral map by hanging on to all the other states he previously won.

Trump’s poll numbers may have hit bottom around the time he announced he had contracted COVID. If so, then the race can be expected to tighten.

And if it’s still too close to call after election day amid chaos and controversy surrounding mailed-in ballots, then market volatility can be expected to heighten.

Investors would be wise to brace for uncertainty and cover their bases. One of the most important bases to cover is holding physical precious metals outside of the financial system.

By Mike Gleason

MoneyMetals.com

Mike Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2020 Mike Gleason - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules