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Easy Fed Gives Gold Rocket Fuel
kitco.com ^ | June 20, 2019 | Jim Wyckoff

Posted on 06/20/2019 6:04:23 AM PDT by Migraine

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Two forces of support for precious metals this AM -- easy money prospects and unsettled Persian Gulf. I hope this is a genuine breakout for metals which have been mired horizontally for 5 years at least.
1 posted on 06/20/2019 6:04:23 AM PDT by Migraine
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To: Migraine

The FOMC statement said the committee would lower interest rates in the coming months if U.S. economic growth begins to slow down.

...

By then hundreds of billions of dollars of productivity will be lost.

Rates shouldn’t be as high as they are. The yield curve is flat and inverted.


2 posted on 06/20/2019 6:16:10 AM PDT by Moonman62 (Facts are racist.)
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To: Migraine
It's Iran NOT the Fed.

Ignore this analyst.

3 posted on 06/20/2019 6:16:30 AM PDT by G Larry (There is no great virtue in bargaining with the Devil)
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To: Migraine

I hope this is a genuine breakout for metals which have been mired horizontally for 5 years at least.

...

Why would anybody want higher costs for basic materials?


4 posted on 06/20/2019 6:17:42 AM PDT by Moonman62 (Facts are racist.)
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To: Migraine

The private banks have this country just about where they want it.

The interest on the debt will soon outstrip all other in the budget.

Then what?


5 posted on 06/20/2019 6:19:24 AM PDT by crz
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To: Migraine

Read later.


6 posted on 06/20/2019 6:20:10 AM PDT by NetAddicted (Just looking)
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To: Migraine

i’m thinking this morning might be a good time to buy a couple tubes of liberties or buffaloes


7 posted on 06/20/2019 6:21:57 AM PDT by gdc61 (LOL not.)
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To: G Larry
Ignore this analyst.

The first part of every 'analyst' is 'anal'...............

8 posted on 06/20/2019 6:33:03 AM PDT by Red Badger (We are headed for a Civil War. It won't be nice like the last one....................)
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To: G Larry

‘”Ignore this analyst”. Yassah boss! He obviously doesn’t know jack.


9 posted on 06/20/2019 6:34:19 AM PDT by Migraine
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To: Moonman62
Why would anybody want higher costs for basic materials?

Oh, I dunno... maybe someone who owns mining stocks, or has some physical laying around?

10 posted on 06/20/2019 6:36:20 AM PDT by Migraine
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To: gdc61
i’m thinking this morning might be a good time to buy a couple tubes of liberties or buffaloes

Yes, especially by doing it on ebay. There is often a lag in prices there where you catch the coins at yesterday's pricing.

11 posted on 06/20/2019 6:38:19 AM PDT by Migraine
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To: Moonman62
I strongly disagree with you. U.S. interest rates are still near historic lows.

The U.S. doesn't have an interest rate problem. We have a problem keeping our economy afloat because productivity* is in a steep decline as our population of retirees and unemployable people grows.

* I'm using the term "productivity" as a measure of average output per person, not per worker.

12 posted on 06/20/2019 6:42:31 AM PDT by Alberta's Child ("Knowledge makes a man unfit to be a slave." -- Frederick Douglass)
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To: Migraine

The offshoring of industry over the last 20 years is what is hurting the economy. It’s difficult to “invest”, upgrade and buy new equipment etc. and propel the US economy to new heights when all the factories are off shored somewhere else.


13 posted on 06/20/2019 6:50:50 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Migraine
I hope this is a genuine breakout for metals..

I understand what you mean....but my gold and silver stash coming out of hibernation does not give me a "warm and fuzzy" feeling. Easy Fed and International oil disruption is not what I has hoping for this morning.

14 posted on 06/20/2019 6:54:06 AM PDT by Vermont Lt (If we get Medicare for all, will we have to show IDs for service?)
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To: crz

The only way out of the debt is inflation, and that means gold has a chance to survive as an asset class.

I think people should have 1% to 2% of their net worth in physical gold.

Lock it up and don’t think about it, but there’s at least a plausible scenario over the next 20 years where the rest of what you own is doing very poorly but gold is suddenly very much desired.


15 posted on 06/20/2019 6:57:12 AM PDT by babble-on
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To: Alberta's Child

I strongly disagree with you. U.S. interest rates are still near historic lows.

...

You are using history. I’m using the markets.


16 posted on 06/20/2019 7:09:49 AM PDT by Moonman62 (Facts are racist.)
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To: Migraine

Easy money prospects are NOT why gold shot up. Rather, it’s the risk of recession because the federal reserve did NOT push interest rates up. Short-term rates are higher than long-term rates. Anyone who calls an inverted yield curve “easy money” is flipping insane.


17 posted on 06/20/2019 7:17:29 AM PDT by dangus
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To: Moonman62

Because you’re selfish and only care about your investments, and not the country in general.


18 posted on 06/20/2019 7:28:11 AM PDT by EEGator
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To: EEGator

Spoken like a true Socialist.


19 posted on 06/20/2019 7:41:27 AM PDT by Kozak (DIVERSITY+PROXIMITY=CONFLICT)
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To: Kozak

What deep insight...


20 posted on 06/20/2019 7:44:03 AM PDT by EEGator
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