No serious gold investor is dumping gold because interest rates might rise 1/2 a percent 2 years from now.
In the long term, what do you think will hold its value: the dollar or gold?
Still waiting for $1,000 an oz. That is when I will get in.
Didn’t buy gold to “hedge “ against inflation. Bought gold and silver to trade when the country collapses. It’s going down, it’s going to get bad. We’ve been warned for 20 years this was coming and it’s almost here. No one is stepping up to make things better. Republicans are spineless, Wall Street is all set. They have plenty of money. It’s the rest of us that’ll need that little extra.
Headed back to 13% Prime Rates....................
Friends...don’t mix your political principles with survival in this very economically volatile times. I learned that the hard way.
I was in Ukraine 12/13 years ago when the banking system froze and the local currency tanked in the forex market. ATM and credit/debit cards didn’t work. Store merchants only wanted Dollars or Euros instead of the legal tender HRYVNIA. That is until armed police officers showed up with Hryvnias and demanded they take the sinking currency because they themselves had to buy food for their own families. They did and we all got our food using the Hryvnia.
LESSON LEARNED - so long as the police and military are paid in dollars as the Legal Tender currency in this country you’d better have some on hand to feed yourself and your family. It ain’t going away no matter how devalued it becomes. Legal tender laws WILL BE enforced.
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The Federal Reserve’s projections show an interest-rate increase to 0.6% from 0% currently by the end of 2023, a bit sooner than what was anticipated. Also, more Fed members now see a rate increase in 2022. This comes after the producer-price index, released Tuesday, rose more than expected, excluding food and energy.
Still, the Fed isn’t exactly upending its easy-money policies. It is continuing to purchase $120 billion a month in bonds. The more money the central bank plows into the bond market, the higher the price and the lower the yield of those bonds. Stock investors want to see lower bond yields, which boost the present value of future profits. The higher expected benchmark interest rate, though, casts doubt over how long treasury yields can remain low.
Overall, “the market may be reacting to the change in the dot plot [rate increase schedule] that now shows more officials indicating a rate increase is coming in 2022,” writes Mike Loewengart, head of investment strategy at ETrade.
The negative market reaction to the Fed wasn’t just seen in the major indexes, but also in the number of stocks that fell. About 77% of S&P 500 stocks fell, according to FactSet data, indicating that investors are indeed concerned about higher yields, which has at least some negative impact on all stocks.
But this wasn’t a nasty selloff. All three major U.S. indexes rose from their intraday lows and the breadth of S&P 500 stocks that were in the red fell significantly from above 90% earlier in the day. That isn’t a surprise to Jim Paulsen, chief investment strategist at The Leuthold Group, who says, “I don’t see how that much changed today. I think they’ve [Fed members ] been pretty clear in what they’re doing, that they’re gonna run this [economy] hot.”
In other economic news, housing starts for May came in at 1.57 million, below the estimate of 1.63 million. Building permits were 1.68 million, below the expected 1.73 million.
That’s so funny that they worry about 2023 today.
a 6 point basis rise is not catastrophic , now of they raised rates to what they need to be say, 800 basis points then that is another situation.
Gold and Silver falling because of interest rates is a regular riot. That’s the cover story. Only.
COMEX types are covering their short sales at prices they prefer, while they still can.
In about a week, bank rules change, and gold becomes a “tier 1” asset, at Basel III.
I’m to understand that this pulls the rug out from under banksters that *say* they have a supply when they do not.
when I hear about the Fed speaking, I think about this:
The Man Who Taught His Asshole to Talk
(aka “The Talking Asshole Routine” from Naked Lunch)
William S. Burroughs
Did I ever tell you about the man who taught his asshole to talk? His whole abdomen would move up and down you dig farting out the words. It was unlike anything I ever heard.
This ass talk had sort of a gut frequency. It hit you right down there like you gotta go. You know when the old colon gives you the elbow and it feels sorta cold inside, and you know all you have to do is turn loose? Well this talking hit you right down there, a bubbly, thick stagnant sound, a sound you could smell.
This man worked for a carnival you dig, and to start with it was like a novelty ventriliquist act. Real funny, too, at first. He had a number he called “The Better ‘Ole” that was a scream, I tell you. I forget most of it but it was clever. Like, “Oh I say, are you still down there, old thing?”
“Nah I had to go relieve myself.”
After a while the ass start talking on its own. He would go in without anything prepared and his ass would ad-lib and toss the gags back at him every time.
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