Bonds Break, Bullion Breaks Out

Daily Reckoning ^ | 11 April 25 | Adam Sharp

[delta7]

The last domino is falling.

[Blueflag]

Back in the summer of 24 I was very concerned about the consequences of Trump NOT winning and I shifted 15% of our portfolio to gold.

Right now I wish it was 55% 😉

[Vaduz]

U.S. Treasury Secretary Scott Bessent has said the yield spike is not unusual or worrisome, pinning the blame on professional investors who had borrowed too much and needed to sell.
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[AndyJackson]

pinning the blame on professional investors who had borrowed too much and needed to sell.

Deleveraging financial markets and putting money to work for the real economy is a 50 year overdue action.

[Karl Spooner]

The miners are still cheap. That’s where you’ll make the most fiat money.

[C210N]

Consider that the GSR now, this weekend, is close to 100.

This is way out of whack - the long term mean has been 15, the ratio out of the ground is around 10.

Bottom line is, gold is the trend setter and silver lags, and there is much more upside to silver than gold. Good to hold physical gold AND silver. You choose the mixture.

Gold is a compact store of wealth; silver more useable.

[Bobbyvotes]

That jives with my thinking. During covid stock market crash I sold my bond mutual funds and switched to stock index funds. It was a no-brainer. Stocks were down much more than bonds.

The recent 20% drop in SPX was another such opportunity. But personally I did not do the switch this time because stocks are still more overvalued than at peak in 1929 before the crash.

[C210N]

Lots of mine companies in Mexico. If/when fiat really goes haywire, watch the government take control of the country’s mines.

[delta7]

Right now I wish it was 55%
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Still not to late. Pull up the legendary trader James Sinclair’s forecast from years ago….the “ Angels” way back when are back in full force….his Fibonacci number correlation shows where Gold is headed.

Throw in Richard Russell’s legendary DOW Theory Letters affirms what is dead ahead.

Cycles, a good read, but it was written in 2009…..

https://www.gold-eagle.com/article/richard-russell-gold

Many here are youngsters, learn from the past.

[delta7]

The miners are still cheap. That’s where you’ll make the most fiat money.
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Amen to that…..but choose very carefully, and be sure to trade some of the fiat winnings into real wealth.

[delta7]

The miners are still cheap. That’s where you’ll make the most fiat money.
————-
Amen to that…..but choose very carefully, and be sure to trade some of the fiat winnings into real wealth.

[Brian Griffin]

The Federal Reserve can simply buy US government bonds paying 2% in sufficient quantity.

There’s also the possibility of a value added tax. At 8%, it would bring in about $1.6 trillion a year.

[Karl Spooner]

Peter Schiff knows who has gold in the ground vs the ones that say they do.

[Vaduz]

Stocks are still more overvalued

Agree they are a long term deal for the win.

Exceptions do happen sometimes.

[Vaduz]

Agree

[aquila48]

I wonder how much of the money that people got by selling stocks is just sitting at a brokerage as cash waiting for things to settle down.

It’d be interesting to see the breakdown of where the money from the sale of stock went - cash, gold, foreign currencies, other assets.

[Brian Griffin]

Maybe the US should not spend $1 trillion a year on the DoD.

Fiber optic drones are fairly cheap and highly effective.

[delta7]

The US has entered the dreaded Debt Death Spiral….it will run its course, slowly, but surely. After the “ burnout”, the “new” system will emerge hopefully based on equal weights and measures.

[JesusIsLord]

Overview of Gold and S&P 500 Performance

Re: https://iask.ai/?mode=question&options[detail_level]=detailed&q=Compare+the+performance+of+Gold+versus+S%26P+500+funds+that+reinvest+their+dividends.

[econjack]

This is unusual. Normally, risk in the equities markets drives dollars into Treasuries. The result is normally a downward move in interest rates. This is important because, for every basis point (0.01%) decrease in the interest rate, the cost of servicing the debt falls by $1 billion per day. Instead, because Congress can't control themselves and spending, money is flowing into precious metals. Not good, as those are not productive uses of capital.

Solution: restore confidence in the dollar, which means Congress has got to stop bingeing on debt spending. Elon is doing that, but the GOP has failed miserably in educating the public what's going on. And to those idiots who thought a smaller gov't didn't mean firing public employees, grow up. The GOP should be tarred and feathered for the piss-poor job they've done explaining how short run pinches now means no amputations in the long run.