Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at the breakdown in the global diamond market. (See the Economy & Finance section.)
Is it the global credit market instability, or just recession fears? Germany Increases Gold Reserves In September For The First Time In 21 Years – IMF
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Economy & Finance:
At Zero Hedge: “There Is A Global Crisis” – Israel Diamond Industry Collapses Amid Faltering Demand. The article start out with this:
“Macroeconomic headwinds are developing across the world. At least 90% of all countries are experiencing a slowdown in growth that has stumped central bankers and policymakers. No one at the moment can figure out how to restart the global economy. With the risk of a worldwide trade recession soaring for 2020, if not has already arrived, consumers are pulling back on spending, which has contributed to a collapse in the global diamond industry, something that we’ve been documenting this year.
The latest stress in the global diamond industry is emanating from Israel. Ynetnews is saying the country’s diamond exports have plunged 22%, a sign that consumer demand from Asia is faltering.
Trade data showed for the first three quarters of 2019, Israeli exports of diamonds were $2.62 billion, down from $3.32 billion during the same period last year.
In 3Q19, imports and exports of diamonds by Israel plunged 28% YoY. “
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Reader C.B. was the first of several readers to send us this: Crisis could claim third of big global banks: McKinsey
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OilPrice News reports: Oilfield Services Face Crisis As Shale Slowdown Worsens
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Forex & Cryptos:
Over at Think:ING: FX: The pound is stuck in a delay dilemma. A quote from the article:
“Once again, a session in the UK Parliament yields more questions than answers. MPs gave initial consent to the Brexit Withdrawal Agreement Bill (with a solid 30-vote margin), but the PM’s proposed fast-track timetable was rejected. Johnson announced he will pause legislation on the deal whilst waiting for the EU27 decision on the Article 50 extension. The result was a drop in sterling as the prospect of another delay dented investor optimism for a quick resolution and likely increased the perceived risk of snap elections.
At this stage, many options remain on the table. Johnson would ideally like a short-extension (a couple of weeks) to keep pressure on the House, but the EU may be little inclined to take such risk and will likely deliver a longer extension (possibly until Jan 2020). Once the length of the delay is set, Johnson will decide whether to try and go straight to elections – although it’s not clear Parliament will let him do this right now. Alternatively, he could press ahead with the legislation, where the next step would be for MPs to put forward amendments.
Looking at the FX-impact, the current situation suggests that: (a) more uncertainty is being priced back into GBP; (b) the downside for GBP still seems quite limited given that Johnson now appears to have a majority to back his deal. In turn, the pound may drop some of the recent high volatility and get stuck in a “wait-and-see”, relatively tighter band, possibly hovering around the 1.28-1.29 area vs the USD.”
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Some of my advice on tangibles investing crossed over into our most recent Editors’ Prepping Progress column. Please take a look there.
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News from local news outlets that is missed by the news wire services is especially appreciated. And it need not be only about commodities and precious metals. Thanks!