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 market reactions to recent Federal Reserve signals. (See the Tangibles Investing section.)
Precious Metals:
Why is gold down nearly $100 after Fed shakes up markets?
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Neils Christensen: Panic selling in gold could last a little longer as Wall Street turns bearish on gold, but many look to buy the dip. Here is an excerpt:
“The Federal Reserve unleashed considerable panic in the precious metals market. While there is still some bullish sentiment in the marketplace, some market analysts say that it could take some time for gold to work through all the selling pressure.
The latest Kitco News Weekly Gold Survey results show that sentiment in the precious metals market has dramatically shifted as the gold ends the week down $100. The yellow metal is seeing its worst weekly performance since March 13, 2020, when financial markets collapsed due to the spreading COVID-19 pandemic.
Sentiment among retail investors is at its lowest point since early April when gold prices were just starting their two-month rally.”
Economy & Finance:
ING: US household wealth surged $20tn despite the pandemic.
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At Zero Hedge: Feels Like 1977: Inflation Too High, Money Too Loose.
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CNN: Major US mall owner files for bankruptcy.
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At Activist Post: Unemployed Households Can Earn $25/Hour on Welfare in 21 States, New Study Finds.
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Democrats planning $6T spending bill that sidesteps Republican support. JWR’s Comment: It takes someone with a really special statist agenda to phrase a headline that way.
Commodities:
The Commodities Feed: US Fed rattles markets. The article begins:
“Despite the more hawkish tone taken by the US Fed, ICE Brent still managed to settle higher yesterday, following a constructive EIA report. Prices are, however, coming under some downward pressure in early morning trading today as the market digests the Fed’s comments.
EIA data shows that US commercial crude oil inventories declined by 7.36MMbbls over the last week, which was slightly less than the 8.54MMbbls the API reported the previous day. This leaves US crude inventories at 467MMbbls, which is a little more than 5% below the 5-year average for this stage in the year.”
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OilPrice News reports: Oil Prices Fall As The Fed Changes Its Tune.
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The microchip shortage is one of the unforeseen outcomes of the pandemic.
Inflation Watch:
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Hedge Fund Manager Kyle Bass Estimates U.S. Inflation at 12%.
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CNBC: Americans’ inflation fears reach a fever pitch as consumer prices rise.
Forex & Cryptos:
From India: Rupee Falls to Over One Month Low.
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Why China’s Crackdown On Bitcoin May Be Just Beginning.
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Big Bitcoin Investors – Who They Are: In Tesla’s Footsteps.
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Mark Cuban calls for stablecoin regulation in wake of Iron Finance ‘bank run’.
Tangibles Investing:
At Tech Dirt: FBI Ignored Its Own Warrant And Search Policies To Seize Millions From People’s Safety Deposit Boxes.
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Chinese buy strategic land in Texas, U.S. intel may not be pleased.
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H.L. spotted this: As Left Pushes Gun Control and Defunding Police, Smith & Wesson Has First Billion Dollar Sales Year.
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail or 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 items from local news outlets that are missed by the news wire services are especially appreciated. And it need not be only about commodities and precious metals. Thanks!