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 [1]. Today, we look at the Federal Reserve’s latest interest rate move. (See the Economy & Finance section.)
Precious Metals:
The platinum to gold ratio is now outrageously out-of-whack. When I checked on Thursday afternoon, spot gold was at $1,876.10 per Troy ounce, and meanwhile platinum was at just $977. Yikes! That is nearly a 2-to-1 ratio. Hmmm… If you’ve been considering buying gold during the current dip, then please re-consider. My advice is to buy platinum, instead! Traditionally, platinum has sold for more per ounce than gold. The pricing might not fully revert, but anywhere below 1.5-to-1 makes platinum a bargain. – JWR
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An audio interview: Bill Holter: Gold-backed Ruble set to leave PetroDollar behind [2].
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Analysts At Goldman Sachs Are At It Again [3].
Economy & Finance:
On Thursday — just a day after a 900+ point rally — we read: Dow tumbles 1,000 points, Nasdaq loses nearly 5% in worst day of the year for stocks [4]. Update, Friday AM: Dow drops 200 points as stocks extend losses from Thursday’s sell-of [5]f.
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It is official: FOMC statement from the May 2022 meeting: Fed hikes by 50bps [6]. JWR’s Comment: The jawboning has ended. Tightening has begun. Probably too little, too late, so what we’ll see is stagflation. Now the banksters can reap the whirlwind.
Ford loses $3.1 billion, hit by investment and chip shortage [7].
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Charles Hugh Smith: Not the 1970s or the 1920s: We’re in Uncharted Territory [8].
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US Trade Deficit Explodes To Record High In March [10].
Commodities:
At Zero Hedge: US East Coast Diesel Stockpiles Hit Record Low As Fuel Crisis Nears [11]. Update: Diesel prices hit a new all-time high on May 5th, averaging $5.47 per gallon. One year ago, the average diesel price was at $3.09 per gallon.
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Reader Mark J. sent us this: Bundesbank Warns Of “Severe Crisis Scenario” Upon Russian Gas Embargo [12].
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OilPrice News reports: U.S. Natural Gas Prices Hit A 13-Year High On Inventory Concerns [13].
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The Battery Boom Will Redraw Geopolitical Maps [14].
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Shale Producers Face $42 Billion In Hedging Losses [15].
Inflation Watch:
At Wolf Street: US Manufacturers: Inflation Is “Out of Control,” Has Not Peaked, but “Intensified” amid Strong Demand, Shortages, and Lengthening Lead Times [16].
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Chuck Schumer: ‘Only Way’ To Reduce Inflation Is To ‘Raise Taxes’ & Undo Trump Tax Cu [17]ts.
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US Services Surveys Scream Stagflation: Orders Slow As Prices Surge At Record Pace [18].
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Poll: Joe Biden’s Approval Underwater, 68% Disapprove of Handling of Inflation [19].
Forex & Cryptos:
Goldman Warns ‘Dollar Dominance On A Downtrend’ [20].
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Australia Shocks With Bigger Than Expected Rate Hike, As Lowe Admits Embarrassment At Being So Wrong [21].
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Digital Currency Threatens Liberty; Bills in Congress Would Prevent It [22].
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War, Crypto & The Invisible Line Connecting It All [23].
Tangibles Investing:
Another essay by Charles Hugh Smith: Is Housing a Bubble That’s About to Crash? [24]
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H.L. sent this: The Pro Dumpster Diver Who’s Making Thousands Off America’s Biggest Retailers [25].
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos [26] page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR [1]. (Either via e-mail or via our Contact form [27].) 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!