Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. In this column, JWR also covers hedges, derivatives, and various obscura. This column emphasizes JWR’s “tangibles heavy” investing strategy and contrarian perspective. Today, we look at the prices of gold, silver, and platinum. (See the Precious Metals section.)
Precious Metals:
Gold and silver prices have been surprisingly strong. Typically in the summer months each year, the precious metal prices have slack sails, drifting around in the doldrums. But because we are seeing prices this strong in early August, I suspect that there will be bullish markets in the fall. Gold could possibly be going north of $2,075 per Troy ounce, by late October. If it does, then silver will rise, correspondingly.
Oh, and if there is “recession” in the headlines, then don’t expect much of a return from your platinum, since it is more of an industrial metal than monetary metal. – JWR
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A rise in U.S. money supply will drive gold, silver prices to new highs – Wells Fargo’s John LaForge.
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At Gold-Eagle.com: Fears Of Recession Support Gold Price?
Economy & Finance:
Fitch Downgrades US Credit Rating to AA+.
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Biden Blames USA Downgrade On Trump.
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The reservoir of ‘helicopter money’ is drying up.
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Over at Zero Hedge: Yields Surge After Treasury Boosts Auction Sizes More Than Expected, Sees Debt Issuance Tsunami On Deck.
Commodities:
Incandescent Bulbs Finally Banned Under New US Rule. JWR’s Comments: There will almost surely be a few unintended consequences of this new law. What about devices with designs that depend on the heat generated by incandescent bulbs, such as incubators and chick-warming lamps? What about devices with designs that depend on the light wavelength of incandescent bulbs? What about fixtures that will only fit traditional bulbs? What about oven lights and other high-temperature installations that would destroy anything other than a traditional incandescent bulb? I predict that we’ll soon see news of lightbulb smuggling from Mexico, possibly within just a few weeks.
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Linked over at the Whatfinger.com news aggregation site: Gas Prices Will Skyrocket In August As Supply Faces Massive Drop.
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China Controls Nearly Every Step of the EV Battery Supply Chain.
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At OilPrice News: OPEC+ Not Expected To Alter Oil Production Policy Amid Price Rally.
Inflation/Deflation Watch:
Homebuyers Need To Earn 13% More In 2022 To Afford Their First Home.
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Machine Tool Price in the United States (CIF) – 2023. A quote:
“In March 2023, the average machine tool import price amounted to $22.5 per kg, rising by 3.5% against the previous month. Over the last twelve-month period, it increased at an average monthly rate of +1.7%.” [JWR’s Comment: That is 20.4%, annualized!]
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CNBC: Car repair costs are up almost 20% over the past year. Here are six reasons why.
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US gas prices climb to an eight-month high.
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July 2023: Diesel Fuel Prices Rising. (Updated August 1st.)
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Glass Product Prices Rise in June, Ending Run of Falling Rates.
Forex & Cryptos:
Pound to Dollar Forecast: 1.2714 in Three Months.
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At Currency Thoughts: Dollar Strengthens in Spite of U.S. Debt Downgrade and a Second Federal Indictment of Former President Trump.
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US DoJ is concerned about a run on Binance should prosecutors bring fraud charges: Report.
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Twenty-four central banks will have digital currencies by 2030, survey shows.
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Updated CBDC Tracker. A quote:
“The European Central Bank is on track to begin its pilot for the digital euro. Over 20 other countries will take steps towards piloting their CBDCs in 2023. Australia, Thailand and Russia intend to continue pilot testing. India and Brazil plan to launch in 2024.”
Tangibles Investing:
More than a quarter of homeowners in U.S. are ‘house poor’.
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10 Classic Cars That Outshine The 2024 Ford Mustang.
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Car & Driver: Future Cars Worth Waiting For: 2024–2028.
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. Thanks!