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, a closer look at the volatile precious metals markets. Pictured above is the Chicago Board of Trade, pre-2015. About 90% of the open outcry “pit” trading has since migrated to office computer screens.
Precious Metals:
On March 21st, I had a consulting client ask me about the spot silver market. He asked if I thought that $37 per ounce was a realistic short-term target. My answer: I don’t foresee a jump from $33-ish to $37. I anticipate a jump from $33 to $60 per Troy ounce. To explain: Because the silver market is thin and it has been consistently sold short, the price swings can be enormous. The LBMA is now being bled dry of physical silver. Roughly half of their physical silver supply has been taken in delivery over the past three months. I predict that once gold reaches +/-$3,100, the general public will realize that they “missed the gold boat”, and they’ll pile into buying physical silver and platinum. That is when a big run-up in price will occur. Once silver rises above $40 per Troy ounce, that will almost surely trigger a full-scale Short Squeeze, with predictable results. At that point, there will be nothing to stop silver from quickly going past $60 per ounce. And here is a reminder: In the long term, a silver-to-gold price ratio of 20-to-1 is likely. Thus, when gold eventually hits $4,000, silver could reach $200 per ounce. Stack it deep, folks. – JWR
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Alex Pollock, at Mises Wire: The Price of Gold: A Woefully Outmoded Law Needs Updating.
Economy & Finance:
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These are the top places for ‘Gold Visas’ around the world. JWR’s Comment: From my perspective, any American Citizen can say that they won the World’s Grand Lottery, just by being born or naturalized as a citizen here. The United States population represents just 4.22% of the world population.
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Rep. Jason Smith: Extending Trump Tax Cuts Is Vital to Rebuilding Economy Damaged by Bidenomics.
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At Zero Hedge: US Stock Futures Surge On Hopes Trump April 2 Tariffs Will Be “Targeted”.
Commodities:
COT report: Broad demand for metals in week that saw USD position flip to a net short.
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Coal to natural gas conversions are full steam ahead in southwest Wyoming.
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Natural Gas Prices Drive Electricity Costs Upward.
Inflation/Deflation Watch:
St. Louis Fed: The Road to 2% Inflation: Are We There Yet?
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Current U.S. Inflation Rate is 2.8%: Why It Matters.
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China’s restaurants race to the bottom in deflation-hit economy.
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Reuters’s: Japan ready to declare end to deflation, economy minister says.
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Argentina monthly inflation edges back up as prices prove sticky.
Forex & Cryptos:
Lily spotted this news: EU Central Bank Chief Confirms ‘Digital Euro’ Launches This Year. JWR’s Comments: I believe that an early 2026 Euro CBDC launch is more likely. But then… Citing the need “to be competitive”, I predict that a Digital Dollar will not be far behind. So get ready to barter, folks!
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Sweden Returns to Cash – Life Without Money in Your Pocket Is Not the Utopia Sweden Hoped.
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Almost a third of central banks delaying digital currency plans, report shows.
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At Reason: Sleepwalking Into a Cashless Society.
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Bitcoin ETFs struggle with outflows as investors lock in profits, says CF Benchmarks CEO.
Tangibles Investing:
Forbes: Housing Market Predictions For 2025: When Will Home Prices Drop?
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Farmland values lose steam after years of rapid growth.
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SurvivalRealty (a SurvivalBlog spinoff) has several interesting new listings. Here is just one of them, in Connecticut: Spacious New England Retreat.
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Optics Planet (one of our affiliate advertisers) had success with their March Mayhem so now they are running a 10% off Spring sale, with 2% bonus bucks. Use the coupon code “WARM”.
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!