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 [1] also covers hedges, derivatives, and various obscura. This column emphasizes JWR’s “tangibles heavy” investing strategy and contrarian perspective. Today, we look at shifts in the silver-to-gold price ratio.
Precious Metals:
Gold and silver are still looking quite bullish, despite some recent profit-taking that pushed gold down to the $3,330 range. Presently, I strongly recommend buying silver rather than gold. I expect the silver to see greater percentage gains than gold, in the next few months. The silver-to-gold price ratio has already slipped back down to around 99-to-1. (It had reached a staggering 103-to-1, on Monday.) I anticipate that the ratio will revert to below 87-to-1 before July, and perhaps 82-to-1 by October. – JWR
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Egon von Greyerz, at Gold-Eagle.com: The Big Short And The Bigger Long [2].
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Rich Dad Poor Dad author picks a new favorite asset [3].
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Utah Shines With Gold Currency Efforts: Rep Ivory [4]. (A hat tip to H.L. for the link.)
Economy & Finance:
The Overpopulation Fallacy: Why More People Means More Knowledge and Prosperity [5].
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Reader H.L. mentioned this at Zero Hedge: How State Income Taxes Have Changed Since 2000 [6].
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Wolf Street: The Spread between 10-Year Treasury Yield & Mortgage Rates Is Historically Wide and Widened Further: Some Thoughts [7].
The Tariff War:
As reported by the ultra-liberal/globalist CNN: Trump’s trade war olive branch met with derision and mistrust inside China [8]. JWR’s Comments: Despite President Xi’s tough talk, the PRC is at a great disadvantage in the tariff negotiation struggle. They need their exports much more than we need their imports. They are also in great need of our raw materials and grains. (By the way, Trump should make a deal with Australia on limiting grain exports to China.) Time is on our side. Remember: China is in the midst of a deflationary recession. They are desperate to find markets for their exports. If Trump can stand firm for a full year, then the Chinese government will almost certainly cave in, on tariffs.
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Fortune reports: Where will tariffs and inflation stand a year from now? Fitch’s chief economist outlines a worrisome prediction [9].
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A less pessimistic view, from McKinsey: Tariffs and global trade: The economic impact on business [10].
Commodities:
H.L. and Tim J. both sent us this: Cattle Crisis: How a historic herd decline is shaking U.S. beef security [11].
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From OilPrice News: U.S. Copper Imports Exceed Expectations Despite Tariff Concerns [12].
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Base Metals Higher on Potential Easing of Tariffs with China [13]. The Tariff War.
Forex & Cryptos:
Dollar Falls on Signs the US-China Trade War Will Linger [14].
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At Currency Thoughts: Further Interest Rate Cut in Euroland [15].
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CME Group to launch XRP futures to expand crypto derivatives [16].
Tangibles Investing:
Wolf Richter: Inventory of New Houses for Sale Stuck at Highest Level since 2007, Driven by Gluts in the South & West. Prices Fall, Incentives Soar, Sales Rise [17].
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From CNBC: March home sales drop to their slowest pace since 2009 [18].
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Just until Monday, we are continuing our big sale on all of our Pietta percussion revolvers and some of our Uberti revolvers, at Elk Creek Company [19]. Because cartridge conversion cylinders are widely available for both brands, these no-paperwork guns are a great option for folks living “Behind Enemy Lines” in States with oppressive handgun laws. (Consult your State and local laws before ordering.)
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos [20] 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 [21].) 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!