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 risk of a recession or an economic depression, in 2024.
Precious Metals:
The gold-to-platinum ratio continues to further escape reality. When I last checked (Thursday, December 21, 2023), with spot gold at $2,057.80 and spot platinum at $982.90, the ratio stood at 2.093-to-1. Historically, platinum has sold at a premium above the price of gold. In fact, platinum was worth more per ounce than gold for the great majority of the 20th Century. Whenever metals price ratios reach extreme inflection points, it is appropriate for individual investors to pause and consider doing some ratio trading. As I’ve mentioned before in SurvivalBlog, the only real impediment to doing so vis-a-vis gold and platinum is the ridiculously high premium charged by coin dealers for platinum coins. The latter are produced in pitifully small numbers. This explains the high premium. If you can find any platinum coins from a reputable dealer with a reasonable premium, then please consider making a ratio trade on a portion of your physical gold holdings. If World War 3 breaks out and the gold-to-platinum price ratio reverts to its historical norm, then you will make a substantial profit. – JWR
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Gold: Rally could continue in 2024. (Video)
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Silver’s window of opportunity is closing, with prices poised for an ‘explosive move’ in 2024.
Economy & Finance:
Reader W. F. suggested this piece at USN&WR: Recession 2024: What to Watch and How to Prepare.
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A ‘severe recession’ may be coming in 2024 as the stock market, job market flash warning signs, strategist says. JWR’s Comments: In a deep recession or a depression, we can expect only essential industries (i.e. heating and staple foods eating) to do well. Expect massive layoffs and stock declines, almost everywhere else. Subconsciously, people are already expecting this. Take Note: The only retailers that are booming are “dollar” stores. Dollar General plans to open 800 more stores, in 2024.
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Nigeria, again: “Astonishing Audit Failure”: SEC Charges Tingo Group With “Massive Fraud”.
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Mild recession is likely in 2024, strategist says.
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Kiplinger: The IRS is waiving penalties for nearly $1 billion in back taxes owed during the pandemic.
