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. Most of these items are from JWR’s “tangibles heavy” contrarian perspective. Today, we look at the baby bull in precious metals.
Precious Metals:
Silver has been steadily climbing, in recent weeks. Despite some profit-taking on Friday (April 14), spot silver closed at $25.61 per Troy ounce! It now costs $26,900+ to buy a $1,000 face value bag of pre-1965 US. “junk” silver from a reliable “low mark-up” dealer. Some dealers are demanding more than $30,450! If you want to buy silver in any coin or bar form, then it pays to shop around for the lowest premiums. But, of course, only buy from reputable dealers.
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Charted: 30 Years of Central Bank Gold Demand.
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A little chartism from Morris Hubbartt, At Gold-Eagle.com: Gold & Silver: A Thunderous Rally.
Economy & Finance:
From all reports, American banks are still hemorrhaging deposits, as their customers seek both the safety and higher rates of return found in U.S. Treasury paper. I can foresee that the banking crisis will worsen in the coming months, especially if the FOMC keeps raising interest rates. So… Keep your deposits small and diverse. If you have all your deposits in just one bank, then you are trodding on dangerous ground. Here is a piece that might prove helpful to you: Which Banks Are in Danger of Failing or Collapse? And I must repeat my guidance: Avoid banks with large derivatives exposure. – JWR
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Jobless Claims Deterioration Across US States Indicates Impending Recession.
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The yield curve in the U.S. has now been inverted for three months. This is the deepest inversion since 1981. Historically, the 2-year/10-year yield curve has inverted for 6 to 24 months preceding each recession since 1955. If this situation continues, then it does not bode well, particularly for equities. The general economy could now easily tip over into recession. Meanwhile, the real estate crash — both residential and commercial — is just getting started. Plan accordingly.
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Linked over at the Whatfinger.com news aggregation site:
