Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at the incredibly volatile global stock markets. (See the Stocks section.)
Precious Metals:
Price of Physical Gold Decouples from Paper Gold
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Gold price remains down as Philly Fed survey see largest drop in history. JWR’s Comments: Some institutional stock traders are feeling squeezed by the new bear equities market. Margin calls can be painful! They are liquidating anything and everything–including their precious metals and cryprocurrencies–to raise some desperately needed cash. So, oddly, “paper” silver is down, while physical silver is increasingly scarce and selling at high premiums.
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An observation: As of Thursday morning, spot silver was at $12.00 per Troy ounce (a 12-year low), while spot gold was at $1,476.60 per Troy ounce. That is a ratio of 123-to-1. So this is a great time to sell gold (including gold ETFs) and immediately buy physical silver. This is if you can find any silver coins or small serailized bars at a $8 per ounce premium over spot. And as always, don’t accept just a promise of delivery. If you can’t take it home with you that same day, then you don’t really own it.
Economy & Finance:
With the Fed cutting interest rates to a “…a range between 0 and 0.25 percent” we are back into a Negative Interest Rate Policy (NIRP), when adjusted for inflation. So this means the Central Banksters’ quiver is empty, unless they go Full Japanese. At this point I’d say that a recession is a near certainty, and that a full scale depression is fairly likely. Plan accordingly.
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At Zero Hedge: “Half Of America Will Get Sick”: Here Is What Goldman Told 1,500 Clients In Its Emergency Sunday Conference Call
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Another: The Covid-19 Dominoes Fall: The World Is Insolvent
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RBC expects 20% decline in US vehicle sales amid coronavirus outbreak