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”.