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 recent spike in propane prices (See the Commodities section.)
Precious Metals:
The Next Phase Of Gold’s Bull Market Has Just Begun. JWR’s Comments: 2024 was a great year for gold investors. Spot gold posted a gain of 27.2% in US dollar terms, 37.1% in Swiss Franc (CHF) terms, and 35.6% in terms of Euros. Given the Federal Reserve’s ongoing expansion of the money supply, it is realistic to expect a 12% or more gain in the spot price of gold (in Dollar terms), in calendar year 2025.
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Chinese Gold Demand Showed Seasonal Strength in December.
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Silver demand spikes due to solid-state battery tech advancements.
Economy & Finance:
The 10-year Treasury yield is nearing 5% again. Why stock-market investors are freaking out.
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Bank of America Braces for Massive Bond Losses as Yields Soar. An excerpt from the article’s opening lines:
“A sharp rise in rates since the end of the third quarter widened losses on bank securities portfolio and could become an investor issue again when banks start reporting their fourth-quarter results in the next week.
Bank of America has the largest unrealized losses in the banking industry and could be a focus of investor attention.
Barron’s estimates that Bank of America’s paper losses on a portfolio of $568 billion of bonds, mostly U.S. agency mortgage securities, could widen to $111 billion or more, compared with $86 billion at the end of September.
Industrywide, total unrealized losses could top $500 billion, up from $364 billion at the end of the third quarter. These losses involve all banks insured by the FDIC. The total potential losses would still be narrower than the nearly $700 billion at banks at the end of the third quarter of 2022.”
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The BBC reported: Madoff fraud victims get $4.3 billion as fund completes payouts.
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Macy’s And Kohl’s Announce Closures Of 93 Stores In Total.
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Reader H.L. suggested this report at Zero Hedge: L.A. County Inferno Expected To Top $250 Billion In Losses.