Today an ex-Senior Fed trader warned we may see a wild scramble for physical gold.

Wild Scramble For Physical Gold
March 7 (King World News) – Former Senior Fed Trader, Joseph Wang:  “By weaponizing the banking system against enemies outside and within, advanced economies are losing their ‘risk free’ status. This may not change the global currency order for now, but could lead to a wild scramble for gold and other tangible assets.”

Massive Gold & Silver Volume…Yet Again
Graddhy out of Sweden:  We have absolutely massive volume very early in the day also today Monday for spot Gold and Silver. Said during the first week we saw huge volume, that I thought this huge volume in spot Gold, is Gold’s point of recognition, and it was as I see it. Volume is important…

To find out which gold & copper explorer just hit significant mineralization click here or on the image below

Mining Stocks Surging
Otavio Costa:  Large gold miners already leading the way, time for the juniors to join the party.

Junior Mining Stocks Set To Join The Party

Waking Up
Peter Boockvar:  It is not easy waking up and finding something of value to write right now. We see the heartbreaking and destructive images on tv and feel helpless. We know the economic sanctions are our only tool and while hopefully effective, the rest of the world suffers from it too from the spike in vital commodity prices. Global consumer spending is going to slow dramatically in response to much higher prices relative to wages. At least in the US, anyone who traveled outside this weekend in the burbs likely saw more than $4 per gallon gasoline for the 1st time since July 2008.

More “Transitory” Inflation As Gas Prices Spike

The cost of eating for those least able to afford it is going to be painful, especially in those emerging markets that import most of their needs. Consumers of energy in Europe are going to feel intense pain with the price of natural gas spiking by another 26% today and which are up 256% over the past 2 weeks.

The cost of doing business for everyone is only going higher at the same time the demand for things is likely going to retreat. How is a business that relies on nickel going to deal with the 35% spike today? What does a semi company do if Ukraine can’t ship the neon gas they need? Many auto makers and electronic makers need palladium and can South Africa produce enough to offset the 30% of the world’s needs that comes from Russia?

Commodities Bull Rampaging
To this last point on South Africa, the question from here with commodity prices, particularly those most impacted like crude, natural gas, wheat, palladium, nickel, fertilizer, etc… is the fungibility of them. We know they are fungible but to what extent can others fill the supply gap of Russia and Ukraine. Russia will still produce what they can but we know their customer base has shrunk dramatically. I’m sure they’ll find buyers but it won’t be any of our friends and can we thus find other producers to buy from? Ukraine is likely now unable to produce anywhere close to what they were and even if they could, there are no shipping lanes to get it out.

What I haven’t see yet though is any reduction in S&P 500 earnings estimates but that is to come. Here is a chart of how they’ve trended this year and it’s only gone up.

Gold & Silver
You’ve heard me preach the virtues of gold and silver many times and what is occurring now is not just are they protection from inflation and currency debasement, but people are realizing that it is no one’s liability. In other words, the weaponization of finance is here after Trudeau in Canada froze bank accounts without any due process and after the freeze on many Russian assets overseas, particularly those of their central bank, no asset is really safe from government expropriation. Gold is not subject to the counter party risk of someone else. I expect the demand for it because of this to only go higher, and particularly from global central banks and others. It touched $2000 overnight.

With respect to the economic data, the only thing that matters now are those that capture what’s been going on post invasion so I’m not going to bother discussing anything pre this morning. The March Sentix Investor Confidence Index in Europe plunged to -7 from +16.6 and they said rather painfully but succinctly, “The economy is the euro zone is slumping dramatically due to the war in Ukraine.”

I will mention a big positive this morning and that is another reminder today that covid is essentially over in being a major factor in our lives as more mask mandates end today, particularly in many school systems, particularly NY and NJ. I wish I could see today the looks on kids faces when they can look at each other without half their face covered. We now just need to get rid of the ones for those kids under the age of 5. I’m sure Friday’s big upside surprise in the jobs report had a lot to do with the flaming out of omicron.

Michael Oliver – We Are On The Face Of A Move That Is So Dramatic For Gold & Silver That It Erases Any Prior Bull Moves In Terms Of Dynamics And Percentages CLICK HERE. 

To listen to Michael Oliver discuss the dramatic upside move in gold and silver and much more CLICK HERE OR ON THE IMAGE BELOW.

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