On a day when Agnico Eagle announced it will be merging with Kirkland Lake Gold, we saw continued weakness in the gold price, plus a look at stagflation, real estate, household debt and the US debt ceiling.

Weakness In Gold
September 28 (
King World News) – 
Simon Mikhailovich:  “No one should be surprised by the weakness in gold prices. Demand for gold is inverse to confidence in financial assets, which, along w/financial market valuations, remains near all time highs. For those who believe confidence is misplaced, insurance just got a bit cheaper.

Ever watch water as it heats up? Visible signs of change don’t show up until the boiling temp is reached. One moment the water is calm, the next moment all hell breaks loose – rolling boil, splatters, scalding steam, noises, etc. It’s the same with systemic crises.”…

To hear Sean Boyd discuss $3,000 gold and the big game-changer
for the gold market 

Otavio Costa:
  This is quickly becoming a reality. Business activity is decelerating as inflation remains historically elevated. The set of policies to fix one problem would worsen the other. Note that a similar divergence occurred prior to the Global Financial Crisis.

Business Activity Decelerating (RED LINE) While
Inflation Remains Historically Elevated (WHITE LINE)

Agnico Eagle Kirkland Lake Merger
Fred Hickey:
  “While there’s no doubt some Kirkland Lake investors will be disappointed there was no buyer paying a large premium, this “merger of equals” between it and Agnico Eagle does create a powerhouse senior gold miner and will make it a “must own” stock among investors in the sector.”

Real Estate
Rob Hager:
  US: Owners’ equity in real estate (see chart below).

US Owners’ Real Estate Equity (RED LINE)
Home Mortgages As % Of Owner Occupied Real Estate (BLUE LINE)

Household Debt Payments
Isabelnet:  The ratio of US household debt payments to disposable income is at all-time lows (see chart below).

US Household Debt Payments vs Disposable Income
At All-Time Lows

Dow Jones
So far, the sun shines on the US stock market. But historically, market exuberance does not end well (see chart below).

Dow Jones Exuberance: This Will Not End Well

Debt Ceiling
Holger Zschaepitz:
  US Treasury Sec Yellen says Treasury to run out of cash around Oct. 18 if debt limit isn’t raised.

US Treasury Will Run Out Of Cash Oct. 18
If Debt Limit Not Raised

***ALSO JUST RELEASED: Gold’s Low And A Look At What’s Going Parabolic CLICK HERE
***ALSO JUST RELEASED: Michael Oliver – Key Levels To Watch For Major Gold & Silver Upside Breakouts CLICK HERE.

***To listen to Stephen Leeb discuss what to expect next in the gold and silver markets as well as a global game-changer CLICK HERE OR ON THE IMAGE BELOW.

***To listen to this timely audio interview about what is going to have a huge impact on the gold and silver markets going forward CLICK HERE OR ON THE IMAGE BELOW.

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