The price of gold is surging $50 and silver is soaring $2. Here is a look at the key level for gold, commodity boom, plus a costly mistake for the gold bulls.
Trading Gold Can Be A Costly Mistake
August 13 (King World News) – Alasdair Macleod: “Those who regard gold as a speculative counter to be traded are bound to make costly mistakes. It is the money of last resort and those who have sold it for profit will suffer when they really need it.”
Gold Up $50
King World News note: Here is a chart showing support on gold is now the previous all-time high of $1,923 with gold currently trading up $50 at $1,965:
Gold’s Support Is Now $1,920 (Previous All-Time High)
Commodity Boom?
Liz Ann Sonders, Chief Investment Strategist at Charles Schwab: Bonds continue to dominate in terms of flows (on cumulative basis) into ETFs, but notably this year, commodities have seen sharp increase in interest (see below).
Big Money Flowing Into Commodities
Fed’s Pravda
Albert Edwards, Former Global Strategist at Société Générale: “The Fed is doing a good impersonation of Pravda. Let me paraphrase…’none of this mess is our fault’. It reminds me of the self-serving crap they published claiming that the 2008 crisis was nothing to do with them but was adue to Chinese excess saving!”
Fear & Greed
Peter Boockvar: Well, it took an all time high in the stock market for the individual investor to finally get more interested but they are still more bearish than bullish. AAII said Bulls jumped 6.8 pts to 30, just below the highest since mid June. Bears fell 5.5 pts to 42.1, the lease since mid June. You can be sure that the higher the market goes, the more bullish these people will get. Human nature never changes as sentiment follows price. As stated yesterday, the ‘professionally’ focused II already has the Bull/Bear spread north of 40 which is considered extreme. Also yesterday the CNN Fear/Greed index is just a hair below the ‘extreme greed’ category, and you’ve seen the Citi Panic/Euphoria index which id just about off the charts euphoric. All this said, it will matter when it matters.
We hear from some more Fed members today, particularly Brainard. In what I’ve heard so far this week there has been no mention of the US dollar weakness, no mention of the record high in stocks and what that potentially means, and certainly zero talk of rising inflation expectations. What I did hear is not understanding the ‘wealth’ inequality that the Fed has created via its easy money policies that we know has helped lift asset prices. Instead they focus on ‘income’ inequality and San Francisco President Mary Daly yesterday said “Ultimately the thing I worry the most about is the pandemic is going to widen the inequalities in our society.” Some one tell her to look at the stock market please. Daly is also a fan of ‘forward guidance’ and you know how I feel about that but at least she doesn’t want to enforce it just yet. She also said the Fed is committed to achieving its 2% inflation goal. Thus, with inflation still running still below that, she feel it’s a good time to raise the cost of living further from here, in the middle of a pandemic. If successful, that will further the inequalities. We need to take conventional Fed thinking and turn it upside down.
Worrisome Bellwether Economic Report
From a macro perspective, I believe that Cisco is a bellwether with a great pulse on tech spending and global growth. Here are some things that Chuck Robbins said yesterday after reporting earnings. “We are seeing customers continue to delay their purchasing decisions in certain areas while increasing spend in others until they have greater visibility and clarity on the timing and shape of the global economic recovery.” Another important comment, “As you move down the customer stack, things just get weaker and weaker as the customers get smaller and smaller because they just don’t have the financial wherewithal. This country is still driven by small and medium sized business for hiring and everything else. I’m concerned about what happens next.”
KWN has now released this week’s audio interview!
***To listen to Gerald Celente discuss his warning of “hell on earth,” plus gold, silver, major markets, and much more click here or on the image below.
GOLD SURGES: Attempt To Paint The Gold Close Did Not Fool Anybody
***ALSO JUST RELEASED: GOLD SURGES: Attempt To Paint The Gold Close Did Not Fool Anybody, Plus This Has Never Happened Before CLICK HERE.
***To listen to the powerful audio interview where Alasdair Macleod discusses the possible collapse of the LBMA, trapped bullion bank gold shorts and much more click here or on the image below.
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