Look at what is fueling the rally as the gold and silver markets remain on a tear.
KWN will be interviewing legend Pierre Lassonde this week. Until then…
Gold & Silver Bull Markets
July 22 (King World News) – Peter Boockvar: The rally in gold and silver, which I remain bullish on (particularly the latter), continues to be helped by the fall in real rates…
GOLD BULL CATALYST: US 10-Year Real Rates
Plunge To Record Negative Yield Territory!
(Click On Any KWN Chart To Enlarge It)
US Dollar Troubles
…and the drop in the US dollar. The euro heavy dollar index is a stone’s throw from the weakest level since September 2018 (see below).
ANOTHER GOLD CATALYST: US dollar Index
Tumbles To Lowest Level Since 2018!
I continue to believe that inflation is coming, likely showing up in earnest in 2021.
The Rally In Silver
The rally in silver by the way is in itself inflationary as about half of the demand for it is as a raw material in a variety of industrial uses, particularly now on the renewable energy side including EV batteries…
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In the meantime, the 10 yr Treasury yield continues to flat line. The Fed thought they were helping ‘market functioning’ by implementing massive QE along with talk about YCC but instead they’ve killed the market, just as the ECB and BoJ did to their bond markets. What’s price discovery anymore? What clear signal is the corporate bond market telling us anymore when everyone thinks the Fed has placed a floor under pricing? There is none. Maybe Judy Shelton will inject some free market thinking back into that institution because free market it is no longer.
I hope I’m wrong about inflation because those that will directly suffer will be those who can least afford it, especially in the current tough economic environment we’re in. Also, if the dollar continues to weaken, that would further reduce the purchasing power of the American consumer, the dominant force in the US economy and will be itself inflationary as well.
Silver Price Spikes Near $23 In Trading On Japan’s TOCOM!
***Just Released: Short Squeeze In Silver Continues As Price Spikes Near $23 In Trading On Japan’s TOCOM! CLICK HERE.
***To listen to Dr. Stephen Leeb discuss the gold and silver markets finally breaking the chains of manipulation and surging toward the coming mania as well as why the Chinese will be propelling prices higher click here or on the image below.
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