The big news for the metals and mining share markets is that Tesla may start buying physical gold and silver after $1.5 billion Bitcoin purchase. This would be a huge boost for the industry and bring a whole new set of buyers from all over the world if Tesla takes the plunge.

February 9 (King World News) – Peter Boockvar:  So with now Tesla taking the Bitcoin plunge, if more companies follow it and MicroStrategy we will be creating a closer connection between Bitcoin and the stock market. Not that we should because with the case of Tesla, its $1.5b position in Bitcoin is a tiny fraction of its $828b market cap but at least from a perception standpoint it could be the case. With MicroStrategy, it is now essentially a bitcoin stock as its core fundamental business is now a sideshow. See the chart.

Tesla May Start Buying Physical Gold & Silver
One wonders if there is a shift by some corporate treasurers (because many definitely won’t) to hold something other than dollars whether it results in some self introspection on the part of the Federal Reserve as to why this is taking place. Why don’t they want to hold dollars? Why are they willing to risk corporate cash in an asset that is only 13 years and not the paper our own government issues. Because they don’t believe in its use as a store of value? Tesla did say they could also buy gold and silver…

This company just made a gold acquisition that is worth 7-8 times what they paid for it and is now set up for monster upside in 2021! To learn more click here or on the image below.

The NFIB small business optimism index fell again to 95 from 95.9 and that is the weakest since May when it printed 94.4.

Plans To Hire was unchanged but at the lowest since June. Capital spending was also unchanged but at the lowest since May. There was further weakness in those that Expect a Better Economy and Higher Sales and no change in those that said it’s a Good Time to Expand. There was no change in inventory plans at the lowest since May. The Compensation components both rose m/o/m after the prior months drop while there was a 1 pt rise in job openings. Those expecting Higher Selling Prices rose 1 pt after declining by 2 pts last month off the highest level since May 2018.

As for the earnings outlook, it deteriorated for a 3rd month to a 5 month low. 

The NFIB said “The Covid-19 pandemic continues to dictate how small businesses operate and owners are worried about future business conditions and sales.” It’s easy for the rest of us to say, ‘all is good, the vaccine is here’ but it is these small businesses that have to deal with the difficult here and now before reaping the benefits of the vaccine which won’t be realized for many months to come.

Lunar New Year
Ahead of the Lunar New Year, there was a sharp rise in financing extended in China in January as is seasonally typical. It came in at 5.17 Trillion, above the estimate of 4.6 Trillion with 3.58 Trillion of that being bank loans. There was a sharp increase in loans to non financial companies and households. The contrast to this lending jump was a smaller than expected increase in M2 money supply of 9.4% vs 10.1% in December and vs the estimate of up 10% as the PBOC has tried to reign in credit growth, acknowledging the desire not to overheat, particularly in their financial markets according to PBOC officials. We’ve also seen a string of corporate bankruptcies which I view as a good thing as it cleanses the decks of troubled companies rather than feeling the need to bail out. The data came out after the Chinese stock market close but the yuan is higher along with most currencies vs the dollar today. 

This Is The Problem
Bloomberg news has a story that the Bank of Japan “is reluctant to scrap its targets for stock fund purchases at its policy review next month as it could give the impression it is dialing back its stimulus, according to the people familiar with the matter.” This is the problem, central banks once they go down another path of easing, they find it impossible to get out without threatening to pop the bubbles that their buying creates. 

To this, the US Barclays corporate high yield index is now yielding less than 4% at 3.96% (yield to worst). There is still yield for junk but no longer high.

Also released! No Physical Silver In London, Mining Stocks Set To Skyrocket, And Look At What The Public Is Doing CLICK HERE TO READ.

Also released! Gold & Silver Surging As Long Term Unemployment Hits Staggering 39.5%, But Here Are The Key Levels To Watch CLICK HERE TO READ.

Also released! Swiss Firm Issues Major Warning About QE-To-Infinity, Gold, Silver And The Great Reset CLICK HERE TO READ.

To listen to Gerald Celente discuss why gold and silver will surge strongly and what surprises to expect in 2021 CLICK HERE OR ON THE IMAGE BELOW.

KWN has now released an audio interview with Alasdair Macleod discussing the shortages in the London metals market and you can listen by CLICKING HERE OR ON THE IMAGE BELOW.

Also released! Celente – Silver Will Surge Past $50 And Hit All-Time Highs CLICK HERE TO READ.

Also released! Here Is Where The Gold & Silver Markets Stand After A Wild Trading Week CLICK HERE TO READ.

Also released! ALERT: More Reports Of Silver Shortages In London CLICK HERE TO READ.

Also released! Bubble Alert, Plus An Update On The Gold Market CLICK HERE TO READ.

Also released! This Is How We Will Know Gold Has Bottomed CLICK HERE TO READ.

Also released! Gold Plunges $50 But Greyerz Says There Are Major Shortages In The LBMA And Futures Markets CLICK HERE TO READ.

Also released! Truly Mind-Boggling Chart, Sprott Says They Have 100+ Million Ounces Of Physical Silver, Plus Unleashing Reserves CLICK HERE TO READ.

Also released! Sprott Asset Management: Silver Headed To $35, Above That Expect Price Spikes To $47-$119 CLICK HERE TO READ.

Also released! JP Morgan And Silver, The Great Rotation Into Gold & Silver, And Look At These Remarkable Charts CLICK HERE TO READ.

Also released! After Today’s Pullback It Is Important To Look At The Big Picture For Gold & Silver CLICK HERE TO READ.

Also released! WHAT TIMING: Curiously JP Morgan Downgrades Silver Stocks, But This Is Even More Stunning CLICK HERE TO READ.

Also released! Reddit WallStreetBets Group Unleashing Silver Price, But This Will Trigger Real Panic Into Gold & Silver CLICK HERE TO READ.

Also released! SILVER: WHAT A DAY! Look At Who Just Predicted We Will See $2,500-$4,000 GOLD And $57-$131 Silver CLICK HERE TO READ.

Also released! SILVER PRICE SOARING ON SQUEEZE: $50 Price Target Just Issued But Look At This Surprise CLICK HERE TO READ.

Also released! Greyerz – Macleod Is Right, There Is NO LIQUIDITY IN LONDON And Bullion Banks Are Short 100 Million Ounces Of Silver CLICK HERE TO READ.

Also released! Robinhood Silver Traders May Break The Comex And Serious Hurt Bullion Banks CLICK HERE TO READ.

Also released! Central Banks Created Niagara Falls Of Printed Money And Debt, Gushing Chaotically All Over The World CLICK HERE TO READ.

Also released! NO SILVER LIQUIDITY IN LONDON: This “Could Destabilize All Gold & Silver Contracts” As Reddit Silver Short Squeeze Continues CLICK HERE TO READ.

Also released! REDDIT TRADERS TARGET SILVER: Man Who Oversees Nearly $160 Billion Says Silver May Be Poised To Skyrocket CLICK HERE TO READ.

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