These charts will blow you away! Real estate, inflation, food prices, commodities, shipping and more!
Forget The Pullback In Gold
August 25 (King World News) – Kevin Smith: I am in awe of the weekly gold chart right now. Check out the long reversal candle from two weeks ago after the COMEX smackdown and shakeout. Marked a double bottom with March/April lows. Should be just a hop, skip, and a jump to get back above 2,000/oz. from here.
Despite Shakeout, Gold A Hop, Skip, And A Jump
To Get Back Above $2,000
Otavio Costa: Still in the early innings. The precious metals M&A cycle hasn’t even started yet. Miners have become true free-cash-flow machines at these metal prices. My 2 cents: It’s a matter of time until major producers begin to look for high-quality exploration companies.
Merger & Acquisition Cycle For Miners To Takeoff!
With surface samples as high as a staggering 300,000
grams of silver, this company is looking to make
one of the largest silver discoveries in history!
CLICK HERE OR IMAGE BELOW TO FIND OUT MORE.
Peter Boockvar: New home sales in July totaled 708k, just above the estimate of 697k and June was revised up by 25k to 701k.
Home Sales Way Below 2005-2006 Bubble High
For perspective though, new home sales have averaged 802k this year but we know limited supply, challenges with construction and skyrocketing costs both for builders and the eventual buyers have combined to moderate sales over the past 3 months relative to the beginning of the year.
With respect to supply, maybe it is catching up as months’ supply has risen for the 4th straight month to 6.2, about where the longer term average is. Prices though continue to explode higher, by 18.4% y/o/y.
Home Prices Soar 18.4% Year-Over-Year!
We know we now have the influence of private equity and investors who are buying these new homes for the sole purpose of renting them out.
Bottom line, the demand for new homes is there, especially for those priced below $300k but that demand has slowed in response to higher prices (40 yr low in those saying it’s a good time to buy a home according to the UoM consumer confidence survey) and it is now really hard to find a new home priced below $300k. 1st time buyers in particular have the choice of either stretching their monthly budget or are renting instead…
Billionaire Eric Sprott bought a 20% stake in a mining company
to find out which one click here or on the image below
Another Day, Another Record
The Richmond manufacturing index for August declined to 9 from 27 and that was well below the forecast of 24. New orders, backlogs, capacity utilization, local business conditions, capital spending and employment all fell m/o/m. Wages though continued higher and now is at the highest level on record dating back to 1997. Inventories remained negative but less so.
Wages Highest On Record Dating Back To 1997!
Vendor lead times fell 2 pts but remains very high. Prices paid were little changed, a touch off record highs while prices received jumped another 2.25 pts to a fresh record high and is literally going off the charts.
MORE TRANSITORY INFLATION
Prices Received Literally Going Off The Charts!
Six month expectations moderated as well for most categories but continued to rise for wages, prices paid and those received. Bottom line, stagflation.
More Inflation Stats
Overseas Shipping Companies Booming!
As for some other inflation stats, the Baltic Dry Index Monday closed at the highest level since 2010.
Baltic Dry Index Highest Since 2010!
Commodity Bull Market Just Getting Started
It’s up 34% just over the past month. I’ve said before, after a 10 yr bear market in pricing and the subsequent dearth of new builds, this pricing power is not just a blip. For all the talk of the end of the commodity bull market, the CRB raw industrials index closed yesterday off just 1.3% from a 10 yr high.
CRB Raw Industrials Index 1.3% Off 10 Year High
Food Price Inflation Continues
The CRB food index is 2% off its 10 yr high.
CRB Food Index 2% Off 10 Year High
On the container side, positively the closed container terminal in Ningbo, China is allowing ships again.
Another Troubling Indicator
By the way, further evidence of QE overload, we saw a record high usage Monday of the Fed’s reverse repo facility, $1.14 Trillion.
Record High $1.14 Trillion Fed’s Reverse Repo Facility
***ALSO JUST RELEASED: Look At Who Just Said Gold Is Going To Be The New Global Currency CLICK HERE.
***ALSO JUST RELEASED: BUCKLE UP: The Ultimate Bailout Will Usher In A Historic Bull Market Era For Gold CLICK HERE.
***To listen to legend Rob Arnott discuss what he is doing with his own money right now and what he thinks is next for major markets, inflation and much more CLICK HERE OR ON THE IMAGE BELOW.
***To listen to to Alasdair Macleod discuss what the bullion banks are up to in the gold and silver markets and what to expect next CLICK HERE OR ON THE IMAGE BELOW.
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