Central banks…why bother? Inflation is here and it cannot be contained. US inflation is touching a 40-year high, the UK has hit the 40-year high, and the EU’s has already hit an all-time high.

We were delighted to welcome Simon Hunt to GoldCore TV this week. David Russell interviewed the expert economist and global observer to ask him about the Russia-Ukraine war, central bank tightening, and the future of the US Dollar hegemony.

Gold is doing what it is supposed to do! 

Equity markets are tumbling, “NASDAQ 100 Rout Erases $1.5 Trillion in Market Value in 3 Days” reads one Bloomberg headline.

It has been a rough week in most markets with both equities and bonds declining sharply. Tech stocks have been pummeled with many ‘big names’ plunging more than 50% (from their 52-week high). Some of the bigger names include Zoom Video -75%, PayPal -73%, Netflix -72%, Meta Platforms (Facebook), -53%.

Gold and the US Federal Reserve have a love-hate relationship. Hate because they both enjoy it when the other one performs badly, but love it because the Fed owns over 8,000 tonnes of gold and would rather no one else had any. So it was a funny thing when a former Chair of the Federal Reserve proposed measures this week that would go a long way to boosting many aspects of the gold market, including the price of gold bullion…

Over the past couple of weeks, we reviewed the U.S. government confiscation of gold by Executive Order in 1933. (see “Gold Confiscation: Will History Repeat Itself?” and “The Facts of Gold Confiscation: The Saga Continues”).

This week on GoldCore TV, Dave Russell welcomes Tim Price of Price Value Partners. Tim sees the current inflationary pressures as simply the beginning of a bigger move that could end in a new monetary system.

Dave Russell of GoldCore TV welcomes back Gareth Soloway of InTheMoneyStocks.com where we ask if the bull market for stocks is back and if $2,500 on gold is still on the cards for 2022?

We will let you know what we are doing once we know what we are doing was the message from the Federal Reserve statement and Chair Powell’s press conference that followed.

Dave Lukas of Misfit Entrepreneur invites Stephen Flood, CEO of GoldCore, to the show. Dave and Stephen talk about what people should know before investing in gold and silver, the present state of inflation, central banking, and the monetary system.

Further, he explains why gold is still your safe-haven asset and how it provides you with personal sovereignty. They also talk about cryptocurrencies and their future.

Stephen also discusses some of the lessons he’s learned along the route to being a successful entrepreneur.

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The Truth About The National DebtWatch David M Walker Only on GoldCore TV

GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

07-03-2022 1999.25 1980.95 1520.63 1505.52

As part of the sanctions against Russia, seven Russian banks have been cut off from SWIFT.

We start by discussing what SWIFT is, and then the implications of completely cutting Russia out of SWIFT.

What is SWIFT and Why Russia is Being Excluded

SWIFT – The Society for Worldwide Interbank Financial Telecommunication is a messaging system that links more than 11,000 banks in 200 countries.

The system doesn’t move actual money between the banks but transmits messages between banks with instructions to settle transactions.

Additionally, this system is crucial to the international trade system – without it, countries wouldn’t be able to settle trade transactions between countries.

The bar charts in the graphic from the Wall Street Journal below illustrate the growth

The ‘Fed put’ – gone until there’s blood in the streets

Well, it’s happening.  Bitcoin (and other cryptocurrencies are sharply down, along with equity markets in many advanced economies.

And the Federal Reserve (the U.S. Central Bank) statement and press conference on Wednesday didn’t indicate any backing down from raising interest rates, maybe as soon as the March meeting.

The Fed’s stance pivot from ‘the economy needs additional stimulus’ to ‘it is time to start tightening policy’ came at the end of 2021 when Fed officials changed their view that 40-year high readings on consumer price inflation was due to transitory factors and will subside on its own. 

Their new stance that high inflation is permanent and is what ensures tighter policy. The Fed has already started

European Energy Crisis: 4 Reasons You MUST Know! European households are facing rising prices on many goods and services, but one particular standout is electricity and gas bills.

Gold price fell to $1,808 an ounce in the wake of the release of the minutes of the December Federal Reserve meeting, having hit an intra-day high of $1,829. Silver price fell to $22.72 an ounce from an intra-day high of $23.26.

Black Friday 2021 saw the largest stock market sell-off since 1931.

Is this the start of a bigger crash, has the trend changed or is this just a one-time blip?

We ask Gareth Soloway of InTheMoneyStocks.com what his charts are suggesting and why he is so bullish on gold

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Inflation is EverywhereWatch Kevin Muir only on GoldCore TV

GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

26-11-2021 1809.80 1800.80 1358.44 1350.78 1604.75 1594.9725-11-2021 1790.65 1788.15 1343.88 1343.44 1595.83 1594.3124-11-2021 1790.80 1782.05 1339.70 1336.00 1596.50 1590.4823-11-2021 1797.30 1789.15 1344.02 1337.93 1595.82

Do governments hate gold?  The answer: Yes — Governments hate gold because they cannot print it, and it is difficult for them to control.

Gold and silver price actions have been the opposite of dramatic for months now, they have been boring. In the last 100 days, gold has moved sideways in the US$100 range between $1725 and $1825. 

Why do Central Banks want higher inflation? The debt ceiling debate in U.S. Congress and related political nonsense brings even more to light the exponential growth in US federal government debt. US government debt has doubled in the 10 years since the last major debacle Congress created over raising the debt ceiling back 2011.

In our post on January 28, 2021 “Gold, The Tried-and-True Inflation Hedge for What’s Coming!” we outlined four reasons that we expect higher inflation over the next several years.

Last week we wrote about the gold to silver ratio. Our points were that it measures the price of one metal against the other, just as we use the dollars per ounce to measure daily metals prices, and just as we use ounces per Corvette to measure purchasing power preservation.

In our post on August 11 titled End of an ERA: The Bretton Woods System and Gold Standard Exchange, we discussed the significance of then-President Nixon’s action of closing the gold window thereby ending the Bretton Woods Monetary system.

Under the Bretton Woods monetary system, central banks could exchange their US dollar reserves for gold. This also ended the gold fixed price of US$35 per ounce.

This week we explore the two questions that concluded last week’s article: What role can gold serve in the international financial system in the future? And why do central banks continue to increase their gold reserves?

Starting with the latter question of why central banks continue to increase their gold reserves?

This is an important factor in the gold market and therefore

In our July 29 post titled How Gold Stacks Up Against Stocks, Property, Commodities and Big Macs! we showed readers charts of gold as a ratio to other assets and products. We discussed that gold competes with crypto and stocks for the investment dollars.

Central banks’ massive Quantitative Easing (QE) programs have come under scrutiny many times since the central banks fired up the printing press and began quantitative easing programs en masse after the 2008-09 Great Financial Crisis.

However, the increase in central bank assets due to quantitative easing programs during the crisis pale in comparison to the QE programs during the Covid pandemic.

As economies recovered after the Great Financial Crisis many worried that consumer price inflation would rise rapidly due to the extra liquidity in the market. A fear that never materialized as many economies stayed well below central bank inflation targets.

Quantitative Easing Leading to Financial Crisis?

The question being asked now is have these programs led to financial

Today Gareth Soloway, Chief Market Strategist of InTheMoneyStocks.com talks about his technical analysis of gold and silver as well as giving us insights in to the recent moves in Bitcoin and the stock markets.
Recent comments from the Federal Reserve Chairman Jerome Powell indicated that they may need to raise rates in 2023 (2 years away!). This is primarily due to the continued excessive money printing fueling a surge in inflation. Inflation is no longer transitory but could remain high for some time. All this should have been positive for a gold bull market, but instead, we saw a $90 correction in the gold price. Gareth talks to Dave Russell on this episode of GoldCore TV, who asks; “Is Gold Still in a Bull Market?”
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The difference between physical gold investing and ETF investing was stark in the first quarter 2021 according to the World Gold Council’s Gold Demand Trends data released last week. Before focusing in on investment demand below a few notes on overall gold demand in the first quarter.

The debate between relatively new digital cryptocurrencies versus ‘tried and true’ gold has dominated most precious metals related websites. But what if gold and cryptocurrencies were combined? According to a Bloomberg article a NYC Real Estate Mogul, after learning about cryptocurrencies from his son, is putting this concept to work by securing a minimum of $6 billion in gold reserves to back his new cryptocurrency.

‘ESG’ is a great buzzword in investing right now. For years the momentum has been building for the idea that retirement savings should do more than keep you secure, it also should help the planet. Obviously, no one wants to hurt the planet since its our only home. ESG Investment is shorthand for Environmental, Social and Governance, which are the three lenses through which investments are to be ranked.

Gold has not made new highs in many months. Gold peaked last year at US$2067 on August 6. The 7 month down leg of more than 18% as been deep enough and long enough that some commentators are now saying that the bull market has now turned to a bear market for gold.  Losing faith is understandable because falling prices feel bad. But this week we want to show that current prices may not reflect reality.

ETF gold demand from investors has soared over the past year. The unprecedented fiscal and monetary stimulus were rolled out to tackle the effects of Covid -19. However, consumer demand, particularly but not surprisingly, jewellery demand slumped.

Governments are taking a page out of the play book that monetary policy began a decade ago – which will lead to even higher debt levels.

The two day rise in the gold price of more than US$50 fizzled out on Tuesday. The gold price is down about 7% (in US dollar terms) since its year-to-date high set on January 6. It is also down 13% from its all-time high set in August 2020. The silver price, boosted by social media attention, did not set its year-to-date high until February 1.

The LBMA (London Bullion Market Association) annual forecast survey published last week shows that forecasters expect the average gold price to rise 11.5% in 2021 to US$1973.8 (forecasters’ average) from the actual average gold price in 2020 of US$1769.6, and for the silver price to rise 38.7% in 2021 to US$28.50 from the actual annual average of US$20.55 in 2020. These expected averages show silver might gain three times more percentage than that of gold in 2021.  

There was, of course, a wide range of views among forecasters with a US$650 price difference between the highest forecast for the average price of gold for 2021 at US$2300 and the lowest at US$1650. And for silver the range was US$28 with the highest annual average forecast at US$47 and the lowest at US$19.00.

The

Global confirmed coronavirus cases surpassed 100 million this week. There is no denying that the coronavirus pandemic has caused tremendous hardship and loss. To mitigate new cases climbing further, stricter lockdown and travel restrictions are being announced and implemented, with the curfew in the Netherlands as an example. Lock-down fatigue, as evidenced by the riots against this implemented curfew, is growing. Through it all, hope is on the horizon as vaccine roll-out plans are being implemented. Many governments continue to aim for herd immunity by autumn of this year.

Massive fiscal and monetary stimulus has been pumped into economies around the world to help ease the economic devastation for both individuals and businesses. Building on hope for herd immunity being reached

The Massive $1.9 Trillion American Rescue Plan is Just the Start. Massive $1.9 Tr. American rescue plan to affect markets Yellen takes over at US Treasury, what to expectMore spending initiatives to comeHow all this is positive for gold and silver prices. The Biden Administration’s policies are positive for gold and silver prices.

Chris Vermeulen of TheTechnicalTraders.com joins Dave Russell of GoldCore TV.

The US dollar set for further dramatic declines?Negative interest rate policy spreadingIncreased global liquidity in attempt to ignite a recoveryDemocrats’ win paves way for massive stimulus packagesGold and silver set to rally strongly in a perfect storm.

Governments are likely to continue printing money to pay their debts with devalued money. That’s the easiest and least controversial way to reduce the debt burdens and without raising taxes.

Today we are taking our monthly look at the charts for gold and silver. We have now received news of 3 Covid19 vaccines that are seeking approval following successful trials and markets have sat up and listened.

“The Great Reset” is a term that we are hearing more frequently in the financial news today, but what exactly is “The Great Reset”?

In Episode 16 of The Goldnomics Podcast, Stephen Flood, Mark O’Byrne and Dave Russell discuss “The Great Reset” and how it could impact investors, what they can do now to prepare themselves and their finances and the role that gold plays in protecting your wealth.

Listen or watch the podcast here

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NEWS and COMMENTARY

Gold range-bound, caught between vaccine hopes and rising virus cases Wall Street edges higher on vaccine bets World shares slip as U.S. retail sales dampen vaccine euphoria

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Today we are taking our weekly look at the charts for gold and silver. After what has been the most unusual campaign season for both candidates, election day has finally arrived. Regardless of your political persuasions, both gold and silver look to be setting up for an explosive move higher.

As we continue to await the official result of the US Election, in the short-term financial markets remain volatile.