Industry News
Week In Review
11/17/23
11/4/23
10/26/23
10/19/23
10/12/23
Most economic news last week was inline with expectations, but an exceptionally strong jobs report will keep pressure on the FED to consider another rate hike either this month or in November. A good portion of the “new” jobs in the report could be attributed to seasonal hiring in the retail sector, and the number of public sector jobs also showed a significant increase. Wages are going up, but are not keeping pace with inflation.
In the FOREX markets the uncertainty in U.S. Congress is at least partially responsible for the dollar losing value to the Pound and Euro, although the Yen was unable to gain any traction and is still trading at multi-month lows against the dollar at 149:1.
Metals in General had dropped to the lowest levels in several months until rebounding beginning Monday after Hamas launched a massive attack on Israel. Hostilities are ongoing and it’s uncertain at this point if the situation can be contained without spreading into a much broader conflict involving Syria, Iran and/or Hezbollah operating out of Lebanon.
Oil prices spiked on the initial news of the attacks but have settled some today while silver and gold remain on an upward trend due to the chaos in the middle east, and fresh dollar weakness in the FOREX markets.
In our opinion Silver is still undervalued both in relation to current Gold prices and overall given the current uncertain state of global affairs.
This week we are running a special on Random Year Silver Kangaroos $2.95 over spot. Any Quantity. Shop Now!
Have a great week!
10/04/23
Most economic news from last week was inline with expectations with no major surprises. The few items that missed to the downside were within the expected range with the exception of a large drop in pending home sales as increasing interest rates continue to squeeze real estate. There is a level of enhanced trepidation in the commerial real estate market as office vacancies remain stubbornly high at least partly as a result of greater acceptance of hybrid work schedules among corporate executives. The strong dollar continues to be a drag on commodity prices. The dollar has gained about 3-4% against the Euro and the Pound over the last few weeks and is trading near a one year high against the yen at 149 Yen to the Dollar.
This week we are featuring a special on United States Silver Eagles at $3.95 over spot, BACK DATES only, any quantity, dates our choice. These are all fresh original Uncirculated coins. Special runs through 10-10-2023. Limited to stock on hand.
Have a great week!!
9/27/23
As expected, the FED held interest rates steady last month. This was at least partially due to the FED meeting happening just a few days after the announcement of CPI and PPI numbers. The October meeting should be more interesting if inflation numbers come in hotter than expected, and could lead to another 25 basis point increase in interest rates. In the consumer credit markets we are seeing a spike in rejected new credit card applications. With consumer debt again at record levels, credit card issuers are more reluctant to give potential borrowers the benefit of the doubt when they make their decisions about issuing new cards. Lack of new credit availability coupled with the return of student loan payments, many families are going to be tightening their belts and limiting the amount of non essential purchases in the coming months. We expect a slower than “normal” holiday shopping season due to higher prices and lack of buying power due to constrained credit markets.
In spite of these headwinds the dollar remains strong. Stocks and metals have been trending down over the last few weeks while bond interest rates increased, making bonds more attractive. While we do not buy into the notions of some “analysts” that gold will hit $5,000 and silver over $100 in the near term we are firm in our belief that gold and silver still function as the best hedge against inflation and store of value available to the average citizen. At some point continued overspending in D.C. is going to create an untenable situation moving forward and the dollar is going to see significant deterioration in desirability since it seems clear that our leaders are not taking fiscal responsibility seriously on either side of the aisle.
This week we are featuring a special on United States Silver Eagles at $3.95 over spot, BACK DATES only, any quantity, dates our choice. These are all fresh original Uncirculated coins. Special runs through 10-03-2023. Limited to stock on hand.
Have a great week!!
9/20/23
The biggest news of the week was that the UAW and the “Big Three” failed to reach any kind of agreement and the UAW has called a strike. While the automakers made enhanced offers on pay and benefits the UAW is not budging in its demands of a return to a full pension program, shorter work week, and a 40% pay increase, among other things. For investors the most troubling aspect would be a return to the traditional pension plan from the past. Many analysts have concluded that the debt burden of the pension plan was a major contributing factor to the bankruptcies of GM and Chrysler and near bankruptcy of Ford during the 07-08 economic collapse.
PPI and CPI numbers both came in hot which means that inflation isn’t going away any time soon. Oil prices continue to rise putting further pressure on the economy. Consumer spending rose less than the rate of inflation which, ultimately, is a contraction in spending. The FED is unlikely to raise interest rates this month but be prepared for another rate increase in October if the inflation rate comes in higher than expected for September.
The National Debt topped $33 trillion over the weekend. The Government’s refusal to put away the credit card is also contributing to inflation, and this continued spending is undermining the Federal Reserve’s efforts to bring inflation under control, and diminishing the desirability of the dollar as a stable asset. We’re not seeing this play out just yet as, in spite of our lack of fiscal responsibility, the dollar is still better than anything else.
The Silver to Gold Ratio stood at nearly 83.5 to 1 this morning. Silver is cheap relative to gold and is still less than half of the all-time high it set in 2011.
Take control over your financial future and insulate yourself from inflationary Government policy. Add some silver to your portfolio today.
9/13/23
Metals were lower last week largely as a result of U.S. Dollar strength relative to other major currencies. Economic uncertainty in China and the Eurozone has led to a flight to the dollar as our economy remains fragile, yet resilient in the face of inflation, increased interest rates and a tightening labor market. Later this week CPI and PPI numbers will be released giving us a better indication of what path the Federal Reserve is likely to take regarding interest rates. Credit card debt and credit card delinquencies are both in record territory as people continue to get squeezed by inflation. Saudi Arabia extended its 1 million barrel per day production cut through the end of the year. Oil prices have risen around 15% since mid august and will continue to add inflationary pressures to the global economy. The UAW continues to negotiate with major U.S. Auto makers regarding a new contract. Though the sides remain far apart it is increasingly likely that a deal will be reached before the strike deadline. A strike would have much broader impacts across the economy than just the temporary loss of 146,000 direct jobs.
The White House continues to try to put a rosy spin on economic numbers that show a troublesome trend to the negative. No amount of wishing it away will change the underlying reality that a deeper dive into the numbers shows that our economy is not doing well, we’re just in better shape than most of our global partners. As defaults inevitably increase in the consumer and commercial debt arenas look for additional pressure on the banking system and further consolidation in the banking industry as some smaller banks face a liquidity crisis.
Gold and Silver are traditional hedges against inflation and have been “money” for 6,000 years. That won’t be changing anytime soon. Adding metal to your portfolio provides some certainty and safety in our increasingly uncertain economic times. Each day leads us another day closer to the inevitable crisis that will come with unsustainable levels of debt that exist in every facet of our society. Ask yourself, “Are you prepared?”
9/13/23
Metals were lower last week largely as a result of U.S. Dollar strength relative to other major currencies. Economic uncertainty in China and the Eurozone has led to a flight to the dollar as our economy remains fragile, yet resilient in the face of inflation, increased interest rates and a tightening labor market. Later this week CPI and PPI numbers will be released giving us a better indication of what path the Federal Reserve is likely to take regarding interest rates. Credit card debt and credit card delinquencies are both in record territory as people continue to get squeezed by inflation. Saudi Arabia extended its 1 million barrel per day production cut through the end of the year. Oil prices have risen around 15% since mid august and will continue to add inflationary pressures to the global economy. The UAW continues to negotiate with major U.S. Auto makers regarding a new contract. Though the sides remain far apart it is increasingly likely that a deal will be reached before the strike deadline. A strike would have much broader impacts across the economy than just the temporary loss of 146,000 direct jobs.
The White House continues to try to put a rosy spin on economic numbers that show a troublesome trend to the negative. No amount of wishing it away will change the underlying reality that a deeper dive into the numbers shows that our economy is not doing well, we’re just in better shape than most of our global partners. As defaults inevitably increase in the consumer and commercial debt arenas look for additional pressure on the banking system and further consolidation in the banking industry as some smaller banks face a liquidity crisis.
Gold and Silver are traditional hedges against inflation and have been “money” for 6,000 years. That won’t be changing anytime soon. Adding metal to your portfolio provides some certainty and safety in our increasingly uncertain economic times. Each day leads us another day closer to the inevitable crisis that will come with unsustainable levels of debt that exist in every facet of our society. Ask yourself, “Are you prepared?”
