The US Treasury Market Smells a Rat

The yield spread collapses to lowest since 2007.
Prices of US Treasury securities fell across the spectrum on Monday, and yields rose. From the two-year yield on down, yields set new nine-year highs.
This sell-off – and the accompanying surge in yields – has occurred for months without downdraft in stocks and without a slowdown in economic growth. It’s a dreamy scenario where the Fed’s tightening has no negative impact on the economy. But the Treasury market at the longer end smells a rat.
Not for this year. But for later.
On top of it there comes a big bout of Fed uncertainty. Janet Yellen, who will be replaced next year by Jerome Powell as Fed Chair, announced today that she would also vacate her slot as governor on the Federal Reserve Board – a job she could have hung on to until 2024 – thereby making room for a fifth Trump appointee to the powerful Board of Governors. In early October Trump nominated and the Senate approved Randal Quarles as a member of the Board. Leaves four slots to fill on the Board of seven members. And no one knows what the Fed will look like next year.

This post was published at Wolf Street by Wolf Richter ‘ Nov 20, 2017.


Stocks and Precious Metals Charts – What’s Cooking, Doc? – Lawyers, Guns, and Money

This will be a holiday shortened week in the US markets for the national holiday of Thanksgiving on November 23.
Trading will be light this week, especially after noon tomorrow. Plenty of room for the usual trading hijinks and shenanigans.
Gold and silver were smacked down this morning in light trade, the dollar rallied, and the VIX dropped.
In days gone by they used to expect a ‘Thanksgiving rally’ in stocks. We may or may not see that again, although in this thin trade I would not be going short the market in anticipation of anything, except perhaps into the close on Wednesday or into the early close on Friday at 1 PM. Or perhaps not at all.
I am having some fun this week with the ‘InstantPot’ which I purchased a little while ago. It is a versatile cooker, but I primarily use it as a pressure cooker, at which it is far superior to the old stove-top types with the wobbling metal weight.
On today’s menu was a simple split pea soup, with some very nice hamhocks I had purchased on my trip to the Amish market last week, mixed in with a large onion, celery, and some carrots, with a little seasoning and herbs.

This post was published at Jesses Crossroads Cafe on 20 NOVEMBER 2017.


NOV 20/ANOTHER RAID ON GOLD AND SILVER AS PROMISED/MASSIVE AMOUNTS OF GOLD EFP’S ISSUES WHICH MEANS STHAT THERE IS NO GOLD TO BE DELIVERED UPON AT THE GOLD COMEX AND FOR THAT MATTER A HUGE AMOUNT…

GOLD: $1276.90 DOWN $19.70
Silver: $16.93 DOWN 45 cents
Closing access prices:
Gold $1276.90
silver: $16.93
SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
SHANGHAI FIRST GOLD FIX: $1296.26 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: $1291.40
PREMIUM FIRST FIX: $4.86
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
SECOND SHANGHAI GOLD FIX: $1294.99
NY GOLD PRICE AT THE EXACT SAME TIME: $1290.90
Premium of Shanghai 2nd fix/NY:$4.39
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
LONDON FIRST GOLD FIX: 5:30 am est $1292.35
NY PRICING AT THE EXACT SAME TIME: $1291.50
LONDON SECOND GOLD FIX 10 AM: $1286.20
NY PRICING AT THE EXACT SAME TIME. 1286.30
For comex gold:
NOVEMBER/
NUMBER OF NOTICES FILED TODAY FOR NOVEMBER CONTRACT: 1 NOTICE(S) FOR 100 OZ.
TOTAL NOTICES SO FAR: 1052 FOR 105,200 OZ (3.372TONNES)
For silver:
NOVEMBER3 NOTICE(S) FILED TODAY FOR 15,000 OZ/
Total number of notices filed so far this month: 884 for 4,420,000 oz
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Bitcoin: BID $8100 OFFER /$8125 up $412.00 (MORNING)
BITCOIN : BID $8222 OFFER: $8247 // up $534 (CLOSING)

This post was published at Harvey Organ Blog on November 20, 2017.


‘The Currency Of The Apocalypse’? Doomsday Preppers Flock To Bitcoin As It Surges Past $8000

Once upon a time preppers would hoard gold and silver in anticipation of the meltdown of society, but now Bitcoin is becoming the alternative currency of choice for many in the prepping community. On Monday, Bitcoin hit an all-time record high as it surged past $8,200, and it has now gone up nearly 50 percent in just the last eight days. As I have admitted previously, one of my great regrets is not investing in Bitcoin when it first started, because we have never seen a meteoric rise quite like this. Bitcoin hit the $5,000 mark for the very first time just over a month ago, it is up more than 700 percent so far this year, and it is up almost 40,000 percent over the past five years. At this point Bitcoin has a market cap of over 130 billion dollars, and many believe that this is just the beginning.
At one time many preppers were quite skeptical of cryptocurrencies such as Bitcoin, but now that is starting to change in a major way. The following comes from a Bloomberg article entitled ‘These Doomsday Preppers Are Starting to Switch From Gold to Bitcoin’…
‘Not too long ago, people in the prepper community were actively warning against crypto, and now they’re all investing in it,’ said Tom Martin, a truck driver from Washington who runs a social-media website for people interested in learning skills to survive disaster. ‘As long as the grid stays up, people will keep using bitcoin.’
In addition to gold, silver and stocks, Martin invests in bitcoin and peers litecoin and steem because they’re easier to travel with, harder to steal and offer better protection in the event of the kind of societal breakdown that would unfold if a fiat currency like the dollar collapsed.

This post was published at The Economic Collapse Blog on November 20th, 2017.


Geopolitical Risk: The New Normal

Over the last year, we’ve talked a lot about geopolitical risk. Could turmoil around the world now be the new normal?
Some analysts think so.
The focus has primarily been on tensions between the US and North Korea in recent months. But there have been plenty of other risk factors popping up around the world, including ongoing uncertainty about Brexit, the secession movement in Catalonia, continued fighting in the Middle East, terror attacks, tensions between the US and Russia, various elections, a coup in Zimbabwe, and more. On top of that, outside of the US, a lot of people think Americans should be looking at the geopolitical risks right here at home due to political divisions and uncertainty in Washington D. C.
Historically, geopolitical turmoil is good for the yellow metal. Investors buy gold as a hedge to protect themselves against such risk. But safe-haven buying tends to ebb and flow with the tides of uncertainty. Events spur panic for a period of time and then things return to normal. But some analysts now believe geopolitical uncertainty may be the new normal.

This post was published at Schiffgold on NOVEMBER 20, 2017.



SWOT Analysis: Gold Bounced Back After Attempts to Knock Down Price

Strengths
The best performing precious metal for the week was silver, up 2.53 percent. It has lagged behind the other precious metals this year and speculators have raised their net long position this week. Gold bounced back positively after several attempts to knock down the price. Last Friday, over 4 million ounces of gold changed hands within minutes. Then, this past Tuesday, more than 2 million ounces changed hands, spurring a price drop. Bullish investors responded two hours later with a surge in buying to help boost prices. Lawrie Williams writes that the attempt to lower gold prices mentioned above reflects positively for those who consider gold to still be in a bull market. Ray Dalio of Bridgewater went on a gold-buying spree to increase his holdings by 575 percent and enter the gold ETF space. Perhaps buyers following Dalio’s lead are using these sell-offs to pick their entry spots. Weaknesses
The worst performing precious metal for the week was palladium, up just 0.05 percent for the week. ‘Palladium prices could plunge 90 percent by 2040 as cars become electric,’ reported ABN Amro. According to Reuters India, gold prices flipped to discount as wedding demand for the yellow metal were lower than expected. Additionally, the Federal funds futures show a possible rate increase in December at 92 percent.

This post was published at GoldSeek on 20 November 2017.


Off-Topic Sunday: Bio-Weapons And Super Robots

For some people, obsessing about The Coming Financial Crisis might actually therapeutic because it’s both understandable and easily survivable (just buy gold and silver!). So time spent researching the subject on Zero Hedge or pricing Silver Eagles online could actually be a useful distraction from the other, potentially much scarier stuff that’s going on out there.
Last week, for instance, Wired Magazine noted two developments that until, well, last week, were safely in the realm of science fiction. First, there’s a new gene manipulation technology that can apparently insert a time bomb into entire species – including us:
This gene-editing tech might be too dangerous to unleash
TO GET TO work in the morning, Omar Akbari has to pass through a minimum of six sealed doors, including an air-locked vestibule. The UC Riverside entomologist studies the world’s deadliest creature: the Aedes aegypti mosquito, whose bite transmits diseases that kill millions each year. But that’s not the reason for all the extra security. Akbari isn’t just studying mosquitoes – he’s re-engineering them with self-destruct switches. And that’s not something you want accidentally escaping into the world.
The technology Akbari is designing is something called a gene drive. Think of it as a way to supercharge evolution, forcing a genetic modification to spread through an entire population in just a few generations. Scientists see it as a powerful tool that could finally vanquish diseases like malaria, dengue, and Zika. But US defense agencies see something else: a national security issue.

This post was published at DollarCollapse on NOVEMBER 19, 2017.


Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape

Sound money advocates who love the concept of cryptocurrencies but don’t want to abandon precious metals have been trying to clarify their thoughts of late. Risk Hedge just helped, with a comprehensive statement of the pro-gold position. The following is an excerpt. Read the full article here.
All the Reasons Cryptocurrencies Will Never Replace Gold as Your Financial Hedge Despite what the crypto-evangelists will tell you, digital tokens will never and can never replace gold as your financial hedge. Here are six reasons why.
#1: Cryptocurrencies Are More Similar to a Fiat Money System Than You Think.
The definition of ‘fiat money’ is a currency that is legal tender but not backed by a physical commodity.
It’s clear that cryptocurrencies partially fit the definition of fiat money. They may not be legal tender yet, but they’re also not backed by any sort of physical commodity. And while total supply is artificially constrained, that constraint is just… well, artificial.

This post was published at DollarCollapse on NOVEMBER 19, 2017.


Money and Markets Infographic Shows Silver Most Undervalued Asset

Money and Markets Infographic Shows Silver Most Undervalued Asset
– Silver remains severely under owned and under valued asset
– Entire silver market worth tiny $100 billion shown in one tiny square
– ‘All of the World’s Money and Markets in One Visualization’
– Must see ‘Money and Markets’ infographic shows relative size of key markets: silver bullion, gold bullion, cryptocurrencies/ bitcoin, largest companies, 50 richest people, Fed balance sheet, currency, stocks, property, cash, debt & derivatives
– Small allocation by investors and world’s richest will see silver surge like bitcoin
***
by Visual Capitalist
Millions, billions, and trillions…
When we talk about the giant size of Apple, the fortune of Warren Buffett, or the massive amount of global debt accumulated – all of these things sound large, but they are actually extremely different in magnitude.
That’s why visualizing things spatially can give us a better perspective on money and markets.

This post was published at Gold Core on November 20, 2017.