Global Synchronized Depression: Buy Gold And Silver Not Copper

It’s not “different this time.” The steep, prolonged yield curve inversion reflects the onset of a deep global economic contraction which is now being confirmed by leading indicators such as semiconductor and auto sales.  At some point the Fed is going to be forced by the market to cut the Fed Funds rate, as the 1yr Treasury is now yielding less than the Fed  Funds target rate. In addition, the yield curve is inverted from 1yr out to 7yrs, with a steep inversion between the 1yr and 3yr Treasurys.  It won’t take much flinching from the Fed to ignite a rally in the metals.  In addition, the investor sentiment as measured by MarketVane is about as low as I’ve seen it in a long time (34% bullish for both gold and silver).

We are headed into a severe global recession with or w/out a trade agreement. To be sure, over the next 10-20 years, it’s likely the price of copper will move higher. But if my view plays out, a severe recession will cause a sharp drop in the demand for copper and other base metals relative to the demand over the last 10-15 years. This in turn will push out the current supply/demand forecasts for copper by several years and drive the price of copper lower.

Trevor Hall and I discuss the global economy, the intense western Central Bank gold price manipulation activity and the factors that will drive the price of real money – gold and silver – higher and commodities like copper lower in our latest Mining Stock Daily podcast – click here or on the graphic below:

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6 thoughts on “Global Synchronized Depression: Buy Gold And Silver Not Copper

  1. Ever wonder who fixes the daily gold price in London? Here they are:

    Bank of China
    Bank of Communications
    China Construction Bank
    Goldman Sachs International
    HSBC Bank USA NA
    ICBC Standard Bank
    JP Morgan
    Societe Generale
    Standard Chartered
    The Bank of Nova Scotia Scotia-Mocatta
    The Toronto Dominion Bank
    UBS
    Morgan Stanley

    All the world’s thieves in one spot!

  2. Trump’s latest egomaniac and insane in your face tweet to the Chna:
    …The only problem is that they know I am going to win (best economy & employment numbers in U.S. history, & much more), and the deal will become far worse for them if it has to be negotiated in my second term. Would be wise for them to act now, but love collecting BIG TARIFFS!
    — Donald J. Trump (@realDonaldTrump) May 11, 2019

    What happened to this “beautiful” letter received from XI…..LOL
    As predicted, we have now entered into the trade dispute escalation phase.

    If the Chinese stock markets sell off in a big way, will China be left with only one card to play….their Trump(h) card = the Gold card. Meaning….China and their allies announce that the Shanghai gold exchange, Singapore Gold Exchange, Dubai Gold Exchange and other gold exchanges collectively announce these exchanges will now only sell/buy 1 oz of gold starting at $10,000USD/oz or $15,000/oz or $20,000/oz.

    What will that do to the Crimex & LBMA? Would they not have to immediately adjust to that higher gold price due to the pricing arbitrage that was just created. China is not playing this trade game without an End Game. Why does China supposedly have now over 30 tons of gold. As stated before, these countries are fed up with U.S./Western military & financial hegemony. What will happen to the markets if John Brennan and some others are arrested on charges of treason/sedition.

    We are getting closer and closer as time is running out.

  3. As mentioned in prior post, we are now in the Trade War Escalation Phase.
    China just announced they are increasing tariffs to 25% on $60B of U.S. Goods starting June 1. There is now a full fledged Trade War.

    Before, I meant to say that China supposedly has over 30,000 tons of gold.

    China used the last 9 months plus and many years to prepare for this strategic outcome. China plays the long game and has things lined up for this day and time.

    PPT still thwarting the the price of PMs until something forces them to take it off….CHINA….lol

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