Get In Before The Public Starts Buying Silver Because The Price Is Headed Hundreds Of Dollars Higher

November 29, 2023

(King World News) King World News readers around the world need to purchase physical silver before the public starts stampeding into the market to buy, sending the price hundreds of dollars higher. When I hear classic contrarian investing sayings like: ”buy low, sell high.” I think about this silver chart. The setup of dreams.

Silver Is Going To Skyrocket To $370-$740! (Red Notes In Chart)

Getting in before the general public is always key.

Central Banks Pretending To Be Tough On Inflation

Peter Boockvar: In the discussion and debate about the now expected and hoped for Federal Reserve rate cuts that are now priced for next year, it’s important to do a perspective on what the historical REAL rate has been so we can see what used to be ‘normal.’ Before the Fed via Alan Greenspan started to experiment with near zero interest rates (he cut to 1.00% in 2003 before Bernanke and Yellen said that wasn’t enough and liked zero instead for 7 years), the average REAL rate (difference between core CPI and the fed funds rate) in the 20 years leading into 2000 was 283 basis points.

So even if the Fed decided on 250 bps for a period of time because Powell won’t be fully satisfied with inflation unless it STAYS down, a core inflation rate of 2% would see a fed funds rate of maybe 4.5% which is basically what the fed funds futures are pricing in one yr from now. Still ignored though in the rate cut excitement is the continued shrinkage in the Fed’s balance sheet, notwithstanding the excitement that QE has brought us. 

With regards to the ECB balance sheet, Christine Lagarde spoke at a hearing in the European parliament over the weekend and said the ECB will soon be discussing accelerating the reduction in the size of their balance sheet. After all, they are still reinvesting the proceeds of maturing bonds from their Pandemic Purchase Program. I believe the pandemic is over. European bonds though didn’t respond much as they are rallying on the hopes for rate cuts there too next year. 

The euro did touch $1.10 yesterday for the first time since August, along with the broad dollar weakness but is down a touch this morning. For perspective, over the past 10 years, the euro has averaged $1.15 vs the US dollar…

______________________________________________________________________________

Celente – As Investors Dump Dollars, Gold Prices Will Soar

November 29, 2023

Dumping US Dollars Bullish For Gold

November 29 (King World News) – Gerald Celente:  Investors are selling dollars at the fastest clip in the past 12 months on the belief that the U.S. Federal Reserve has stopped raising interest rates and will begin cutting them next year, the Financial Times reported.

As U.S. interest rates were rising over the past 16 months, dollar-denominated investments were outperforming most of the world’s other opportunities. This year by late September, the dollar had gained 19 percent against other major world currencies.

Now the dollar has reversed course.

If rates rise no further, and especially if rates decline, other investment venues become more attractive by contrast.

Asset managers are on trend to unload 1.6 percent of their dollar positions this month, the largest net outflow since November 2022, according to State Street, teeing up the dollar for its worst monthly performance in a year. 

In November 2022, a similar dollar dump dropped the currency’s value 10 percent by the following February.

The current sell-off may signal a longer-term trend in which asset managers cut back their holdings in a variety of dollar investments, analysts told the FT.

Asset managers are still overly weighted in dollars compared to other currencies, indicating the buck may have further to fall, Michael Metcalf, chief macro strategist at State Street, said to the FT.

Japan is among those celebrating the dollar’s decline. The yen has surrendered 12 percent of its value against the dollar this year as the central bank has held to negative interest rates. This month, the yen regained about 1.5 percent of its lost value because the dollar is sliding…

Emerging markets also welcome a weaker dollar. Floundering in dollar-denominated debt, poor countries will find it at least slightly easier to service foreign debt. Some of those economies could even see investors return after foreign money fled over the past three years.

Trend Forecast: Key Gold Bull Catalyst

A weaker dollar will make U.S. exports cheaper in other countries, boosting the nation’s manufacturing sector—though perhaps not by much. And it is really no big deal, because manufacturing accounts for less than 11 percent of U.S. GDP. Europe is entering a recession, China’s economy is still finding its footing, the world’s consumers are tightening their belts, and companies and countries are reshoring or “friendshoring” their supply lines.

Also, as the dollar weakens, imports to the U.S. become more expensive. American consumers already have little wiggle room left for discretionary purchases so higher prices for foreign-made goods will cut sales of those items even more. 

Since gold is dollar based, the lower the dollar falls, the cheaper it will be for nations to buy gold which will in turn drive up gold prices.