As trading kicks off in 2024, precious metals bulls have high hopes for price breakouts. So far in the early goings of the New Year, though, gold and silver markets are pulling back.
One reason the Fed pivot fantasy matters so much is because markets that rise on pure fantasy, eventually fall on reality. Reality always wins. It’s stronger.
I think Powell will cut rates slowly to ensure inflation doesn’t come back in 2025 or 2026. If the Fed cuts faster, it will be because they think the economy is weakening more than we have seen so far.
Zero Hedge admits the Fed’s minutes revealed everyone was wrong who believed in a Fed pivot. The Fed is going to run interest high for longer and maybe even higher if it has to.
Doug Casey says "at some point, there’s going to be a real panic into gold, the only financial asset that’s not someone else’s liability—own gold for safety and insurance."
Now the Fed is sucking money out of the financial system, but it still has a long way to go to get to where we were with money supply before Covid money printing.
How long until more banks just cannot absorb it all? We’ll find out, as in the past, some Monday morning after the Fed and Feds cobbled together another massive rescue package.
The prospect of Fed rate cuts, election uncertainty, and a gathering debt storm makes holding physical precious metals mandatory for those who seek to protect their wealth.
If there is great news coming for investors, look for it to happen in the bullion sector. Silver and gold have spent more than three years consolidating for a push that will turn $2000 into bedrock support for the latter.
