Goldman Sachs Gives Interesting Warning On Gold

(9/14/2024)

1. 🏦 Central banks are tripling their gold purchases, with Russia expected to increase buying six to sevenfold in the next cycle, while the US remains the only country not buying gold.

2. 💰 Goldman Sachs forecasts gold prices to reach a record high of $2,700, representing a 20% increase from January levels and outperforming most financial instruments and stock indexes.

3. 📉 The Federal Reserve's rate cuts, coupled with potential geopolitical shocks like tariffs and debt sustainability fears, could drive gold prices up by approximately 15%.

4. 🏛️ Unlike the 2007 rate cuts, current lowering rates combined with Federal Reserve and government market intervention are expected to stimulate the economy, potentially increasing gold prices.

5. 🔒 Owning physical gold or silver stored in a secure location, such as a gold storage facility, is recommended to avoid risks associated with leveraged speculation and naked shorts.

The Strikes Have Begun

(9/13/2024)

1. 🏭 33,000 Boeing Union Workers are striking, causing the first major walkout since 2008 and disrupting production at Boeing's factories near Seattle, as airlines cancel contracts due to reduced demand from inflation and government policies.

2. 💼 A potential multi-billion dollar hit looms for retailers and manufacturers if 13 major East and Gulf Coast ports are affected by a strike of 25,000 workers starting October 1st, impacting supply chains prone to bottlenecks.

3. 🚢 The International Longshoremen's Association (ILA) strike could affect billions of dollars worth of imported goods, including cars, electronics, and food, with the contract covering workers from Boston to Houston expiring on September 30th.

4. 💰 Unions fighting for more money may not understand the impact of inflation and government policies on companies, potentially leading to job losses as businesses cut costs to stay afloat.

5. 📊 The Economic Ninja warns that the Democratic party aims to raise capital gains tax on 401ks and retirement systems, potentially hurting the middle class the most.

Something important about the wholesale and inflation numbers that are out today

(9/12/2024)

1. 💹 The Producer Price Index (PPI) increased by 2% in August, slightly above the consensus estimate, indicating persistent inflationary pressures in the economy.

2. 🏦 Despite the Federal Reserve's efforts to lower interest rates, inflation continues to rise, challenging the effectiveness of their monetary policy strategies.

3. 📊 The PPI core estimate, excluding food and energy, rose by 3% in August, surpassing the 2% consensus estimate and suggesting broader inflationary trends.

4. 🔄 High interest rates typically lead to lower inflation by creating a "choke hold" on the economy, forcing people to spend less.

5. 💸 The Federal Reserve's desire to lower interest rates may be motivated by a wish to demonstrate the success of quantitative easing (QE), despite potentially squelching spending and economic growth.

ING Bank said the gold price is just getting started

(9/12/2024)

1. 💰 ING Bank forecasts gold to average $2,700 per ounce by 2025, driven primarily by anticipated Federal Reserve rate cuts, geopolitical unrest, and presidential election uncertainty.

2. 🏦 The pace of Federal Reserve rate cuts is the key remaining question, as gold, being a non-yielding asset, typically benefits from rate reductions.

3. 🏘️ While gold's appeal rises, real estate prices are falling with contagion spreading to more cities, making renting more economical than buying in the current market.

4. 📉 During stock market corrections or crashes, gold and silver often experience initial sell-offs, but can see exploding premiums during periods of panic buying like the COVID-19 pandemic.

5. 💡 Strategic buying is crucial in the gold market, with the potential for prices to exceed ING Bank's projections, possibly reaching even higher "nutty" levels.