One expert says the stage is set for silver to break out, it’s just a matter of timing. Jim McDonald, CEO of Kootenay Silver, told Kitco News that “silver is going to break through that $30 barrier, and it’s going to break a lot higher than $50.” In other news, eyes have been on the Fed for quite some time while Americans wait to see if officials will begin bond tapering. However, experts say that decision is tied to changing jobs data. After an unexpectedly weak gain of 235,000 jobs in August, officials want to keep their options open.
Kitco News/David Lin
Once $30 silver price barrier breaks, $50 is next; What’s the catalyst? Jim McDonald
“The stage is set” for silver to break out, it’s just a matter of timing, said Jim McDonald, CEO of Kootenay Silver.
McDonald told David Lin, anchor for Kitco News, that “silver is going to break through that $30 barrier, and it’s going to break a lot higher than $50.”
He added that the gold/silver ratio, which is currently at 77, could come as low as 30, implying a major upside outperformance by silver relative to gold.
You can watch the full interview, here.
November? December? Fed’s ‘taper’ timeline tied to volatile jobs data
The Federal Reserve, facing a labor market that may be stalling or on the cusp of a surge, is expected next week to open the door to reducing its monthly bond purchases while tying any actual change to U.S. job growth in September and beyond.
Fed officials, including Chair Jerome Powell, have said the U.S. central bank’s $120 billion in monthly bond purchases could be scaled back later this year as a first step towards ending the crisis-era policies implemented in the spring of 2020 as the coronavirus pandemic was taking hold.
But after an unexpectedly weak gain of 235,000 jobs in August, officials will want to keep their options open, ready to reduce bond purchases as soon as the Nov. 2-3 policy meeting if employment growth rebounds and COVID-19 risks recede, but able also to delay any “taper” if the virus hinders the recovery.
Read the full story, here.
Market Watch/Myra P. Saefong
Why Basel III regulations are poised to shake up the gold market
New banking rules, part of a sweeping international accord known as Basel III, will come into effect on Monday and mark a big change for European banks and their dealings with gold — potentially altering the landscape for precious metal demand and prices.
Like many reforms put in place over the past decade that aim to avert another global financial crisis, the new banking rules come with some controversy — and caveats.
Allocated gold, in tangible form, will essentially be classified as a zero-risk asset under the new rules, but unallocated or “paper” gold, which banks typically deal with the most, won’t — meaning banks holding paper gold must also hold extra reserves against it, said Brien Lundin, editor of Gold Newsletter. The new liquidity requirements aim to “prevent dealers and banks from simply saying they have the gold, or having more than one owner for the gold they have” on the balance sheet.
Read the full story, here.