Fox Business/Jonathan Garber
Biden’s ‘green stimulus’ would send silver soaring to $50: Bank of America

Joe BidenAlready surging silver prices could get a big boost if former Vice President Joe Biden wins the 2020 election and pieces of the Green New Deal are put into action, according to strategists at Bank of America.

Biden has championed portions of the climate plan, which calls for the U.S. to reach net-zero carbon emissions by 2050.

A switch to more renewable sources of energy – including solar – would have to be a big part of the plan, and silver is a key ingredient in solar panels.

“Investors help, but industrial demand ultimately moves the needle” for silver prices, wrote a team of Bank of America strategists led by Michael Widmer.

Silver has already surged 51% this year to $26.87 an ounce as investors flocked to the precious metal as an alternative store of value during the COVID-19 pandemic. An increase in industrial applications of silver, however, would catapult prices even higher.

Annual silver demand, which is currently 2,285 tonnes, could increase by 87 percent to 4,272 tonnes over the next 15 years if the U.S. power sector alone accelerated its de-carbonization efforts, according to the strategists.

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Kitco/David Lin
After $2,000 gold price, $4,000 is next; Frank Holmes doubles down on call

Gold BarsThe fiscal and monetary conditions have never been stronger for gold prices, and while the yellow metal already broke records this week by hitting $2,000 an ounce, Frank Holmes, CEO of U.S. Global Investors, doubled down on his $4,000 an ounce by the end of this bull cycle call.

Price corrections can happen along the way, Holmes said, but gold investors should buy on the dip. Every time you have a secular bull market, there are many 10% corrections. So you can easily get a 10% correction in stocks, if you get a 3% correction in bullion,” Holmes told Kitco News. “It’s just recognizing that that ratio of 3-1 is important, and if you have the stomach to weather it.”

On the economy, Holmes expects inflation to rise, but rates to stay low, creating a negative real rate environment.

“The greater the negative real interest rates, the greater the price of gold,” Holmes noted.

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Marketwatch/Shawn Langlois
‘Clueless’ investors just keep driving this ‘stupidly bullish’ stock market higher, CNBC’s Jim Cramer says

Jim Cramer ‘Sometimes the market rallies and it makes perfect sense. Then there are days like today, when I can’t take how stupidly bullish this market can be.’

That’s CNBC “Mad Money” host Jim Cramer shaking his head at ‘clueless’ investors who ignored multiple warning signs to buy up stocks during Tuesday’s bullish trading action.

“Never underestimate the power of enthusiastic buyers who do not know what they’re doing,” he said after the Dow Jones Industrial Average DJIA, +1.39% finished the session with a triple-digit gain. The S&P 500 SPX, +0.64% and Nasdaq Composite COMP, +0.52% also ended higher.

He specifically pointed to oil giant BP BP, +0.88% and biopharma firm Sorrento SRNE, +7.36% as examples. There’s “plenty of stupidity,” he said, “especially during earnings season when there’s so much news that it’s hard to keep track of what’s going on.”

BP’s surge, in particular, didn’t sit right with Cramer, who said it might be the “dumbest action” so far this year. “Not only are they telling you business is terrible, BP is trying to distance itself from crude while preserving cash, but maybe that dividend hike was a mistake,” he said.

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CNN Business/Anneken Tappe
America’s jobs crisis could be about to get even worse

Jobs CrisisAmerica’s fragile jobs market recovery, after just two months of improvement, appears to be losing steam as Covid-19 infections rise and federal funds for businesses begin to dry up.

On Friday, the US government is set to release its monthly jobs report, and economists are predicting another 1.6 million jobs were added in July — a sharp slowdown from the 4.8 million added in June. That would bring the monthly unemployment rate to 10.5% in July, from 11.1% in June.

If those predictions hold true, America would still be down some 13 million jobs since February, and the unemployment rate would still be higher than at the peak of the 2007-09 financial crisis.

Although most economists say the pace of the recovery slowed in July, some say it reversed.

Oxford Economics senior US economist Lydia Boussour says she expects Friday’s report to show a loss of 280,000 jobs, rather than a gain. That would signal even more clearly that the foundation of the recovery is cracking.

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Fox Business/Jonathan Garber
Gold spikes to record as BofA predicts $3K price tag

Gold BarsPrices for gold earmarked for December delivery climbed to a record high above $2,000 an ounce on Tuesday, outstripping shorter-term futures contracts after the COVID-19 pandemic disrupted jewelry sales and led to a buildup of physical supplies.

Gold for December delivery rose $35.10 to close at $2,021 an ounce while front-month futures contracts, for August delivery, settled at $2,001.20.

While the virus has caused disruptions on the physical side of the market, it’s also changing the landscape for how investors view the precious metal.

Already, governments have injected $20 trillion of fiscal and monetary stimulus, making up 20 percent of global gross domestic product. During the pandemic, investor demand for the metal has increased to 45 percent of the market, up from 25 percent.

“The global pandemic is providing a sustained boost to gold due to increased savings, growing inequality, vast capital destruction, declining productivity, rising public debt levels, and, most importantly, falling equilibrium real interest rates,” according to strategists at Bank of America, who think the precious metal will reach $3,000 an ounce over the next 18 months.

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Red Rock Secured/Sean Kelly
Gold Roars Past $2,000! Silver Can’t Be Stopped!

Gold Price Soars Over $2,000Why Even Higher Gold and Silver Prices Are Headed Our Way!

It isn’t even close!  The numbers are in for July and silver was far and away the best performer of all the major financial assets.

For the entire year 2020 it’s the same thing.  Silver is the top performer, followed by gold.  And that was before gold moved above $2,000 and silver surged past $25.

Now Washington and Federal Reserve officials are doing everything possible to keep precious metals outperforming.

It’s not exactly like they want gold and silver to outperform everything else.  They probably don’t.  But they do want to do more of the things that put precious metals across the finish line for the, ahem, gold and silver medals.

Right now, Federal Reserve officials are falling all over themselves urging more government spending.

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CNBC/Jeff Cox
The Fed is expected to make a major commitment to ramping up inflation soon

Jerome PowellIn the next few months, the Federal Reserve will be solidifying a policy outline that would commit it to low rates for years as it pursues an agenda of higher inflation and a return to the full employment picture that vanished as the coronavirus pandemic hit.

Recent statements from Fed officials and analysis from market veterans and economists point to a move to “average inflation” targeting in which inflation above the central bank’s usual 2% target would be tolerated and even desired.

To achieve that goal, officials would pledge not to raise interest rates until both the inflation and employment targets are hit. With inflation now closer to 1% and the jobless rate higher than it’s been since the Great Depression, the likelihood is that the Fed could need years to hit its targets.

“We believe that the Fed publicly would welcome inflation in a range of 2% up to 4% as a long overdue offset to inflation running below 2% for so long in the past,” said Ed Yardeni, head of Yardeni Research.

The investing implications are substantial.

Yardeni said the approach would be “wildly bullish” for alternative asset classes and in particular growth stocks and precious metals like gold and silver. Guha said the Fed’s moves would see “real yields persistently lower, the dollar lower, volatility lower, credit spreads lower and equities higher.”

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Market Watch/Steve Goldstein
Gold Gains‘Ample room’ for more gold gains as hedge funds late to the party, adviser says

If you adjust for inflation, gold still has to climb to $2,800 per ounce to surpass 1980 levels.

But gold bulls aren’t complaining as futures for the yellow metal topped $2,000 in nominal terms for the first time. At $2,052 in the early hours of Wednesday, gold GC00, 1.96% has climbed 35% this year.

So the question is whether the gold rally can last.

What has fueled it so far is the aggressive fiscal and monetary policy action, in the U.S. and across the world, which has helped cushion the economic blow from COVID-19 and sent interest rates lower but also led to a rise in inflation expectations.

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Marketwatch/Shawn Langlois
The stock market could be facing ‘multiple decades’ of ‘deleterious’ economic after-effects, analyst warns

VaccineThe stock market’s ability to shrug off the economic destruction and gloomy coronavirus headlines continues to enrich emboldened bulls and baffle even some of the savviest Wall Street pros.

A big dose of reality, however, looms large, if Andrew Lapthorne, the global head of quantitative research at Societe Generale, has it right with his recent outlook.

“With questions on the effectiveness and wide availability of vaccines remaining, as well as the potential impacts of the pandemic’s damage to the economy, there may be more downside risk from markets overshooting,” Lapthorne wrote in a note to clients cited by Business Insider on Sunday.

And if investors are hoping a vaccine keeps the fire under this market lit, well, Lapthorne has plenty of doubts as to whether that will be a catalyst in the short term — or long term, for that matter.

There are 200 vaccines under development, and none is guaranteed to be effective on a global scale. HIV, for instance, still no vaccine. Even if there is one, he said, anti-vaxxers and others who decline the vaccine will slow down the necessary steps toward herd immunity.

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Yahoo Finance/Bloomberg/Ranjeetha Pakiam
Gold Surges to Record as Week Opens With Spot Price Near $2,000

Gold Price SurgesGold’s spot and futures prices opened the week by hitting records, with metal for immediate delivery closing in on $2,000 an ounce as the search for haven assets continued amid the coronavirus pandemic.

Spot bullion surged 11% in July, the biggest monthly gain since 2012, as investors weighed a weaker dollar and record low U.S. real yields. Strategists are now considering alternatives to government debt, such as cash, credit, dividend shares and gold.

The health crisis has prompted unprecedented amounts of stimulus being unleashed to shore up economies including lower rates, which are a boon for non-interest-yielding gold. Simmering geopolitical tensions are also boosting demand — U.S. Secretary of State Michael Pompeo said the Trump administration will announce measures shortly against “a broad array” of Chinese-owned software deemed to pose national-security risks.

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Bloomberg/Olivia Konotey-Ahulu and Susanne Barton
Dollar’s 10% Slide Is a Warning That U.S. Has Lost Grip on Virus

Dollar Price Going DownThe dollar is flashing a warning sign to U.S. policy makers — get a grip on the virus.

After hitting an all-time high in March, a gauge of the greenback has lost 10% of its value, with declines accelerating in recent weeks as infections spread seemingly unchecked across the nation. Much of the sell-off has come during New York trading hours, suggesting domestic investors are closing out bets on U.S. strength and spurring renewed questions about the supremacy of the dollar. Meanwhile, a popular model that’s guided dollar traders for the past two decades has warped.

It’s a rapid reversal in fortune. Early on in the pandemic, the dollar soared after investors sought safety in U.S. assets like Treasuries while the virus stormed through Europe. But with cases now exploding at home, the ineffectual American response to the disease has become a millstone for the currency, spurring concern about lasting damage to the U.S. economy that could keep interest rates and growth low for years.

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Marketwatch/Myra P. Saefong
Silver: poor man’s gold no more?

Silver Bar 080320Investors have focused on a rise in record prices for gold, but silver’s up about 25% in July—the metal’s second-biggest monthly gain on record—and it’s still undervalued compared with the yellow metal.

“Silver is often called the ‘poor man’s gold’ because some of the same factors that cause gold prices to rise do the same thing to silver prices,” says Ed Moy, chief market strategist at gold retailer Valaurum. “And what is driving gold prices now are mainly the fear of inflation due to the magnitude of the monetary and fiscal stimulus worldwide, and the flight to safety due to the uncertainty around how and when the global economy will recover.”

Silver, however, is “cheaper per ounce” than gold, and its prices are much more volatile, he says. It has also been “lagging behind gold’s rise” and the ratio of the number of ounces of silver to buy one ounce of gold is historically high, implying that either “gold is overpriced or silver is underpriced.”

If silver is underpriced, “there is a lot of money to be made,” says Moy, who was director of the U.S. Mint from 2006 to 2011.

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Yahoo Finance/Bloomberg/Phoebe Sedgman
Gold Set for Best Month in Four Years After Record-Breaking Gain

Gold 1 KiloGold is set for the biggest monthly gain in more than four years after a weaker dollar and low rates fueled its surge to a record. Silver headed for its best month since 1979.

Spot bullion is up 10% in July as a gauge of the dollar slumped, prompting concerns its status as the world’s reserve currency of choice is at risk, and U.S. real yields fell to a record low. While the ferocity of gold’s rally cooled as the week wore on, it’s less than $20 shy of its all-time high and most market watchers predict there may be more gains ahead.

The metal has surged almost 30% in 2020, putting it on track for the biggest annual increase in more than a decade, as concern about the fallout from the coronavirus pandemic boosts its appeal as a haven. The Federal Reserve this week repeated a vow to use all its tools to support the U.S. economy, with governments and central banks worldwide already unleashing vast amounts of stimulus to shore up growth.

“There is still plenty of upside left in this rally,” Australia & New Zealand Banking Group Ltd. said in a note. “The backdrop remains highly conducive, with unwavering support from central banks likely to see monetary easing policies remain in place for the foreseeable future.

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CNN Business/Anneken Tappe
Dow and S&P 500 sink after economic data deluge

Closed Retail StoreThe Dow and the S&P 500 ended in the red on Thursday. Investors are still wrapping their heads around the morning’s economic data including the GDP report, which finally put a number on just how badly the economy fared during the spring lockdown, as well as an increase in weekly jobless claims.

US gross domestic product, the broadest measure of the economy, plummeted at an annualized rate of 32.9% between April and June, the worst drop on record. While the decline wasn’t as bad as economists had predicted, it hammered home just how much the economy suffered at the height of the pandemic lockdown.

Meanwhile, the Labor Department reported a second-straight uptick in first-time applications for unemployment benefits Thursday morning. This is worrying because it could signify a slowdown in the labor market recovery.

The bottom line is that the US economy runs on consumer spending, but people spend less money when they are unemployed.

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Kitco/David Lin
$15,000 gold price? Jim Rickards and Peter Schiff give forecasts

Rising Gold PriceGold prices have hit all-time highs, but industry heavyweights Jim Rickards, best-selling author, and Peter Schiff, CEO of Euro Pacific Capital, both think that the rally is far from over.

Rickards’ analysis points the gold price to $15,000 by 2025.

“I would put [gold at $15,000 an ounce before 2025,” Rickards told Kitco News. “If you just take the average of the prior bull markets: 1971 to 1980, nine years, 2200%, 1999 to 2011, a twelve-year bull market, about 700%. Just take the average, you don’t have to go to the higher of the two or extrapolate, if you just take the average of the two you would say the next bull market is going to be a little over 10 years and it’s going to go up 1500%,” he said.

$15,000 is the implied, non-inflation price of gold should a gold standard be adopted, theoretically speaking, said Rickards.

Schiff pointed out that historically, the Dow/gold ratio has seen much higher levels than today, suggesting that should the ratio retrace historic levels, the gold price should be much higher.

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Reuters/Hideyuki Sano
Dollar on course for worst month in decade as U.S. recovery loses steam

Disappearing DollarThe dollar slipped to two-year lows on Friday and is on track to post its biggest monthly decline in 10 years, as investors worried that a recovery in the U.S. economy could be stymied by a second wave of coronavirus.

Confidence in the U.S. currency was undermined further after U.S. President Donald Trump raised the possibility of delaying the nation’s November presidential election.

The dollar index fell to 92.777, and is on course to post its biggest monthly fall in 10 years.

“At the root of the dollar’s weakness is the fact, which was highlighted by Fed Chairman (Jerome) Powell the other day, that U.S. coronavirus cases started to increase in mid-June, curbing consumption and sending the economy downhill,” said Daisuke Uno, chief strategist at Sumitomo Mitsui Bank.

The U.S. Labor Department data showed initial claims for unemployment benefits increased 12,000 to a seasonally adjusted 1.434 million in the week ending July 25, a sign that recovery in the employment market is stalling.

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MarketWatch/Jeffry Bartash
Economy suffers titanic 32.9% plunge in 2nd quarter, GDP shows, and points to drawn-out recovery

GDP DeclineCoronavirus triggers steepest recession since World War Two.

The numbers: An economy badly battered by the coronavirus shrank at a record 32.9% annual pace in the second quarter, underscoring just how big a hole the U.S. finds itself in as it labors to recover from the deepest recession in American history.

The tidal wave of damage from the first global pandemic in a century was almost as bad as Wall Street expected. Analysts polled by MarketWatch had forecast a whopping 35% decline in gross domestic product, the official scorecard of the U.S. economy.

The economy began to recover in mid-May after a severe contraction at the beginning of the quarter, but the U.S. faces a long road back, analysts say. Millions of Americans are still out of work, thousands of businesses have closed and many of those that remain open have had to scale back operations because of tepid demand or ongoing government restrictions.

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CNBC/Jeff Cox
Fed holds rates steady, says economic growth is ‘well below’ pre-pandemic level

Jerome Powell The Federal Reserve held interest rates steady in a decision announced Wednesday that came along with a tepid outlook on the coronavirus-plagued economy.

In a move widely expected, the central bank kept its benchmark overnight lending rate anchored near zero, where it has been since March 15 in the early days of the pandemic.

Along with keeping rates low, the Federal Open Market Committee, which sets monetary policy, expressed its commitment to maintain its bond purchases and the array of lending and liquidity programs also associated with the virus response.

“We are committed to using our full range of tools to support our economy in this challenging environment,” Fed Chairman Jerome Powell said.

The post-meeting statement labeled the current state of growth as better than it was at the trough but still not up to par.

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Kitco/Neils Christensen
An impending equity bear market will ultimately push gold price to $4,500 – Bloomberg Intelligence

GoldBarThe Federal Reserve has pumped trillions of dollars to stabilize the U.S. economy and financial markets devastated by the COVID-19 pandemic. With that trend expected to continue for the foreseeable future, one market strategist said the best way not to fight the central bank is by investing in precious metals.

In an interview with Kitco News Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said the gold market is looking a little stretched. Prices have pushed to a record high and within striking distance of $2,000. He added that fundamentally, gold is nowhere near overvalued levels as the U.S. central bank continues to pour money into financial markets.

“In the short term, we have gold about 21% above its 52-week mean, that’s the most since the peak in 2011,” he said. “You don’t want to be the first buyer at these levels. Anytime gold gets this high above its 52-week average, you got to expect consolidation.”

Although gold investors should be a little more strategic with their buying, McGlone said that they shouldn’t lose sight of the bigger picture, which is materially higher gold prices. McGlone reiterated his call that gold will needs to get “stupidly” expensive before this rally ends and that could mean prices above $4,000 an ounce.

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Marketwatch/Myra P. Saefong and William Watts
Gold logs record close, up a ninth straight session, then climbs after Fed’s policy statement

Gold logsGold futures tallied a ninth gain in a row on Wednesday to settle at another record, then moved even higher after the Federal Open Market Committee reiterated plans to keep interest rates near zero until the economy sees further improvement.

In its statement after two days of talks, the Fed noted economic activity and jobs “have picked up somewhat in recent months” while pledging again to use its full range of tools to support further improvement.

“The Fed came out with no surprises, and basically told the market it would be business as usual going forward — or unusual as the case may be,” said Brien Lundin, editor of Gold Newsletter. “With this one, small element of uncertainty removed, gold responded well and resumed its rally.”

Against this backdrop, gold for August delivery GC00, -0.02% GCQ20, -0.02% was at $1,958.40 an ounce in electronic trading shortly after the Fed statement. It posted a gain of $8.80, or nearly 0.5%, Wednesday to settle at a record of $1,953.40 an ounce on Comex ahead of the Fed news.

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CNN Business/Anneken Tappe
Last quarter was probably the worst on record for the US economy

Negative GDPThe US economy is emerging from what experts think will be its worst quarter on record. Although that’s behind us now and conditions have improved since the country ground to a halt in April, the recovery remains fragile and could ultimately disappoint hopeful economists.

The Bureau of Economic Analysis will report just how bad the second quarter was on Thursday, in its first estimate of gross domestic product, the broadest measure of the economy.

Economists polled by Refinitiv expect an annualized decline of 34.1% between April and June. That would be the worst quarter since the BEA began keeping quarterly records in 1947. It would also be more than four times worse than the decline during the 2007-09 financial crisis.

That would confirm what experts have been saying for months: America is in a recession, commonly defined as two straight quarters of economic contraction. Between January and March, the economy contracted by 5%.

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Fox Business/Jonathan Garber
Gold may eclipse dollar as reserve currency after outsize coronavirus spending: Goldman Sachs

Reserve CurrencyThe U.S. dollar’s longstanding status as the world’s reserve currency is at risk after the greenback’s weakening by unprecedented government efforts to shore up the economy during the COVID-19 pandemic, according to Goldman Sachs Group Inc.

Ballooning federal debt levels and a potential shift in favor of inflation at the Federal Reserve amid increased geopolitical hostilities, domestic unrest and an onslaught of new COVID-19 cases are among the headwinds the greenback faces, according to the firm’s strategists.

“Real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge,” wrote a team of Goldman strategists led by Jeffrey Currie.

Those concerns may give an opening to an even older value-storage option, he said: “We have long maintained gold is the currency of last resort, particularly in an environment like the current one where governments are debasing their currencies and pushing real interest rates to all-time lows.”

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CNBC/Abigail Ng and Eustance Huang
Gold prices could hit $3,500 in two years, analyst says

Gold BarsThe gold market is “very strong” and could hit $3,500 in two years, one analyst told CNBC this week.

Prices have surged and reached record highs on Monday amid worries over the coronavirus pandemic and tensions between the U.S. and China.

“What is really significant is how quickly it went through that $1,923 which was the previous high. The other thing which was … very, very important was the fact that it went through $1,800 and with similar ease,” said Barry Dawes, executive chairman at Martin Place Securities. “That’s basically saying to me that this is a very, very strong market.”

Spot gold traded about 0.55% lower at about $1,931.24 per ounce on Tuesday afternoon in Asia.

“I’m looking for $3,500 within two years,” Dawes told CNBC’s “Street Signs Asia.” He said some consolidation is “probable,” but the underlying strength of the rally is “very significant.”

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Kitco/David Lin
Brace for major market correction should China-U.S. conflict become ‘real’

China US TensionsAs China closed down a U.S. consulate in Chengdu last week, everyone is watching rising geopolitical tensions between the world’s two largest economies.

Steve Hanke, professor of applied economics at Johns Hopkins University, said that relations between the U.S. and China are not going to improve in the short-term.

“Things are not about to get better between China and the U.S. any time soon. I don’t see any clever diplomats working the street that could calm that down, so we can expect some bad news events leading to significant market corrections even though we’re in an up market in equities,” Hanke said.

The fundamental force behind a drift in relations is a difference in ideologies, Hanke said.

“It’s real and it’s ramping up,” he said. “The idea of [a real conflict] has been around for a while. Number one, you’ve got a communist regime…it’s not a capitalist, private property system, it’s still politically a communist system, so that’s one thing. And then you’ve got key advisors in the White House that are important, Peter Navarro for one, that are always taking the position that China is basically ripping off the rest of the world, stealing their intellectual property, and basically confiscate lands in the South China Sea that are not Chinese by any stretch of the imagination,” he said.

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Forbes/Frank Holmes
Gold And Silver Are Just Getting Started

gold and silver“Cash is trash,” Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund firm, said back in January. “There’s still a lot of money in cash.”

Instead, Dalio advocates for a highly-diversified portfolio, one that includes gold and other hard assets that we can’t just print more of.

“I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio,” Dalio wrote last July in an article posted on LinkedIn. That same month, he revealed that gold would be among his top investments at Bridgewater.

It was a masterful call. Since he wrote the article, spot gold has climbed 35 percent. On Friday, for the first time since 2011, the precious metal crossed above $1,900 an ounce. And today, it hit a new all-time record high, trading above $1,940 for the first time ever.

Dalio isn’t the only big-name investor and money manager who’s recently thrown his weight behind gold. Speaking to Bloomberg TV on Friday, emerging markets investor Mark Mobius urged viewers to buy gold now and “continue to buy” as interest rates remain near zero and as COVID-19 continues to impact mine output.

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CNBC/Patti Domm
Gold price makes history, hits all-time high and analysts still looking for more

CurrencyThe dollar has become the world’s punching bag and it’s likely to stay that way for awhile.

The world’s reserve currency benefited in a big way from a flight-to-safety, which drove it to a three-and-a-half year high in March as the coronavirus pandemic spread to the U.S. Now, as the world’s focus has shifted back to fundamentals, the dollar has rapidly slumped to a two-year low.

Strategists say the dollar’s slide comes as the U.S. lags most of the world in halting the spread of the coronavirus, and some expect the U.S. economic recovery to lag others, including Europe. The dollar is also reacting to the prospect of mounting U.S. deficits and ultra-low U.S. interest rates well into the future.

“The move against the dollar is now broadening, not only more countries, like emerging markets currencies, but also more participants,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. “Asset managers, speculators and the other big group, judging from the skew in the options markets, is the hedge funds, joining the dollar bearish party.”

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Kitco/David Lin
Can record gold price continue to $4,000 and beyond? What history tells us

Gold PricesGold set a new record over the weekend as prices surpassed $1,920 an ounce, the previous all-time high set in 2011, but momentum may not stop until $4,000 an ounce is taken out, according to Frank Holmes, CEO of U.S. Global Investors, who based his prediction on the effects that monetary stimulus had on gold during the last recession.

It’s important to take Holmes’ forecast into context.

Although gold has already breached all-time highs in several foreign currencies, this is the first time since 2011 that the yellow metal has seen new highs in U.S. dollar terms.

“In the next three years, if we look back, if [history] repeats itself, from 2008, 2009 to 2011, that three year run saw gold go from a $750 – $800 range up to $1,900. If we forecast that because we have the same expansion of the balance sheet of the Fed then it would project, if cycles are exactly the same, gold could go to $4,000,” Holmes said in an interview.

Holmes is not alone in his long-term bullish forecast. Dan Oliver, founder of Myrmikan Capital, sees prices headed to $10,000 an ounce.

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Yahoo Finance/Bloomberg/Justina Vasquez and Yvonne Yue Li
U.S. Mint Has Reduced Silver, Gold Coin Supplies to Purchasers

Silver CoinsThe U.S. Mint has reduced the volume of gold and silver coins it’s distributing to authorized purchasers as the coronavirus pandemic slows production, a document seen by Bloomberg shows.

The Mint’s West Point complex in New York is taking measures to prevent the virus from spreading among its employees, and that will probably slow coin production there for the next 12 to 18 months, the document shows. The facility is no longer able to produce gold and silver coins at the same time, forcing it to choose one metal over the other, according to the document, which was presented to companies authorized to buy coins from the Mint last week.

A spokesman for the Mint didn’t immediately have comment.

“The pandemic created a whole new set of challenges for us to manage,” the Mint said in the document. “We believe that this environment is going to continue to lead to some degree of reduced capacity as West Point struggles to balance employee safety against market demand.”

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CNN Business/Matt Egan
Ex-Obama adviser warns of a potential repeat of the financial crisis

Repeat Coronavirus“Whoever is coming in there in January 2021 might be facing worse conditions than in 2009, as hard as that is to believe,” Austan Goolsbee, who helped guide Obama through the Great Recession, told CNN Business. Goolsbee, who chaired the president’s Council of Economic Advisors in the aftermath of that crisis, is worried that the fragile economic recovery will stall if the worsening pandemic isn’t quickly brought under control.

This is really playing with fire. They must get the spread of the virus under control. That’s what almost every other country has done.”

A worsening economy would cause countless companies and small businesses to collapse, forcing already-hurting banks to suffer massive losses.

“It could cause a financial crisis,” said Goolsbee, currently a professor at the University of Chicago’s Booth School of Business. “We could be back into conditions like the 2008 financial crisis.”

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Kitco/Neils Christensen
Gold price makes history, hits all-time high and analysts still looking for more

The juggernaut that is the gold market remains unstoppable it started the week hitting an all-time high against the U.S. dollar.

The gold market made its historic move Sunday evening during the Asian trading session. First spot gold hit its all-time high above $1,920 and then August futures quickly followed suit. August gold last traded at $1,922.70 an ounce, up more than 1% on the day.

Although the record has been a significant target for analysts and investors, it is also seen by some as just a small speed bump within a much bigger uptrend.

In a recent interview with Kitco News, Marc Chandler, chief market strategist at Bannockburn Global Forex, said that he expects that gold prices could easily hit $2,000 an ounce before this current rally is over.

“It is difficult to talk about resistance in never-before-seen prices, but if our view of interest rates and the turn in the dollar cycle is fair, then $2,500 might not seem unreasonable,” he said in a report Sunday, reiterating his current bullish stance.

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Kitco/Neils Christensen
This week we’ll learn the size of the hole the U.S. economy fell into when COVID-19 struck

There are good economic reports, there are bad ones, and in some rate cases there are ugly ones. This week, we get ugly.

We will find out how deep a hole the U.S. economy fell into in the second quarter this year when non-essential businesses closed down in many parts of the U.S. and many workers sheltered at home to try to stop the spread of the coronavirus pandemic.

The Commerce Department will release the Q2 GDP report at 8:30 a.m. on Thursday.

“We’re looking for the worst postwar economic contraction in 62 years,” said Sal Guatieri, senior economist at BMO Capital Markets.

Economists polled by MarketWatch expect a contraction at a seasonally adjusted annual rate of 33% in the second quarter. That’s much deeper than the previous worst-ever quarterly contraction of 10% seen in the first quarter of 1958.

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CNBC/Keris Lahiff
As silver sits close to seven-year highs, trader foresees a more than 30% rally

Silver BarsGold isn’t the only hot metal this year.

Silver has rallied 15% just this week, adding to a nearly 30% gain for the year. The commodity on Thursday morning hit its highest level since September 2013. In a note Thursday, Citi credited improving inflation measures as one reason behind the move.

Bill Baruch, president of Blue Line Capital, expects more gains.

“I love the precious metals and have always said that you need a portion of your portfolio at minimum in precious metals, so silver has some room to run here,” Baruch said on CNBC’s “Trading Nation” on Thursday.

Baruch says the charts suggest $26 per ounce could be the next hurdle, a level of resistance stretching to 2011 that could now become support. If it moves past that, he says ”$30 could be in the cards, too.”

A move to $30 marks more than 30% upside from current levels. It traded at $22.78 on Thursday evening.

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