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Continues to outperform.

Mr. Copper – always the same in a Fed meeting week.

Geez, gold goes up $25 then the next day down $30? So it’s only $5. At least my palladium stock is up. I almost sold it a few days ago.

Why Rates Will Be Suppressed
So, let’s start with rates and why they can’t get much higher (near-term) and hence pose a long-term threat to gold’s much higher price rise down the road.

Using the U.S. Fed as the perfect proxy for delusional as well as desperate central bankers around the world, we can do some quick math to see a very clear path ahead for gold.

As the Biden administration adds another $1.9T of “stimulus” debt to an already historically toxic debt pile, the U.S. will be sitting upon over $30T in government debt before Q1 of this year.

With its economy on its knees and tax revenues dwindling, this debt, and hence U.S. deficits, will only get higher, much higher by year end.

Now, let’s compare this current reality to the pre-pandemic math of 2019 when the over-stimulated (i.e. artificial) economy was running hot.

It’s Simple Math
During that time, the U.S. was spending $4T per year and taking in $3T in taxpayer revenue. The net result was around $1T in annual deficits.

Again: This deficit was in a “strong” environment wherein interest expense on U.S. debt for 2019 was around $400B—roughly 10% of total spending.

But if we fast forward (calculator in hand) to 2021, the picture (and the math) turns very dark, very quick

At $30T of total debt and counting, if rates were allowed to rise much higher to anywhere near the historically normal range of 5%, that would mean $1.5T in annual interest expense for Uncle Sam, which would equate to 50% of national revenues rather than 10%.

Such a scenario of rising rates would mathematically make the U.S. insolvent.

By the way, such a rising rate scenario would be equally true in Asia, the EU, the UK, Canada, Australia etc.

In simple terms then, rates will not go much higher for the blunt reason that countries (and hence central bankers) can’t afford them to go much higher.

As a result, central banks have no choice but to cap and repress rates for as long as they can until the whole system implodes and rates, yields and inflation skyrocket.

For now, however, repressed rates are inevitable: It’s a simple matter of natural math and artificial survival.

more https://www.zerohedge.com/markets/getting-ready-golds-golden-era

The biggest fallacy is that the USD is rising with rates for now. Eventually it should crash with the bond market so we’ve got a couple of fantasies working against pm’s.

Funny how it also seems to affect the Nasdaq as well though.

Ooooh look Gold and Silver aren’t worried by the Fed.

Update on Permitting, Engineering & Exploration of the Premier Gold Project

https://finance.yahoo.com/news/permitting-engineering-exploration-premier-gold-110000376.html

New Found Gold Announces Fully Subscribed $15.0 Million Flow Through Private Placement with Eric Sprott at $5.25/share

https://finance.yahoo.com/news/found-gold-announces-fully-subscribed-120000914.html

Blackrock Drills 1,003 g/t Silver Equivalent over 3.1m in New Vein Discovered During Step-Out Drilling at Tonopah West

https://finance.yahoo.com/news/blackrock-drills-1-003-g-121500961.html

First Mining’s Joint Venture Partner Fulfils Stage 1 Expenditure Requirements for the Pickle Crow Gold Project, Ontario, Canada

https://finance.yahoo.com/news/first-minings-joint-venture-partner-123000102.html

Klondike Gold Drills 1.66 g/t Au over 36.55 meters and 1.01 g/t Au over 96.0 meters at Lone Star Zone

https://finance.yahoo.com/news/klondike-gold-drills-1-66-123000448.html

Silver Elephant’s Sunawayo Drills 3 Meters of 421g/t Silver, Multiple Intercepts over 100g/t AgEq

https://ceo.ca/@accesswire/silver-elephants-sunawayo-drills-3-meters-of-421gt

Pucara Gold Provides Corporate Update and Highlights 2021 Work Program

https://ceo.ca/@newswire/pucara-gold-provides-corporate-update-and-highlights

Santacruz Announces Upsizing of Previously Announced Private Placement to CDN$14.1 Million With A Lead Order From Palisades Goldcorp

https://ceo.ca/@newsfile/santacruz-announces-upsizing-of-previously-announced-13238

re rates….the 5 yr is up 10 % o/n, against ‘only’ 6 % in the 10’s….but the scum are keeping Au and Ag well down…..check Palladium, it’s going straight up…2300 to 2700 in 7 trading days…makes some of the Faangs look tame !!!

This is the sort of move we should be seeing……

They either get you the day of, or the day after a Fed meeting.

But this is all about the 10 yr. and rates exploding. The Fed better start getting on top of that pretty soon as it’s up 10 bps this am.

No way the SM survives rising rates either. JMHO

We have yet to go on Summer time, so when scum attack at 8 am, becomes 7 am and bang on time Gold gets hit for $16 ….

and of course the Dollar caught a bid at the same time……Seems the Fed is relying more and more on the Rig.

The Budd designed ‘Rail Diesel Car’, or RDC,
was a self propelled passenger car. The top hump contains
a small diesel engine and generator set to
power the electric motor axles.
https://railpictures.net/photo/750292/

Maybe it will go “Bitcoin” ?  🙂

One day bars 3 month views:

https://finviz.com/futures_charts.ashx?t=METALS&p=d1

I think we’re all in gear now that the Fed has made his splash. We’ve seen this so many times, a relief rally. This rally hopefully will go on for at least a month or two, hell its been a two month leg down.

One month bars 5 year views:

https://finviz.com/futures_charts.ashx?t=METALS&p=m1

G and S catching a bid this evening.

I would post a chart but I usually just make a mess of that. LOL

MG

Excellent macro charts from Tavi. @TaviCosta

1. Fed is being forced to buy more Treasuries. pic.twitter.com/FuixkP9ef5

— Lawrence Lepard, "fix the money, fix the world" (@LawrenceLepard) March 17, 2021

Amazing to see all of the PM’s acted the same way ( Gold as well). Topped out and then dribbled slowly down in the last hour or so.

Gold should have been up at least $100 today…..

Meanwhile the termites/Redditts are eating away at the Silver shorts foundations….. 24/7.

I’m a bit surprised by the action in pm’s. Hopefully it lasts more than just today.

Inflation coming, rates staying low until they don’t?

Will they get us tomorrow instead?

“Prices for hot-rolled coil U.S. steel continued to soar in recent weeks, hitting a one-year high, amid strong manufacturing activity data in China and the U.S in October. Steel traded at USD 711 per metric ton on 6 November, which was up 12.7% from the same day in the prior month. Moreover, the price was 20.9% higher on a year-to-date basis and was up 44.5% from the same day in 2019.”

Note Hot rolled is crap compared tp cold rolled. Must have been at least 30-35 years ago fabricator sheet metal shops were paying .20 cents a pound DELIVERED!!! That’s $400/ton. If minimum wage lowly steel keeps going up, it will push up all other better metals re pecking order. Anything priced that far back should be 15 to 20 X more today. So .20 cents/lb should be $3/lb today, or $6,000/ton. Copper, Nickel, Stainless etc should fly off the charts.

Basically I think during Trump they realize for national security its not good to import from other countries.

Look what they have been doing. The Entitlements look like chump change. today, not a word about this.

Remember the old Oil news?? Consumption would out strip production, and it would be the end of the world. They even had a book.

“Twilight in the Desert reveals a Saudi oil and production industry that could soon approach a serious, irreversible decline. In this exhaustively researched book, veteran oil industry analyst Matthew Simmons draws on his three-plus decades of insider experience and more than 200 independently produced reports about Saudi petroleum resources and production operations. He uncovers a story about Saudi Arabia’s troubled oil industry, not to mention its political and societal instability, It’s a story that is provocative and disturbing, based on undeniable facts, ” Ha Ha Ha 🙂

Note the future is always a surprise to the masses and the Media.

Can you guys remember any other nonsense Media predictions from long ago? Lets make a collection and mail it to the Media.

Yep and inflation will continue to get worse …

Seems to be a shortage of patriots running our country and a surplus of corrupt self servers.

No change by the Fed says they are very confident, the Rig will continue to work…..that’s a very big call.

Oh yeah and all those recent NEM buyers are sitting pretty…..running the Fed, beats insider dealing every time, just ask GS.

When the Perth Mint says it may take a year to get the bars for an allocated Silver account, u know it’s damn tight….Sprott has said he is going to issue upto another 3 billion shares of PSLV….u can bet he will heavily publicise any delays, he finds in getting the Silver….

Neil Dutta at Renaissance Macro sums up today’s nothingburger from The Fed:

“Passive easing continues. GDP has been revised up. Inflation has been revised up. Unemployment revised down. Despite all this, the median dot still at zero through 2023 though a few more see a hike. Chair Powell probably has time to help these folks understand the new policy framework.”

https://www.zerohedge.com/markets/fomc-statement-confirms-nothing-will-change-rates-policy-through-2023