It must be rotten being a central banker. Everything threatens always to blow apart.
In the US the student loan bubble is starting to burst. US's largest bank, J.P. Morgan Chase has notified colleges that they will stop making new student loans in October. Sort of like the subprime shutdown in 2007.
As if that weren't bad enough, poor old Super Mario Draghi, ECB head criminal, has found that Samson's weapon no longer works on European banks to suppress interest rates. Mario has threatened & blustered & promised to keep rates low, but banks have the interest rate back where it was when he started. All the jawboning and keeping the interbank rate low, well, tain't working.
Tomorrow I am leaving for a week's vacation with my family so I won't be publishing another commentary until 16 September, unless something really excites me.
Silver & gold are correcting, but looking back a week haven't lost much of their gains. Stocks have turned up -- maybe. Dollar index has gained ground, while platinum & palladium have been whipped with barbed wire.
Stocks today nearly reached the limit of this little rally off the bottom, namely, their short term downtrend line. This hits the Dow about 15,000 & the S&P500 around 1,665. They'll likely hit that line and react back a little, but for right now, and barring closes below 1627 & 14,760, should continue to one last peak before they dive into the abyss later this year.
Dow in metals are both correcting, reaching up after their long plunge toward the 20 or 50 day moving averages, then to dive again.
Dow in gold jumped up 1.3% to 10.879 oz (G$224.88 gold dollars). Long term downtrend today lies beneath about 10.50 oz. Dow in silver rose 0.7% or 4.77 oz to close 643.69 ounces. Long term downtrend line today stands about 610 oz. After throwing over the long term downtrend lines in May, both are now sinking beneath it again. Not surprising they should need two tries to crack that wall.
US dollar index has climbed out of danger of revisiting 79 any time soon. Closed today up 0.62% or 47.9 basis points at 82.643 -- above its 20 & 50 DMAs, so momentum is upward.
Euro & yen both look like they've been sipping strychnine. Yen closed at 99.89 cents/Y100, down 0.36% and falling toward -- well, wherever the Japanese Nice Government Men decide it ought to fall toward. They are so NICE -- not too bright, but nice. All NGM world over SMILE as they hold a gun to your head.
Euro has buckled on its concrete overshoes and jumped off the Brooklyn Bridge. Closed at $1,3118 today, down 0.66% and below its $1.3139 200 DMA. Can anybody say "targeting $1.2800"?
More bad news for Ben the Bloviator & Chief Criminal at the Fed: Ten year treasury note yield today hit a new high for the move, 2.979, up 2.83% today. O Zero Interest Rate Policy, where art thou?
Y'all listen now, this is not a joke. If the bond bubble Ben blew up with his stupid ZIRP bursts, O, mercy! Many will be ruined.
Silver & gold slowed their speed of descent today. Silver dropped 16.3 cents (0.7%) to 2320.6c. Gold lost another 1.2% or $16.80 to $1,373.10.
For now I'm assuming silver and gold are correcting only their strong rally from early August, and once this is finished, will continue rallying toward $1,550 and 2700c before a larger degree rally sets in.
Gold's rise from $1,271.80 to $1,434 equals $162.20. Today's gold low at $1,366.73 corrects 41.5% of that rise. Yep, enough to satisfy but a 50% correction would take it to $1,352.90.
Silver rose from 1910c to 2512c or 602c (whoa! 31.5% off that low). Today's 2316c low corrects 32.6% of that rise, which might satisfy a correction. However, a 50% correction would reach 2211c. More likely in my eyes would be 2255c.
If silver or gold close below $1,340 and 2200c, I'd have to re-think it all. Otherwise, I'll stick with that outlook.
Right -- this correction offers you yet another chance to buy silver & gold on the cheap. Better grab it. I believe that the last low of the 2011 - 2013 correction fell on 27 June, & that the 2011-2013 correction was analogous to the 1974-1976 correction. From those lows gold gained 850% and silver 1,250%.
Right nearly takes your breath away, don't it?
On 5 September 1698 Russia's Peter the Great imposed a tax on beards. It was part of his attempt to break Russian tradition & the strength of the Boyars or nobles and westernize Russia. Unhappily, we don't know how Russia might have developed if Peter had just left their beards alone. Hairy, but happy, maybe.
On 5 September 1793 during the French revolution the Reign of Terror began when the National Convention enacted measures to repress counterrevolutionaries. The revolution always devours her own children.
On 5 September 1836 Sam Houston was elected the first president of the Republic of Texas. Y'all do remember that Sam Houston was from Tennessee, right?
On 5 September 1877 Sioux Chief Crazy Horse who a year earlier had defeated yankee General George Customer and 24 others at Little Bighorn, was bayoneted in a jail cell by a US soldier.
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If you already have a precious metals IRA and aren't satisfied with your present custodian, transfer it to New Direction. Tell them The Moneychanger sent you.
Y'all enjoy your weekend!
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger