Nugget News August
30 Day Market Moves
Silver $39.53 (- 4.38%)
Gold $3387.75 (+ 4.36%)
Bullion Outlook...Our Canadian dollar and your buying power fell another 2% this month to the US dollar. Gold continues to trade well above $3,300 per ounce following weeks of major news headlines in the United States. Silver fell back below $40 last week and is currently trading at $39. Meanwhile, financial markets appear increasingly on edge, as traders and market watchers brace for corporate earnings reports that may disappoint. Last week, both Tesla and Google released poor numbers, and the general stock market is responding.
- The Federal Reserve held interest rates steady yesterday but opened the door to reducing borrowing costs as soon as its next meeting in September as inflation continues coming into line with the U.S. central bank's 2% target.
Gold, Not Dollar...Best Trump Card.. Gold is the best portfolio hedge in the event Donald Trump retakes the White House, according to the latest Bloomberg Markets Live Pulse survey. Trump’s platform of tax cuts, tariffs and weaker regulation is viewed as inflationary on Wall Street and could even force the Federal Reserve to increase interest rates again. A red wave in November that ushers in Republican control of Congress, granting Trump greater leeway in enacting sweeping economic policies, could further ignite the precious metal as prices hover near all-time highs.
-History is on their side. A Bloomberg gauge of the dollar slid more than 10 per cent while the spot price of gold rallied over 50 per cent during Trump’s four years in office.
Suppressing Silver Prices...Why anyone would invest in silver or the other precious and monetary metals with JPMorgan Chase can be explained only by ignorance. In the last decade, the bank has pleaded guilty to five felonies and has paid more than a billion dollars in government fines and civil lawsuit settlements, including a fine of $920 million for manipulation of the monetary metals markets by some of its traders. JPMorganChase Bank long has been a primary dealer in U.S. government securities and has been particularly close to the U.S. Treasury Department, so when SLV was launched in 2006 and the bank became custodian of the fund's silver, suspicion of government involvement with the bank and the ETF was fairly aroused. The bank now is also the custodian of the metal of the major gold ETF, GLD, prompting more fair suspicion.
-The Gold Reserve Act of 1934 authorizes the U.S. Treasury Department, through its Exchange Stabilization Fund, to intervene secretly in any market in the world.
India Slashes Gold Import Tax...This month, India slashed its import tax on gold and silver, a move that could further boost demand for both precious metals in the world’s second-biggest gold market and support higher prices globally. Government officials hope that lowering the import duty will put a damper on rampant gold smuggling.
-The move will cut taxes on gold and silver imports by more than half, lowering duties from 15 percent to 6 percent.
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