SD Bullion Blog

We start this week with some highlights from a current billionaire bond king, Scott Minerd recorded this past Monday, October 19th, 2020. In an hour-long discussion courtesy of bond and investment house Guggenheim Partners, entitled, "The Long Road to Recovery".

Ever since humans discovered gold, it has been the most sought-after metal on Earth. It adorned the most precious possessions of ancient Egyptians, coated the currency of many cultures, and inspired multiple gold rushes throughout North America in the 19th and 20th centuries.

While we’re accustomed to seeing gold jewelry and other gold-encrusted artifacts, many of us don’t really know what gold looks like in bars or its natural form of nuggets and flakes. For example, the gold price per ounce is roughly $1900, but what does an ounce of gold look like?

It sure looks like "market participants", that is, stock market traders and investors, are getting anxious over the next round of so-called fiscal "stimulus".

When the week began on Monday, the mainstream financial press was reporting that House Speaker Nancy Pelosi had set a hard deadline of Tuesday to come to an agreement between the House, the Senate, and the Trump Administration in order to pass a stimulus bill prior to the election on November 3, but that deadline obviously came and passed to no avail. Today, Wednesday, October 21, 2020, the mainstream financial press is reporting that the Tuesday deadline has been extended, big time....

Before the last major financial crisis, supranational banking institutions such as the IMF or the World Bank often release general forewarnings about the deleveraging and bankruptcy events about to hit the fan.

Trading has been choppy with precious metals neither really breaking out nor breaking down.

What's changed over the last week?

It's more like what hasn't changed!

In no particular order, we see the fundamental drivers of the market are in the same state of suspended animation as last week:

• Ongoing stimulus talks stalemate
• Biden and Trump supporters fully entrenched and confident in their own side
• No real surprises in the ACB Supreme Court confirmation hearings
• Coronavirus is not really surging and not really waning

So as we can see, in my opinion, right now, gold bullion & silver bullion...

Be it before this 2020 US election or in the perhaps the turbulent months that follow. 

One way or another, more ∞QE and stimulus are coming to further ramp silver prices and gold prices.

To begin this week, take a look at that second headline illustrated here, which states, "The Dow is now positive for 2020".

To say the last week has been odd for the markets is perhaps the understatement of 2020, and that's saying a lot because, well, it's 2020.

Last Friday, in the early morning hours, President Trump informed the public that he and the First Lady tested positive for Covid-19, and on Friday evening, it was reported that President Trump went to Walter Reed (military hospital) where he could be isolated and yet continue to work, all the while being monitored by top doctors. On Monday, October 5, President Trump returned to the White House from the medical center saying that he felt better than he did 20 years ago.

Why does this matter for the markets?

How many times have you been watching a movie when suddenly someone starts running around carrying some gold bars? If you're anything like me, you begin wondering how these people can

Shocking news last night, we learned that US President Trump and his wife Melania have tested positive for Covid-19.

Today, “Out of an abundance of caution, and at the recommendation of his physician and medical experts, the president will be working from the presidential offices at Walter Reed Military Medical Center for the next few days,” Press Secretary Kayleigh McEnany said in a statement today. 

Many of the technical analysts are looking at the gold & silver charts and calling it a "dead cat bounce". A dead cat bounce on the charts happens when the price of whatever it is you're looking at is falling, and then after falling for some time, price rises somewhat, only to begin falling again.

For example, here's silver's daily chart