Market Updates

This week, the London Bullion Market Association renounced what it claims was a data entry error. After the group falsely reported a dramatic escalation from February to March 2021, of the supposed silver being held amongst the large ETF custodian bullion banks in London. The second half of this year for precious metals is lining up to be very memorable and potentially historic. 

It sure seems like things are moving fast these days. That is to say, these are not just challenging times on Main Street or on Wall Street, but rather, these are times when the fundamentals are rapidly changing, and sooner or later, the fundamentals will have to matter. Therefore, now is a good time to review some of the fundamentals...

The markets and the economy are not in the clear just yet. One may be looking forward to the economic “recovery”, but all signs point to continued challenges, difficulties, and struggles.

In a big picture, macro sense, pretty much all of the news is bad. From ongoing supply chain disruptions affecting everything from commodities production and complex manufacturing to worsening geopolitical relations. The state of our disunion is strong.

And it’s becoming problematic for the so-called “recovery”...

There will come a time when the additional stimulus does more harm than good if it can be argued that the stimulus does any good at all. Worse yet, there will come a time when additional stimulus only does harm.

Casting sanctions, geo-politics, and myriad complexities aside, if we need a real-time example of how too much stimulus is actually a bad thing, we can look no further to Venezuela and see that within just this last week, a brand-spankin' new, $1,000,000 Venezuelan Bolivar Bank Note is being printed up and rolled out by the Venezuelan Government.

For another week, the overall markets are in search of a general direction. The equities markets don’t know if they want to crash or if they want to rally, gold & silver continue to correct, and now, the commodities, in general, are experiencing pullbacks after spectacular runs higher.

Amid this backdrop of market noise, there are two fundamental forces to consider that will have a major influence over the direction of the US economy: The reopenings and the upcoming stimulus