Silver and gold prices were flat to slightly down for the week.
The silver spot price is closing the week down a few cents at around $14.64 oz while the gold spot price is ending at $1,240 US dollars per troy ounce. Ten dollars less per ounce than last week's closing price.
Concerning some recent discussions on our show, the palladium spot price is closing this week higher than gold's spot price at $1,251 per troy ounce.
The last time in palladium price history, Pd prices were higher than gold was from the year 2000 to the year 2002, during the Russian palladium supply, short squeeze. That episode saw the then palladium price high reach 4Xs the then spot price of gold.
And given some of the points we discuss with our guest this week regarding increased US protectionist trade policies and US treasury sanctions... current and future palladium supply disruptions are not out of the realm of possibility.
As it stands right now, the palladium market is currently in backwardation.
We'll keep an eye on palladium spot price movements to come.
As for this week, we have a new guest on the show who has first hand experience both in intervening and quelling currency crisis throughout his career.
Welcome to this week's Metals & Markets wrap. I am your host James Anderson of SD Bullion.
With us this week a new guest, he is... Steve H. Hanke, a Professor of Applied Economics and Co-Director of The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
Steve Hanke served on President Reagan’s Council of Economic Advisers, he has also been an adviser to 5 foreign heads of state and 5 foreign cabinet ministers, and held a cabinet-level rank in both Lithuania and Montenegro.
Professor Hanke is also a columnist at Forbes Magazine, a well-known currency reformer, and a currency and commodity trader.
Professor Steve Hanke, welcome to the show.
Professor, I have watching your twitter account ( @steve_hanke ) for some time now. I know you have deep knowledge of both currency and financial markets.
I would like to start off with a tweet you made yesterday regarding growing US federal government spending and widening deficits.
Government spending is out of control. If we don't reign it in significantly, BIG problems loom ahead. https://t.co/imns7g78t5
We also have unfunded liabilities and underfunded pension funds out there. Some estimate the latter issues to be way higher, many multiples of the growing US Federal debt ( to tune of $210 trillion USD in net present value total).
When we look down the road, when governments historically get to debt levels like this, their options boil down to either A) default, B) debase their currency, or C) mix of both debt defaults and currency debasements.
Do you see a high chance of us devaluing the US dollar sharply?
As many have, I've been watching the Federal government's involvement with Student Loans,
I believe they got into the business around the mid 1990s. If you look at the exploding prices of college tuition over the last few decades, there is a strong correlation between higher education costs and growing student loan figures.
I suppose you see a lot of similarities between growing college tuitions and the Federal governments involvement in the health care system.
I'd like to swing this conversation back to the US dollar if I could.
Before this call, I listened to your recent interview on Global Macro Voices and in that discussion you spoke about how the US dollar remains the dominate reserve currency.
But you also mentioned your concern about our growing use of protectionist trade policies and increasing dependency on US Treasury sanctions.
Don't these policies increasingly encourage our trading partners to begin looking for other potential payment options other than the dollar?
A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.
Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades.