Today’s precious metals news contains a large amount of economic analysis—government stimulus (or lack thereof), a Q3 review of metal and crypto prices, mining stocks, and we even found a quality video on hyperinflation—just how likely is it for hyperinflation to hit the U.S.? The video explains…Lots to look at for investors as we head to the finish line of 2020.

Let’s dig in…

Economy
Fed Chairman Warns of “Weak Recovery” If More COVID-19 Relief is Not Delivered

The U.S. economy needs help getting through its economic recovery, but the Federal Reserve has been frustrated by the inability of Congress and the White House to do more. Pretty much every member of the monetary policy-setting Federal Open Market Committee is on the record as agreeing that more policy support is needed from Capitol Hill. Richmond Fed President Thomas Barkin said Aug. 3 that a lack of a relief package would be a “pretty traumatic move” for the economy. For his part, Powell has walked a tightrope with his language on fiscal policy, urging action while at the same time emphasizing the central bank’s independence. But Powell said Tuesday that policymakers should be more afraid of offering…

Commentary
As Next Fed Meeting Closes In—Precious Metals Fluctuate

The gold futures contract gained 0.66% on Monday, as it continued to fluctuate following the recent advance. Recently gold was retracing a rally from around $1,800 to August 7 record high of $2,089.20 in reaction to U.S. dollar advance, among other factors. Then gold has bounced from the support level marked by mid-August local low of around $1,875, as we can see on the daily chart (the chart includes today’s intraday data):

SEE CHART

Price
Precious Metals & Cryptocurrencies: A Q3 2020 Review

The precious metals sector of the commodities market posted a gain over the third quarter of 2020, with all members of the sector posting impressive gains. The sector has moved over 17% higher over the first nine months of 2020

The composite of the four precious metals that trade on the COMEX and NYMEX divisions of the CME dropped by 5.44% in Q1 2020. In Q2, it gained 11.52%. In Q3, it vaulted 14.30% to the upside and was 17.46% higher over the first nine months of this year.

In Q1, the outbreak of coronavirus and the upcoming US election caused volatility in markets across all asset classes. During the final week of February, risk-off conditions caused central banks around the world to ease, which continued to support the price of gold. In March, the US central bank lowered the Fed Funds rate to zero percent and launched bazookas of liquidity in the form of quantitative easing into the financial system. Throughout Q2, the Fed unleashed an unprecedented quantitative easing program that included both government and corporate debt issues. The US Treasury borrowed…

Latest News
County Requires Permit for Buyers, Dealers of Precious Metals

Buyers and dealers of precious metals in Bladen County, NC must obtain a permit from the Sheriff’s Office, a release says.

Stock Market
BMO Keeps Top Precious Metals Miners in Their Portfolio

Metals companies have been on the rise this year as the pandemic has taken its toll on the dollar and investors flocked to precious metals. According to one Canadian Bank, some of the largest gold producers have seen some significant increases in their stock value with this rise. BMO, in their latest client update, still recommend holding the likes of Agnico Eagle, Barrick, Endeavor Mining, Equinox Gold, Newmont, Pan American Silver, SSR Mining, Torex Gold, and Wesdome Gold Mines. The bank’s mining analysts continue to recommend holding senior producers as they maintain their current guidance on the gold and silver price. In the report, the bank stated that they see gold prices averaging above $1,800 an ounce through 2023. The bank said that silver was the better pick. They saw the prices for the... READ MORE

Economy
Hyperinflation: Will Its Ugly Face Pop Up Soon? [VIDEO]

On the “Economics Explained” YouTube channel, a recent video covered the topic of hyperinflation. Inflation is something we more or less take for granted these days. The idea that 5 dollars today is not going to be able to buy 5 dollars worth of stuff in the future, and the fact that you used to be able to buy a family home for 10 grand, are all the result of inflation. The idea that over time money becomes worthless and less influences a lot of decisions in out lives. Everything from retirement planning to salary negotiations take this relatively benign and constant force into account. But it is something that should be feared. Hyperinflation is where this slow but steady force explodes and renders money all but useless. Since the money printers fired up in early 2020 the US has added over three trillion dollars to is m2 money supply. That’s more than a 20% increase in the total amount of money washing around in the economy in the space of around 6 months. What’s more is that 3 trillion dollars is coming close to doubling the amount of cash in active circulation, that is the pool of cash which is actively out there been spent on good and services rather than sitting dormant in bank accounts or term deposits. When you consider that hyperinflation is classed as a 50% increase in general prices per month it is reasonable to expect that this printing bonanza may be starting to push into dangerous territories. Or is it? Is hyperinflation actually something to be concerned about, in a developed nation like the USA? Or are all of these cautionary tales simply a ploy to try and get people to buy gold coins at 50% over their base value. Well to answer this we of course as always need to loot at a few key details and answer a few key questions. WATCH VIDEO

Thanks,
Gold Silver Central