Good Day… And a Tom Terrific Tuesday to you! Today is Veteran’s Day… A very important day in our country, not as important as it should be, but very important nonetheless… Make sure you acknowledge a Veteran especially today and thank them for their service. My dad was a veteran of WWII… I’ve always held that fact in high regard and thought so much of my dad… The Goo Goo Dolls greet me this morning with their song: Iris
I have to apologize for the tardiness of the letter today… right, smack dab, in the middle of writing, I had a stomach problem… So, an hour after dealing with that I feel like I can sit here and write again… UGH!
Well, what a day for Gold & Silver yesterday… All the participants of the New Orleans Conference must have heard the folks at Battle Bank talk about Gold and went home and bought some! Gold gained $118 yesterday and closed at $4,117 and Silver gained $2.34 and closed the day at $50.56… No SPTs dared to get into that buying frenzy of physical Gold and ETFs…
And, in keeping with my promise to Frank Trotter, I’m going to attempt to remember to put more ads inside the Pfennig… here’s today’s:
“Gold in your IRA? Yes please. Battle Bank will make it easy to diversify your retirement with metals that actually hold value. Because your future deserves more than paper promises.” You can find Battle Bank here: www.battlebank.com
Chuck again… yes, this letter has been ad free from the get-go, but times change, and so do I… What do you do? And one thing I want to add here is that my old metals Guru at EverBank has moved to Battle Bank to run the currencies and metals desk, and you can’t get a more knowledgeable metals person than Tim Smith… So, get on their waitlist, and when the green light is shown that accounts can be moved or opened, then you’re in!
It didn’t hurt the metals rise yesterday that the dollar was getting sold… In the morning the BBDXY was down 4 index points, and ended the day down 5 index points at 1,218… The currencies got out of their respective sick beds, and walked down the hall and back… I’ve been in the hospital so many times that I know what they get you to do, once you feel better…
The price of Oil remained trading with a $59 handle… And the 10-year Treasury’s yield rose a bit to 4.12%… Bonds are getting sold due to the fact that a TON of new issued bonds will be auctioned off this week… I went down this rabbit hole on this yesterday, so if you missed it simply go to www.dailypfennig.com and read it yesterday’s Pfennig there…
In the overnight markets… The dollar got sold some more, not much, but the selling continued… The BBDXY starts today at 1,217… The rate the dollar is getting sold is slow, sloth-like, but it’s selling… Gold and Silver are adding to their monstrous gains yesterday this morning. Gold is up $17 and Silver is up 63-cents and is trading over the $51 handle…
The price of Oil has bumped higher to trade with a $60 handle, and the bond boys are on holiday today, so the 10-year is 4.12%…
Well, did you hear the POTUS say, “Our energy costs are way down. Our groceries are way down. Everything is way down. And the press doesn’t report it.”
Well, I don’t know who his shopper is and what bag-o-lies they’re telling him when they come back to the White House with a bag of groceries, but that all that is one big fat statement, that is wrong! inflation is rising, as money supply continues to grow, and when you used to go to the grocery store and come out with 2 bags of groceries, and now you come out with just one plastic bag… You and I know that inflation is a real problem…
But remember when I told you that inflation doesn’t bother the rich folks? Well, I guess that plays well here…
OK… Well, I have another thing that will show that inflation is real here… Two years ago, my spring Training season tickets were “x”… And this year they’ve risen by $400!!! So, I know not everyone gets season tickets for Spring Training, but it was just an illustration of how inflation affects everyone differently…
So, interest rates should be rising to squelch the rising inflation, right? Well, this diddling of interest rates and cutting them when they should be hiking them, is really causing some problems…
In the Sunday Bonner’s Private Research letter, Dan Denning did the honor of writing the edition, and in it he highlighted an essay by Joe Withrow… I don’t have the time or space to put the whole thing here, so I’ll just cut it down in my own words… The cutting of interest rates to zero and Bernanke’s ZIRP (zero interest rate policy) caused housing prices to rise so much that the middle class can’t afford to buy a house these days… How did that happen? Well, easy credit allowed Big Corporations (i.e. Blackrock) to buy tons of houses and drive the prices higher… Now, they own all the houses that were for sale, and if you want to buy one, buck up, and pay the Corporation for the house…
The Fed Heads and the FOMC shouldn’t be responsible for interest rate management, but they are and they have caused a major faux pas in housing…
Any questions?
The Gov’t Shutdown has ended… I know, this could’ve been the headline story, but… I didn’t want to give the knuckleheads in Congress any undue glory… This means, hopefully, that I can fly home on Wednesday without wondering if my flights will get cancelled! It also means that all the folks on welfare, I think they refer to the payments these days as SNAP, will return to seeing checks in the mail to them or balances added to their debit card… I wish there was a real audit of the program, and a weeding out of all the folks that don’t require the payments… But then I’m swinging on a Star and carrying moon beams home in a jar…. and no, I would not rather be a mule!
All the old timers that read the letter will probably have that song in their heads all day today now… Sorry…
On a sidebar, when I was a very young man, I heard that song and went around singing it all the time because I liked it! I grew out of that phase of my childhood, but have always recalled the song… Of course, I didn’t know all the lyrics, just the first verse…
Did you also hear that the POTUS announced that he would like to see a 50-year mortgage? 50-years? Aye, aye, aye…. He says that this mortgage will make buying a house cheaper… BUZZ! All that mortgage will do is make the monthly payments lower, so they don’t use up so much of the buyer’s monthly expenses… it will make your ability to get equity in your home almost impossible, or it will take many years before that comes about! I just don’t think this will be housing’s savior!
The U.S. Data Cupboard this week, has nothing but Fed Heads speaking until Friday when the STUPID CPI will print… At least that’s what I’m thinking with the Gov’t Shutdown over, that the data reports will begin to come through, at least by Friday!
To recap… It was a day for the metals… Gold was up $118, and Silver was up $2.34, and the SPTs were nowhere to be found. Good! The day was not the dollar’s day and saw 5 index points shaved off the BBDXY… We’re being told that grocery prices are not rising… And that a 50-year Mortgage will make houses cheaper… Chuck goes through the incorrectness of these statements…
For What It’s Worth… The good Folks at GATA sent me this link to an article by Jesse Columbo that I found to be FWIW worthy, regarding Gold… And it can be found here: Why Gold’s Bull Market Is Still Young – by Jesse Colombo
Or, here’s your snippet:” I’m a big fan of finding and using unique ways to value assets to determine whether they are cheap or not. In the case of precious metals and other commodities, this isn’t as straightforward as it is with assets like stocks, bonds, or real estate, where you can use simple metrics such as price-to-earnings or price-to-book value ratios.
This means we need to get creative and make comparisons to other important assets or economic data. The absolute price of an asset does not determine whether it is overvalued or undervalued. For example, there have been times, like in 1980, when gold at $800 was very expensive, and other times, such as in 2020, when gold at $1,600 was a bargain.
That’s why it helps to compare precious metals to meaningful yardsticks. In this report, I’m going to share five specific yardsticks: U.S. dollars, U.S. inflation, M2 money supply, the Dow, and the national debt, and use them to make the case that gold’s current bull market is still very young, relative to the last secular bull markets in the 1970s and 2000s, and has many more years ahead of it. While this report focuses solely on gold, I plan to publish a similar one on silver soon.
For the purposes of the exercises in this report, the dates I’m using for the two prior secular gold bull markets are August 1970 to January 1980 for the 1970s bull market, and April 2001 to September 2011 for the 2000s bull market. These timeframes are widely accepted as the official start and end points of those respective bull markets.
As for the current secular gold bull market, while there is some subjectivity and debate around when it began, I’m using October 2022 as the starting point. I believe this is well justified based on where gold bottomed, both in dollar terms and relative to the other four yardsticks used in this report. This can be clearly seen in the charts I’ve included.
I also believe that, while October 2022 marked the bottom and the start of the new secular bull market, it was in March 2024 that it truly gained momentum and vibrancy. I plan to write another piece soon to explore that nuance and distinction, but for the purposes of this report, I’ll use October 2022 as the starting point.”
Chuck Again… Mr. Columbo goes through his illustrations of times that shows that Gold is just beginning its next phase.. So, click on the link and read away!
Market Prices 11/11/2025: American Style: A$ .6532, kiwi .5664, C$ .7136, euro 1.1597, sterling 1.3136, Swiss $1.2506, European Style: rand 17.1560, krone 10.0594, SEK 9.6192, forint 332.72, zloty 3.6460, koruna 20.9235, RUB 80.95, yen 153.87, sing 1.3003, HKD 7.7723, INR 88.06, China 7.1170, peso 18.36, BRL 5.2734, BBDXY 1,217, Dollar Index 99.34, Oil $60.70, 10-year 4.12%, Silver $51.07, Platinum $1,593.00, Palladium $1,460.00, Copper $5.09, and Gold… $4,134
That’s it for today… I made it to the finish line! It’s Veteran’s Day! And my time here down South comes to an end tomorrow… It was a great relaxing break for me, away from the cold spell of a couple of days that St. Louis suffered… I’m going back home alone, and will be all by myself at home for the next week… This will be the first time I’ve traveled by myself since I was back at EverBank and traveling to speak… Those were the days… But they are in the past now, and I move on… Wilson Pickett takes us to the finish line today with his song: 634-5789… I hope you have a Tom Terrific Tuesday today, and Please Be Good To Yourself!
Chuck Butler