He’s Baaaacccckkkk!

  • The dollar doesn’t get sold while Chuck was away…
  • Inflation is higher than the Gov’t says it is… Go figure!

Good Day… And a Tom Terrific Tuesday to you! Well, I’m back! Many did I have a great time on vacation with my spring training buddies… We attended 5 games, went out to dinner, I even cooked a shrimp dinner for them! All-in-all, a very good time was had indeed! Now, it’s back to the old sawmill, of writing… My good friend, Dewey asked me the other day if “I missed writing the Pfennig”?  My quick reply was… “no”!  But I did miss some days when I had something to say and no one to say it to! Player greets me this morning with their song: Baby Come Back! 

Well, the last two days of trading in Gold sure have been what we’ve been waiting for, and apparently without intervention… Gold gained $38 last Friday, and $33 more yesterday… Is this the breakout that a lot of people have been talking about? Could be… But then the wolf is always at the door, folks… Silver was also getting bought, and on Friday last week it gained 47-cents, and 72-cents yesterday… Gold closed yesterday at $2,117.00, and Silver closed at $23.94…  Where have all the short traders gone? Long time passing…  I sure hope that song rings true! 

The dollar has been asea for days now… Yesterday, the dollar lost almost 1 index point, and ended the day at 1,241… Which was just about where it was left on vacay. (1,239)… So, it just shows to go ya, that the metals don’t necessarily need for the dollar to be weak for them to rally… The euro has been stuck in the mud with a 1.08 handle, and the rest of the currencies have followed the Big Dog’s lead… Which is to say they haven’t moved much either! 

After reaching $80 in price for Oil, the price gave up some profit taking yesterday, and Oil fell almost $2, to end the day trading with a $78 handle… And looky there! looky there! The rest of the world’s economists and traders have finally thrown in the towel that was their call that the Fed Heads would be cutting interest rates soon… That item has been put to bed, finally, and bonds have reacted accordingly… The 10-years’s yield ended yesterday at 4.21%… The 30-year mortgage rate is above 7% again, as the whole euphoria of a rate cut has been thrown out the window with the bath water. 

In the overnight markets last night…  Well, Chuck is back, so the dollar got bought… The BBDXY gained 1 index point overnight, and starts the day with a 1,242 level…  The currencies, as a whole, have really wandered and roamed around since I left… Even the Petrol Currencies, haven’t taken off with the price of Oil rising, and I find that somewhat strange… The only currency worthy of mention here is the Mexican peso, which is trading below 17 as I write this morning… High internal interest rates, and a strong price of Oil has really pushed the peso higher VS the dollar. 

Gold is up $8 in the early trading today… And Silver is up 20-cents to $24.01…  I saw a quote from a guy that I highly respect, Jess Felder, who had this to say about Gold… ““Gold is forming consistent bullish flag patterns. The price spikes higher, consolidates for a period and then we see another price spike higher. Gold has been looking to break higher for a while now. From a purely technical standpoint, it looks to me like there’s a projected target of a couple hundred dollars higher for gold in the short term, but longer term, we’re looking at $2,700, $2800, perhaps over the next year or two. Technically, gold just looks very, very good.” 

Chuck again… I found that on Kitco.com…  I’ve always contended that when the technicals and the physical come together you have a very bullish market… And that’s what seems to be going on with Gold right now… And what’s good for Gold is also good for Silver, of which will outperform Gold on a percentage basis as we go forward… 

I read a headline story on Forbes yesterday, that basically said what I’ve been saying for years! That if CPI was calculated the way it should be, inflation would be running more than 8%!   And that’s why the American consumer is tapped out, in my opinion…  Of course I’m not talking about my wife in the American Consumer talk, you should see all the deliveries that were sent here while she was gone! But I found it quite amusing, to me that is, that it took someone at a major media outlet to catch on to what I’ve been saying about the Stupid CPI for years, just now… 

And here was the headline story on Fortune’s website that is subscriber based, so all I could pull was the headline: “Hotshot Wharton professor sees $34 trillion debt triggering 2025 meltdown as mortgage rates spike above 7%: ‘It could derail the next administration”

Chuck again… WOW! now someone is taking a look at the debt and saying something about it that I’ve said would happen years ago, if we continued to add to the debt! 

The U.S. Data Cupboard today has the Jan Factory Orders, which I suspect will show a negative print…  Industrial Production, and the ISM manufacturing Index were all very disappointing  when they printed, so why would Factory Orders be any different? I’m just saying…  It’s slim pickins’ for the U.S. Data Cupboard this week, until we get to to Friday’s Jobs Jamboree…  When more lies, and bad figures will dominate once again… 

To recap… The markets basically wallowed around in the mud while Chuck was gone… We start back up with the dollar and currencies trading around the levels they were when he left for vacation. Gold & Silver have found new strength, and have rallied to levels that have people noticing once again..  Jess Felder thinks that the markets in these metals has just begun…  Inflation if counted correctly would be more than 8%… Now doesn’t that feel about right? I’m just saying…  

For What It’s Worth… This came to me from the good folks at GATA… They’ve been telling everyone in Washington, and the rest of the word for years about the manipulation of Gold & Silver to deaf ears…  But this article isn’t about that, it’s more about  what I’ve been saying for years, and that is Gold is a store of wealth… The article can be found here: The CFTC’s Response | SilverSeek

Or, here’s your snippet: “For investors caught up in the buzz of identifying the next technology stock set to skyrocket, putting money in gold might seem an old fashioned, conservative idea.

Yet the precious metal has recently fetched record prices, and some analysts say market forces mean there is plenty to like about its long term outlook.

Bell Potter Securities resources analyst David Coates is among them, explaining to novice investors the merits of having gold in a portfolio.

“The main reason to have exposure to gold is it’s a long term store of value. I wouldn’t necessarily recommend trading it, but the store of value is a good argument,” he said.

Unlike some investment choices that can end in disaster, gold is bound to retain its worth.

“Many years ago an ounce of gold would have bought a fine suit of armour. Today, an ounce of gold (about NZD$3275) will buy you a fine suit. It does retain its purchasing power and is a global currency,” Coates said.

One of the easiest ways to buy gold is through exchange traded funds (ETFs) on the share market. These are a collection of assets that may include shares, commodities such as gold, and other assets.

People may also go to a gold bullion dealer and buy gold in its physical form, and buying gold coins from a mint is another option.

Commodities such as gold have limitations as investment types. Unlike some shares and property, commodities will not pay a regular dividend or rent. Investors could, however, buy shares in gold mining companies that pay dividends.

So what is the case for investing?”

Chuck again…  yes, Gold is old fashioned, but then, so am I… Traditions, and oldies songs, that’s me… But most of all, Gold won’t go away like some stocks, like companies, like new fad investments… So, think about that, and then I’ll ask my favorite question: Got Gold? 

Market Prices 3/5/2024: American Style: A$ .6491, kiwi .6078, C$ .7355, euro 1.0847, sterling 1.2679, Swiss $1.1279, European Style: rand 18.9909, krone 10.5815, SEK 10.3972, forint 364.35, zloty 3.9879, koruna 23.3857, RUB 91.07, yen 150.43, sing 1.3440, HKD 7.8230, INR 82.89, China 7.1992, peso 16.96, BRL 4.9534, BBDXY 1,242.33, Dollar Index 103.91, Oil $78.14, 10-year 4.19%, Silver $24.01, Platinum $893.00, Palladium $962.00, Copper $3.86, and Gold… $2,123.80

That’s it for today… Well, I’m glad to be back, even though I didn’t miss it… I didn’t look at the markets at all while on vacation, and the old saying that “When Chuck’s away the currencies rally” didn’t hole true this year… Maybe nobody , in the markets,  pays attention to me and my whereabouts! My wife returns this afternoon, now that all my friends have gone home… Kathy’s Mom, and sister will be in tow too… So, I’ll be here with 3 women… I don’t stand a chance! Good thing I have baseball games to go to! Dinner last night with friends, the Schuettes and the Sextons, was a hoot… and yummy… My beloved Mizzou Tigers still haven’t won a conference game in basketball, UGH and the St. Louis U. Billikens actually won a game last Saturday… And I was pleased with the performance of our City STL soccer team on Saturday night… Blue Swede takes us to the finish line today with their song: Hooked On A Feeling… I hope you have a Tom Terrific Tuesday today, and I sure hope you will Be Good To Yourself! 

Chuck Butler