FED Chair Jerome Powel appeared to turn dovish this week after commenting that interest rate hikes may slow down beyond December. Analysts are now debating whether the hiking cycle if continues will break the stock market. Rates are currently at 2.25% with a potential hike to 2.5%. At 3% US debt repayment becomes 1 trillion per year.
On today’s show we discuss comments from sector export Michael Ballanger from his article Hands of a Broken Clock. “I like the precious metals in here for one very important reason as to timing. Everyone is fearful of a 2007- or 1987-type crash that will suck liquidity out of the precious metals along with all other risk assets. That logic is flawed because if, in fact, the U.S. markets collapse, the Fed will have no choice but to terminate its efforts at quantitative tightening, which would evoke a violent downside reaction in the USD, which in turn would put a strong bid into the precious metals. Any way you cut it, the precious metals are going to rally hard due to ideal conditions that include the very favorable COT set-up in both silver and gold.”
Question of the Week: Will scratches and dents diminish the value of your silver bullion?
Diamond of the week: 1.08 Fancy Intense Yellow, Internally Flawless
In the diamond segment we compare how many internally flawless intense yellow diamonds come to market every year versus VVS and VS clarities. The rarity is astounding.