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 Michael J. Kosares (USAGOLD) Debt clock unstuck and the early results are in Here are additions to the national debt since the Treasury
Department went off its reporting embargo: Total = $438 billion. Total public
debt = $18.609 trillion.
MK Note: For most of 2015, the national debt clock was
stuck at $18.15 trillion. Now, albeit quietly, it is spinning out of control
with notable, some say inexplicable, effects in the bond market. Once one
absorbs the sheer magnitude of Treasury obligations just dumped on the
market, the inexplicable all of sudden becomes understandable. “The borrowing
blitz,” says Investors.com, “may also help explain why the interest rate on
the 10-year Treasury hit a five-year high on Friday. That, of course, means
that the cost of financing our debt just got more expensive. Interest on the
debt is becoming one of the most expensive line items in our federal budget.”
A Ananthalakshmi (Reuters) China’s gold reserves likely rose by 14 tonnes in October China likely added about 14 tonnes of gold to its reserves in
October, according to Reuters calculations from central bank data on
Saturday.
PG Note: The movement of physical gold from weak hands in
the West to strong hands in the east is as predictable as the tides.
Ira Iosebasgvili (WSJ) Rate
Expectations Offset Gold’s Asia Boost Gold prices were slightly
lower in Europe, after fluctuating between losses and gains, as support
gained from physical buying in Asia was offset by expectations of a rate rise
in the U.S. this year.
PG Note: Elevated rate hike expectations are driving investors out of
paper gold (ETPs and futures), much to the pleasure of the physical buyers in
Asia. However, it’s worth remembering that a big chunk of gold’s cyclical
bull trend occurred during the 422 bps tightening cycle between June 2004 and
August 2006. During that period, the effective Fed funds rate rose from 1.03%
to 5.25% and gold rose from 391.78 to 631.56, a gain in excess of 60%!
(World Gold Council) World
Gold Council Demand Trends Q3 update . . . in Q3, demand for
bars and coins rocketed in North America and, to a lesser extent, Europe as
investors the world over sought to grab a bargain. Coin sales by the US Mint
during the quarter were on a par with that of Q4 2008, when demand surged
during the depths of the unprecedented global financial meltdown.
MK Note: I should mention that we are back at those bargain basement price
levels now – under $1100 per ounce. Year over year, U.S. demand was up 58.9%
and European demand was up 27% compared to a 13% rise in both China and
India. Gold and silver American Eagle sales remain one of the better
bellwether indicators of overall global interest in the precious metals. WGC
reports gold American Eagle sales more than tripled in Q3-2015.
(CNNMoney) Americans
are buying tons of gold This summer’s market mayhem caused
Americans to buy gold bars and coins at levels unseen since the financial
crisis. When people are scared about the economy and financial markets, they
rush to gold. Boy, were they worried in recent months.
PG Note: The Chinese returned relative calm to their stock market through
heavy-handed controls. Whether they will be able to keep volatility in check
amid deteriorating fundamentals remains to be seen. Now is not the time to be
shedding one’s portfolio insurance, but rather adding to it at discounted
prices courtesy of the paper market.
Cecilia Jamasmie (MINING.com) India’s
appetite for gold takes global demand to two-year high Global
demand for gold, including bars, coins and jewellery climbed to the highest
in two years in the past quarter, with India leading the pack ahead of the
Diwali holiday buying season, the World Gold Council said in a report
Thursday.
PG Note: Indian buyers are always active ahead of the festival and wedding
seasons. When these cyclically significant times coincide with a good value,
demand can be very strong.
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