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Money Metals News Alert
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October 30, 2023 – Gold prices finished higher last week as the yellow metal once again pushed through $2,000/oz, where it has traded just a handful of times during the past three years.
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A $2,063/oz gold price is the high-water mark, set in August 2020.
The big question is whether the current momentum, sparked by regional war fears, is enough to carry gold to a new high.
The silver price remains closer to the middle of the range where it has traded in recent years.
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Conventional stock prices were pummeled again last week. A blowout 3rd quarter GDP number was not enough to inspire confidence in the U.S. economy. Perhaps investors are learning to believe their own eyes and question government statistics.
Demand in the physical bullion markets has tapered some from levels seen earlier in the month. Metals investors might be waiting for a pullback in prices.
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Gold : Silver Ratio (as of Friday's closing prices) – 86.6 to 1
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No, It's NOT Too Late to Buy Gold
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Gold prices are flirting with all-time highs once again and investors are wondering if this time might be different. Perhaps gold (and silver) can finally break out of the range where they have been mired over the past 3-½ years?
A breakout to higher prices is, in our view, both overdue and inevitable.
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However, the timing of a breakout remains impossible to predict. It is safe to say we are closer than we were three years ago, but predictions are difficult even if we were dealing with free and fair markets.
The metals markets can be looked at as a microcosm of the larger problems facing the nation. Corporations and powerful elites like things just as they are. They aren't going to make any fixes.
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The reckoning is coming for deformed, stimulus-addicted, and corrupt markets, regardless of which way asset prices move in the short run.
Given that could happen at any time, it would be smart for anyone who is still all-in on stocks, bonds, and cash to diversify their portfolios into hard assets and reduce counterparty risk.
It always makes sense to avoid being totally unprepared for turmoil in financial markets. Even if that means picking up gold at prices near the recent highs and holding on if the price gets smashed.
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Or investors can grab silver bullion, which is more volatile, but looks cheap relative to gold.
None of us can predict the timing of the coming collapse in confidence and its attendant havoc in conventional markets. But we can feel confidence dwindling, and we don't see anyone in leadership is talking about genuine solutions, let alone taking steps in the right direction.
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Congress isn't going to pass a balanced budget. The Fed isn't going to fulfill its mandate for stable prices. The rest of the world isn't going to stop looking for alternatives to the weaponized U.S. dollar. And government regulators aren't going to save us from the sociopaths running Wall Street.
If these things are ring true, there isn't much left to do but prepare.
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Key Economic Data Scheduled for This Week
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- Tuesday, October 31st – Consumer Confidence. The consensus is that confidence will fall in October – down from 103 to 100. A decline would be no surprise given surging interest rates, falling stock prices and plenty of geopolitical uncertainty.
- Wednesday, November 1st – FOMC Meeting Announcement. The Fed is expected to hold the funds rate steady following this week's meeting. Last week's artificially high GDP number and data showing prices are back on the rise will provide cover for the central bank to stay the course a bit longer, though higher rates are definitely starting to bite.
- Friday, November 3rd – Employment Report. The September report on payrolls smashed expectations. Investors should keep an eye out for downward revisions. Economists are predicting a more tepid number for October – down to 175,000 from the 336,000 reported last month.
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This week's Market Update was authored by Money Metals Director Clint Siegner.
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This copyrighted material may not be republished without express permission. Offer only available through email promotion. Offer does not apply to previous orders and may not be combined with any other offer or program. Special shipping rates or other restrictions may apply to international orders. The information presented here is for general educational purposes only. Money Metals Exchange and its staff do not act as personal investment advisors. Nor do we advocate the purchase or sale of any regulated security listed on any exchange for any specific individual. While our track record is excellent, investment markets have inherent risks and there can be no assurance of future profits. You are responsible for your investment decisions, and they should be made in consultation with your own advisors. By purchasing from Money Metals, you understand our company is not responsible for any losses caused by your investment decisions, nor do we have any claim to any market gains you may enjoy. Money Metals Exchange is not a regulated trading “exchange” as defined by the CFTC and the SEC.
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