Beginning with the fundamental backdrop, we’re seeing an increasing number of headlines and States signaling a resurgence of COVID-19, or “Wave 2”, and talk of renewed lockdowns.
Without a doubt, gold and silver bullion have offered protection throughout the course of the COVID-19 crisis. They have helped people weather the storm and have stood their ground, unlike many other sectors of the economy.
With gold prices nearing their all-time highs, legendary investor Eric Sprott discusses the precious metals and some of his investments in the mining sector.
At Eric Sprott's urging, we've been monitoring the daily abuse of the Exchange For Physical process since late 2017. However, since late March, the daily totals have fallen off dramatically. Why?
The latest economic information is driven by the following:
The surprising increase in non-farm payrolls, which drove stocks and bond yields higher. I believe this is at best temporary given the ongoing destruction of the mainstream economy. The euphoria that followed will likely be short-lived.
While not the only consideration in forecasting price, it's always important to note the current COMEX contract balance. As the FOMC meets again this week, let's look under the hood to see whether or not positions are at extremes versus recent history.
