Fed Rate Cut is 100% Locked In

When we check the 2 year bond yield, we can be 100% sure that the Fed will cut rates in March 2020. Remember what happened in 2019 when the Fed cut rates? Gold went from $1300/ounce to $1600/ounce. I expect this to happen again, learn from history.

Savings-Investments Vs. Housing

When you subtract investments from savings, you are left with the amount of money that can be invested in the housing market. Looking at the chart below, in 2020 there is a huge amount of savings left to be invested in the housing market, so things are looking good.

Disposable Income Vs. Housing Prices

In order to buy houses you need to have disposable income.

 

Watch the housing price to disposable income ratio. 

 

Housing affordability drops when disposable income drops.

U.S. PMI Crashing

Falling bond yields have been signaling that GDP is going to crash along with the PMI.

Entire Yield Curve Below Inflation Rate CPI

The entire U.S. yield curve is below the CPI inflation rate of 2.5%.

 

Automakers are substituting palladium with platinum

According to Amplats, automakers are starting to consider using platinum instead of palladium in their cars. It will take about 18 months to do this.

According to Sibanye, gasoline engine cars will need to substitute palladium with platinum. The lab work has been done.

Conclusion: Stock up on platinum!

Gold At All Time High in SDR

Gold is about to make an all time high in SDR basket of currencies.

China's Heart Failure

Pension Funds are All In on Bonds

There is no friggin way that interest rates will ever go back up because that would bankrupt pension funds.

Repo Redux

The Fed released its new Repo Schedule. They reduced the amount to $25 billion and then further to $20 billion. This should put a small dent to the rise in the stock market.

Peter Schiff Vs. Brent Johnson: 1 gold coin

Peter Schiff bets against Brent Johnson that the USD will be lower in one year. The reward is 1 gold coin.

I actually think Peter will win when I look at the U.S. deficits:

Profits Before Tax Vs. Stock Market

Profits before tax as a percentage of GDP is a leading indicator for the stock market.

USGS Reports Silver Reserves and Production

New report out on USGS silver.

It is not looking good for silver investors: production is up and silver reserves are up.

For more info, go here.

Update COMEX gold/silver

Registered silver at COMEX is declining, usually a positive sign for silver price.



Registered gold at COMEX is rising, usually a positive sign for gold price.