Gerald Celente Sees Worst Market Crash, New Military Conflict, and Gold Spike to $2,000/oz by Mike Gleason, Money Metals Exchange
Listen to the Podcast Audio
Don’t want to listen? Read the podcast below!
Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.
Coming up we’ll hear from Gerald Celente of the Trends Journal. Gerald has some extremely interesting comments on the upcoming presidential election, the bizarre disconnect between some dismal economic reports and the roaring stock market, and the key level he’s looking for for gold to break through on its way to new all-time highs. Don’t miss our interview with the outspoken Gerald Celente coming up after this week’s market update.
This week the Federal Reserve released the talking points from its most recent meeting. The FOMC minutes showed policymakers divided about whether to pursue rate hikes and confused about why the official inflation rate remains below 2%.
On Tuesday, the Labor Department reported that consumer prices were flat for the month of July. A dip in gasoline prices contributed to the lowest monthly CPI reading since February. The stubbornly weak inflation readings and recently downgraded GDP growth expectations give the dovish wing of the Fed the cover they are looking for to hold off on hiking interest rates until December at least.
The Fed’s latest ruminations didn’t move stocks or precious metals markets very much. But for the week, gold shows a 0.6% gain through Friday morning to bring spot prices to $1,346 an ounce. Meanwhile, silver prices are off 1.7% to trade at $19.44.
This is the seventh straight week in which silver has traded both below and above $20 per ounce during the week. Seven weeks is usually about the extent of tight, sideways trading ranges. So investors should be ready for the silver market to make a decisive break one way or the other very soon. At some point the silver market will leave the $20 level behind for good.
Notwithstanding this morning’s slump in the silver price, it appears that some big speculators are still betting on an upside breakout. Silver exchange-traded funds saw some heavy inflows this week. On Wednesday, ETF buyers pushed the net assets of silver ETFs up by the equivalent of 53 tonnes.
Whether the ETFs actually acquired 53 tonnes of actual silver bars is hard to know. Most of these gold and silver ETFs are structured as open-end funds, meaning they can expand or contract their underlying net assets in response to demand on any given day. But since these instruments can’t add or remove physical gold from their inventories instantly with each buy and sell order, they use paper derivatives as substitutes – at least in the short term.
So far, it has worked out okay insofar as the largest of these exchange-traded products haven’t shown significant deviations from spot metals prices. But in chaotic market conditions, or a derivatives blow up, or a run on the bank type event in the physical market, the lack of 100% physical backing at all times could become a problem for holders of these ETFs. So buyer beware.
And Americans have a new reason to beware of an overreaching federal government. The Equal Employment Opportunity Commission recently announced that the words “Don’t Tread on Me” could be considered too insensitive for the workplace. The EEOC took up the case of a Postal employee who felt racially intimidated at the mere sight of a co-worker who wore a hat depicting the famous “Don’t Tread on Me” Gadsden flag which dates back to America’s founding.
Fox Business News Report
Stuart Varney: Going forward, it is possible that that flag, “Don’t Tread on Me”, could be outlawed in the workplace.
Katie Hopkins: The EEOC said, we acknowledge that this message on this flag arose out of the Revolutionary War and was not racially tinted. However, they said it has been used since then to convey messages both nonracial in sentiment and racial in sentiment. The commission is made up of five commissioners. These are presidentially appointed. Four of the five right now were appointed by President Barack Obama. So this is a consideration for our next president.
This is another case of political correctness inside the Obama administration run amok. But more than that, we at Money Metals Exchange take the EEOC’s attack on this symbol of American liberty personally. Since our inception we have offered our exclusive “Don’t Tread on Me” silver rounds featuring a coiled rattlesnake on the front and commemorating the Boston Tea Party on the reverse.
A new Tea Party movement in America rose up a few years ago in response to trillions of dollars in bailouts and other out of control Washington schemes. Tea Partiers created their own movement within the Republican Party as a direct challenge to establishment Republicans who habitually sign off on more spending and more debt.
It’s not surprising that government bureaucrats find the words “Don’t Tread on Me” to be offensive. They think it’s their job to tread on us whenever they see fit!
But we have no intention of removing our “Don’t Tread on Me” silver rounds from our workplace. Nor will we remove them from our product inventory. They honor an important part of America’s revolutionary heritage. In 1775, Continental Colonel Christopher Gadsden incorporated a coiled rattlesnake with thirteen rattles (symbolizing the colonies) above the motto “Don’t Tread on Me” on an early American flag.
“Don’t Tread on Me” silver rounds remain popular among our customers. In addition to their striking design and message, “Don’t Tread on Me” silver rounds offer .999 purity at a great value. They sell at a price point that is lower than Silver Eagles and other government-minted coins. And to date Money Metals customers have snatched up nearly 2 million of rounds, making it one of our very top selling products.
Gerald Celente Sees Worst Market Crash, New Military Conflict, And Gold Spike To $2,000/oz
Well now without further delay, let’s get right to this week’s exclusive interview.
Mike Gleason, Money Metals Exchange: It is my privilege now to be joined by Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is a highly sought-after guest on these programs throughout the world and has been forecasting some of the biggest and most important trends before they happen for more than 30 years now. And it’s a real honor to have him on with us today. Mr. Celente, welcome back and thank you so much for joining us again.
Gerald Celente, Trends Journal: Well thank you, Mike.
Mike Gleason: I want to start out by asking you about this massive disconnect between what the economic data is telling us versus what the stock market is saying to the investment world. For instance, we have the lowest rate of expansion in the U.S. economy since the 1940s. China is slumping, as are many other major global economies… not to mention the economic issues over there in Europe. Yet the equities markets continue to make new highs nearly every week with the S&P and the DOW continuing upward into uncharted territories. So what’s going on here? Are the economic numbers really better than what we’re being told, or is the stock market being