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Wall Street sees gold price declines or consolidation next week Main Street is more optimistic about gains

Wall Street sees gold price declines or consolidation next week, Main Street is more optimistic about gains


 

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.

Wall Street sees gold price declines or consolidation next week, Main Street is more optimistic about gains teaser image

This past week was thin on economic data, so gold prices began the week coasting along at their newly elevated levels coming out of last week's fresh all-time highs.

After opening the week on Sunday evening trading at $2,421.20 per ounce, spot gold stayed comfortably above the 2400 level until shortly after 10:00 am EDT Wednesday morning, when it broke decisively through support and began its steady descent. The release of the minutes from the April/May FOMC meeting later Wednesday afternoon did the yellow medal no favors, as markets digested the news that some voting members were open to hiking rates further if warranted.

Spot gold hit its weekly low of $2,325.46 shortly after 8:30 p.m. EDT Thursday, and as of Friday afternoon, it was trading less than $10 off that level for a loss of over 3.30% on the weekly chart.

The latest Kitco News Weekly Gold Survey has over three-quarters of industry experts believing gold prices have plateaued or will decline in the near term, while half of retail traders still believe the precious metal could climb higher in the coming days.

“Down,” said Darin Newsom, Senior Market Analyst at Barchart.com. “June Gold has more room to the downside to finish its 3-wave downtrend next week. This means the contract would be expected to take out Friday’s low (so far) of $2,326.30. Daily stochastics (a short-term momentum study) are above the oversold level of 20%, also indicating the contract has time and space to move lower.”

“I am neutral on Gold for the coming week,” said Colin Cieszynski, Chief Market Strategist at SIA Wealth Management. “Between the US holiday and the lack of major events heading into month end, it think it may be a quiet week.”

James Stanley, senior market strategist at Forex.com, believes this week’s price decline was more bump-in-the-road than roadblock.

“This week was a strong pullback but there remains quite a bit of support structure around the $2,300 area in both spot and futures,” Stanley said. “If bears can chew through that next week, there could be scope for a larger reversal, but given how the move priced in after a fresh high on Sunday night, this week seems more like a pullback in a bullish trend, at this point.”

“Up,” said Adrian Day, President of Adrian Day Asset Management. “We would expect a recovery rally from the big sell-off the last couple of days, and another attempt to break $2,400 convincingly. Whether gold will break above that level is not certain, but for next week, we expect a good rally.”

“Gold’s resilience to any pullbacks the last three months has been astonishing,” Day added.

Daniel Pavilonis, Senior Commodities Broker at RJO Futures, was looking at the factors weighing on the precious metal Friday. “I think a couple of things are pushing gold down,” he said.

First off, Pavilonis said, a pullback was to be expected after the precious metal made such a strong move higher last week.

“And I think this is just a near-term correction in rates to the upside,” he added, “ten-year yields moving back up to four and a half now, 4.46%. The high today was 4.499. We, we made a move from 4.3 up to around 4.5%, and I think that's really putting some pressure on the metals.”

That said, Pavilonis believes the pullback will be short-lived. “We may go a little bit higher than 4.5%, but I think it's also given an opportunity to buy metals,” he said. “And maybe not so much gold but some of the other metals that haven't caught up with gold, for instance silver. It started to make a move up to $32, $33 [per ounce]. We come back down to $30, if we can stabilize over there, I think we get another run up to $36, $38, somewhere around there.”

Pavilonis said gold might be a different story, however. “I think it'll grind higher up towards $3,000,” he said. “I don't think it's going to be as easy, but if the rate cuts are still in the mix, I think there is a high probability that we continue to move higher.”

“I think you're still going to see a lot of central banks buying, a lot of movement away from the dollar away from U.S. treasuries and into precious metals,” he added. “But in the near term, I think it's had a nice run-up and I'm looking for a little bit of a pullback here.”

“I still believe it’s got some downside, and I think it's appropriate, even on the longer-term move to the upside,” he concluded. “I would say until maybe the tail end of the first week of June, it starts to bottom out, and then maybe the beginning of the second week we can start buying again.”

This week, 14 Wall Street analysts participated in the Kitco News Gold Survey, and sentiment on the precious metal has largely soured for the near term. Only three experts, representing 21%, expected to see gold prices climb higher next week, while eight analysts, fully 57%, predicted a price decline. Another three experts, representing 21% of the total, see gold trending sideways during the coming week.

Meanwhile, 195 votes were cast in Kitco’s online poll, with Main Street investors decidedly sunnier in their outlook for the yellow metal. 94 retail traders, or 48%, looked for gold prices to rise next week. Another 50, or 26%, predicted they would be lower, while 51 respondents, representing the remaining 21%, expect prices to remain rangebound during the week ahead.

Next week will be another slow one for economic news releases, with U.S. markets also closed on Monday for the Memorial Day long weekend. Highlights will include the U.S. Conference Board’s Consumer Confidence report on Tuesday, the release of preliminary U.S. Q1 GDP, weekly jobless claims, and pending home sales on Thursday, and Friday’s U.S. PCE and personal income and spending report.

“Best guess is more of a pullback after the holiday, but holding long positions,” said Mark Leibovit, publisher of the VR Metals/Resource Letter.

Marc Chandler, managing director at Bannockburn Global Forex, also sees further downside risks for gold in the near term.

“Gold set a new record high to start the week, reaching $2450, perhaps in reaction to the crash that took the life of the Iranian president,” he said. “However, a stronger dollar and higher rates saw gold sell off hard and reach nearly $2325.”

“The new highs in the spot market were not confirmed by the momentum indicators, which are still headed lower,” Chandler observed. “We note some reports suggesting China’s demand has slackened. The week ahead sees lighter data, and this could facilitate some consolidation. The US two-year yield extended its recovery from 4.70% recently to nearly 5%. The light calendar suggests that the 5% area may hold.”

“A bounce in gold may be challenged initially in front to $2375,” he said. “Support is seen in the $2275-$2300 area.”

Michael Moor, Founder of Moor Analytics, was looking at both the short- and longer-term technical picture for gold on Friday.

“Technically speaking, we are likely in a higher-timeframe bearish correction against the move up from $1,876.60,” he said. “The trade below $2,434.30 got this bearish, and we've seen 108 points from that, and then the trade below $2,421.60 also projected this downward $60 an ounce-plus, and we've seen 95.3 of that. On 5/22, we got the minor bearish reversal above, and then yesterday left another bearish reversal above.”


 

“We are currently holding exhaustion, final exhaustion is at $2,330 to $2,321.40,” Moor said. “Now, if we take that out and settle below there, then this is going to head down to $2,285.20 and it will confirm that we're in a larger correction as well. Then those next levels of possible exhaustion are going to be down at $2,239.60, to $2,235, and then lower.”

“Right now, I think that we're in a lower-timeframe bearish correction, and likely in a higher-timeframe bearish correction,” he explained. “So what does that mean? The lower-timeframe bearish correction means we're correcting against the most recent move up from $2,285.20. The higher-timeframe correction means we're also likely correcting against the move up from $1,876.60.”

“I think we're in both at the same time,” he said. “It's just that we could always run up and make another higher high and then correct from there. But right now, it looks like we're in a bearish direction in both time frames. And if we're in the higher-timeframe bearish correction, the ideal time for one of these lower exhaustion levels to hold is not until after the 21st of June. So we may see this coming off and consolidating and chopping around with big swings until that point.”

“If it's a new bear trend, it's a bear trend and it's going to blow through all of them,” he added. “But if it's going to hold one of them and start a new bullish structure, the likely timeframe for one of these exhaustion levels to hold more than temporarily is probably not until after the 21st of June.”

And Kitco Senior Analyst Jim Wyckoff sees gold prices declining further next week. “Steady-lower as serious near-term chart damage inflicted this week, including bearish double-top reversal on daily chart,” he said.

Kitco Media

Ernest Hoffman

Time to Buy Gold and Silver

Tim Moseley

Solana XRP ETFs Next?

Solana, XRP ETFs Next? Standard Chartered Sees Possibility After Ethereum Approval

By Brenda Ngari – May 24, 2024

Now that the Securities and Exchange Commission (SEC) has finally given the go-ahead to spot Ethereum exchange-traded funds (ETFs), the regulator might also greenlight other crypto ETFs.

According to British multi-national bank Standard Chartered, Ripple’s XRP and Solana (SOL) could emerge as the next crypto ETF frontiers after ether.

SOL, XRP ETFs “Likely A 2025 Story”

Standard Chartered thinks Solana or XRP could be the next contenders after the U.S. Securities and Exchange Commission approved key forms 19b-4 filed by prospective issuers. However, the British banking giant said they don’t believe these SOL and XRP products will happen in 2024.

“For other coins (eg. SOL, XRP), markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story, not a 2024 one,” Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered noted. “For now, bitcoin and ether dominance will rise, with selective “next in line” winners as well.”

The SEC yesterday gave the regulatory blessing to eight spot Ethereum ETFs. The move follows the approval of similar spot Bitcoin exchange-traded funds back in January. The shocking and historic move means that Ethereum is not categorized as a security by the SEC, thus indicating that other ether-like tokens, which were previously under the regulator’s scrutiny, may not be deemed securities, as per Kendrick.

“In several cases the core technology is so similar to ETH it would be difficult for the SEC to claim they were securities given the ETH position,” Kendrick posited. “The crypto industry now seems to have political backing on both sides of the aisle.”

The SEC chairman Gary Gensler has long maintained that all coins and tokens on the crypto market, besides Bitcoin, are securities, and are thus breaking the law by offering them to US investors. SOL and XRP have previously been named as unregistered securities in different SEC lawsuits.

Gensler had also hinted that Ether’s monumental shift to a proof-of-stake consensus model could transform the second-largest crypto into a security. In fact, one high-profile lawsuit against the SEC even alleged that the SEC was seriously considering designating Ethereum as a security, and not a commodity.

Standard Chartered described the Thursday approval as a “true watershed moment”, adding that the next question is not whether but when the crypto industry will witness more regulatory changes.

Lofty Price Targets

Standard Chartered reiterated its previous prediction of Ether hitting $8,000 per coin by the end of the year. Analyst Kendrick anticipates the trading of the spot ETH ETFs to start trading next month and sees such funds attracting $15-$45 billion within the first 12 months.

Notably, the ether ETFs will only start trading after the approval of S-1 registration statements — which have so far only been submitted by a few would-be issuers.

Standard Chartered previously said it sees a $150,000 Bitcoin price tag by year-end. The bank said today that this price was still possible with the continuing massive inflows for spot Bitcoin exchange-traded funds. “A portfolio containing both BTC and ETH ETFs is likely attractive and the industry has been further validated by the SEC’s decision on ETH,” the bank’s researcher summarized.

DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

Gold still on track to hit 3000 as US debt burden grows – Maison Placements Canada’s John Ing

Gold still on track to hit $3,000 as U.S. debt burden grows – Maison Placements Canada’s John Ing

Gold still on track to hit $3,000 as U.S. debt burden grows – Maison Placements Canada’s John Ing teaser image

After hitting record highs above $2,450, the gold market is again struggling as hawkish sentiment from the Federal Reserve spooks markets; however, according to one market analyst, gold’s rally is far from over.

In his latest gold commentary, John Ing, President and Chief Executive Officer of Maison Placements Canada Inc., reaffirmed his price target, expecting the precious metal to rise to $3,000 an ounce within the next 18 months.

Although the Federal Reserve’s aggressive monetary policy has increased gold’s opportunity costs as a non-yielding asset, Ing said that the government’s burgeoning debt is overshadowing current monetary policy.
 

“More than anything, gold’s push through $2,400/oz was due to rising U.S. debt, which caused money to flow into gold for defensive purposes,” he said in the report published last week. “Since March, gold has been up $500 an ounce, setting numerous all-time highs as the monetization of debt became an instrument of public policy. Americans can carry a lot of debt, but as the burden grows, the sustainability of their monetary and fiscal policies leaves little margin for error.”

Ing Warned investors that rising protectionist sentiment, led by the U.S., could exacerbate growing debt concerns, making the U.S. dollar “the weak link” in global financial markets, which would benefit gold.

“Gold is universally fungible and finite. Gold can be bought and sold in US dollars and thus is an alternative to fiat money for both central banks and investors, particularly since gold is also outside the Western-based system,” Ing said. “The Saudis are selling oil for yuan, and China has grown to be their biggest consumer. This signals a fundamental shift in power from the West to the East, with the petroyuan taking the place of the petrodollar.”

Ing explained that China’s growing appetite for gold will further pressure the U.S. government’s fiscal situation. He noted that China’s U.S. Treasury holdings have dropped to a 14-year low at $775 billion. As it sells U.S. bonds, the central bank has been buying gold, increasing its reserves for the last 18 consecutive months.

“China’s diversification moves gives them more options which could further affect its huge holdings of U.S. Treasury bonds at a critical time since America needs others like China to help finance its whopping national debt at $34 trillion that is bigger than the combined economies of China, Germany, Japan, India and the UK,” he wrote in the report.

“Dollars are being utilized less and less as bullion gains a greater percentage of the reserves held by central banks worldwide. For China, gold is the new critical mineral,” Ing added.

At the same time, Chinese retail investors are also significantly impacting gold demand. Ing noted that Asia has become a leader in the gold market as the Shanghai Gold Exchange has emerged as the largest physical dealer in the world.

“We believe fiscal, monetary and geopolitical uncertainties have driven investors into gold as an alternative currency, or the classic store of value,” he said.

 

Along with his bullish outlook on gold, Ing said he sees potential and value within the mining sector, even as costs increase.

“The group is undervalued on multiple fundamentals (market cap/reserves, earnings, cash flow and balance sheets) particularly against the overvalued S&P 500,” he said. “We continue to like the senior producers like Barrick, and Agnico-Eagle. Developers are the next group, bringing on mines over the next couple years like B2Gold, Endeavour Mining, McEwen Mining and Eldorado. There are many explorers that are very cheap. But instead, we have focused on those players with advanced PEAs or FS which are likely to get financed in this current bull market.”

Kitco Media

Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

Pundit Predicts A Spot Solana ETF Approval After Ethereum

Pundit Predicts A Spot Solana ETF Approval After Ethereum

By Newton Gitonga – May 23, 2024

As the cryptocurrency community eagerly anticipates the potential approval of Spot Ethereum exchange-traded funds(ETFs), Matrixport co-founder Daniel Yang has ignited speculation about Solana (SOL) being the next in line for such investment products.

Yang’s remarks come amid heightened interest in cryptocurrency ETFs following recent regulatory developments.

On Tuesday, May 21, Yang highlighted the significant impact of reports suggesting that the Securities and Exchange Commission (SEC) has requested issuers to update Form 19b-4 in their product applications. Notably, following these reports, he pointed out the surge in the Ethereum to Bitcoin (ETH/BTC) pair, indicating market optimism surrounding ETF approvals and expressing hope of seeing a SOL ETF soon after Ether’s.

“What’s the trade, if ETH ETF really get approved in two days?…. A better trade I will argue for is: “BUY SOL/ETH.” This may sound absurd and definitely unpopular. Reasons are: 1) SOL will be the No.1 next in line if ETH ETF get approved.” Wrote Yang.

Elsewhere, analysts, including one identified as ‘Gumshoe,’ also view the approval of Ethereum-based instruments as potentially more advantageous for Solana than for Ethereum itself. Earlier this week, the pundit argued that a rejection could make Ethereum less appealing while enhancing Solana’s attractiveness as an investment option.

Nevertheless, the cryptocurrency community is concerned about the broader implications of ETF approval processes. Should any ETF applications be rejected, it could deliver a significant blow to the sector, prompting what one observer likened to a “nuclear strike” on market sentiment.

Industry experts have outlined bullish scenarios for Solana’s price trajectory. Ryan McMillin, investment director at Merkle Tree Capital, predicts a rise in Solana’s value to $400 by November 2024, citing a potential catalyst in meme coins related to the upcoming US election campaign.

Echoing this sentiment, Daniel Chung, co-founder of Syncracy Capital, anticipates Solana will revisit $200 by the end of May. These projections reflect a positive outlook on Solana’s fundamentals and positioning within the broader cryptocurrency landscape.

Moreover, Solana’s technological prowess has not gone unnoticed, with CoinGecko analysts recognizing its network as the fastest among major blockchains. Notably, on April 6, the Solana network achieved a record-high average daily transaction throughput of 1,504, further solidifying its status as a leading blockchain platform. Analysts from The Digital Asset Fund Manager Survey also highlighted how institutional demand for the crypto asset had soared in the same month, underscoring their bullish outlook.

That said, as anticipation builds around the potential approval of Ethereum ETFs, all eyes are now turning to Solana, poised to capitalize on the momentum generated by its predecessor. Whether Solana will follow in Ethereum’s footsteps remains to be seen, but market sentiment suggests that the cryptocurrency’s future is brimming with potential.

At press time, Solana was trading at $171, reflecting a 4.28% drop over the past 24 hours. However, the coin surged nearly 9% over the past week, with a market capitalization of $77 billion, according to CoinMarketCap data.

DISCLAIMER: None Of The Information You Read On ZyCrypto Should Be Regarded As Investment Advice. Cryptocurrencies Are Highly Volatile, Conduct Your Own Research Before Making Any Investment Decisions.

The original article written by Newton Gitonga and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Get secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

Trump Taps Into Crypto Craze

Trump Taps Into Crypto Craze By Accepting Bitcoin, Ether, Solana, Shiba Inu, Dogecoin Donations

By Newton Gitonga – May 22, 2024

Former U.S. President Donald Trump has announced that he will begin accepting donations in cryptocurrency for his presidential campaign, making him the first major party presidential nominee to do so.

On Tuesday, May 21, his campaign team launched a fundraising page that allows donors to contribute using various cryptocurrencies, including Bitcoin, Ether, Solana, SHIB, and DOGE.

The page, hosted on the Coinbase platform, allows donors to contribute using any cryptocurrency accepted by the exchange.

“Today, President Trump’s campaign has launched a fundraising page that provides any federally permissible donor the ability to give – through its joint fundraising committees – using any cryptocurrency accepted through the Coinbase Commerce product.” An announcement on Trump’s official campaign website read.

The decision to accept cryptocurrency donations is seen as a move to appeal to a younger demographic increasingly interested in digital assets. Interestingly, the campaign’s announcement quoted a representative from Coinbase, Julia Krieger, as saying, “Crypto is nonpartisan and moves money forward because it’s cheaper and faster.”

It is also seen as a way to promote the president’s message of reducing government control over financial decisions.

“As our President, Donald J. Trump has reduced regulations and championed innovation in financial technology, while Democrats, like Biden and his official surrogate Elizabeth Warren, continue to believe only government has the answers to how our nation leads the world.” The announcement further read.

That said, Trump’s decision to accept cryptocurrency donations for his campaign is not without controversy. Concerns about the anonymity of cryptocurrency transactions have been raised, which could pose challenges in verifying donors’ identities. Nevertheless, the campaign team assured compliance with Federal Election Commission regulations, committing to transparent disclosure of donation sources.

Notably, Trump’s campaign announcement resonates with a message of empowerment, rallying supporters under the banner of a “crypto army” poised to secure victory in the upcoming election. The decision to accept crypto comes just days after Trump poked fun at President Joe Biden for seemingly not understanding cryptocurrencies like himself.

In response to Trump’s initiative, Biden’s supporters allegedly swiftly issued a call for donations, highlighting concerns about being “outraised” by “crypto executives” backing Trump, as seen via a widely circulated screenshot.

That said, Trump is not alone in recognizing the allure of cryptocurrencies in the political arena. Rival candidate Robert F. Kennedy Jr. has embraced Bitcoin, citing its symbolic significance as a beacon of democracy and freedom. Additionally, candidates in smaller races, such as pro-Ripple lawyer John Deaton in Massachusetts, leverage cryptocurrency donations to challenge incumbent opponents like Senator Elizabeth Warren, who has espoused anti-crypto legislation.

DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Newton Gitonga and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

Gold prices remain under pressure as Fed sees possible rate hikes if inflation picks up

Gold prices remain under pressure as Fed sees possible rate hikes if inflation picks up

Although U.S. monetary policy has become a secondary factor in the gold market, persistent inflation could create some further selling pressure as it could force the Federal Reserve to raise interest rates again, according to the minutes from the Apri/May Federal Open Market Committee meeting.

In recent days, members of the monetary policy committee have said that while they are not ready to cut interest rates as inflation remains stubbornly elevated, they are also not looking to raise them.

However, the minutes of the meeting show that another rate hike could be a possibility.

“Various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate,” the minutes said.

The gold market is not reacting significantly to the latest minutes. It is experiencing solid selling pressure as support at $2,400 broke down. June gold futures last traded at $2,390.20 an ounce.

The minutes reflected growing disappointment that consumer prices haven’t made better progress moving back towards the 2% target.

“Participants discussed the risks and uncertainties around the economic outlook. They generally noted their uncertainty about the persistence of inflation and agreed that recent data had not increased their confidence that inflation was moving sustainably toward 2 percent,” the minutes said.

“Participants noted disappointing readings on inflation over the first quarter and indicators pointing to strong economic momentum, and assessed that it would take longer than previously anticipated for them to gain greater confidence that inflation was moving sustainably toward 2 percent,” the minutes also said.

Although the central bank is not expected to shift its monetary policy stance anytime soon, the committee is looking at other factors that impact market liquidity.

The minutes said that nearly all participants expressed support for the decision to begin to slow the pace of decline of the Federal Reserve’s securities holdings in June by reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion, maintaining the monthly redemption cap on agency debt and agency mortgage‑backed securities (MBS) at $35 billion, and reinvesting any principal payments in excess of the $35 billion cap into Treasury securities.

“Some participants commented that slowing the pace of balance sheet runoff would help facilitate a smooth transition from abundant to ample reserve balances by reducing the likelihood that money markets experience undue stress that could require an early end to runoff.

Kitco Media

Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

The Causation Of Financial Nihilism Is Globalization Is This The End Of Globalism?

The Causation Of Financial Nihilism Is Globalization. Is This The End Of Globalism? 

For die-hard cryptocurrency enthusiasts, the drive to invest often stems from a deep-seated conviction that it's the sole path to achieving financial success. This sentiment is widespread, particularly among younger age groups. An increasing number of individuals are convinced that the only route to accumulating substantial wealth is to take bold risks with their limited financial resources, and this mindset is gaining momentum. Interestingly, this mindset has a distinct label: financial nihilism. This trend has been gaining traction over the years and experienced a sharp surge following the pandemic, primarily due to the influx of pandemic-related stimulus funds. 

The underlying principles of financial nihilism have the potential to impact societal dynamics and market performance significantly. In this discussion, we'll delve into the specifics of this mindset, its origins, the consequences of holding onto it, and the benefits of resolving it. We'll also suggest strategies for coping with these challenges in the meantime.

What Is Financial Nihilism?

Financial nihilism refers to a mindset that suggests achieving financial success requires taking drastic, high-risk gambles with limited resources. This term, introduced by entrepreneur and podcaster Demitri Kofinas, has been gaining traction, especially in cryptocurrency. 

Demitri's original definition of financial nihilism diverges from the abovementioned understanding. According to Demitri, financial nihilism is the belief or the realization that there is a disconnect between how much something costs and how much it's actually worth. 

The housing market provides an excellent illustration; social media has been flooded with images of residences in city dwellings like Toronto, London, Sydney, and New York City that boast astronomical price tags despite their subpar condition. Conversely, other online posts have drawn attention to the fact that these properties are priced similarly to authentic, centuries-old castles, prompting many to question the value proposition.

Another notable illustration of this phenomenon is the stock market, where most shares are valued significantly higher than the earnings of their respective companies. This trend is even more pronounced in crypto. A striking example is Dogecoin, which currently boasts a market capitalization surpassing the media giant Warner Brothers. 

Meanwhile, the cost of housing, stock prices, and the worth of meme coins continue to soar. Whenever it seems like this economic bubble is on the verge of collapse, governments and central banks intervene to reinflate it, ultimately widening the wealth gap between the affluent and the disadvantaged.


Source: Kirupa

This raises the issue of how the disconnect between price and value originated. According to Demitri, the root cause lies in globalization. For the context of this article, consider globalization as an economic approach that spans the world rather than individual nations. In essence, this involves relocating business operations from countries with high labor costs to those with lower costs, thereby reducing expenses and boosting profit margins.

Globalism has significantly impacted the world since the late 1980s, although it may not be immediately apparent. One critical effect is the notable drop in prices of many goods and services, which benefits the general population by allowing them to purchase more items than before. Additionally, globalism has led to increased financial gains for influential individuals. Furthermore, it has played a role in maintaining low interest rates, especially in Western countries.

This is because the nations selling goods to Western countries used the proceeds to purchase Western government debt, thereby keeping interest rates low. This situation benefited ordinary individuals by allowing them to access more borrowing opportunities. Still, it has been even more advantageous for influential individuals who can borrow significantly more.

Unlike ordinary individuals who use borrowed funds to acquire consumer goods, influential individuals invest in assets, leading to two notable consequences. Firstly, the prices of essential assets, such as housing, have increased at a rate surpassing wage growth, while the costs of most consumer goods have declined due to international outsourcing. This disparity has resulted in the current disconnect between asset values and the overall economy. 

Secondly, this phenomenon has led to an unusual wealth accumulation among a select few powerful individuals who have greatly benefited from globalization, earning them the label of "globalists." Unsurprisingly, many globalists hold leadership positions or have significant investments in the world's largest corporations.

In past videos, Demitri pointed out that a small group of powerful elites have accumulated vast wealth and influence, enabling them to establish parallel systems of governance that wield more power than democratically elected governments. The World Economic Forum is a prime illustration of this phenomenon, and it's just the tip of the iceberg. 

By their very nature, these parallel institutions exist to promote the elite's agenda rather than serve the needs of ordinary citizens. Consequently, a significant gap has emerged between the interests of the average person and those of their governments, whose policies are ultimately shaped by the dictates of these globalist institutions.

The Effects Of Financial Nihilism On Society

Now that we've identified the roots of financial nihilism, we can delve deeper into its far-reaching consequences on society, the economy, and beyond. As highlighted in a recent article by Travis Kling, Founder and Chief Investment Officer of crypto VC firm Ikigai Asset Management, who has been instrumental in bringing the concept of financial nihilism to the forefront, he emphasizes the close relationship between financial nihilism and populism, which he defines as the perception that influential individuals are neglecting the needs and concerns of ordinary people.

This concept is closely related to global powers' influence and underlying agendas. Travis also emphasizes the importance of examining the root causes of financial nihilism. The stark disparity between housing costs and average earnings is a prime illustration. Specifically, in the US, the median home price is a staggering 7.5 times higher than the median income, a telling indicator of the issue.

Take a step back and look at the bigger picture: according to recent findings, homeownership has become an unattainable dream for 99% of Americans. Travis astutely observes that the massive financial and monetary measures implemented in response to the pandemic have exacerbated this issue, leading to a surge in financial nihilism. As a reminder, approximately $5 trillion was allocated towards pandemic relief, based on official records. Although a significant portion of this funding was distributed to individual citizens, most people went on to spend this money at the mega-corporations that belong to the globalists. 

The concept of universal basic income (UBI) is fundamentally flawed. The government's handouts would ultimately benefit wealthy elites, a point also raised by Demitri. Furthermore, the pandemic-related restrictions led to the demise of many small businesses, which were forced to shut down, while large corporations were allowed to continue operating. The policy decision to protect big business at the expense of small enterprises during the pandemic is a stark illustration of how the interests of powerful global elites often shape government policies.

The massive monetary stimulus during the pandemic resulted in the wealthiest 1% of the population now possessing more wealth than the entire middle class combined. This growing disparity in wealth distribution has been a persistent trend since the advent of globalization in the late 1980s, although it has intensified in recent years, potentially by design.

To reinforce his argument, Travis highlights two striking facts. Firstly, Millennials possess a smaller proportion of real estate value than previous generations of the same age. This means that when Baby Boomers and Gen X were Millennials' current age, they had a more significant stake in the property market. Secondly, Travis points out that total household wealth has increased sevenfold since the 1980s, yet Millennials only control a mere 9%. In contrast, Gen X holds 21%, and Boomers hold a substantial 51%, likely due to their greater advantage from globalization.

Initially, globalization positively impacted the average individual, reducing consumer goods prices and affordable asset values. However, over time, the benefits of globalization began to erode as ordinary people's wages failed to keep up with the rising cost of assets, mainly due to the outsourcing of labor and asset acquisitions by global players. This disparity is illustrated in the comparison between median income and the S&P 500, as shown in the graph below. 

During the late 1980s and mid-1990s, median income remained relatively stable in relation to the S&P 500. However, it experienced a sharp decline following the dot-com bubble in 2001 and again after the 2008 financial crisis.

So What Can We Do About It? 

Faced with such disheartening realities and numbers, it's only logical to wonder what steps can be taken to address the issue. According to Travis, who approaches this problem from a financial nihilist standpoint, stipulates,

“You take bigger risks. You feel driven to take bigger risks to try and leapfrog from your current financial position (mostly paycheck to paycheck; buying a home feels nearly impossible; saddled with student loans; salary increases not keeping up expense increases) to something more tenable. More comfortable. More baller. So you gamble. You. F**king. Gamble. You look anywhere for anything that can give you a 5:1, 10:1, 50:1 type of payout. Naturally, you look to literal gambling, which is growing at a breakneck pace.” 

Travis cites a surge in gambling revenue to bolster his argument, which is experiencing an even more dramatic upward trend than Nvidia's stock performance. Notably, US casinos reached unprecedented revenue highs in 2023. Travis further supports his claim with detailed statistics, including the volume of wagers on specific events such as the Super Bowl and data on zero-day-to-expiry options.

For those new to the concept, zero-day-to-expiry options enable wagering on a stock's direction by the day's close. These options have seen a meteoric rise, now accounting for 43% of S&P options trading volume, a surge that began during the pandemic. Travis suggests that a subconscious awareness of the drastic instability in current fiscal and monetary policies drives the typical individual to engage in this behavior. What's intriguing is that this average person may not even realize the underlying macroeconomic factors at play but instead is guided by a gut feeling that something is amiss.

Travis injects cryptocurrency into the discussion, calling it "The Roman Colosseum for asset price and risk-taking distortions.”  He notes that specific cryptocurrencies have yielded returns far surpass those of any zero-day-to-expiry option or meme stock. To drive his point home, Travis cites several examples. He then declares that crypto is, at its core, “ A populist movement. A countercultural movement. A YOUNG PERSON’s movement. Boomers don’t get it. It’s “our” thing. It’s the one thing we can actually beat Boomers at (so far).”

He anticipates that Millennials will inherit the $53 trillion wealth held by Boomers and invest a significant portion of it in cryptocurrency. In the near future, he foresees that this cryptocurrency trend will reveal unprecedented reckless actions. This projection is unfolding as anticipated, as various meme coins with little value are reaching market capitalizations in the billions of dollars.

The prospect of this scenario defining most of the crypto bull market is unsettling. Travis advises giving in and embracing it rather than fighting it. “You can wish that weren’t the case. You can wish the crypto market would be more sound-minded. More sober. More focused on providing solutions to real problems. More rooted in reasonable valuation methodologies. Less bubble-ish. But I believe those wishes will be left ungranted.”

This assumes that the situation will persist if the root causes of financial nihilism are not dealt with. Yet, there is a growing public awareness regarding the WEF's questionable motives and associated institutions’ less-than-favorable agendas and virtue signaling, leading to a rapid understanding of these underlying issues.

So, When Will The Causes Of Financial Nihilism Be Addressed? 

Acknowledging that economic globalization is the primary culprit behind this crisis is essential. Given that nationalism is the antithesis of globalization, it's logical to conclude that the antidote lies in economic nationalism. While this notion may initially seem radical, it's already gaining traction. The recent trends of onshoring and friendshoring, often mentioned in economic discourse, are, in fact, manifestations of economic nationalism. This approach involves reintegrating most outsourced operations, regardless of the expenses involved. This is where the first major hurdle arises – the significant costs that come with it.

It is often overlooked how globalism has positively impacted the everyday individual. Due to outsourcing manufacturing operations, the average person has benefited from lower costs of goods and certain services. Reversing this trend and bringing production back onshore would likely result in price increases for goods, especially when asset prices are already high, creating a challenging situation for the average person. This scenario is the opposite of when globalization began taking shape.

In stark contrast to the favorable economic climate of the 1990s, when commodity prices declined and assets were reasonably priced, the shift towards nationalist policies will bring about a period of financial strain, marked by rapid inflation and persistently high asset values that remain out of reach for many.

A promising trend is the potential for a surge in average salaries, with some indications that this upward shift is underway. As a natural consequence, the exorbitant earnings of the wealthy elite are likely to decrease in tandem. It's implicit that this prospect is unappealing to those at the top, who may even view it as an existential threat, given the staggering levels of debt they've accrued and cannot repay.

In other words, those with power are vested in suppressing wage growth for the general population, as increased earnings would erode their wealth and profits. Similarly, they cannot permit interest rates to climb, lest they face insurmountable debt repayment challenges resulting from the excessive borrowing they engaged in during the era of inexpensive credit that characterized globalization.

This shows why globalists are fixated on innovations like artificial intelligence. It enables them to maintain low wages and profit in an economically nationalist setting. Similarly, their enthusiasm for central bank digital currencies (CBDCs) can be seen as a means to manipulate interest rates and debt levels. Furthermore, it's notable that many nationalist-leaning leaders elected globally have ties to the World Economic Forum, suggesting that their allegiance may not be to national sovereignty but to the globalist ideology that aligns with the WEF's agenda.

Notably, ordinary individuals increasingly recognize this situation, leading to a decline in trust in established organizations. Demitri has consistently emphasized this point in his discussions. The main challenge in combating financial nihilism lies in losing confidence in the institutions responsible for implementing solutions, as global interests have influenced these institutions and have become corrupted.

The only viable remedy for the crippling effects of financial nihilism lies in establishing new organizations prioritizing ordinary individuals' needs over those of the powerful elites. This transformation is still in its infancy and may require several decades to reach fruition, much like the gradual rise of globalization in its formative years.

Navigating Turbulent Times Ahead 

The main question is how to address the changing dynamics during this period. More specifically, how can individuals cope with the impending peak in asset values and the rapid surge in goods prices? Both the timing and location factors influence the solution. Looking at the timing perspective, Travis's forecast about this being an exceedingly speculative crypto market cycle is accurate and is expected to persist. Additionally, his assertion that the crypto market will present the most outstanding returns among speculative asset classes also holds true.

When considering the increasing participation of globalist investors such as BlackRock in cryptocurrency, it becomes evident that investing in crypto presents a significant opportunity to enhance one's financial position in the near future. To prosper financially within a globalist context, it is essential to emulate the strategies of global investors. Many are now mimicking the investment decisions of influential figures like Nancy Pelosi. However, the challenge lies in exiting these investments at the right moment or, preferably, beforehand. Achieving this task is more complex than it may seem.

One of cryptocurrency's most exciting aspects is its transparency, allowing all transactions to be publicly visible. This unique feature enables individuals to monitor and track the investment strategies of experienced traders in real time, often providing valuable insights. By doing so, many people have successfully identified emerging trends, including the rapid growth of memecoins, before they surge in value.

This approach may only be viable in the short term. Beyond that, we may witness a widespread asset selloff as heavily indebted global powers attempt to settle their debts. This scenario presupposes that their efforts to manipulate wages and interest rates will ultimately fail, which appears probable. Those familiar with the CBDC narrative will understand that developing and launching such technologies is complex. Moreover, coercing people to adopt these technologies and actually getting them to use them are two distinct challenges, with the former being relatively easier to achieve than the latter.

If globalization efforts stagnate, the value of assets will decline, while the cost of goods and wages will increase. To thrive in this scenario, it's essential to adopt a diligent work ethic, particularly in sectors experiencing a resurgence of domestic production. Reestablishing local operations will necessitate massive investments of energy and resources. Strategically placing yourself near these industrial centers can provide indirect benefits, even if you're not directly employed in these fields.

This pertains to the second aspect of addressing the consequences of globalism, which is location. Assuming that globalists can establish CBDCs and similar systems, there will likely be certain countries and regions where their influence will be limited. These technologies may be less widespread or may not be present.  It needs to be determined which countries and areas these may be, but this should become clearer over time.


Source: Visual Capitalist

Countries less inclined to adhere to globalist principles, like the BRICS nations and their allies, often face the most adverse impacts from them. Even if the globalists do not succeed in introducing their dystopian technology, it may still be wise to consider moving, as certain countries may struggle to bring operations back onshore efficiently due to limitations in resources or workforce. Europe and the UK are especially vulnerable to this scenario.

In essence, navigating the challenges of globalism and its eventual downfall will require flexibility in managing one's finances, career, and home. We're operating in a globalized system, so it's crucial to mirror the investment strategies of globalists and be prepared to move to avoid their control. As we transition towards a more nation-centric environment, your ability to find meaningful employment will become more vital to your survival than your investment savvy, which may also require relocating to a new country. However, choose a nation that won't likely end up in a kinetic war because of its nationalism.

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

Tim Moseley

Gold and silver prices seeing some follow-through buying following Friday’s breakouts

Gold and silver prices seeing some follow-through buying following Friday’s breakouts

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.

Gold and silver prices seeing some follow-through buying following Friday’s breakouts teaser image

Gold and silver are starting the week with increased volatility as investors continue to react to the precious metals' breakout moves on Friday and extend their follow-through through Sunday evening.

Overnight, gold futures rallied to a new all-time high of $2,454.20 an ounce; meanwhile, silver prices surged to $32.75. Although the precious metals were off their recent highs as the North American trading session kicks off, they are attracting some new momentum.

June gold futures last traded at $2,422.60 an ounce, up 0.20%on the day; meanwhile, July silver futures last traded at $31.81 an ounce, up 1.74% on the day.

 

Looking ahead, analysts expect that gold and silver prices will move higher. However, they recommend that investors avoid chasing the market at current levels.

David Morrison, Senior Market Analyst at Trade Nation, said that while silver looks overbought, last week’s move above $30 an ounce was a significant breakout.

“Silver has made incredible gains over the past fortnight, and it does look overbought at current levels. That would suggest that some profit-taking could come in now. But traders would have to be very brave or foolhardy to short a market moving this way,” he said in a note Monday.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said that although gold looks a little overbought, it remains a “buy on dips.”

“We believe some patience is called for, not least considering that investors may need more time to adjust and adapt to current high price levels. This includes central banks, major buyers since 2022, and whether their political motivation to buy bullion lifts their willingness to pay record prices,” he said in a note.

Hansen added that silver could have more potential than gold as it is just seeing its breakout move.

“Having already recorded the highest close in 11 years, a break could potentially set in motion an additional reaction from momentum-following funds, currently holding a relatively small net long futures position. The gold-silver ratio, which measures the relative strength between the two metals, trades around 80.5 ounces of silver to one ounce of gold, down from a January peak above 92, yet still above support at 78.50 and not least 76,” he said.

Analysts note that silver is finally outperforming in the precious metals sector as it is attracting significant attention as both a monetary metal and an industrial metal. Copper’s move to a record high above $5 per pound is creating some solid momentum for silver.

At the same time, relatively mixed inflation data last week is solidifying expectations that the Federal Reserve is on track to cut rates two times this year, supporting gold prices, which in turn is positive for silver.

“Given the current economic indicators and the anticipation of further dovish signals from the Federal Reserve, gold prices are likely to remain bullish in the short term,” said James Hyerczyk, Market Analyst at FXEmpire.com.

As to what levels traders and investors should watch, Julia Cordova, Founder of Cordova Trading, said that gold needs to hold $2,352.70 on any major correction.

Looking at silver, Cordova said that after Friday’s breakout, it has room to move higher.

“The daily measured move is now $32.785, and the weekly targets are $34.835 (inverse head-and-shoulders measured move) and $35.69 (bull flag measured move). $29.855 is the magic number that bulls want to hold on any pullback,” she said in her weekly report Sunday.

Kitco Media

Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

Gold Price News: Gold Rallies to Notch Up 19 Weekly Gain

Gold Price News: Gold Rallies to Notch Up 1.9% Weekly Gain

Gold News

Market Analysis

Gold prices powered up through the $2,400 an ounce mark on Friday, capping a strong week for the metal, which posted week-on-week gains of around 1.9%.

Gold prices touched a high of $2,419 an ounce on Friday, compared with around $2,379 an ounce in late trades on Thursday. That was the highest gold price since April 12.

Friday was light on macroeconomic data releases, and gold’s ability to push higher seemingly without the support of underlying economic data does highlight its natural appeal as a safe haven during times of geopolitical tension.

Recently-approved western financial support for Ukraine’s defence against Russian military attacks raises the ante and may indicate a long-drawn out conflict in the region, maintaining a risk of the confrontation spilling out into a wider war. These tensions, along with the ongoing clash between Israel and Hamas, continue to create a risk premium for gold prices.

On the demand side, the People’s Bank of China has announced gold purchases for 18 consecutive months, the World Gold Council said in a report May 15.

Total official gold holdings at the end of April were 2 tonnes higher at 2,246 tonnes, representing 4.9% of the bank’s total reserves – the highest ever, it said.

The latest figures from China build on recent interest in gold among central banks more broadly, amid signs that they are seeking to rebalance portfolios to include a higher weighting for low-risk assets like precious metals.

Looking ahead, the markets will be watching out for speeches by several US Fed officials on Monday and Tuesday, as traders scan for clues about the timing of interest rate cuts.

Frank Watson

Time to Buy Gold and Silver

Tim Moseley

BlackRock Exec Predicts Tidal Wave of Institutional Money Flooding Into Bitcoin ETFs

BlackRock Exec Predicts Tidal Wave of Institutional Money Flooding Into Bitcoin ETFs

By Olivia Brooke – May 20, 2024

Robert Mitchnick, head of digital assets at BlackRock, anticipates a new wave of investment into bitcoin ETFs, particularly from large financial entities such as sovereign wealth funds, pension funds, and endowment funds.

Mitchnick’s prediction comes despite a recent pause following consistent inflows into spot bitcoin ETFs for 71 days. Regardless, the BlackRock exec suggested, “The current lull is likely to be followed by a new wave from a different type of investor.”

In an interview, Mitchnick shared insights on the renewed dialogue around Bitcoin, saying, “Many of these interested firms – whether we’re talking about pensions, endowments, sovereign wealth funds, insurers, other asset managers, family offices – are having ongoing diligence and research conversations, and we’re playing a role from an education perspective.”

BlackRock’s Strategic Expansion into Digital Assets: Spotlight on Bitcoin and Ethereum ETFs

Since their approval earlier this year, spot bitcoin ETFs have seen significant interest, with over $76 billion accrued across these products. BlackRock’s bitcoin ETF, IBIT, has notably amassed $17.2 billion in assets. This compares to Grayscale’s Bitcoin Trust, now an ETF holding approximately $24.3 billion.

The increase in IBIT’s assets is partly due to transfers from Grayscale’s product, shifts from higher-priced ETFs in Canada and Europe, and conversions from bitcoin futures ETFs.

Nonetheless, Mitchnick emphasized that BlackRock is not solely focused on becoming the leading provider of spot bitcoin ETFs but prioritizes client education and comprehensive asset management. Moreover, the firm is expanding its digital asset initiatives, demonstrated by its recent application for an Ethereum ETF.

This move follows CEO Larry Fink’s hyping of the transformative potential of tokenization, which represents “traditional assets on blockchains.”

However, market experts argue that BlackRock’s potential introduction of an ether exchange-traded fund (ETF) prompts the need to educate clients about the Ethereum blockchain. Likewise, investors may question the need for another crypto ETF after adjusting their portfolio’s risk return through spot Bitcoin ETF’s Sharpe ratio.

Mitchnick emphasized that BlackRock views digital assets from three critical perspectives. These components are considered interconnected, each informing the firm’s strategies and insights into others. “When we think about this space, we see the potential for digital assets to benefit our clients and capital markets, with a focus in three areas: crypto assets, stablecoins, and tokenization. And these pillars, they’re all interrelated.” Mitchnick expressed.

This holistic approach aims to equip clients with a nuanced understanding of effectively incorporating digital assets into their investment portfolios.

DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Olivia Brooke and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

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Tim Moseley