In Case You Missed It – Week Ended June 4, 2016.
Stories from the week ended June 4, 2016.
NEW: Smaulgld commentary on this In Case You Missed It report now available on You Tube here.
The big economic news of the week was the massive non farm payroll miss on Friday. The Bureau of Labor Statistics reports that just 39,000 jobs were created in May. Expectations were for 160,000 jobs.
Gold and silver
Gold closed last week at $1212.80 and closed this week at $1243.50
Silver closed last week at $16.20 closed this week at $16.39
The gold and silver ratio ended the week at 75.45 to 1
The gold silver ratio rose in May as silver got hit harder than gold during the month.
Photo of the Week
Children of the Damned and Iron Maiden
Here are the stories we wrote, followed or commented on.
We missed it
Smaulgld.com’s article “The Dark Side of a Cashless Society” was cited by Payments NZ in their analysis of the impact of going cashless. About Payments NZ: “Payments NZ was established in 2010 by eight banks, with support of the Reserve Bank, with a mandate to open access to and preserve the integrity of New Zealand’s payments system. Our eight shareholder banks are ANZ, ASB, BNZ, Citibank, HSBC, Kiwibank, TSB and Westpac”.
May 30, 2016
Why Are New Home Sales Still Far Below Those of Prior Decades?
New home sales between the “housing recovery” years 2010 – 2016 are at best comparable to the new home sales of the 1960’s.
Chart source: US. Bureau of the Census, New One Family Houses Sold: United States, retrieved from FRED, Federal Reserve Bank of St. Louis May 24, 2016.
Pakistan’s gold imports increase 20% in ten months
Bullard says markets prepared for summer rate hike
May 31, 2016
American Silver Eagle Sales up 122% in May
Top Three Sovereign Mints Report 32% Silver Sales Growth in First Quarter
India Rolls Back Sales Tax on Gold Jewelry
Peru’s Illegal Gold Miners May Get A Break
Solid Gold Maltese Eagle Worth Five Million Dollars Stolen
Mexico’s “Silver King” Alberto Bailleres sees wealth rise $1.3 billion silver price increase
US Economic Data
Chicago PMI 49.3, Exp. 50.5, Last 50.4
Dallas Fed -20.8, Exp. -8
Case-Shiller 20-City Home Prices Rose 5.43% Y/Y; Est. 5.16%
Personal Income 0.4%, Exp. 0.4%, Last 0.4%
Personal Spending 1.0%, Exp. 0.7%, Last 0.1%
Consumer Confidence 92.6, Exp. 96.2, Last 94.2
Higher gas spending fueled the increase
WSJ Spin: “the latest sign the economy is improving after a sluggish start to the year.”
and U.S. consumer spending surges; inflation creeping up the word “GAS” not mentioned once in this Reuters story
St. Louis Fed President Bullard says take a wait and see approach to rate hikes
U.S. Mint Sales Update
U.S. Mint reported selling 579,500 American Silver Eagles 7,500 no American Gold Eagles today.
MTD American Silver Eagles sold 4,498,500 & American Gold Eagles sold 64,500
YTD American Silver Eagles Sold 23,413,000 /American Gold Eagles sold 343,500
The U.S. Mint reported selling 2,500 American Gold Buffalo coins.
MTD 18,500 sold YTD 98,000 sold
June 1, 2016
Top Sovereign Mint Gold Sales Grow 54% in First Quarter
The Perth, Canadian and U.S. Mints sold 650,870 ounces of gold in the first quarter of 2016.
Sudan gold revenue near $1 billion in three months
Silver fundamentals look solid to Commerzbank
US Economic Data
ISM Mfg 51.3, Exp. 50.3, Last 50.8
U.S. April Construction Spending -1.8%; Est. +0.6%
AIIB president says bank to have 100 members by year end
Platinum falls on US Car Sales Data
June 2, 2016
American Gold Eagle Sales up 378% in May
May 2016 sales of one ounce American Gold Eagle coins were the seventh best May sales in the coin’s history.
U.S. Economic Data
ADP 173K, Exp. 173K, Last 156K
Initial Claims 267K, Exp. 270K
ISM NY April 37.2, May 57.0
Dallas Fed President Kaplan says rate hike appropriate but after Brexit vote, cites “full employment”
U.S. Mint Sales Update
U.S. Mint reported selling 71,000 American Silver Eagles & 9,500 American Gold Eagles today.
MTD American Silver Eagles sold 71,000 & American Gold Eagles sold 9,500
YTD American Silver Eagles Sold 23,484,000 /American Gold Eagles sold 353,000
The U.S. Mint reported selling 3,000 American Gold Buffalo coins.
MTD 3,000 sold YTD 97,500 sold
Britain unveils plastic bills
June 3, 2016
Perth Mint May Silver Sales up 189%
Perth Mint silver sales of 974,865 were the lowest since the Australian Silver Kangaroo coin was introduced in September 2015.
US Economic Data
Non Farm Payroll 38K Exp. 160K
Unemployment Rate 4.7
62.6% Labor Force Participation Rate down 0.2 / 458K shrinkage of labor force
US Trade Deficit Increases 5.3% in April BUT Reuters spin “as exports of goods rebounded strongly, suggesting that trade would be a boost to economic growth in the second quarter.”
Canada Out of Gold Foot note: “On May 31, the Government had no holdings of gold.”
Gold miner stocks blast off after weak jobs data
Pre Jobs report
Chicago Fed President Evans sees case for deferring U.S. rate hikes for years
Post Jobs Report
Fed Governor Brainard – Fed should wait on raising rates as job market has slowed calls job report ‘sobering‘
The Fed will raise interest rates
The Fed wants a not too strong dollar that it crimps military exports and not too weak that it lowers demand for US Treasuries.
You Tube Notes to this report
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