In Case You Missed it Week Ended October 10, 2015.
Stories from the week ended October 10, 2015.
The week began with statements from various U.S. Fed Presidents on the possibility of interest rate hikes and ended on the same note.
Gold opened the week at $1138.40 and closed up at $1156,40. Silver opened at $15.27 and after breifly sailing through $16 an ounce on Wednesday ended at $15.82.
American Silver Eagle sales slowed and premiums fell.
Smaulgld.com was republished in the Daily Coin, Economic Policy Journal, Investment Watch Blog, SGT Report and Zerohedge
We were also treated last week to some over the top statements from Yahoo! News and former Fed Chairman Ben Bernanke.
Here are the stories we wrote, followed or commented on.
October 3, 2015
Federal Reserve Officials Speak
We saw some cross-talk yacking from Fed President offering various views on the state of the economy and whether interest rate hikes were warranted:
Fed’s Vice Chairman Fischer Sees No Bubbles in U.S. Economy – Declines to speak on interest rate policy
Dudley Says Work Needed on Tools to Avert Financial Crises
Minnesota Fed President Kocherlakota Says Low Inflation Warrants Further Fed Stimulus -Negative interest rates could be a useful policy tool.
October 4, 2015
Zerohedge and Economic Policy Journal Republish Smaulgld
China’s Gold Found?– Economic Policy Journal
China’s President Confirms Practice Of Moving Official Reserve Assets To Other Entities In China – Zerohedge
Ben Bernanke Speaks
In an ironic twist, in an interview with USA Today Ben Bernanke claimed that “more Wall Street executive should have gone to jail”. For those with short memories, Ben Bernanke was the Fed Reserve Chairman from 2006-2013 whose zero interest rate policies, endorsement of bailouts and quantitative easing programs caused much of the excesses on Wall Street.
Former Federal Reserve Chairman Ben Bernanke says more Wall Street executives should have gone to jail for their roles in triggering the Great Recession
October 5, 2015
U.S. Mint Updates October American Gold and Silver Eagle Sales
After record June, July and August American Silver Eagle sales and strong American Gold Eagle sales at the U.S. Mint, silver sales cooled in September from their three month surge, in part due to the allocation of American Silver Eagles to Authorized Purchasers.
The U.S. Mint reported its first sales of American Gold and Silver Eagles today.
US Mint opens October with sales of 5.5K American Gold Eagles;699K American Silver Eagles
Ben Bernanke weighed in on an interest rate hike:
Ben Bernanke – Rate Hike Should Be a Last Resort
CNBC and Marketwatch on Gold
In a rare moment, CNBC weighed in on gold’s prospects in a positive manner:
CNBC: Does the Weak Report Mean A Gold Comeback?
Marketwatch, however, took the more usual bearish position:
Marketwatch: “robust economic activity in the US is bearish for gold“
October 6, 2015
San Francisco Fed President Speaks
San Francisco Fed President John William calls U.S. economy “strong” opens possibility for interest rate hikes.
San Francisco Fed President: Strong economy nears full employment, higher interest rates
CNBC weighs in again on gold:
Could Q4 bring a rally in gold? but then adds some analysts are doubtful that the precious metal will push much higher.
French banking giant Société Générale openly questioned the Fed’s credibility:
Société Générale One Chart That Shows the Federal Reserve Is Losing Credibility
Regulators propose measures to stop global payments fragmenting
“Why Comex Won’t Default”
October 7, 2015
Wall Street Journal Reports on China’s Dumping of U.S. Treasuries
China, once the largest buyer of U.S. Treasuries is now its biggest seller
U.S. Mint Updated American Gold and Silver Eagle Sales
The U.S. Mint sold 8,000 American Gold Eagles today & 296,500 American Silver Eagles
MTD Sales: 13,500 one ounce American Gold Eagles & 995,500 American Silver Eagles
Wall Street Journal on Gold
WSJ: Central Bank Gold Buying Led by Russia and China Buoy Gold Price
German Gold Repatriation
Germany’s gold repatriaton efforts were back in the news. In an effort to convince doubters, the Bundesbank publised their gold bar numbers.
German Bundesbank Releases Gold Bar Numbers
IMF Warns on Rate Hike
IMF Warns On Fed Rate Hike
China Boosts Gold Reserves in September
“Chinese Gold Reserves Rise 15 Tonnes in September”
China May Have Boosted Gold Reserves by .9% in September
October 8, 2015
Economic Cheerleading Story of the Week from Bloomberg/Yahoo!
A study by a University Professor on the state of the job market for college graduates was featured in Yahoo News today. The superlative laden study (incredible, massive, frenetic and explosive) indicated that the job market for college graduates was shaping up to be, well, take your pick from one of the superlatives above.
Yahoo/Bloomberg report study that show college student job gains are “massive” and hiring pace “frenetic”
Jobless Claims Released – Lowest in 42 Years!
Back in 2013 we noted that declining initial jobless claims were a result of fewer people left to fire and more people out of the labor force. Yet low initial jobless claims continue to be trumpted as a sign of a “strengthning labor market”
U.S. Jobless Claims hit 42 Year Low -“strengthening labor market” “upbeat”
No Rate Hike For the U.K.
Chinese Foreign Reserves Plunge
Chinese Foreign Reserves Plunge
Fed September Minutes Released
September Fed minutes released: worry about global uncertainty, transitory low inflation, eroding credibility, too high dollar, labor market slack, tightening near.
Bloomberg’s Perma Gold Bull Weighs In
Bloomberg’s Joe Deaux writes that Fed comments negative for gold as Fed signals “rate rise”
U.S. Mint Updates American Gold and Silver Eagle Sales
U.S. Mint sold no American Gold Eagles today and 79,500 American Silver Eagles
MTD Sales 13.5K Gold Eagles; 1,075,000 Silver Eagles
Sales of American Silver Eagles have slowed and premiums for the coins have plunged.
Is the Great Silver Shortage of 2015 over?
American Silver Eagle premiums have come off their 50% high from late Sepbember.
Fed President Kocherlakota Hints at Negative Interest Rates Again
Fed President Kocherlakota says go negative interest rates
October 9, 2015
China Makes New Bid For Inclusion in International Monetary Fund’s Special Drawing Rights (SDRs)
China makes renewed bid for SDR inclusion
Fed President Charles Evans on Interest Rates
The dovish Chicago Fed President Charles Evans who has been urging “patience” on raising interest rates, still see rates rising in 2016.
Rate Hike? Fed Evans Says Rates Below 1% Appropriate in 2016
Negative Interest Rates?
CNBC’s Rick Santelli Discusses Negative Interest Rates
Inventories Rise 0.1% in August
Atlanta Fed President Lockart Speaks
Atlanta Fed President Lockart: signs of weakness in net exports but real final sales expanded at a rather robust 3.1 percent annual growth rate in the third quarter and we are nearing full employment.
Lochart sees rate hike in 2015