In Case You Missed It.
In Case You Missed it Week Ended September 19, 2015.
Stories from the week ended September 19, 2015.
The week began with all eyes on the Federal Reserve’s FOMC meeting decision on Thursday. The Fed decided due to “global uncertainty” not to raise interest rates. The dovish Fed statement sent markets higher initially.
After the initial euphoria of the prospects of continued zero interest rates faded, the reality set in: the Fed believes the economy is not strong enough to withstand a small quarter point rate hike despite incessant insistences that the US economy was solid, robust and strengthening.
The equity markets sold off Thursday and the selling accelerated on Friday with the Dow closing down 290 points, NASDAQ down 66 and S&P down 32.
We have been predicting that the Fed will finally raise rates a quarter point by the end of the year, not because the economy has improved but to combat de-dollarizaton initiatives that include the selling of US Treasuries and the increased use of non dollar currencies in international trade. For more on this point of view, see here here and here.
What do you think? Vote in our poll in the upper hand side bar of Smaulgld.com.
Here are the stories we followed, covered or commented on during the week ended September 19, 2015.
September 18, 2015
Russia adds one million ounces to its reserves in August
Shanghai Gold Exchange Withdrawls for the week ended September 11, 2015: 73 tons.
Rate Hike in October?
September 17, 2015
US Mint sold 7,500 American Gold Eagles today & no American Silver Eagles. MTD Sales 76,500 Gold Eagles; 2,054,500 Silver Eagles
Fed Leaves Interest Rates at 0%
At the press conference following the FOMC rate hike decision Ms. Yellen made my week- I love when Ms. Yellen says “hoily accalmaudative mawneterry paulicy”
Reuters on CNBC spins the housing starts miss as a “breather” with “sustained strength in the housing market”:
US housing starts take a breather, permits rebound: BUT a rebound in building permits pointed to sustained strength in the housing market, which should support economic growth.”
Reuters also insisted that the labor market was “strengthening”:
Reuters US weekly jobless claims total 264,000 vs 275,000 estimate “labor market continued to strengthen” “strengthening labor market.”
While India continues to devour gold at a record pace Reuters provided this gem:
India gold discounts widen on tepid demand, ample supply
The anti-gold media was out in full force “deriding” the notion that gold stocks at Comex have been depleted and recharacterizing them as “well stocked”:
Gold Shortage Theory Derided as Comex Seen Well Supplied
September 16, 2015
Platinum producer Atlatsa to shut two shafts in South Africa
The Coming Fed Rate Hike is Aimed at the BRICS
Wall St now sees a Sept Fed rate hike: CNBC survey
The Consumer Price Index was released today. CPI -0.1% vs. expectations of 0.1%.
The Organisation for Economic Co‑operation and Development broke rank with most internation economic entities and urged the Fed to raise rates:
OECD urges Fed to hike despite weaker outlook
September 15, 2015
U.S. Mint sold 7,000 one ounce American Gold Eagles today and 236,500 American Silver Eagles
MTD Sales 69,000 Gold Eagles;2,054,500 Silver Eagles
Industrial production and retail sales numbers were released. They weren’t good and sent AP and Reuters into positive spin mode:
US industrial production down 0.4% in Aug vs 0.2% drop expected
AP/CNBC spins industrial production miss:”partly reflect difficulties in seasonally adjusting the data and are likely temporary. Auto sales are strong”
US retail sales up 0.2% in Aug vs 0.3% increase expected BUT Reuters/CNBC characterize the numbers as “Solid” and growing at a “healthy pace”
Bank of Japan Forgoes Additional Easing, Betting Economy Will Turn Around
Browse Collectible Coins on Amazon
We reported on the sales surge in 1/10 ounce American Gold Eagles.
September 14, 2015
US Mint sold 21K American Gold Eagles today & 564K American Silver Eagles
MTD sales 62K Gold Eagles;1,818,000 Silver Eagles
India and Gold
India is either the world’s largest or second largest consumer of gold at any given time, exchanging positions with China. China is the world’s largest producer of gold. India, however, mines little gold. That is expected to change as reported in the Guardian:
India has little domestic gold production BUT.. plans to open gold mines across the country
Fears Grow Over US Stock Market Bubble
Browse Silver Coins on Amazon
September 13, 2015
The warnings against raising interest rates in the U.S. were sounded across the globe:
US Interest Rate Rise Could Trigger Global Debt Crisis
September 12, 2015
While not a day goes by without a few main stream media stories bashing gold, silver is bashed less frequently. But when it is, it’s not in a favorably light as this Barron article illustrates:
Silver Prices Won’t Continue to Rebound
Once booming, Nevada gold output falls to 1988 level
4 firefighters burned battling wildfire in California’s Gold Country
We added gold and silver pages of charts on Pinterest.