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Why Buy Bonds When You Can Buy Gold? – Ep. 178

  • I wish everybody a happy July 4th weekend; U.S. markets will be closed
  • It’s unfortunate that we can’t really celebrate all the traditions that we’re supposed to be honoring were lost generations ago
  • The values our founding fathers risked their lives for have all been lost
  • I wanted to comment on what is going on in the markets particularly today
  • Today was the capper on the week
  • You had silver prices up about a dollar an ounce
  • Gold closed up about $19, so gold closed above $1340
  • Maybe by the time the market opens on Tuesday silver will be over $20/ounce
  • Who knows, maybe gold will be over $1400?
  • This is a powerful rally – gold finished at three year highs today
  • GDX was up about 5% on the day
  • The stock market didn’t do that much today, but the real story, other than the gold market is in the bond market
  • U.S. Treasury yield plunging again – these are the lowest yields ever
  • Certainly below the crash lows
  • The yield on the 10-year treasury is below 1.5%
  • The yield on the 10-year treasury is 2.24%
  • So yields are plunging, bond prices are surging
  • What is going on?
  • The answer is money printing; Quantitative Easing
  • The most recent catalyst being the Brexit vote, which scared the hell out of everybody because of the collapse, particularly of the European banks
  • Now the central bankers are rushing to the rescue all around the world