Relative fiat US Dollar Strength is Wrecking Markets .com/watch?v=psA0o-GgrcU

Win 500 Silver Eagle Coins, enter here: Get our FREE SD Bullion Guide: SUBSCRIBE to Our Channel: Very large financial market selloffs this week as the fiat Federal Reserve raised their Federal Funds Target Rate again by 75 basis points. While we continue to read headlines of raising rates by central banks led by the fiat Federal Reserve, the bigger story ongoing here is the speed at which they are moving to raise rates.In 2022, relative continued strengthening by the world’s dominant fiat currency has produced massive selloffs in most commodities and precious metals and in unprecedented losses in the world’s largest financial asset classes like stocks and bonds.The fiat US dollar index had another massive jump this week on the rate rise. Falling below one versus the fiat euro to close this week, nearing a 20-year high on a relative basis in that fiat currency pairing.And too, when comparing the fiat US dollar versus the world’s still oldest fiat currency unit, the fiat British not sterling silver anymore pound. Now nearing an over 50-year low versus the US dollar. You have to go back to the Plaza Accord to find a time when the fiat pound was this weak on a relative basis.Turning now to the largest asset class in the world, bonds. Jim Bianco said the following this week on CNBC, have a look and listen.The silver and gold spot price markets sold off this week to strengthen fiat US dollar terms.The silver spot price closes just under $19 oz, and the spot gold price dropped to near $1650 oz.The gold and silver ratio climbed slightly to 87.Looking at the spot gold price technicals, we can see a recent fall through nearly two years of support. Nearly 200 bullion and precious metals interested followers took part in a Twitter poll I ran this morning as the spot gold price sold off to start the day’s trading.The sentiment remains mostly bearish, expecting further gold price falls in the coming weeks.Chances are high that since you likely buy bullion, you are a contrarian by nature, so this week’s headline in the Wall Street Journal claiming that gold has lost its status as a haven is the kind of stuff you want to see for an eventual sharp rebound.With the rapid central bank rate raising, many expect an inevitable breakage of something in the financial markets. We’ll see how gold responds when real fear returns and central bank policy shifts are required.Turning to the silver spot price chart, technically, it has been a bit stronger than the gold of late, but technically silver needs to blow past $22 to get momentum traders long again in a large fashion. For now, silver is on sale, and physical #SilverBullion continues to get taken from large exchange warehouses.COMEX registered silver dipped to 43.5 million ounces by the end of this week; the trend is deliverable silver piles on the US east coast and in London shrinking.Indian silver bullion import data for last month came in this week, with India taking over 30 million ounces in August 2022 after their record-sized July off-take. As I had suggested last week, that is about 90 million ounces in only two months. And already, over 200 million ounces through August of this year headed to India alone.Most of that silver bullion is coming from the United Kingdom and likely a lot of it out of London silver warehouses and unsecured silver ETF holdings.Finally, another sign rhyming with the 2010s was when China imported record size amounts of gold bullion kilo bars from Switzerland. Last July 2022, over 80 tonnes of gold bullion left Switzerland, headed for Chinese gold bullion and jewelry stacks. That is the second highest amount of gold exported from Switzerland to China since 2012.In a further illustration that the Chinese are aggressively buying this ongoing gold spot price dip, premiums paid on bullion in Shanghai are now near $50 oz over international spot prices as a revival in demand outstrips the country’s current gold import supplies.Both increasing #Bullion demand levels in India and China show attractive long-term price levels for buying.If you are fortunate to be enjoying relatively strong fiat US dollar buying power right now, take advantage before this powerful trend eventually turns the other way, perhaps in violent fiat debasement versus bullion fashion.As we move onward to our rapidly changing financial system’s structure, prudent ownership of proven safe haven assets like gold will shine and remind the world that gold is safe haven money to hold for the long term.Thank you for watching this week’s #SDBullion Market Update.And as always to you out there, take great care of yourselves and those you love.Royalty-Free Music by &

21 thoughts on “Relative fiat US Dollar Strength is Wrecking Markets

    1. The market is already broken. As that guy said, when talking about bonds. Who wants a bond of any duration, when inflation is 9%? The bond market is stupid. Broken. Where are the bond market vigilantes? Why aren’t they demanding higher/ a positive return? Why aren’t they front running the Fed? I know gold shot up in the later stages of 1970s, but this is stupid. We, as consumers, know that inflation is ATLEAST DOUBLE what the Fed claims. Thats higher than inflation reached in the later 1970s. Powell did wait too long to raise rates. And the stupid bond market seems to believe his bull. Between Europe and the US, especially the US, since Powell started earlier, the market should have already snapped, since it couldn’t even handle 2.5% back in 2018.

      Just a bull💩 fake market. Stupid Bond market traders.

  1. Only a matter of time till Fed has to do between 100 to 150 basis point move to get ahead of inflation. Way behind the curb. We Have Not yet seen economic pain. Good luck ALL on your navigation of life.

  2. The FED is owners by private banks – why should the FED care abt anything but their owners … this is brutal capiailisme at its best !

  3. Maybe this upcoming depression with knock some sense in the world. We have been living in a false reality for way too long and the criminals need to be locked away.

  4. So if interest rates go up slowing down money velocity, and therefore inflation, considering the amount of debt, interest rate payment alone will force taxes to go up making everything worse and creating more inflation because quantitative easing will be needed. Or am I missing something?

  5. The Fed is risking bankruptcy with its policy path. I ran the numbers yesterday from FRED and the H.4 release, and they will incur $10-20B in net interest expense (i.e. an operating loss) against capital of just $25B. $123B of interest income in 2021 on assets that increased 19% over the course of that year; rough estimate is that the current level of assets will yield about $130-140B over the next 12 months. Only $1.2T of their assets mature in the next 12 months and can be rolled over at a higher yield, which will produce a gross interest income of ~$30-40B (@3.5% yield vs the 2021 average yield of 1%); $3.2T reserve balances @ 3.15% + $2.5T reverse repo @ 3.05% = $5.7T in overnight liabilities at $178B in interest expense over 12 months. $135B (+/- $5B) + $35B (+/- $5B) – $178B = – $8B (+/- $10B) NII vs $25B in capital.

  6. Thank you for quality programming.< What you are describing here is accurate - the flight to safety to the US stock market and dollar. This is what is keeping the market going at this time and preventing a crash. This "melt UP" phase will go on for a while, then as the global economy crashes so will US markets only harder due to the "No Win scenario" that has been created by so much obscene debt. Next comes the "Default Phase" with mega-massive bankruptcies and lastly "Asset Seizures" where banks and the Fed government will simply declare an extreme national emergency to justify the crisis and debit your account directly. The >fools< will think that this could never happen. The actual legislation for this type of action is already in place. My advice to anyone feeling the heat in this inflation, just trade long term more than ever, I have made over 523k from day trading with Shirley Bagshaw in few weeks, this is one of the best medium to backup your assets incase it goes bearish..

    1. Due to the resent fall in the crypro market, I don’t think it’s advisable selling, it would be more beneficial and yield more profit if you actually trade with Shirley signals.

    2. Everyone needs more than than a Basic Income to be Financially Secured in this present time that there’s an Economic Decline.

    3. Shirley is very sound in analysis and her service delivery is top notch. I am so grateful to her for her assistance which has made me a much better and profiting trader.

  7. It’s the dollar’s strength that will end its reserve currency status, because everyone will hate the dollar after experiencing its devastating strength.

  8. This vertical manipulation with Interest Rate by Fed is no “Off Setting ” of the effects of the 50 years accumulated Sin started by Greenspan & Co
    Quantitative Counterfeiting ttriggered by Quantitative Easing, that started with Hank Paulson era and of course the Trickle Down Economy of Reagonomics to vanish with Abracadabra of Interest Rate manipulation may ease the pressure on US$ temporarily but giving rise to Arbitrage opportunities for many is no “One Size Fit All (Condom) solution rather it is further accumulation of Sin infinitum

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