September 21, 2021
* Currencies & Gold rally on Monday…
* The overnight markets see more dollar selling…
Good Day… And a Tom Terrific Tuesday to you! Another beautiful day here on Monday, but from what the weather app tells me, a cold front is on the way, and on Wednesday the high will be 70 degrees… Well, did you get a glimpse of the Harvest Moon last night? I don’t know why I’ve become so interested in full moons, but I guess it had to do with when we bought our beach place, and watching the full moons, especially the super moons, rise out of the ocean is a real treat! Mike Shannon is a true St. Louis celebrity… He was recruited to play QB at Mizzou, but the Cardinals offered him a bonus and he signed, then played for the Cardinals back in the 60’s. He’s been in the broadcast booth since, and while people like to make fun of him, I love hearing his voice on the radio, and after this season concludes, he will retire… I’ll miss your voice Mike… Crosby, Stills and Nash (CSN) greet me this morning with their 70’s classic song about the shooting and killings at Kent State University: Ohio…
For all of you youngsters out there that have no idea of what I’m talking about… Four Kent State University students were killed and nine were injured on May 4, 1970, when members of the Ohio National Guard opened fire on a crowd gathered to protest the Vietnam War.
Ok, that’s it for the history lesson today… Well, the currencies tried to start something yesterday, with their moves against the dollar… But, I doubt, given all the dollar buying lately, that it’s about to get turned around, for now… But for yesterday, it was the currencies turn to rally… The moves were across the board in all currencies, and they were small but at least they were positive, eh? Gold also found a bid yesterday, while Silver couldn’t find one… The price of Oil rallied and gained almost a whole dollar on the day to $70.90, and Bonds didn’t move on the day…
For those of you keeping score at home: Gold gained $10.60 on the day to close at $1,765.00, and Silver lost 11-cents to close at $22.35… I had quite a few emails in the Pfennig Replies Box, that centered around how the price manipulators were able to move the price of Gold & Silver by large margins… I responded to each of them, and then thought, I should do a quick explanation here too…
So, here goes… The Bullion Banks get the memo from the U.S. Gov’t. to stop Gold’s rise… These same Bullion Banks then show up at the COMEX with arms full of short Gold paper trades… It is my understanding that they use futures contracts on the near date, with no intention of making delivery of their sell contract, and buying it back at a profit before the expiration date.
I’ve been watching the Canadian dollar / loonie, lose ground lately, and I’ve been surprised by that downward move, as commodity prices are on the rise again, especially the price of Oil, but that hasn’t helped the loonie move higher or at least hold its ground. The loonie had outperformed the other currencies for the first six months of 2021, but now it’s fallen 3.2% since June 30. With the Canadian election now put to bed, maybe the loonie can get back on the rally tracks…
In the overnight markets last night…. There’s been a little more slippage in the dollar as the currencies added to their gains yesterday. Gold is up $3.90 in the early trading, and Silver, yes, Silver is up this morning 31-cents… Ed Steer reported this morning that 2.6 Million Troy Ounces of Silver have been Added to SLV… Which tells me that the individual investors are buying Silver’s ETF, and if it weren’t for all the price manipulation lately, that Silver would be rising and probably be close to $27, $28 in price…
Well, the sock market collapse that was called for to happen yesterday, didn’t occur, and instead stocks rallied on Monday… I have no idea why these people keep making a BIG Deal out of their forecast for a stock market collapse on “X” date… But not to worry, I’ll keep posting their calls as they make them, just so we can keep count of them! I have an article from Hugo Salinas Price for the FWIW section today, you’ll not want to miss it, as it will discuss the best way to buy Gold… (spoiler alert, it’s the same thing I’ve told you for years now!)
While the talk of stocks is still fresh… Recall I wrote about China’s Evergrande and the implications of the fallout of an imminent default of Evergrande’s $315b unserviceable debt pile… There have been plenty of articles calling Evergrande, China’s Lehman Bros…( Bank stocks didn’t fare well yesterday, but overall stocks rallied… ) Apparently they don’t know how China works… I believe the fallout from this default will be contained by the Chinese Gov’t to China, and not be the global problem the Chicken Littles were calling for… So, yesterday’s rally in stocks here in the U.S. was telling…
OK… a week or so ago, I wrote about how U.S. Treasury Sec. Janet Yellen, was warning about the pending Debt Ceiling talks… Well, she doubled down on her previous comments last weekend with an op ed in the Wall Street Journal. Before now, I didn’t know that Yellen was a Drama Queen… Yellen said that “the crisis triggered by a default would compound the damage from the continuing coronavirus pandemic, roiling markets and plunging the U.S. economy back into recession at the cost of millions of jobs and a lasting hike in interest rates.”
You, me and the guy down the street, knows that the Debt Ceiling has been raised so many times in the past that it’s raising has become a rubber stamp of approval by Congress… So, why is Yellen doing her best Gloom and Doom over this issue? Scare tactics folks, the Gov’t has to keep rolling out the scare tactics to keep control over us… I’m just saying…
OK… Yesterday, I talked about the lack of free speech in the U.S. these days… And that got me thinking about how I’m so lucky to have publishers like Mary Anne and Pamela Aden, who are located in Costa Rica… The cancel crowd can’t reach them there, and therefore I still get to express my free speech platform… Did I ever tell you that I used to be called: Mr. Lucky? Clutch was another name I was given during my youth, But we have to keep the pressure on the state reps and senators to not allow censorship… just because the submission doesn’t follow their “woke” cancel culture…
I spend a lot of time watching Prager U. videos, folks… I even ordered one of their Children’s books for when Evie gets a little older and I can read to her about the formation of the U.S. back when it was all good, and could be good again, if only…
There’s not a lot for us to see in the U.S. Data Cupboard today folks… The Current Account Deficit is about the only real piece of data today. Tomorrow, is the FOMC Meeting… A lot is expected of the Cartel heads at this meeting, I’m afraid they are going to disappoint us, as usual…
To recap… The currencies and Gold rallied on Monday, while Silver didn’t find a bid all day, and lost 11-cents… Gold gained $10.60 on the day, and the price of Oil rebounded almost a whole dollar in value yesterday. Chuck calls out the stock market collapse guys, and also renames the Treasury Sec. to Ms. Drama Queen… And Chuck asks you to call your state rep or Sen. And tell them that censorship is bad… The overnight markets have seen a little more dollar selling and even Silver is up this morning!
For What It’s Worth… Ok, I teased you a bit earlier and told you that Hugo Salinas Price was the guest in the FWIW section today… I really liked this article because it says what I’ve been saying for years now regarding buying Gold… And it can be found here: www.plata.com.mx/enUS/More/422?idioma=2
Or, here’s your snippet: “The bad news is: there are no real prices of gold and silver available in the World today.
It is useless to follow the investment recommendations put forward, all in good faith, by individuals such as Peter Schiff.
The prices presented by the Media in our world are determined by a small group of individuals in London and New York; this group decides each and every working-day, what the prices of gold and silver are to be that day.
That daily decision has nothing to do with a “Market” for these metals.
The section of Kitco.com devoted to comments regarding the markets for the precious metals is perhaps entertaining, but otherwise worthless.
Some days, the prices of these metals are allowed to rise, and the hearts of gold and silver investors go “pitty-pat”. But following that rise, comes a collapse – investors who purchased metals earlier in the day, are now losers.
Then, other days, the prices of the precious metals are falling and investors rush to sell their stock of metals, to avoid further loss; the suddenly, the price turns around and goes up a bit. But the investors have now liquidated all or part of their stock, and cannot benefit from the rise.
The real purpose of the precious metals markets of today is TO CONFUSE THE PUBLIC.
This “Confusion as a Goal” of broadcasting fictitious prices of the precious metals has allowed the Dollar to survive as long as it has, as the World’s No. 1 currency.
There is one way – and ONLY ONE WAY – to profit in the precious metals markets: you buy, at whatever the price is, when you wish to buy, and take possession of the metals you have purchased.
You put your purchase away, shut up about it, and WAIT. You MAY die before the price of the metal you bought, goes up and stays up. On the other hand, if you are still breathing, and the Dollar has died and gone to Hell, what you will be able to purchase for one ounce of gold will prove to be the very great surprise of a patient life.”
Chuck again… Remember this folks… if you take possession of your physical Gold (or Silver) don’t tell people about it… Words can fall into the hands of the wrong people… And believe me there are plenty of wrong people out there these days!
Market Prices 9/21/2021: American Style: A$ .7265, kiwi .7038, C$ .7849, euro 1.1745, sterling 1.3682, Swiss $1.0823, European Style: rand 14.8079, krone 8.6587, SEK 8.6578, forint 300.48, zloty 3.9379, koruna 21.6219, RUB 73.28, yen 109.41, sing 1.3506, HKD 7.7855, INR 73.59, China 6.4657, peso 20.07, BRL 5.3105, BBDXY 1,152.12, Dollar Index 93.07, Oil $71.15, 10-year 1.32%, Silver $22.66, Platinum $933.00, Palladium $2,008.00, Copper $4.16, and Gold… $1,768.90
That’s it for today… Well, my beloved Cardinals made it 9 wins in a row last night… A tight game that went to the Cardinals… I have a Cardinals neon light in my basement that my wife calls the “lucky light”… you can surely guess that it has been illuminated for the last 9 games! She wasn’t home last night but sent me a text to make sure I turned on the “lucky light”, and I did just as I was told! HA! My beloved Missouri Tigers (Mizzou) travel to Boston College this Saturday. BC is unbeaten and will be a tough row to hoe for my Tigers… I have a new item on my back bar here… My friend, and former colleague, the metals guru, Tim Smith, brought me a Ted Simmons bobblehead! Ted is my all-time fave Cardinal… He began his career at catcher for the Cardinals at age 19! I was still trying to figure out my life when I was 19! Hey 19… We can’t dance together, we can’t talk at all… (Steely Dan)… Well, Jr. Walker and the All-Stars take us to the finish line today with their song: What Does It Take…. (love this song!) I hope you have a Tom Terrific Tuesday today, and please Be Good To Yourself!
Chuck Butler