Fitch issues negative rating outlook for U.S.A.
Fitch revised the U.S. AAA rating from stable to negative. Clearly, U.S.A. should get downgraded as its debt to GDP is approaching 150% of GDP.
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Fed Balance Sheet Expansion
Deutsche Bank's projection of Fed Balance Sheet. If all central banks would do the same, then gold would need to double in price to keep up with money supply.
Backwardation in Lease Rates Vs. Silver Price
Lease rates on itself can also have backwardation whenever the lower maturity rates are higher than the higher maturity rates which you can see in the chart below. Whenever this event occurs, the silver price goes higher.
Gold and Silver Checklist
To be able to time the precious metals market you need to take into account a lot of things. Here is a checklist. 1) Gold Forecaster Index The gold forecaster index is a leading index for the gold price. Always make sure that the gold forecaster index is in positive territory when buying gold/silver. 2) Taylor Rule Rate Inflation starts to appear when the Taylor Rule Rate is above the Fed Funds rate. Only buy gold when the chart is in positive territory. 3) Misery Index Another correlation is that between the misery index and gold. The more misery, the higher the gold price. High unemployment and high inflation are good for gold. 4) Real Output Productivity is negatively correlated to inflation. Whenever productivity slows down, efficiency drops and goods become more expensive to make, resulting in higher inflation, which is good for gold. 5) Supply and Demand Always check that gold and silver demand is higher than the supply of gold and silver. When mine supply goes down, precious met...