Thirty-year US Treasury rates are up 80 basis points and ten-year rates are up 50 basis points during the 3rd quarter ending today. This is the largest and fastest rate of increases in decades. The Federal Reserve continues QT (Treasury bond selling) while foreigners continue their shift from US Treasury buyers to sellers. These are the consequences of the Fed keeping interest rates too low for too long; the forty-year bond bull market cycle is over.
Six months since the last bank failures, commercial real estate continues its re-pricing lower while banks grow their underwater assets of loans and bonds. The global paper derivatives market teeters as a $2 quadrillion time-bomb. Debt and currency crises may be looming as inflation continues globally with gasoline $7 in California.
Looking ahead, $2 trillion annual US Federal deficits with huge upcoming re-financings and supply of Treasuries will cast a shadow over paper assets (equity and debt).
Precious metal demand worldwide remains evident with Shanghai and Moscow premiums drawing vaulted physical supply from “West” to “East.” In 2023, new Basel III Gold NSFR regulations have prompted large Central Bank gold buying while the global process of “de-dollarization” moves ever forward. Lest not forget that global silver supply for industrial (solar and electric vehicles) and real-asset investment has been and will continue at substantial and increasing annual deficits going forward.
Buy the dip, get your physical precious metals at this advantageous entry level now.
Always Insured, Always Online, GoldClub Direct.
All Updates and Market info are provided as a third-party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.