Wouldn't be so bad or on fire at all if Govt's hadn't of caved to Greenie demands over the years and reduced back burning operations to clear ground leaf fuel during the colder months. Now lefties use such fires to push their global warming BS. As an aside, mid Oct 2011, we couldn't get from Sydney over the Blue Mountains to western NSW due to bush fire closing the Hway (it happens), next year, same time in Oct, couldn't get over the same road from Sydney to western NSW due to snow.....
Nice to see them continuing to attempt a clean up in the metals trading. https://www.reuters.com/article/us-jpmorgan-spoofing-exclusive-idUSKCN1VX2IG
"If the Fed can't maintain orderly cash markets in quiet times, what might happen during chaotic ones?" $203 billion pumped into system in last few days. https://edition.cnn.com/2019/09/19/business/overnight-lending-market-turmoil/index.html
That money is just overnight if I understood the situation correctly. Can anyone explain it a little more?
This may help explain it a bit... https://www.wsj.com/articles/bank-r...ge-is-roiling-a-key-interest-rate-11568891110 One key cause of the crunch in overnight lending markets is that there are more Treasurys around than banks want to own, but some banks are still being forced to buy them. These are the so-called primary dealers who buy Treasurys from the government and then sell them to investors. If banks don’t want to spend their own reserves to buy Treasury bonds, they have to borrow those reserves from elsewhere. They can do that directly in specialist bank-only markets, or they can try to borrow private money in overnight lending markets, where rates spiked this week.
As SilverSale mentioned, primary dealers are obligated to buy bonds from Treasury in order to make sure the government can always pay its bills. (Primary dealer are just banks that can trade directly with the FED) These banks then sell the bonds in the open market. Here then FED, pension funds, hedge funds, foreign central banks etc can buy them. Normally the FED is an active buyer, but they have recently stopped or reduced buying more bonds in order to reduce its balance sheet. This then left the rest of the “market” to buy them and thus cause less reserves/credit in the system. Due to many reasons, the market needed reserves/credit to meet obligations and a quick way to get it is through the Repo market. But since there were too many bonds and not enough "available" credit (due to government ever increasing spends and the FEDs reduction) the rate of interest someone asked to offer their cash/reserves went up. Now this doesn’t mean there is not enough reserves in the system. Since the FED pays interest on Excess Reserves, the bigger banks rather keep it risk free with the FED then bring it into the marker. Also here is a good video about the Repo market with some interesting info.
“We’re mining eight to one, so for every one ounce of gold that’s being mined worldwide, we’re only mining eight ounces of silver. Silver is extremely rare and people don’t get it,” Neumeyer told Kitco News on the sidelines of the Denver Gold Forum. “People think silver is in abundance, but it’s not.” 8:1 versus 84:1… And remember half of silver is used in industry with little recovered from that. On record as predicting triple digit prices for silver soon, he also addresses the argument that industrial demand will reduce should that happen. He says electric cars only have 3 -5 kilograms of silver in them so silver going from $20 to $100 is not going to have a material effect on the price of a car and a mobile phone likewise has around $5 of silver in it, and so the same argument. He also responds to the question of that dwindling mine production simply turning when the price goes high enough. Neumeyer points out that yes that higher price can bring mines on line but there is ordinarily a 5 to 10 year period to actually do so and therefore it simply isn’t nimble enough to have any immediate impact on the silver price from a supply versus demand perspective. Highlighting the fragility of the silver mine production rates, we’ve also learned this week that one of the biggest silver mines in the world, Mexico’s Peñasquito (Newmont-Goldcorp) mine is yet again shut down due industrial strikes and protests. Silver is often described as the most undervalued asset in the world. Synthetic markets can only counter natural supply and demand rules of economics for so long. The contrast between 2015 and 2019 may be indicating that time is approaching. https://www.ainsliebullion.com.au/g...DFPEXnB1tWgZxEi4IBX2MiD20grkqSlBXHfD68aKsC3eU
I watched the Kitco / Neumeyer interview. As always, when someone has a vested interest in silver like Neumeyer (or gold for that matter), listen but be cautious.
that is one point, it is not true everywhere else that the mining rate ratios are always fixated but the more important rate of buying is much more desirable for higher ratios for silver lovers 84:1
The repo is just an ultra sort term financing arrangement that is collateralised by bonds. If the rate spikes it can be because liquidity has dried up (like they are saying on this occasion); unusually large September cash requirements. Or, and I don't hear this mentioned much, it can be a reaction to counterparty risk. Even if a dealer is repo'ing (ie lending) overnight they will ask for a higher rate if they believe the fed set rate does not compensate them for the risk of their counterparty filing for bankruptcy overnight. This is what happened in 2007 credit crunch which in my opinion was one of the best indicators of what was about to happen.
Ag -> solar panel, silver batteries and ev Pt -> fuel cell https://www.bloomberg.com/features/how-to-invest-a-million-dollars/?srnd=premium-asia
My suggested pullback into October has played out reasonably well... however I suspect silver is ready for it's next run north, a little earlier than originally anticipated. The next 24-48 hrs should be quite interesting
^^^^ Definitely interesting times overnight with a 86c pullback. Does anyone here (with a longer history than myself), ever remember wild swings of this magnitude? And what does it all portend in people's minds? In my opinion, there seem to be so many things potentially impacting price (the possible start of QE4, trade war leading into potential currency war, impeachment) that partial potential resolution of one of those (last night impeachment odds fell) produces the wild swings we're seeing. Except impeachment wasn't as massive a driver as the other causes of the silver spike imo. Zerohedge article mentions some news articles also discussing potential thawing of trade issue but that just seems like more fake news to me. https://www.zerohedge.com/markets/s...ipt-trade-talk-bonds-bitcoin-bullion-battered
We got some amazing volatility I was looking for, but unfortunately on this occasion in the wrong direction. Happens to the best of us Periods of great movement, in either direction, are the best times to make money.
It’s all part of stacking As the saying goes “What goes up must come down” so looking for a reversal next week and back up again Buy in the dips sell in the highs
