In the current economic turmoil, opportunities for laughter are few and far between, but here's the joke of the day: "Your money is protected", the French deposit insurance and resolution fund (Fonds de Garantie des Dépôts et de Résolution - FGDR) confidently proclaimed on Tuesday, April 23. It proudly displays a total of...7.4 billion euros by the end of 2023. Let’s read the FGDR’s press release: "In 2023, we have reached the target level of resources set by the European Union and have resources for deposit guarantees of 0.5% of all covered deposits", declared Thierry Dissaux. As the Chairman ..read more

Last year, we looked at charts of Silver/Euro and Dow/Gold, both of which were on the verge of significant long-term breakouts. Since that time, the suspected breakouts have occurred, providing key evidence that the bull market in precious metals is indeed underway. It's time to review these fascinating charts! We'll start with Silver/Euro and note that the breakout we were looking for was from its bull flag that launched from the Covid low in 2020. We can see that over the past couple of months, the breakout has been impulsive indeed. Given that this flag consolidated for 3.5 years, there is ..read more

Several events are likely to trigger a significant increase in precious metals prices in the near future. As I have already pointed out in previous articles, the monetary policy of the US Federal Reserve (Fed), to be announced on the evening of May 1, will trigger a historic bullish rally in gold, oil and, above all, silver. This rally should continue throughout May, June and July, before probably pausing until the end of October. What do we know? At the beginning of 2024, the M2 money supply stood at $20.92 trillion. Over the course of 2024, nearly $10 trillion in Treasury bonds will mature ..read more

US 10-year yields have resumed their upward trend. Since the downward trend in rates was interrupted in 2022, the upward movement of the 10-year has continued to rebound on a very strong support: The decline in the 10-year that began in October 2023 never managed to break through this new uptrend. The support level was tested in December 2023, and since then, the 10-year has rebounded upwards with a strong impulse over the last three weeks: The rise of the US 10-year is even following a parabolic trend since the start of the year, on its way to its October 2023 peaks: If this trend persists, U ..read more

France is known for having the fourth-largest stock of gold in the world, even though the country ranks 23rd in wealth per capita. In fact, over 2,400 tons of gold, or €146 billion at €60,000/kg, are stored in the vaults at 39 Rue Croix des Petits Champs in Paris. But do the French own so much gold privately? In the home, gold takes many forms: coins and bars, jewellery, but also technology. While the French seem to be investing more and more in gold since 2019, demand for gold for jewellery has been sluggish in France in recent years. Even so, it appears that the French are at the head of a s ..read more

The price of gold continues to rise, despite the persistent lack of interest shown by Western investors. The decline in outstandings continued in March, albeit less pronounced than in previous months. Even so, this is the tenth consecutive month of outflows from gold-backed ETFs! While outflows are intensifying in the West, the opposite is happening in China. Confirmation of gold's breakout has led to a 30% rise in ETF gold outstandings in just a few days: In recent weeks, there has been a real rush to buy ETFs linked to Chinese mining stocks: The rush on metal seen since the beginning of the ..read more

On April 9, the price on an ounce of gold exceeded $2,350, reaching an all-time high after a series of recent record highs, and the upward trend continues! As a reminder, an ounce weighing 31.1 grams was worth $35 on August 15, 1971, when Richard Nixon decided to leave the Bretton Woods Agreement, then $280 on January 1, 2000, before soaring again. Should we welcome the remarkable rise in the price of gold, or should we consider the collapse in the value of the dollar? Both, and investors who have bet on gold, particularly since the early 2000s, have done very well. But why is gold rising at a ..read more

Zimbabwe has replaced its local dollar, which collapsed after less than 5 years in existence, with a new gold-backed currency. This is the latest step taken by President Emmerson Mnangagwa's government to end decades of monetary chaos. "From today, banks shall convert the current Zimbabwe dollar balances into the new currency which shall be called Zimbabwe Gold (ZiG)," said Central Bank Governor John Mushayavanhu at a press conference on April 5. This measure is designed to promote "simplicity, confidence and predictability" in Zimbabwe's financial system, he added, as he presented the new col ..read more

This week, the U.S. Department of the Treasury began its bond-buying program: The U.S. Treasury has repurchased $200 million worth of Treasuries issued in recent years. This debt buyback operation is conducted by the Treasury's fiscal agent, the Federal Reserve Bank of New York (FRBNY), through its FedTrade system. The Treasury conducts these repurchase transactions exclusively with prime brokers designated by the FRBNY; clients can access repurchase transactions through a prime broker. The U.S. Treasury is issuing Treasuries in order to buy back long-dated bonds. This strategy is designed to ..read more

Just last week, we looked at the silver/gold ratio and noted that it suggested a big move in silver was about to commence. In that short time, silver has risen about 10% to around $27. We've been anticipating a breakout on this quarterly silver chart for some time, and it now looks like we are starting to get it. If the breakout holds on a quarterly closing basis, we will look for a bull flag measured move to the top of the arc at around $45 over the next couple of years. The above two charts are a ratio of gold to the US Money Supply, a chart we last reviewed this past July. To review, gold n ..read more