""Gold heads for best week since 2008" is not exactly a headline that makes you feel all warm and fuzzy inside, but such is the present state of the American economy. Silver is running hard too, rocketing above $100 an ounce for the first time ever this week. We are in a brave new world where the rules of the old one no longer apply, and the Illuminati on Wall Street have spent the last year realizing this."
"One might think that getting paid at higher interest rates on debt that historically been defined as "risk-free" would be attractive to investors, but bond yields rising means that bond sales have fallen, as investors have balked at rates that several years ago, they would have piled all their cash into."
"It's quite simple, actually. Anyone without an economics degree can fundamentally grasp the nature of supply and demand, and when the president of the United States is declaring war on the people who lend him money, the demand to lend him more money in the future is going to wane."
Gold and silver have surged, with gold heading for its best week since 2008 and silver topping $100 an ounce for the first time. The dollar had its worst year in fifty years while Treasury yields rose, signaling higher interest rates. Japan's shift away from zero interest rate policy removes a global low-rate outlier and contributes to a new era of higher inflation and rates. Rising bond yields have reduced bond sales as investors balk at higher rates. Political actions by the US president have weakened demand for lending to the United States, driving further precious metals demand.
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