{"id":22268,"date":"2020-10-04T22:05:16","date_gmt":"2020-10-05T02:05:16","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=22268"},"modified":"2020-11-26T09:42:33","modified_gmt":"2020-11-26T14:42:33","slug":"markets-metals-navigator-october-4th-2020","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/markets-metals-navigator-october-4th-2020\/","title":{"rendered":"Markets & Metals Navigator (October 4th, 2020)"},"content":{"rendered":"

Precious Metals Regain Mojo on the Back of a U.S. Political Upheaval<\/h1>\n

Gold and silver has a solid recovery last week after a very rough prior week, gold was up 2% on the week while silver was up 4%.\u00a0 The 1st U.S. Presidential debate clearly put investors on guard for “tail risk”, it could be politely described as gong show.<\/p>\n

Then to add fuel to an already murky U.S. political backdrop, on early Friday morning Donald Trump had announced that him and his wife had tested positive for the coronavirus.<\/p>\n

In classic Trump political theatre, he tweeted a video on Sunday night that he’s doing well and learned much about virus. The market took all of this well, S&P 500 futures are up 0.7% and Nasdaq futures are up 1% as of late Sunday night.<\/p>\n

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Gold has been the Asset Class to own this Millennium<\/h2>\n

A great chart below highlighting total return of gold, S&P 500 and U.S. treasuries (7-10 years) since 2000.<\/p>\n

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This obviously makes a ton of sense when you overlay the epic balance sheet expansion of the world’s major central banks over this period.<\/p>\n

Great trades play out over years and the best trades play out over decades. Gold is one of them.<\/p>\n

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Higher Permanent Job Loss in America vs. Previous Recessions<\/h1>\n

An excellent graph below highlights the severity of this recession with respect to permanent job loss in America.\u00a0 The clearest take away is that investors should anticipate higher levels of money printing to offset the economic hardship.\u00a0 An attractive backdrop to own precious metals.<\/p>\n

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Bankers Never Do Time for Crime<\/h1>\n

Dave Collum, Professor of Organic Chemistry at Cornell had the best take on JP Morgan’s $1 billion settlement with the U.S. government for manipulating the precious metals markets with “spoofing trades” – nobody went to jail and JP Morgan admitted no wrong doing.<\/p>\n

Dave is absolutely correct people should be destroyed for that level of egregious criminality. Kid glove penalties like this are exactly why the general population believe the system is rigged in the favor of the ruling class.<\/p>\n

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JPM paid $1 billion to settle market manipulation charges. Nobody went to jail, and JPM admitted no wrong doing. I personally would like to see some people totally destroyed for that level of criminality (including share holders).<\/p>\n

— Dave Collum (@DavidBCollum) October 4, 2020<\/a><\/p><\/blockquote>\n