Gold is up $7 and change at 23. 37 creating the 7th day in a row of new all time highs. Silver is up twenty cents at twenty seven point six six. Welcome to the morning markets and metals with Vince Lancy where each day he brings you the precious metals and financial news to get you ready for your day. And now, here’s Vince. Good morning, I’m Vince Lancy. And today’s market rundown.

We will look closely at what happened last night because that is a manifestation of what has been going on for the past two years. We have four premium reports we want to refer you to. Three of them came out this weekend. They all tie together what’s going on from different perspectives. We will look at the news and we’re going to talk about why the Fed is dead. Okay, you see the gold market there? Let’s check the markets.

The dollar is up nine, stable. This is about prices today, right? The dollar is up nine and stable. Ten year yields are weaker by over 1% at 445. The S and P 500 is down a moderate small six handles at 5200. The VIX is up almost a percentage point at 16. 15. Gold is up $7 and change at 23. 37 creating the 7th day in a row of new all time highs.

Silver is up twenty cents at twenty seven point six six. Copper is up almost three cents at four hundred twenty five. Oil is down $0. 43 bucking the trend at 86 51. Natural gas is trading 171 again. We don’t care until it’s below 150 or above $2. Bitcoin is up 4% at 72,330 and ethereum is up 4%. Tracking it now might be the ETF related at 3624. Platinum, palladium are both up over a percentage point.

Grains are mixed with wheat down 20 basis points. Remember, wheat is now in the throes of the ukrainian, russian ukrainian thing. Okay, let’s talk about the markets last night. Gold opened. We’ll start with gold and silver. The markets open and gold and silver dove precipitously. Now $20. Gold was down. And that wasnt crazy. Considering what happened last Friday. There could have been some longs that wanted to sell.

Of course there could have been some spoofing as well. We know that. But those usually work during thin hours. However, were not in thin hours anymore. It was met with buying. And this is the open. This is a 15 minutes chart. And this is the ramp above the highs. New highs up to 23 54 at least on this, on this machine, silver was even more pronounced. Silver also sold off opens 27 47.

Goes as low as what? 26. 7 00:26 84. Sorry. Right now bounces up to his high to over $28 and now settles in at 27. 64. The dollar during that timeframe, okay, starts out, starts at weak, gets strong, gets weak, volatile, but in a tight range. Nothing crazy. That looks scary, but it’s not. The bond market, on the other hand, yields just continue to go up. So the bond market continues to weaken.

So the bond market’s losses are gold’s gain. The bonds market’s losses are silver’s gain. The bond market’s losses are bitcoin’s gain. It’s not the dollar, folks. It’s the bond market. The world is swapping bonds for something that’s more stable, more secure, more real for collateral. Why did the market, you’re going to read a lot of reasons why the market sold off and rallied and it’ll be, I can’t even say the nonsense anymore, but it’ll be because of the Fed.

Might be easing now. The Fed’s not easing. The market is concerned about that and policy changes. You’ll start to hear things like China’s manipulating currencies or gold price. This is fallout from the yelling conversation. Part of it could be, but this is what’s going on. The Fed here, let me bring it up so you can see the words. The Fed is dead, okay. It doesn’t mean monetary policy is dead, it just means the power, the monetary policy power is moving.

It’s relocating to the east, to China. The gold went over. It’s still going over. People are talking about it now, but it’s been doing that for years. The pricing power for gold is moving over and that means the monetary policy that’s effective will move over. So why am I bringing that up? Because China is taking a page from our playbook. The chinese economy is stressing out. Maybe not so much today, but the chinese economy has been the ghost cities and what have you, and they’ve been doing various things to combat that with muted success.

Now what they’re doing now is right now. Right now, as discussed on this site last week and in a couple other sharp places, is China has been printing, has been issuing debt, so fiscal stimulus, borrowing money to keep their economy going. Borrowing money, borrowing money. Borrowing money, but not really spending a lot of money. Now that’s been weakening their bond yields. Their bond market’s not that important yet.

They announced, well, they tentatively announced, but this is the market picking up on it. Last week they announced that they’re going to start doing a type of QE, just call it QE. There’s all kinds of names for it. But they’re going to buy their own long, the PBOC, which is their fed, is going to buy their own long term bonds. And in doing that, so the fiscal government’s going to create bonds and the Penn central bank is going to buy it.

That’s QE. So what is that? Well, that’s buying your own debt, putting money into the market. Thats quantitative easing. Its a form of, its kind of like yield curve control, but its quantitative easing. So why are they doing that? Because they want bond yields to go down. If bond yields go down, then citizens will feel safe and their opportunity cost for putting their money into stocks, into gold, into silver will drop.

So when our bond yields dropped to zero, what did you do? Put your money in stocks? That’s what they’re doing. The difference between China and the US is when we did QE starting in 2009, our government steered the money into stocks, steered the money into government, into corporate bonds. It steered the money away from precious metals. Now there’s ways that they can do that. That’s market structure. That’s the invisible hand that they control.

China, however, theyre steering the money into stocks. No doubt theyre also steering the money into gold and silver, especially gold. Now why? Because they dont care about the dollar. They dont care about the yuan weakening against the dollar because theyre not a dollar based economy anymore. Theyre a gold based economy. If the yuan weakens against the dollar because theyre printing, so what? They’re taking the yuan and they’re buying gold with it.

Okay, so if the yuan weakens against the economy, yuan weakens against the, against the US dollar. They’re not doing trade with the US anymore. They’re doing trade with gold. So they don’t need as many dollars to do stuff anymore. They have gold. Their currency is backed by gold now. Not literally. They’re not going to come out and say that yet, but it’s going to happen. They’ll come out.

They’ll come out and it’s a soft backing. They’re doing that in preparation for everything. China has a plan and the plan is to internationalize the yuan to make the other BriCS states trust them. Oh, your currency is trading out there in the open now, but what backs it? We don’t want to have that bullshit backing like the US did. Well, we’ve got a lot of gold to back it.

Oh, well, okay then I guess we can trust you. But what about your bonds. Well, China’s like we’re working on that. The bonds are next, but let’s get the currency internationalized. And once that happens you can call the dollar whatever you want, global reserve currency, who cares? That’s another economy. And our reaction is going to be sadly to defend our way of life, which is what you would expect.

But our way of life has nothing to do with finances yet. But we’re treating it as its finances. And so the Fed is dead. The PBOC is the new Fed. So your God no longer cutting it. The new God is. It’s like a game of thrones. It’s really like a game of Thrones thing, I guess. The Targaryens are the Chinese and the seven nations are the g seven and wow.

Okay, there you go. All right. So moving on, moving on from my little analogy there, these are the other four posts that I’m going to draw your attention to. They’re in premium, they’re also attached. You dont have to read all four of them. But if youre looking for answers, theyre there in different forms. The first one, this is about the chinese stimulus. Forget the title. This is about the chinese stimulus.

The second one there are clearly buyers of gold at current levels. Thats very important if you want to get a bullion banks perspective on it. You can see the bullion banks are talking about gold when theyre permitted to in a very, very favorable light. This one is an analysis that we did on Sunday for traders. I didn’t send this out yet. I sent it to founders only. But I’m going to send this one to the premium as well.

At least one bank, this is our opinion, at least one bank has a problem and the CFTC commitment to trader analysis bears that out. This one just went out. Gold’s physicality is a feature, not a bug. That’s more of a rant than anything else. Anyway, that’s a lot of content. Hopefully you’ll find something there that helps explain things. We just talked about that, but we have something else in premium I want to show you.

The 1970s are back now. They’ve been back for a year or two now. But Goldman Sachs has just created new product and you can call that a short term high in the market. And you might be right. But Goldman Sachs has created a new product and that product is called the G’s 1970s inflation comeback basket. Here’s what they say about it. Despite falling inflation, the backdrop for these inflation oriented stocks is uniquely good.

The lack of investment interest has led to disciplined management teams that are shareholder focused and valuations. Balance sheets and return of capital provide support while waiting for inflation or global growth to inflect while us growth is above trend. Now you can read the rest of that. This is good for miners. I don’t know what’s in the basket yet, but this is good for miners. And I had tips to zero hedge for pointing this out to us.

Let’s move on to the news. There’s a lot of news over the weekend, but I only want to look at this one with you. The US economy is attacking. The US government is attacking its big companies. So let’s read this. Having more money than you know what to do with used to be a high quality problem. Now it’s just a problem. Apple, Amazon, Microsoft and the parent company of Google and Facebook now collectively sit on a little more than $570 billion in cash, et cetera, et cetera.

As you’re reading the rest of this, pretend you’re the company. What am I going to do with this money? What am I going to do with this money? I don’t want to buy my own stock back. The government is going to start, you know, regulating me harder. I don’t want to buy other company stocks because they’re all overvalued. What am I going to do with this money? I don’t want to buy bonds because bonds are in trouble.

I can’t really buy chinese bonds. What am I going to buy? What am I going to buy? It’s going to sit in cash and then some. It’s going to go into bitcoin and you’re going to start seeing these guys, I believe speculation. You’re going to start seeing them buy inflation exposure assets. It’ll be tips at first and then it’ll be gold. It’s a very significant thing. They have cash.

They’re well run companies. The government’s out to get them. Nothing is worth putting it in. You put it in something that’s going to at least hold its value. When it all jumped above $90 a barrel just days ago, military tensions between Israel and Iran were the immediate trigger. But the rally’s foundations went deeper. Yes, you can read the rest of that. Oh, the last one. Food inflation across rich nations has dropped to its lowest level level since before Russia’s full scale invasion of Ukraine, with a slowdown in price growth easing pressure on millions of household hit by the two year surge in food costs.

You want to be technical about it. Ok. Inflation’s slowing down. Food prices aren’t dropping. Your food price is dropping. They’re going up. Breakfast is going up. Every commodity that you use at breakfast is going up in price for different reasons, but they’re all going up. It’s over. This is bullshit. Data this week, heavy data from Wednesday and Thursday and light data on Friday. Nothing really today. Tuesday Optimism index, more talkers Wednesday CPI and the Fed minutes for March Thursday, initial jobless claims always and producer price index.

So big inflationary week. Think of it this way. If you’re trying to get a handle on the macro, which is data driven, and the big, big, big picture which is secular driven, and I like to talk about american macro data, will cause the market to move. The question is, is it moving against the big picture trend or with the big picture trend? If it’s moving against the big picture trend and you believe the US is growing in influence on the world, then you don’t do anything and you watch gold go down.

If you think the US’s influence is shrinking in the world and the data says gold should go down, well then that dip should be considered to be bought anyway. Here’s the four post and premium 1234. And there’s the report that has the new Goldman Sachs Commodity index in it. I’m Vince. Have a great day. Thanks for watching this morning’s markets and metals update with Vince Lancy, brought to you each day by Miles Franklin, precious metals, where this week’s special is 1oz 2023.

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