Housekeeping: Good Morning.
“The Gold reset is a process, not an event”
Today:
Discussion: Gold is now the ultimate asset.
Analysis: RBC Silver Stackers Report
Special: BRICS PAY comment
Chart Update:
Discussion:
1- BOA: ‘Gold is now the ultimate asset.’
With the U.S. national debt ballooning to over $35 trillion, analysts are starting to question whether traditional investments, like Treasury bonds, can still provide stability.
Can gold really replace Treasury bonds?
U.S. debt crisis
In a note titled “Is Gold a Safer Investment Than Treasuries?” Bank of America’s Commodity Strategist, Michael Widmer, said that fears over debt levels will be gold’s key driver.
Widmer explains that this is turning investors away from traditional safe havens like Treasury bonds. In his words:
“With lingering concerns over U.S. funding needs and their impact on the U.S. Treasury market, the yellow metal may become the ultimate perceived safe haven asset.”
Bank of America has set a price target of $3,000 for gold by Year End
**Continues at Bottom
2- RBC Silver Stackers Report
Complete analysis of Producers, Developers, their production costs, Supply sources, Demand breakdown.. and more
Silver is matching gold's YTD +30% gains, though with higher volatility
Deficits should persist on growing solar demand
Silver ETF holdings are up modestly YTD after significant outflows from 2021–23
Equity valuations for silver producers have pulled back vs. gold peers,
Silver M&A is heating up, following the recent AG/GATO and CDE/ SIL deal announcements
**Continues at Bottom
News/Analysis:
Equity Recap:
US equities ended flat on Thursday as investors assessed US economic and corporate earnings reports. Large caps bested small caps: S&P 500 (-0.02%) vs. Russell 2000 (-0.25%). MSCI Emerging Markets (EEM) dropped 0.15% and MSCI EAFE (EFA) added 0.01%.
Market News:
"Consumer spending held up in September, underscoring a resilient economy that is now getting a boost from the Federal Reserve.CNBC
"Taiwan Semiconductor Manufacturing raised its target for 2024 revenue growth after quarterly results beat estimatesBloomberg
"Netflix’s profits and revenue increased in the third quarter despite slower subscriber growth WSJ
"The European Central Bank has cut interest rates by a quarter-point to 3.25 per cent, amid signs that growth and inflation in the Eurozone are weakening. FT
"Low-rated corporate loans are having a banner year. Wall Street is trying to find more ways to sell them to ordinary people. WSJ
"Uber discussed a bid for the $20 billion travel booking company Expedia, CNBC
Politics/Geopolitics:
Israeli PM Netanyahu met with his security team at the PM office and later confirmed the death of Hamas leader Sinwar, while he added that Israel’s task is not complete and the war is not over with Israel to continue full force until its hostages are returned.
White House said US President Biden and Israeli PM Netanyahu discussed how to exploit the Hamas leader Sinwar's death to bring hostages home and end the war, while they agreed to stay in close contact over the coming days.
US Defense Secretary Austin said the death of Hamas head Sinwar provides an extraordinary opportunity to achieve a lasting ceasefire, while it also provides an opportunity to end the war, rush in more humanitarian assistance in Gaza, as well as bring relief and hope to Palestinians.
US is to try and push a Gaza ceasefire proposal forward, while there have been no negotiations for a Gaza ceasefire for the past few weeks.
US Secretary of State Blinken told Israeli President Herzog he is expected to arrive in the coming days in the region to discuss a ceasefire deal, according to Kann News.
US sources cited by CNN noted that Washington still believes that the Israeli response to Iran may happen within days.
Israel told mediators that it is open to ideas that could be put forward for a Gaza deal, according to Al Arabiya.
Hezbollah said it is moving to a new and escalating phase in the confrontation with Israel.
Speaker of the Iranian parliament told French newspaper Le Figaro that Tehran is ready to negotiate with Paris for a ceasefire in
Russia is to test the combat readiness of one of its strategic nuclear missiles units, according to RIA.
North Korean leader Kim said South Korea is an apparent hostile country
Data on Deck:
MONDAY, OCT. 14 Columbus Day holiday. Bond market closed.3:00 pm
TUESDAY, OCT. 15 Empire State manufacturing survey
WEDNESDAY, OCT. 16 Import price index
THURSDAY, OCT. 17 U.S. retail sales
FRIDAY, OCT. 18 Housing starts
FINAL MARKET CHECK
