Housekeeping: Good Morning.
“The Gold reset is a process, not an event”
Today:
Discussion: Gold’s Event Horizon(s) Approach
Analysis: Costco’s invasion
Discussion: Gold’s Event Horizon(s) Approach
Event Horizon: A theoretical boundary around a black hole beyond which no light or other radiation can escape, a point of no return.
For most Americans, The Presidential Election is a black hole for their investment decisions now. And as such, no light or balanced ideas can get into them. They are hyper focused on the center, the black hole of November 5th.
This is evidenced in observable market behavior such as, the increased purchases of Gold bars from Costco and the newfound love the press now has with Gold headlines, even if only to get advertising clicks.
Expect more of this leading up to the Election, and possibly much more of it afterwards if things do not go smoothly. But this is a black hole we will enter, and you do not know what will be on the other side.
Fortunately, Oct 22nd is a trial run for those who follow BRICS activities. Expect some significant announcement focused on Oil and Gold this year for purposes of liberating the free market price of both. Consider that your peak over the horizon as to what is coming down the road, regardless of the Presidential black hole.
Premium Analysis: Costco’s invasion
Even though Costco’s foray into the precious metals market may not move prices, it signals a shift in how and where consumers are purchasing gold. Stefan Gleason, CEO of Money Metals Exchange, believes that making gold more accessible through big-box retailers like Costco could lead to a significant increase in ownership. “Even an increase to 5% to 10% ownership would be dramatic—and would likely disrupt the market,” he said.
Equity Recap: 2008 is calling
US equities ended lower on Monday amid rising oil prices and Treasury yields. Large caps and small caps retreated: S&P 500 (-0.96%) vs. Russell 2000 (-0.89%). MSCI Emerging Markets (EEM) added 0.83% and MSCI EAFE (EFA) fell 0.56%.
Market News:
"A judge ordered Google to make it easier for developers of mobile-app stores to compete on phones and tablets that use the company’s Android software, a blow to the search giant as it navigates numerous legal threats.WSJ
"Oil prices surged above $80 on Monday as fears grow of an escalating conflict in the Middle East and possible supply disruptions in the US Gulf of Mexico from a major hurricane. Brent crude, the global oil benchmark, rose 3.7 per cent Source: FT
"US consumer borrowing increased in August at a slower pace than a month earlier, restrained by the largest drop in credit-card balances since March 2021. Bloomberg
"Gold’s breathtaking surge this year to repeated record highs hasn’t stopped bullion from flying off shelves at Costco stores across the US. Bloomberg
Politics/Geopolitics:
Iran's Foreign Minister is to visit Saudi Arabia and other countries in the region, starting on Tuesday
"Israel army said a fourth Division joins operations in Southern Lebanon", according to Walla News' Elster
Israel’s cabinet is in permanent session to discuss the response to Iran and choose the location, according to Al Jazeera citing an Israeli delegate to the UN.
New York Times cited officials that stated Israel is likely to target Iranian military bases and possible intelligence sites in its response, while Israel seems to have postponed after a long discussion the targeting of Iranian nuclear sites to a later date, according to Al Jazeera.
Israel's military issued new evacuation warnings on specific buildings in Beirut's southern suburbs on Monday evening.
Ukraine announced that a Russian missile hit a grain ship in the Odesa region which killed one person onboard the grain ship.
Russian and Chinese ships conducted a joint practice of anti-submarine missions in Asia-Pacific, according to RIA.
North Korean leader Kim said they are to speed up steps towards military superpower and strong nuclear power, while Kim also said they are to further strengthen Russia-North Korea cooperation in a birthday message to Russian President Putin, according to News1 and KCNA.
Data on Deck:
MONDAY, OCT. 7 Consumer credit, speakers
TUESDAY, OCT. 8 NFIB optimism index, speakers
WEDNESDAY, OCT. 9 Minutes of Fed's September FOMC ,speakers
THURSDAY, OCT. 10 Consumer price index Sept.0.2%
FRIDAY, OCT. 11 Producer price index
FINAL MARKET CHECK
