Financial crisis

Inflation in the United States is creating tensions between the Fed and the Treasury on monetary policy, resulting in market repercussions with stock declines, bond yield increases, and a correction in gold due to sales in derivative markets.

The banking crisis of spring 2023 was marked, first and foremost, by the failure of three US regional banks. These types of banks, which are all the more vulnerable to market conditions and are not systemic, are still experiencing financial difficulties that could lead to further bankruptcies.

The next big run in gold is much closer than the majority of investors seem to believe.

Recent rises in inflation have plunged the continent into an unprecedented stalemate: the farmers' protest movement is mainly attributable to the consequences of this general decline in purchasing power recorded in Europe over recent quarters.

Two of the world's largest silver mines, located in Mexico, closed their operations. Silver stocks on the Shanghai Future Exchange are falling. Andrew Maguire says that wholesale silver is not trading at the COMEX silver price or the LBMA fixing, but at a much higher price.

Inflation takes off at around 4% in Japan, a significant level for a country which, apart from the 2014 surge, has generally recorded inflation rates close to zero, or even negative, since the turn of the century.

The total mismanagement of the US financial system has led to the dollar losing 98% of it’s value since Nixon closed the gold window in 1971. Most other currencies have followed the dollar down at varying speeds.

Gold prices anticipate the shift in the investment cycle from growth stocks to tangible assets. The yellow metal also benefits from its safe-haven status in a context of economic uncertainty.

With many political elections due to take place in 2024, the economic and financial outlook is likely to tip the balance for better or worse.

Egon von Greyerz and Matthew Piepenburg take a sober look ahead at a macro environment riddled with undeniable event-risk—from geopolitics and asset bubbles to debased currencies and distrusted global leadership.