Since 2008, the east has been buying gold and the west has stopped selling gold.
Month: May 2019
Tax revenue Vs Budget deficit
Deficits are going up even while tax revenue is stable. What will happen when tax revenue actually drops in a stock market recession?
Gold Vs Stocks
When gold stagnates, stocks go up. When stocks stagnate, gold goes up.
Bullish or Bearish Gold/Silver
We have a very peculiar situation here. We are seeing both a bullish ascending triangle formation and a bearish descending triangle formation.
Who will be correct?
The effect of trade war on goods trade U.S. – EU – China
Who is the real loser since the start of the U.S. – China trade war in 2018?
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=> The U.S.
But ultimately both China and the U.S. lose as their GDP will shrink as imports and exports both crater.
Also very important to know is that due to China not selling as much goods to the U.S., it will have no reason to buy U.S. treasuries anymore from the U.S., because it won’t have excess dollars to buy treasuries. Since the trade war started, China has been selling U.S. treasuries.
The effect on Chinese growth is acceptable. China will still grow at an annual rate of 6% as we don’t see a big decline in power consumption since the start of the tariffs in 2018.
Gold Forecaster Index: Trump Trade War is Positive for Gold
Silver Survey 2019
The 2019 silver survey report is out. One nice chart I want to post here is the cummulative production – silver mining cost curve.
We are currently at $14/ounce silver and this means we see a loss of 10% of silver mine production.
I believe the absolute bottom should be around $12/ounce when we see a real loss in production.
How much silver and gold is used in a phone
For once and for all: the amount of silver and gold in an iphone.
Gold: 30 mg
Silver: 90 mg
1.5 billion smartphones/year produced
This amounts to:
45 tonnes gold demand/year of total global 4000 tonnes gold demand/year
135 tonnes silver demand/year of total global 30000 tonnes silver demand/year
So smartphones only use 1% gold and 0.5% silver from total global demand. Negligible.
Correlation Economics (Backup) 