Four News Events That Could Drive Gold Bullion Demand / Commodities / Gold and Silver 2021
The halfway point of the year is quicklyapproaching. Dwindling confidence and concern over the direction of the countryalong with rising inflation expectations continue to drive strong demand for physical gold and silver. Thattrend appears set to continue through the second half of 2021.
Here are a few big stories with thepotential to drive bullion buying in the months ahead.
Federal Reserve May BeUnable to Taper
The Fed dropped interest rates all the wayback to zero in March of 2020. The stimulus helped fuel higher and higher stockprices, despite some of the worst economic fundamentals since the GreatDepression.
Now officials are having trouble keeping a lidon inflation data. Food, energy, healthcare, and housing all cost a lot moreand they haven’t been able to hide that fact behind manipulated CPI data.
Inflation expectations have risen to thepoint that Fed officials are whispering about ‘tapering” stimulus. The troubleis financial markets are more addicted to zero interest rates and massive bondpurchase programs than ever before.
Given these facts, no one should expect thenext effort to taper to be any more successful than the last. Look for equity marketsto flounder as soon as the talk about withdrawing stimulus gets at all serious.
If the Fed actually hikes rates and/orreduces debt monetization, we can expect the financial markets to promptlycorrect, after which Jerome Powell and the FOMC will almost certainly beat ahasty retreat.
Inflation DataContinues Heating Up
Jerome Powell wants Americans to believerising prices are temporary. The truth is higher prices are the byproduct ofthe massive amounts of stimulus coming from the Fed and from Congress.
The rise in prices is only as temporary asthe policies behind them. And, as Ronald Reagan observed, "nothing lastslonger than a temporary government program."
Eviction andForeclosure Moratorium Scheduled to End June 30th
The national ban on both evictions andforeclosures on loans guaranteed by the federal government is set to expire atthe end of the month. Unless the ban is extended, millions of tenants andmillions of real estate owners who are behind on payments will face areckoning.
The nation is grappling with record realestate prices and a severe lack of supply, so it is hard to predict what willhappen if a wave of foreclosed homes hits the market.
Some predict the market will welcome andabsorb the additional homes. Others wonder if all hell might break loose,reminiscent of the foreclosure wave at the center of the 2008 financial crisis.
Perhaps the most likely outcome will be forfederal officials to simply kick the can down the road again.
The ban has already been extended twice,and there isn’t much accountability. The Centers for Disease Control, run byunelected bureaucrats, seems to have been granted authority over rents andloans.
If the ban is extended, Americans canexpect even more inflation when it comes to housing.
New Election FraudControversies
Americans certainly won’t find muchcoverage of election fraud in the corporate press. The story was dismissedimmediately following the November 3rd debacle, and nothing has changed in themonths since.
However, the work to investigate and proveelection tampering is not over, and there may be some very interestingdevelopments in the coming weeks and months.
Matt DePerno, a Michigan attorneyrepresenting a voter alleging fraud in Antrim county, claims to have explosive andundeniable evidence of tampering with ballotcounting machines there.
Arizona is conducting the largest forensicelection audit to date. Audit director Ken Bennett recently estimated theballot examination, which began in late April, is roughly two-thirds of the wayto completion.
Biden’s Justice Department appears worried,as shown by its recent vow to intervene in and stymie the Arizona audit.
Other swing states, including Georgia andPennsylvania, have sent delegations to Arizona. They appear to be taking cuesand preparing for similar efforts at home.
If any, or all, of these audits turn up evidenceof tampering, it could throw the presidential election and dozens ofdown-ballot races into question.
By Clint Siegner
Clint Siegner is a Director at MoneyMetals Exchange,perhaps the nation's fastest-growing dealer of low-premium precious metalscoins, rounds, and bars. Siegner, a graduate of Linfield College in Oregon,puts his experience in business management along with his passion for personalliberty, limited government, and honest money into the development of MoneyMetals' brand and reach. This includes writing extensively on the bullionmarkets and their intersection with policy and world affairs.
© 2021 Clint Siegner - All Rights Reserved
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