Peter's Blog

Gold Is a Lifeline for Many Indians During Pandemic

Gold has helped Indians weather the economic storm caused by the coronavirus pandemic. The government response to COVID-19 has ravaged the Indian economy. As a result, many banks are reluctant to extend credit due to fear of defaults. In this tight lending environment, many Indians are using their stashes of gold to secure loans.

Student Loan Debt Continues Its Upward Climb

Student loan debt continues to surge despite falling college enrollment. In Q3, student loan balances rose by $23 billion from the second quarter, according to the latest Federal Reserve data.

Fed Issues Warning About High Debt and Overvalued Asset Prices

While the markets were giddy about the prospects of a coronavirus vaccine, the Federal Reserve was warning of more economic chaos on the horizon. The Fed released its biannual Financial Stability Report Monday. The report warned we could see a wave of defaults and “significant declines” in asset prices in the near future.

ETF Gold Holdings Rise for 11th Straight Month, Set New Record

Global ETF gold holdings rose for the 11th straight month in October, setting yet another new record at 3,899 tons valued at $235 billion.

Russia’s Second-Largest Bank Betting on Gold

Russia’s second-largest bank is betting on gold to boost profits in the midst of the COVID-19 pandemic and global economic slowdown. According to a Bloomberg report, VTB Bank has prioritized gold trading in addition to lending to gold mining companies.

More Bad News for the Labor Market

More bad news for the labor market. Nearly 1-in-10 companies are planning layoffs in the next three months. That’s on top of the more than a quarter of US companies that have already let workers go in Q4.

Silver Investment Demand Surges and Other Silver News

Silver investment demand surged through the first three quarters of 2020, according to the latest issue of Silver News published by the Silver Institute. Global silver Exchange Traded Product (ETP) holdings rose by 297 million ounces through the third quarter of this year, nearly tripling the growth in the comparable period last year.

The Fed Balance Sheet Keeps Growing and There Is No Exit

The Federal Reserve balance sheet could be heading to $40-50 trillion or higher as the central bank continues to monetize US debt. To borrow a phrase from the movie “Pretty Woman,” this is the fork they know. If the economy turns sour, the government borrows money and the Fed backstops it by buying Treasuries. The […]

The Debt Monster Is Loose

The debt monster is loose. S&P Global Ratings projects the global debt-to-GDP level will swell to a record 265% this year. It also expects insolvencies and defaults to rise to levels not seen since the 2009 crisis.

Is It March All Over Again?

It looks like March all over again. Pretty much everything except dollars sold off yesterday. The Dow Jones was down 943 points. The S&P 500 dropped by 3.53%. The Nasdaq plummeted by 426 points.  It was panic selling as markets fretted about the rise in COVID-19 cases, new lockdowns in Europe, and the lack of […]