May 17, 2022
Welcome to this week’s edition of the Goldiggers Newsletter, where we dig for the golden nuggets of market information to keep you (and your investments) in the know.
Weekly Metal Detector Alerts:
Monday (Yesterday) - TIC Data announced
Tuesday - U.S. Retail Sales MoM announced + Fed Chair Powell speech
Wednesday - Canada’s Inflation Numbers Announced
Thursday - US Initial Jobless Claims announced + US Existing Home Sales Announced
Friday - Happy Hour Announced at 2:00 pm (1 hour earlier in light of chaos)
Meme of the Week:
Source: Twitter
Based on Mr. Cramer’s reputation, this doesn’t bode well… what are your thoughts on the matter?
But hey, if we’re digging our own graves, let’s at least dig into this week’s dirt while we’re at it.
Commodities: Let Them Eat Cake!
Prices are going up:
Supply is going down:
Wheat exports from Russia and Ukraine have ceased since the outbreak of the war
India has placed a ban on exports following a supply scorching heatwave
Is there not enough wheat to go around? The second largest wheat exporter believes there isn’t, claiming “The rise in overall prices raised concerns about inflation and that’s why the government had to ban wheat exports.”
Source: Twitter
Do you buy that claim? Many don’t, instead believing his is a tactic to drive up global prices to new peaks that will ultimately hit poor consumers in Asia and Africa the hardest.
“The ban is shocking,” expressed a Mumbai-based dealer. “We were expecting curbs on exports after 2-3 months, but seems inflation numbers changed government’s mind.”
Source: CNBC
In the meantime, hopefully there’s enough cake to go around to keep those on the brink of famine satiated…
Precious Metals: Advice from Expert Panelists
“If you look at this gold chart this is actually a really bullish chart,” shared Gareth Soloway of In The Money Stocks.
Source: YouTube
“There are not many bullish charts out there,” Soloway continued, “but gold is certainly that.”
Soloway’s Prediction: $2400 by year is a very easy target for gold
Patrick Karim of Bad Charts is advising investors to stay calm, sharing, “You think it’s the end of the world but this is what they call a false breakout.”
Karim’s Prediction: Following this false breakout, we’re going to see a powerful breakout move to the upside
Karim’s Commodity to Watch: Gold
However, not all experts are as optimistic with their predictions as Soloway and Karim.
“People kind of realize there might be a little recession, but they don’t understand just how big the bubble is and just how much air is going to come out of it.” - Mike Maharrey, SchiffGOLD
Maharrey’s Prediction: If the feds stick to aggressive rate hikes, the economy is going to utterly collapse
But the seasoned investor remains true to gold in stating, “If that happens, honestly, I still want gold.”
Overall verdict from our three experts: gold - gold - gold
Technology: “Sorry! I forgot my wallet - can someone else pick up the Twitter tab fo me?”
Can Elon buy Twitter?
The liquidity of this offer is now being called into question, and it’s hedging on some pretty fine margins.
Tesla & Twitter stocks are sliding, as is the tech market, weakening the value of Elon’s original offer.
Will Elon defy all odds as he’s so famously known for doing? Or will he have to walk away from this deal (faced with a $1B breakup fee).
Crypto: Terra Luna Stock Crash
More than $1 trillion has dissapeared from the crypto market since November, and more than 98% of Terra Luna disappeared overnight.
Source: Trading View
Crypto investors are experiencing the realities of a decentralized market, and they aren’t loving it.
Nor are they loving Coinbase’s recent SEC filing which explained the rules of playing in a decentralized playground: The crypto assets held by the company on behalf of their customers “could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors.”
But… no need to panic thanks to Coinbase’s CEO Brian Armstrong tweet expressing, “Your funds are safe at Coinbase just as they’ve always been.”
Right? Wrong - people are scared.
Given how events have unfolded since November, do you still think cyrpto is worth investing in?
Professional Economist John Adams shared in a recent interview that “I think part of the roll of crypto is to distract investors away from precious metals.”
Could this be another attempt to manipulate the price of precious metals through distractions?
It’s likely.
But incidents like Terra Luna have fearful investors opting for safer long-term solutions as opposed to volatile short-term sensations which could mean good things for gold and bad things for crypto in the coming months.
Due Diligence Story of the Week: GOLD bulls buy big on the May GOLD contract and Citibank shorts against them, this time for 2-½ tonnes. That’s 9-¼ tonne over 2 days.
This week was a big one, so here’s a little forecast of everything that’s going on:
Important announcements (listed below)
Food shortages are a very real possibility
Food inflation soared 8.8%
Wheat’s benchmark index rose 5.9%
India banned wheat exports
Poor countries in Africa and Asia will be hit the hardest
Everything’s down - but precious metals are the least down
Experts predict a precious metal breakout by end of 2022
Elon’s Twitter deal may not be feasible
Tesla and Twitter’s stock are in a decline
Terra Luna lost 98% of its value overnight
Crypto investors are frightened by Coinbase’s dose of knowledge
Extreme fear is plaguing the market
The golden standard prevails
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