(USAGOLD –9/15/2020) – Gold continued to push higher in the wake of Treasury Secretary Mnuchin’s cautioning of the Fed and Congress that “now is not the time to worry about shrinking the deficit and the Federal Reserve’s balance sheet.” Mnuchin’s unusual appeal comes ahead of the Fed’s meeting and press conference tomorrow and amidst the ongoing wrangle in Congress over a fiscal spending package. Wall Street, for its part, expects trillions more in stimulus from the Fed and Congress, according to a CNBC survey released this morning. Those expectations look like they might be spilling over to the precious metals markets. Gold is up $11 in today’s early going at $1971. Silver is up 38¢ at $27.60.
“What we are witnessing,” writes economist and fund manager Daniel Lacalle in an essay at the Mises Institute website, “is a generalized fiat currency debasement through extreme monetary policy. That is the reason why gold and silver continue to rise despite hopes of an economic recovery that seems to be stalling. The US Dollar will likely remain the most demanded fiat currency, but the excessive monetary stimulus will ultimately damage the confidence in most fiat currencies.”
“As Americans prepare to cast their vote in the US election, a nightmare scenario looms large: what if Donald Trump were to lose the presidency but refuse to accept defeat?”
USAGOLD note: We were torn as to whether or not we should post this article given our long-standing aversion to covering electoral and party politics at this daily newsletter. At the same time, the potential market repercussions to the events theorized in this article are something every investor should take under advisement. Though the article centers on what might happen if a defeated President Trump refuses to leave the White House, the Biden campaign has also warned that it might not concede defeat.