by David Brady, Sprott Money:
Precious Metals Fundamentals
In terms of fundamentals, we have a dovish Fed and elections dead ahead. The Fed has already cut rates by 50 basis points to 5.00%. Another 25-basis point cut is already baked into the cake on November 7, with a probability of 92%.
As for the elections, whoever wins, they are likely to continue massive fiscal spending, driving up inflation at the same time interest rates are falling. The only downside risk is another 2000 event, where the result of the election is disputed.
Geopolitical events, such as war in the Middle East, have died down for now, but this may be the calm before the storm. Any escalation in hostilities is bad for the world but typically good for Gold and Silver, as the Ukraine and Israeli invasions showed.
The Democrats’ flying monkeys in the mainstream media have been rending their garments over the way Donald Trump talks about them since he first hit the campaign trail back in 2015. They believe that he is unfair and mean to them.
Silver prices explode 6%, breaching $33.6/oz. Five major US banks face billions in losses from massive short positions.
