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Gold and silver fell due to renewed tensions in the Persian Gulf. They are going to borrow money and print it . This is a stock market that should be falling. In particular, food and energy prices, such as fertilizers, as well as oil and gas, will be consistently higher. This is bad news. I mean, maybe this is good news for oil stocks.
Bonds also fell, which is a negative factor for the stock market and the economy. The yield on the 10-year Treasury note closed above 4.5% on a weekly basis. Rising bond yields are obviously having a negative impact on the real estate market. And the downside factor for the real estate market is bullish for gold and silver, because what happens if we have a big drop in the real estate market?
Well, the Fed has to step in and bail everyone out. We will get more money printed. We will get more inflation. They expected home sales to increase, existing home sales. Instead, they fell by 2.4%, up 4% from last month. So, there is an affordability crisis. Housing has never been less affordable, but you are limiting the rights of the owner of that property to sell it to anyone.
Gold and silver fell due to renewed tensions in the Persian Gulf. Gold fell about 1%. So, it's not that big of a drop. Uh, the week closed at 4.11940. Silver, although it fell 3.5% below $ 60.5976, but it was the shares of gold mining companies that fell 3.5% below $60.5976, but it was the shares of gold mining companies that fell 5%.
GDX fell 5%, and the smaller GDXJ, uh, fell 6%. But the news was actually bullish for gold, bullish for silver. The fact that the war will continue is bearish for stocks, but not for gold and silver. Gold and silver benefit not only from the uncertainty that surrounds war, but also from the inflation that always finances it.
And since this war is not over, and it may never end. I mean, this is another huge quagmire that Trump has dragged us into. As bad as Afghanistan or Iraq, another huge mistake. Only this time you can blame it on Trump. Um, but it will cost us a lot of money. The war will cost us a lot of money. Peace, if we ever get it, will probably cost us even more money.
Um, where will this money come from? They are going to borrow them and print them. This will push people out of the dollar and into gold and silver. So metals should rise based on this news. It is the stock market that should fall, based on the prospects of a larger budget deficit and higher inflation.
Despite the growing fear, precious metals fell instead of rising. Peter Schiff says this is unusual because wars often lead to greater government spending, more money printing, and higher inflation. The current price decline may reflect short-term trading rather than long-term fundamentals. For investors, the main thing is not today's volatility.
These are policy decisions that could lead to the rise of precious metals in the future. In fact, it should be obvious by now that Iran now controls the Strait of Hormuz. They had no control over it before the war. They also had no claim to taking control of it . And in fact, if we had done nothing, if we had not started a war against Iran, and Iran had just seized the strait, the whole world would have rallied around us to repel it, to put an end to it, because they would be the bad guys.
But we gave Iran an excuse to do something they probably always wanted to do but could never find an excuse to do until we threw it at them . So we effectively fell into their trap by attacking them and creating a pretext to seize the strait, and now they will probably forever charge tolls to ships that pass through there.
This will significantly increase the cost of everything transported through this strait, namely food and energy, including fertilizers, oil and gas. So these prices will be constantly higher. This is bad news. Well, maybe that's good news for oil stocks, but, you know, it's not good news for the stock market in general.
This is not good news for the economy. And that's good news for gold and silver, because bad news for the economy means more government stimulus, more inflation, more money printing. The irony is that everything that is happening is bearish for stocks, even though stocks are rising, and bullish for gold and silver, even though gold and silver are falling.
Peter Schiff warns that rising geopolitical tensions and disruptions to global trade could fuel inflation long after the headlines fade. A supply shock often leads to increased government spending and easing of monetary policy. High stock prices may be hiding a much more inflationary future, making wealth preservation more important than ever.
Now bonds have also fallen, which is bearish for the stock market and the economy. The yield on the 10-year Treasury note closed above 4.5% on a weekly basis. Now 4.56 is 10 years old. And for 30-year bonds, we have again exceeded the 5506 mark. And more important than where the yield is now, is the direction of its development.
Because if you look at the bond market chart, it seems to me that there is going to be a significant collapse in this market. We will see a sharp drop in bond prices, which means a significant increase in yields , and this is a big negative for the stock market. This is negative for the economy. This is negative for the housing market.
In fact, the 30-year mortgage, I think, has gone down about 6-12%. And I'm going to talk about housing after this, this, this break that's coming up. I have a lot to say about housing in this podcast. So I'm going to put that aside for a moment. But rising bond yields are clearly a negative factor for the real estate market.
So a negative for the housing market is bullish for gold and silver, because what happens if we have a big drop in the housing market? Well, the Fed has to step in and bail everyone out. We get more money, more inflation. So I really believe that the precious metals market is poised for significant growth. Like, share, comment, subscribe to this channel. .
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