gold news

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[Music] hello everyone and welcome to another monthly WAP with me Alan hiard today we are looking at February 2024 and I've got the news and numbers for you that are going to affect your financial future so let's dive in I want to start with the prices of gold and silver what did they do in the month of February starting with silver it basically oscillated between 2350 and $22 and since I'm recording this a couple days after February ended we actually know that the price of silver has broken

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through it's around $24 now right now on the website okay about $24 an ounce and gold is well over 2100 looking very strong but in the month of February what did gold do well it bounced down and came back up in a nice V pattern and as we know now in the next couple days it's actually off the charts here well over 2100 so you might wonder what what happened like what's going on with gold what happened in the month of February and is that going to affect the price moving forward yes I will tell you what

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that is you might think that it was the Federal Reserve either raising or lowering rates because that's usually what happens when we get this bounce actually I believe it was something else SSR mining shares plunged 61% after a landslide at a Turkish mine this basically happened on this day and then the price of gold went up and so yes there was a landslide at a mine um you can find a video of it it was actually captured on video might be tough to see here but you guys can check that out on

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your own time if you're interested and of course if a mine has to shut down yes it's tragic obviously what that means for the price of gold is that it's probably going to go up because the metal becomes more scarce supply and demand similar with the price of gold we have digital gold Bitcoin moving up a ton in the month of February up 42% this is like kind of unbelievable believable started around 43,000 it's up to around 62 63,000 and I believe that the rise in price here is actually for a similar

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reason basically that scarcity that we see in Gold when a mine shuts down in Bitcoin that scarcity is created artificially through the having which is coming up in a month or two so I believe that the price of both gold and digital gold are going to be rising but only time will tell speaking of things that are rising the S&P 500 breaking new records in February it smashed through 5,000 points not once not twice but three times in the month of February of reaching an all-time high up almost 4% on the month

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very similarly the Dow Jones breaking record highs it made it through 39,000 points and it's two Le about two two and a half percent away from 40,000 that is quite the Milestone 40,000 Dow amazing and the NASDAQ also hitting record highs it smashed through 16,000 and it continues to rise that was up 4.8% on the month and it was led largely by Nvidia I want to talk about Nvidia briefly as just one uh one case here it was up roughly 25% of the month we don't have the number here on this chart but

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just doing the math briefly from about 620 to 770 that's about 25% so that's pretty high is it a bubble I don't know you tell me nvidia's market cap Rivals major economies ranking 11th globally look at this you've got the market cap or excuse me the GDP of like the top 10 countries in the world and Nvidia if it were a country it would be country number 11 just shy of $2 trillion that is super super high and that's ahead of countries like Russia imagine that one company with a higher

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market cap than the GDP of Russia wow and keep your eye on these countries here I'm going to come back to them in just a second this is getting ridiculous Nancy Pelosi's Nvidia call options have made her $1.7 million in 92 days $1.7 million in 92 days more than eight times her annual salary of about a quarter million with nvidia's all-time high her in the money calls are now up 82% and American making $660,000 a year requires about 30 years to make that amount she's doing it in a quarter of a

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year so 120 times as fast 120 times as fast and I don't think it just happens one time this is a pattern that repeats so this just gives you a sense of how out of control things have gotten and we've got a short clip here we're not going to play the whole thing politicians and billionaires are selling their stocks so yes they enjoy options they enjoy stocks but sometimes they do get out of the market so here we have Tommy tuberville Senator we have Nancy Pelosi who I just mentioned congresswoman we also have Jeff Bezos

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selling another two billion of Amazon shares and Bill Gates is getting rid of his entire portfolio historically the movement of billionaires of this magnitude indicate the imminence of a stock market crash so this is all happening in February what's going to happen in March I have no idea I have no idea but we're going to keep watching this and so the politicians here we see what they do with their own money the question is what do they do with your money because don't forget that's their

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job their job is to manage your money well it's official the government interest expense crosses $1 trillion in the month of February look at this this is shooting up like a rocket and you got to ask yourself does this look like something that's running out of steam or does this look like something that's blasting off into outer space with no end in sight to me it looks like this is going to keep rising and this is something that you and I pay for and our children and our grandchildren

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and it's hard to control looking forward is it going to continue well we have a tweet here from ly Alden she's she's showing us a graphic from uh the uh the CBO sorry the Congressional budget office basically this is the 30-year projection of what they think they're going to spend and you can see that even the assume no recession for 30 years scenario is bearish so their rosiest forecast for the next 30 Years basically is that they're going to spend more and spend more and spend more so the deficit

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is going to grow interest is going to grow and federal debt held by the public is going to grow off the charts by the way this peak back here was World War II we're already at those levels and we're not in World War II and look how out of control they're forecasted to go by the government itself this is a government forecast so even their best case scenario is absolutely horrible and this assumes no recessions no war no problem very unrealistic you might ask well how good are they at predicting their own

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expenses ha okay look at this uh We're not gonna look at this whole table here but I want to zoom in on two numbers basically what did they predict for 2023 and what actually happened well they predicted a deficit of negative 900 billion basically negative 1 trillion they predicted a deficit of one trillion the actual deficit was two trillion they predicted one the actual was two they were off by 100% and they thought it was going to be not so bad it was actually really bad so again uh when we when we

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look at something like that we think the actual line could be twice as bad twice as downward sloping it's not pretty absolutely not pretty that might explain why the US 10e is looking less and less attractive to investors you can see it going down like this this of course is rising yields yields Rose by 99.8% but that means falling prices that's why we look at an inverted chart here so falling prices nobody wants this investment okay 10e treasuries not looking very good this could continue

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into the future we will see and what are other countries doing uh Germany Japan and the United Kingdom are all in recession Germany Japan and the United Kingdom are all in recession okay these are three out of the top five economies in the world right the other two being the US and China so these are three out of the top five economies in the world are in recession now and I want to mention something the world is becoming increasingly connected economically and you can see here two thick red lines two

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thick vertical red lines up and down right this is the 2008 recession and the 2020 pandemic recession this shows that when one country has a recession they tend to all have a recession at the same time whereas before that wasn't necessarily the case there's a lot of gaps gaps in the red lines gaps but now when one country has a recession they tend to all have a recession the exception here was Sweden in 2020 basically was the only country that didn't shut down its own economy but otherwise that seems to be

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the norm so if you're going to tell me that three major economies are all in recession I'm going to conclude that all the other other countries are going to be in recession any day now are there any exceptions maybe maybe breaking news from February uh Argentina received a balanced budget in January for the first time in over a decade president Javier Malay achieved it without congressional action by freezing spending at 2023 levels cutting many agency budgets by over 50% in real terms so this doesn't guarantee that they'll

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stay out of recession and also doesn't guarantee that they're going to cause one it remains to be seen what's going to happen but it is possible to get the budget under control to get that debt to a manageable level and basically to be responsible financially so it's possible but if your government doesn't take care of it for you what can you do yourself well it's often tempting for people to essentially gamble in financial assets but there's a word of caution here Warren Buffett says the stock

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market is increasingly Casino like and young investors need to remember this one fact of financial life to avoid the mess you don't want to get caught up in the drama you don't want to get caught up in the hype this is coming from Warren Buffett what does he say is the one fact of financial life to avoid the mess well he says remember who is really making money from your gambling the house one fact of financial life should never be forgotten Wall Street to use the term in its figurative sense would

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like it customers to make money but what truly causes its denis's juices to flow is feverish activity feverish activity in other words people buying and selling thinking they're going to get rich chasing Trends chasing momentum making a lot of decisions overreacting to news and hype overreacting you don't want to overreact okay modern brokerage firms at times entice investors into stocks or complicated derivatives with new and fancy features on their trading apps but they aren't doing it to help the average

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retail investor they're doing it because they make money from fees on every trade that means the more trades the better it is for the house even if that's not true for investors so I can't give Financial advice in fact I don't even know if Warren Buffett can give Financial advice but it seems like the strategy would be to take a calm cool collected approach devise a portfolio strategy slowly enter into it and be patient that seems like a good move you don't want to chase hype

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you don't want to chase the latest stock trends the largest the latest news and this leads me to our meme of the day I put two children through Harvard by trading options Unfortunately they were my broker's children I like this one very nice so thank you guys for watching stay safe out there I'll see you soon