News Travels Fast…

“Life in Michigan,” says our first contributor today, “will never be the same. Not being able to visit family and friends — this is insane.

“I think this year is a bust. Looking forward to next year!”

Hang in there, reader… Our next reader reports from the North Star State:

“I reside in Northern Minnesota in an extremely left-wing city. I went turkey hunting last week in a very rural, right-wing community. Viruswise, neither community is that different. The city has very few cases of COVID-19; the rural community, zero.

“Businesses in the city are shut down, and businesses in the rural community likewise. The economic impact on both communities: severe. Impact on citizens’ health: unremarkable.

“Since this whole thing started, I’ve been curious what the world might be like if news didn’t travel as quickly as it does today. Personally, I’ve been a lot happier since turning off the TV and trying to just get on with my life.” (emphasis ours)

The reader has a point. What role do you think the media have played in the COVID-19 pandemic — for better or worse?

Your Rundown for Monday, Apr. 27, 2020

Gold Prophecy

According to an article at Bloomberg: “Retail investors can’t seem to get enough of gold during the coronavirus crisis, and they are willing to pay staggering amounts to get their hands on it.”

Under normal conditions, customers looking to buy gold coins pay more than the spot price of gold per ounce, but the premium has increased three-fold since February to $135.

And demand for the precious metal has put the squeeze on gold supplies while mines across the globe have shut down because of the coronavirus pandemic — even as “bullion’s status as a haven is luring investors rattled by worldwide market and economic turmoil.”

“Until the world catches up with the imbalance and gets back to a normal balance of supply and demand, the premiums will stay,” says Robert Higgins, CEO at Argent Asset Group LLC.

The premiums buyers are willing to pay? At a six-year high… and we’re sure investors are kicking themselves for not buying sooner.

“Last year,” Bloomberg says, “bar and coin demand fell by 20% to the lowest level since 2009.”

What’s happening with gold today calls to mind an issue of The Rundown from Sept. 2018 when we quoted the founders of Seabridge Gold…

“Many investors think the next crisis will look like the last…all asset classes will fall in price including gold. We disagree. We see few if any parallels between today’s gold market and the gold market in 2008.

“We do not expect gold to correct in the early stages of a new financial crisis; we see an almost immediate positive impact on the gold price from a crisis and central bank policy responses.

“Gold will then rocket higher as central banks confront the crisis.” (emphasis ours)

Prophetic. (By the way, the price of gold at the time of writing? $1,207.70 per ounce.)

Market Rundown for Friday, Apr. 27, 2020

The S&P 500 Index is up 28 points to 2,865.

Oil’s cratered 26% to $12.56 for a barrel of WTI.

Gold is down $12.40 per ounce to $1,723.20.

Bitcoin is up $21.24 to $7,723.91.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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