Someone’s definitely taking advantage.

The S&P local lagged the Dow and Gold

• Gold Price: approximately $850 per ounce (a peak price reached in January 1980).
• Dow Jones Industrial Average (DJIA): approximately 875.85 on January 31, 1980.
• S&P 500: approximately 104.09 on January 31, 1980. 

Yep something to think about but who knows if they could be trading with some of the Brics in limited quantities and it could take advantage of the supply deficit. Meanwhile we have a printing press going and loss of billions with multi fraud going on in demo states. Not to mention in their presence of weakness during Biden war opportunities and money meant for citizens going to Ukraine and more fraud and theft of billions meant for our citizens going out the window.

A look back in time. What were the ratios in the stock markets during the inflation peak in1980 before they used interest rates which are generally bearish to the markets to bring down inflation. Also what was the physical ratio with the markets. Phyz vs the Stock Market Jan. 1980…

• Gold Price: Gold reached a nominal peak of $850 per ounce on January 21, 1980. The average price for the month was around $677 or $614.75, depending on the data source.
• XAU Index: The Philadelphia Gold and Silver Index (XAU) was established on January 19, 1979, with a base value of 100.00. Historical data suggests that around the time of the gold price peak, the ratio of the Dow Jones Industrial Average to gold (a related metric) fell to a low of 1.29 ounces in January 1980. This indicates that the XAU index value itself was likely near the price of gold in dollar terms, leading to a ratio near 1.0. 

I see what you mean. I guess it will depend if there is still a Shanghai physical market trading. I would think that physical is always going to dictate the paper price. If there’s no physical market???

I don’t know.

I wonder with the further up coming shortages and less customers to Shanghai if it will eventually switch to the West for higher prices due to supply demand and no more China supply.

Captain – I think that’s right considering Trump will be replacing Powell in May. I don’t think this admin cares if gold goes up, it sort of falls in line with the revaluation/gold backed bonds scenario that has been rumored to take place in July according to Judy Shelton.

We can never forget that Scott Bessent’s largest holding is gold. It seems to me this admin is all about making money for themselves.

Maya – really cool pic

Looks like we’re off to a solid start on day 1 of 2026. Hopefully Shanghai’s am fix moves higher in silver.

Here’s to a profitable, fun, and no doubt entertaining year in precious metals.
Market opens in 1 hour.
With probably the most unknowns, and the most optimism, ever swirling around these markets.

Dec 2007 – Jun 2012     Medicaid Supervisor, Franklin County

Nov 2102 – May 2015    Permanent Secretary, Ministry of interior and National Security, Federal Government

Oct 2014 – May 2019     Managing Director, Progressive and Health Care Services Inc.

Jun 2017 – Present         Permanent representative to the United Nations

Jan 1, 2026.                     Head of UN Security Council

https://www.zerohedge.com/political/ethics-questions-swirl-around-somalias-un-ambassador-tied-ohio-healthcare-company

Thank you for saving it.

Cruizin’ the Coast
https://www.railpictures.net/photo/891645/

I forgot to post Wanka’s Christmas tree earlier!

I know what you mean. As far as I’m concerned I would want to initiate Roosevelt’s operation wet back  and send them all packing back to Somalia except for the ones who came on their own accord and follow the law not get caught up with them. With the overwhelming amount of criminal corruption by these good for nothing’s the law has to be on top of their game otherwise they could be suspect in collusion enabling them to walk free while they throw the book at someone jaywalking or dream up more taxes to pay for these invading parasites.

not verified but there is fake products out there.

But talking birds are finding Alexa useful.

Those kind of things make me nauseous. Does she have no shame? Obviously she feels invincible.

Congress and more than political activism but improper application of the law as abuse of power and bias due to conflict of interest or just being a traitor. Same standards for prosecutors, they better be following the rule of law , not abusing power, and due process. Looks like they were practicing activism and or looking for technicals over guilt. Those technicals should be challenged when guilt is clear not just a opinion of circumstantial and corrected. In the face of corruption they better stay alert and follow due process.

One special outrage that flew under the radar this holiday season surfaced after Christmas: In November, Minnesota Judge Sarah West (DFL Party) tossed out a jury’s unanimous guilty verdict against one Abdifatah Yusuf of Promise Health Services, convicted of masterminding a $7.2-million Medicaid fraud. She based her reversal on the prosecution failing to exclude other reasonable, rational inferences inconsistent with Yusuf’s guilt. That’s rich. Is the prosecution obliged to provide alibis for the guy they’re prosecuting? Maybe in Minnesota, with its above average legal code. Anyway, Yusuf just walked. End of story. Maybe.

https://www.kunstler.com/p/above-average

Yield Curve Control is Inevitable: The Fed Will Blink, Fiscal Dominance Guarantees Aggressive Rate Cuts and a Gold/Silver Explosion!

H/T TAVI COSTA FOR CHART

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The market is living in a fantasy. It is a dangerous delusion, a collective hallucination built on a foundation of outdated models and a naive belief in the Federal Reserve’s independence.

The consensus, as you can see in the image above, is that the Fed will deliver a mere two rate cuts over the next two years. This is not just wrong; it is a dangerous misreading of the new reality we live in.

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We have crossed the Rubicon into a world governed not by monetary policy, but by fiscal dominance. The Fed is no longer the master of the universe; it is a servant to its true master: the unpayable, ever-growing mountain of U.S. government debt.

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• You need to understand the great deception at the heart of the financial markets.
• You need to understand the why the Fed’s hand is being forced.
• You need to understand that the cost of servicing the national debt has become the single most important factor driving monetary policy, rendering inflation targets and unemployment rates secondary.
• And you need to understand the the inevitable endgame: a wave of aggressive rate cuts and the implementation of Yield Curve Control (YCC), a policy that will unleash a torrent of liquidity into the system and ignite a firestorm in the hard asset markets.

The Two-Cut Fantasy: A Market Blind to Reality

The image above is not just a chart; it is a portrait of a market in denial. It shows that the so-called “smart money” is pricing in a slow, gentle glide path for interest rates, with a mere two cuts expected over the next 24 months.

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This view is predicated on the belief that we are still living in a world where the Fed can afford to be “data-dependent,” where it can raise and lower rates based on the ebb and flow of inflation and employment. Let’s be brutally honest…that world is dead.

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The market is still playing by the old rules, treating the Fed as an independent actor with a clear mandate to maintain price stability. It is a comforting fiction, but it ignores the brutal reality of the nation’s balance sheet.

The truth is that the Fed’s mandate has been subordinated to a much more urgent and existential imperative: ensuring that the U.S. government can afford to pay the interest on its own debt.

Let’s dig Into The Following:

1. The debt and debt servicing is on an unsustainable trajectory. There comes a point when the math simply does not work anymore. Why at that point, the Fed’s tough talk on inflation becomes irrelevant!
2. Why the Fed is trapped. If it keeps rates high to fight inflation, it risks bankrupting the government and triggering a sovereign debt crisis. If it cuts rates to save the government, it risks unleashing a new wave of inflation. The Fed will always choose to inflate the currency rather than risk a nominal default. It is the only politically palatable option!
3. When Yield Curve Control is implemented, and it will, the floodgates will open. The Fed will be forced to create trillions of new dollars to buy up the government’s debt, and that money will pour into the financial system. The effect on hard assets will be explosive and we need to be positioned prior to this happening!
4. Why the transition to a world of fiscal dominance and Yield Curve Control is not a matter of if, but when. And when it happens, the fortunes that will be made in the hard asset space will be legendary!
5. Why the Fed’s tough talk on inflation is a charade. They are simply waiting for the right political moment to pivot, to dust off the WWII playbook, and to once again sacrifice the dollar to save the government!
6. The miners are the ultimate leveraged play on the coming monetary tsunami. They are trading at valuations that are completely disconnected from the price of the metals they produce. Why they are priced for a world of high interest rates and a strong dollar, a world that is about to be turned upside down!
7. The Fed is not in control. The politicians are not in control. The only thing that is in control is the math. And the math says that rates must come down, that the printing presses must be turned on, and that the value of your money is about to be destroyed. That’s why Trump is barking about the rates so loudly!
8. And why is not a gradual process. It will not be a slow, steady climb. It will be a stampede. It will be a panic. It will be a rush for the exits as investors realize that they have been holding the wrong assets for the wrong world. And when that happens, the price of gold and silver will not just rise; it will explode!

Metals and Miners

I’m wearing her around my neck as I post this, and my life continues to be Silver and Gold, but that’s another story! Happy New year to All from SNG!

Best wishes for the New Year to all the folk here.

Thanks for all the useful posts and charts recently and hope that 2026 will be happy, peaceful and prosperous year,

Don

A few minutes ago.. Now targeting Canadian miners.

🤙

If you take the national debt of 38 trillion and you divide by what is allegedly in Fort Knox and you say that 40% must equal the value of debt let’s call it 15 trillion for the sake of conversation to the 1.8 trillion allegedly in Fort Knox that puts gold at 58 thousand a ounce. That doesn’t include the unfunded liabilities, doesn’t include the school district 5 trillion bond fraud, that doesn’t include any portion of the derivatives that are out there. Start adding up all those and it blows past 86 thousand. The point is it’s pure upside and given where we are today where every 90 days being forced to print 1 trillion dollars to control the national debt. We’re printing money to pay the interest. This is nuts. Kabuki theater. Happy New year.