Weekly Wrap - 4th Apr - ALL HELL BREAKS LOOSE (Except BTC & GOLD)

Trumps Tariffs have worked a treat as US 10 Year Treasury Yield goes sub 4.00%! Just what the economic doctor ordered!

WHAT A WEEK is probably an understatement! Thank you

Edward Corona

for being in agreeance on this matter!

Summary of the markets this week

• Gold = DOWN 1.50% ($0.50)

• Silver = DOWN 13.24% ($4.51)

• Dow Jones = DOWN 8.01% (3,323 points)

• NASDAQ = DOWN 10.02% (1,923.25 points)

• S&P 500 = DOWN 9.25% (514.35 points)

• Nat Gas = DOWN 6.12% ($2.35)

• Brent Crude = DOWN 8.97% ($6.53)

• Copper = DOWN 10.89%

Before we get started, I would like to take a moment to thank

Jesse Colombo

for allowing

The Contrarian Capitalist

to be able to share the occasional chart and reference to his work. I will reference where necessary in future articles.

Liberation Day/Gold/Bonds Overview

Trump’s Liberation Day was certainly liberating for a lot of portfolios!

Tariffs and the subsequent trade wars that are likely to come are somewhat indicative of where we are as a world today but it is also likely that many people are missing the bigger picture.

My take is that Treasury Secretary Scott Bessent know exactly what he is doing and knows exactly what he wants i.e. a lower 10-year treasury rate. With approximately $9 TRILLION of US Debt needing to be refinanced within 18 months, it sure as hell makes sense for this to be refinanced at say 2.5% rather than 5%. The amount of $$$’s that would save in % alone is staggering.

Whether that would ultimately make a big difference in the long run is unknown. Unlikely in my opinion but we shall see.

Mr Bessent also said that the US would look to ‘monetize the asset side of the balance sheet’. Many people, myself included, believe this to mean that they are going to look to revalue gold at some point. It currently stands at $42.22 and has done so since 1973.

Why revalue gold at $3,000 when you can potentially detox the stock market, decrease treasury yields for debt refinancing purposes and then create uncertainty that will help capital flow to gold, thus pushing up the price of Au even more (say $5,000), or devalue the currency even further, depending on which side of the coin you would like to see it through (pun intentional).

If this is what the real goal is then we have to say a massive hats off to Mr Bessent and team because they are playing this extremely well thus far.

GOLD

Probably best to start off with the positive this week. Gold is doing what gold should be doing. It is holding firm. Albeit a $130 drop in 2 days make the Thursday & Friday candles look bad, gold held up relatively well relative to everything else!

SILVER

Silver got pounded this week. Silver is an industrial metal and therefore reacted badly to bad news. That should not have been a surprise and nor should it have been a surprise to see the banking cartel banks take advantage of that situation and smash it down even further.

So much so that the GSR ended up finishing at roughly 97. I recently wrote an article about the potential arbitrage play in the GSR.

Now let us have a look at my overall thesis, the bloodbaths that are the US Indices, Brent Crude and pretty much everything else…….