by Mike Gleason, Money Metals:

Coming up David Smith of The Morgan Report and MoneyMetals.com columnist joins me to discuss the recent stock market volatility and what the future is likely to hold when it comes to equities, and also lays out three potential market dynamics that may all converge at once in the near future to give gold and silver the long awaiting boost that metals investors have been looking for. Don’t miss another wonderful interview with David Smith, coming up after this week’s market update.

A second week of stock market volatility is helping to stimulate gold’s safe haven appeal. The gold market shows a gain of $10 or 0.8% this week to bring spot prices to $1,228 per ounce.

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Silver is once again lagging, with prices moving up a slight 0.3% on the week. Silver now checks in at $14.69 an ounce.

Platinum is posting an 0.7% weekly loss to trade at $838. Its sister metal palladium is faring better, up 1.5% this week to come in at $1,089 an ounce.

Metals markets are facing the headwind of a rising U.S. dollar. The dollar gained against foreign currencies this week as data on retail sales and industrial production confirmed continuing U.S. economic strength. However, the reports did show deceleration taking place.

Former Federal Reserve chairman Alan Greenspan said on Wednesday that he sees the economy now “sagging.”

If economic reports in the weeks ahead show a trend of growth petering out, the Fed may reconsider its plans for further rate hikes. But for now a December hike is still on the table and further tightening in 2019 remains a possibility in spite of President Donald Trump’s protests.

This week President Trump’s attention turned to the incoming migrant caravan making its way to the southern border. Trump vowed to send military troops to seal the border if necessary to prevent illegal crossings.

Over the past few years, Europe has been hit with waves of migration from outside the continent. The government of Germany and the European Union are demanding that all European countries take in quotas of so-called refugees – many of whom are obviously opportunists seeking free housing and other welfare benefits.

Some countries are resisting the EU’s demands on migration, notably Poland and Hungary. Countries in Eastern Europe that suffered under Communism seem to instinctively recognize the threat posed by an external bureaucracy bent on undermining national identity.

Hungary has enacted laws aimed specifically at thwarting billionaire currency manipulator George Soros. His network of far-left and pro-globalist organizations are actively involved in promoting and financing the migrant crisis in Europe.

Both Hungary and Poland have been better able than other European countries to resist globalization in part because they have hung on to their own respective national currencies. Neither is on the euro. And recently the central banks of both countries have been accumulating large quantities of gold.

This month the Hungarian National Bank announced an enormous jump in its monetary gold holdings. Hungary’s central bank purchased 28.4 tonnes of gold – nearly 10 times the total amount it held in reserve as of last month. It is the country’s first major gold purchase since 1986. The purchase comes shortly after the European parliament threatened Hungary with financial penalties for refusing to participate in the trans-continental trafficking of African and Middle Eastern migrants.

Poland is responding similarly. In fact, the Polish central bank has steadily accumulated several tons of gold over the past few months, bringing its total reserves up to 117 tons.

Russia, meanwhile, continues to be the world’s most aggressive gold buyer year to date. The Russians are adding about 20 tons to their reserves every month as they liquidate holdings of U.S. Treasuries.

The U.S. pushed Russia into a corner with heavy economic sanctions, so now the Kremlin is turning to gold as a way of shoring up its standing in international trade. Russia’s economy isn’t big enough by itself to threaten U.S. dollar supremacy. But together in an alliance with China, they could certainly strike a major blow against the prevailing dollar-centric system.

Those countries that are building up their gold monetary reserves are ensuring their long-term economic viability. And for smaller countries that lack military strength, gold helps ensure their ability to continue existing as independent nations. Given the fragile state of the Eurozone and the attendant risk of the euro currency ultimately collapsing, national currencies that have some gold backing them may be the last ones standing.

Well now, without further delay, let’s get right to this week’s exclusive interview.

Mike Gleason: It is my privilege now to welcome back David Smith, Senior Analyst at The Morgan Report and regular contributor to MoneyMetals.com. David, it’s been too long. How are you my friend?

David Smith: I’m very good. It’s been a while since we’ve spoken Mike, and I’m really looking forward to chatting with you again.

Mike Gleason: Well, David, the volatility in the stock markets is dominating the financial news over the past few days and week or so. Lots of metals investors are wondering when we might get the next big correction in stock prices. They’ve been waiting for a few years now. We’ve had some significant selloffs and each time we start wondering if the bears might have the upper hand, but markets seem to recover quickly. What do you make of the recent action in stocks? Are the equity markets in real jeopardy here or this is just another bump in the road?

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