Swiss America: Gold Standard News Daily

9.23.26 - The Truth behind the Oil and Gas Headlines

Gold last traded at $4,293 an ounce. Silver at $64.53 an ounce.

EDITOR'S NOTE: As oil and gas prices continue to dominate the headlines, what initially appeared to be a temporary spike is looking like a much larger and longer-lasting problem. The deeper we look into the situation, the more concerning the potential economic consequences become, as higher energy costs work their way through virtually every part of the economy. With little indication that prices will come back down anytime soon, now may be an important time to consider how rising costs and continued economic uncertainty could impact your financial future; and whether you are adequately positioned to protect your purchasing power.

The World Has Oil, but Not Enough Refining -Daily Reckoning

by Byron King

“The world runs on diesel,” goes the saying.

And “Houston, we have a problem,” goes another saying.

So today, we’ll discuss diesel (and its molecular cousin jet fuel). But first we’ll talk about oil. And oh by the way, when was the last time you bought a barrel of crude oil? Probably never.

Let’s dig in…

You don’t buy crude oil. You buy gasoline or diesel, right? And lubricants like motor oil. And items made of plastic (almost everything anymore) or other petrochemicals. Or when you fly, a big whack of the ticket price is jet fuel. Plus, much of the food in grocery stores was fertilized in the field or bug-sprayed with goop made from oil or natural gas derivatives. I could go on but you get the idea.

So, you use oil products; but no, you never buy crude oil. Your purchases are far downstream from the pumpjack out in the prairie. Still, people watch the price of crude oil because it’s the headline number. But again, crude is only raw material. READ MORE

$6.53 Diesel US Average, $8.25 in California, Worsens Already Hot Inflation, amid Record US Diesel Exports. Gasoline & Jet Fuel Prices also Spike -Wolf Street

by Wolf Richter

I’m worried about the inflationary mindset taking off again. It’s the Fed’s job to step on the brakes before inflation turns into a runaway train.

The average retail price of on-highway diesel spiked by 24 cents in the latest week, and by 88 cents in four weeks, to a record $6.529 a gallon at gas stations on Monday, and that’s for the US overall, according to the EIA this morning. Year-over-year, the price of diesel has spiked by 74%.

California diesel prices spiked to $8.246 a gallon. While driving by gas stations, we’ve seen over $8 a gallon for weeks.

These are sobering sights, setting off the inflation alarm bells.

Republicans called for a diesel export ban. There is a shortage of diesel in the rest of the world, and US refiners provide much needed supply.

Year-to-date through August, the US produced 5.1 million barrels per day of distillate fuel oil (mostly diesel); imported almost none; and exported a record average of 1.74 million barrels per day over the past two months. READ MORE

France Is Running Out Of Fuel: 16% Of French Gas Stations Are Reporting Outages And Rationing Has Started In Several Other Countries -The Economic Collapse

It has begun. Hundreds of gas stations all over France are reporting that they are out of at least one type of fuel, and there are quite a few nations in Asia that are now imposing very strict measures in order to conserve energy. I have no idea why this isn’t making more news here in the United States. Maybe the big news outlets don’t think that there is any way that this could ever happen here. Or maybe there is a coordinated effort to keep the public calm. I don’t know. But without a doubt, this is a very big deal.

I knew that Europe was facing a severe energy crunch, but I didn’t realize that things had gotten so bad already.

It is being reported that 16 percent of all gas stations in France are out of at least one type of fuel…

Official French pump data on Monday showed that 16 percent of stations are short of at least one main fuel, diesel or petrol. READ MORE

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9.22.26 - A Warning from Michael Burry

Gold last traded at $4,358 an ounce. Silver at $67.07 an ounce.

EDITOR'S NOTE: As AI continues to dominate financial headlines, it may ultimately be the details behind the massive spending that deserve the most attention. In this case, those details involve trillions of dollars in off-balance-sheet commitments and potential liabilities that could become much more significant if the current AI investment boom begins to slow. Michael Burry is raising questions about just how much financial risk may be building beneath the surface; and whether investors are fully accounting for it.

Michael Burry Warns Hyperscalers Are Hiding $3 Trillion In AI Liabilities — And Wall Street Isn’t Looking: ‘When The Music’s Over…’ -Yahoo! Finance

by Yuvraj Malik

"The Big Short" investor Michael Burry has renewed his warnings on artificial intelligence, arguing in a new blog post this week that Amazon, Meta Platforms, Alphabet, Microsoft and Oracle have quietly amassed more than $3 trillion in largely off-balance-sheet commitments, risks he says the market has broadly overlooked.

Burry estimated the five hyperscalers have nearly $1.2 trillion in uncommenced lease commitments and more than $1.5 trillion in purchase commitments. Including special-purpose vehicles, guarantees, contingent backstops and other obligations, he estimates the total exceeds $3 trillion.

"These liabilities, I say, are, in essence, in hypergrowth mode," Burry wrote, arguing that they are growing much faster than the companies themselves.

Burry's central concern is the mismatch between the long lifespan of data-center infrastructure and the rapid pace of AI chip development.

Data centers can take three to five years to build and often involve lease terms stretching 13 to 20 years, while AI accelerators can see major changes in power density and cooling requirements within 12 to 18 months. READ MORE

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9.18.26 - Gold and Silver vs. The Fed

Gold last traded at $4,380 an ounce. Silver at $66.71 an ounce.

EDITOR'S NOTE: The Federal Reserve's latest rate hike was initially expected to put additional pressure on gold and silver, yet both metals quickly demonstrated that their relationship with interest rates is far more complicated than the traditional narrative suggests. History shows that precious metals can perform exceptionally well even during periods of rising rates, particularly when inflation, government debt, and concerns over purchasing power remain elevated. With those pressures continuing to build, this story offers an interesting look at why gold and silver may remain increasingly attractive regardless of what the Fed does next.

Gold and Silver vs. The Fed -Daily Reckoning

by Adam Sharp

Yesterday, the Federal Reserve increased interest rates by 0.25%.

During the press conference, Warsh conveyed a hawkish message (meaning the Fed is likely to hike more).

Gold and silver fell immediately after the Fed decision to hike. Here’s a chart posted by our buddy Sean Ring yesterday in the Paradigm app. See that red candle down at the end? That’s when the Fed announced the rate increase.

It wasn’t a big move. We went from being up around 1.5% to flat. But the timing was unmistakable. As soon as the hike in fed funds rate hit, precious metals dumped.

So is it as simple as “higher interest rates = lower precious metals prices?” The theory is that when yields on U.S. Treasuries rise, gold becomes less attractive.

But it’s not really true, as we will explore.

Because today, gold spiked 2.4% higher to $4,387 per ounce. Silver jumped 4.29% to $66.56. Now that’s a nice move. VIEW CHARTS AND READ MORE

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9.17.26 - Gold Surges $100

Gold last traded at $4,356 an ounce. Silver at $65.49 an ounce.

EDITOR'S NOTE: Many were expecting yesterday’s interest-rate increase to help calm the markets and ease some of the concerns investors have been expressing about the future direction of the global economy. So far, however, that doesn’t appear to be happening. Gold prices are surging as investors seem to be looking beyond the Fed’s near-term decisions and focusing instead on the much bigger picture; where the global financial environment may ultimately be heading.

Gold Surges Over $100 This Morning As Crisis Intensifies -King World News

Peter Schiff: Gold’s morning rise of over $100 is a clear no-confidence vote in the Fed’s 25 basis point rate hike. Investors would rather own gold with no yield than 10-year Treasuries with a 5% yield, as that is not nearly enough to offset the purchasing power that will be lost to inflation.

Saudi Arabia’s Pipeline Shutdown…

Jack Prandelli: The scale of what’s at stake is worth sitting with.

The East-West pipeline can carry up to 7 million barrels a day from Abqaiq to the Red Sea.

It is Saudi Arabia’s only way to move crude west without touching the Strait of Hormuz.

With it down, Yanbu’s own exports were already running at 3.2 million barrels a day in August, against total Saudi exports of 7.1 million barrels in February. READ MORE

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9.16.26 - Inflation, gold, and fuel prices

Gold last traded at $4,264 an ounce. Silver at $62.98 an ounce.

EDITOR'S NOTE: Inflation, gold, and fuel prices; three topics that continue to make plenty of headlines and, more importantly, hit close to home for all of us. With another 1/4-point rate increase now behind us and the possibility of more to come, the financial pressure continues to build from several different directions. Markets have been bending under that pressure for some time, and the bigger question now is whether they can continue to hold or if something eventually has to give.

Inflation killed the penny. Now it's coming for your dollar. -MorningStar

By Charlie Garcia

Washington solved a 3.69-cent problem in the middle of a $100+ oil shock. And soon the Fed will likely charge you more for every dollar.

Congress congratulated itself for solving the penny problem, but what about the source of the problem - inflation?

On Monday the House voted, without a single objection, to permanently stop making the penny. On Wednesday at 2 p.m. Eastern, the Federal Reserve is expected to raise interest rates for the first time since July 2023.

Two unrelated stories, told at two different volumes.

First the government let its smallest unit of money become worthless. Then it held a vote to congratulate itself on noticing. Now the central bank will charge you more for every dollar that survived.

Nobody planned this. That is the part worth your attention. READ MORE

Gold Update As Bankruptcies And Interest Rates Soar -King World News

Ole Hansen, Head of Commodity Strategy at SaxoBank: Gold is holding just above a key support area around USD 4,300, despite facing multiple headwinds from moves across other markets.

Since the US Labor Day holiday, gold has fallen 1.8%, while the December Fed Funds futures contract has declined by 15 basis points to imply a year-end rate of 4.08%. Over the same period, the dollar has gained 0.6%, two- and ten-year Treasury yields have risen by 22 and 17 basis points respectively, while Brent crude has surged 10%, adding to inflation concerns.

Taken together, these developments represent significant headwinds for gold. Yet the relatively modest decline also highlights resilient underlying demand, which so far has prevented a deeper correction and kept the key USD 4,300 support area intact. However, in the very short term, holding that area now looks increasingly challenging. READ MORE

Look At What Just Hit A 24-Year High, Diesel Prices Have Skyrocketed Along With Crude Oil! -King World News

Peter Schiff: 10-year Treasury yields hit 5.04%, a 20-year high and 30-year yields hit 5.4%, a 24-year high. The rise is neither temporary nor close to over. It’s the start of a long-overdue reset that’ll return interest rates to levels incompatible with current asset prices or debt burdens.

What if by 2029 the national debt is $50 trillion and the average interest cost is 8%? Interest on the debt would be $4 trillion per year, over 60% of federal tax revenue, and annual budget deficits would likely exceed $5 trillion. This is optimistic, as it assumes no recession.

This also assumes no government bailouts of banks, GSEs, pension funds, homeowners, student loans, state governments, municipalities, etc. that may be adversely affected by higher interest rates, such as mortgage rates above 10%, which is highly unlikely. READ MORE

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9.15.26 - $6 Diesel Flashes 2008 Warning

Gold last traded at $4,292 an ounce. Silver at $63.57 an ounce.

EDITOR'S NOTE: Diesel prices are reaching increasingly troubling levels, and with prices per gallon approaching twice what they were a year ago in many states—and even higher in California—the economic consequences could be significant. Because so much of what we buy and consume is transported by diesel-powered trucks, rising fuel costs have a ripple effect throughout the entire economy, ultimately putting additional pressure on businesses, consumers, and prices. When you combine that energy shock with growing concerns over a slowdown in the technology and AI sectors, some analysts believe we could be looking at the makings of a perfect financial storm.

$6 Diesel Flashes 2008 Warning As Energy Shock, AI Slowdown Fears Fuel Perfect Storm -ZeroHedge

by Tyler Durden

As of Monday morning, AAA's national average retail diesel price topped $6.23 a gallon as a global refining crisis sparked by the Russia-Ukraine war and compounded by the Gulf conflict sent the price of the most critical fuel powering the industrial world skyrocketing.

Bloomberg Intelligence senior commodity strategist Mike McGlone warned Monday that "$6 diesel echoes 2008 gasoline shock."

"Commodity spikes tend to sow the seeds of their own reversal, and diesel's first-ever surge above $6 a gallon may echo gasoline's 2008 experience. The US daily average gasoline price, at roughly $4.30 on Sept. 11, is only about 4% above its 2008 peak, which helped fuel the Great Recession," McGlone wrote in a note.

He added, "Elevated stock market valuations could add to the vulnerability."

McGlone's warning comes as Patrick De Haan, head of petroleum analysis at GasBuddy, pointed out at the end of last week that some gas pumps across California hit a record $9.99 per gallon for the industrial fuel. READ MORE

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9.14.26 - Rising costs impacting Costco

Gold last traded at $4,298 an ounce. Silver at $63.23 an ounce.

EDITOR'S NOTE: When I think of motor oil, Costco isn't necessarily the first place that comes to mind, although the retailer has built a reputation for offering just about everything at competitive prices. Apparently, that included motor oil at remarkably low prices, but those days may be gone - at least for now - as the ongoing turmoil in the Middle East continues to disrupt markets and put pressure on global supply chains. It's yet another example of how geopolitical instability can translate into rising costs and added financial pressure for American households.

Costco Is Rationing Motor Oil, The Middle East Is In Chaos, And Western Leaders Riding A Train In Ukraine Just Narrowly Avoided A Russian Drone Strike -The Economic Collapse

What is happening on the other side of the world is starting to have a very real impact on the daily lives of millions of Americans. The chaos in the Middle East and the rapidly escalating war in Ukraine are driving up oil prices. As a result, the average price of a gallon of gasoline in the United States has never been so high this late in the calendar year, and the average price of diesel just keeps surging even deeper into record territory. Of course higher prices are only part of the story. Global supplies have gotten so tight, and so it was inevitable that shortages and rationing would begin to occur. Earlier today, I was shocked to learn that Costco is now rationing motor oil…

As The Drive originally reported, Costco has officially started rationing its motor oil to combat a rapidly deteriorating global lubricant shortage.

The days of grabbing cheap bulk oil are over. A 10-quart box of Kirkland Signature full-synthetic motor oil, which historically retailed for a bargain-basement $30, has skyrocketed to $58. More concerningly, Costco has implemented a strict two-box-per-customer weekly limit. Name brands aren’t faring much better; a six-quart case of Mobil 1 is currently sitting at $44, with purchases capped at five per member to prevent hoarders and scalpers from clearing the shelves.

I can’t remember Costco ever doing this before.

So why has this happened? READ MORE

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9.11.26 - Gold Headed A Lot Higher As Oil Soars

Gold last traded at $4,348 an ounce. Silver at $64.48 an ounce.

EDITOR'S NOTE: Gold continues to prove its value as the financial landscape becomes increasingly defined by rising oil prices, inflationary pressures, geopolitical tensions, and growing concerns over debt and currency stability. Despite the volatility we may see along the way, the fundamental case for gold appears to be getting stronger, with central banks continuing to accumulate the metal as a trusted store of value. For those who have been waiting for the right time to add physical gold, this is a reminder that short-term price fluctuations may be far less important than positioning before the next significant move higher.

Despite Volatility, Gold Price Headed A Lot Higher As Oil Soars -King World News

Ole Hansen, Head of Commodity Strategy at SaxoBank: From OPEC’s Monthly Oil Market Report via Bloomberg:

Saudi Arabia reported to OPEC that its crude oil production plunged again last month, hitting the lowest since 1990 as renewed hostilities between the US and Iran squeezed the kingdom’s export routes.

Riyadh notified OPEC’s secretariat that its output tumbled by 1.9 million barrels a day to 6.238 million a day, according to a monthly report from the organization obtained by Bloomberg. That’s an even lower level than the previous wartime nadir reached in April, which was the lowest figure reported by the kingdom since the beginning of the Gulf War.

Jeroen Blokland: Central banks buying gold to diversify away from fiat reserves.

Central banks moving gold to better prepare for systemic crises.

Governments ‘helping’ other governments avoid selling government debt.

Governments working the yield curve to influence interest rates.

Governments running into trouble because of debt, deficits, and soaring interest expenses.

Declining trust in governments and central banks.

Inflation running above target for five years and above many interest rates.

A structural rise in geopolitical tensions.

The days when the price of gold was mainly about the opportunity cost of holding it relative to real interest rates are long gone. VIEW CHARTS AND READ MORE

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9.10.26 - Are higher prices here to stay?

Gold last traded at $4,331 an ounce. Silver at $63.78 an ounce.

EDITOR'S NOTE: The U.S. bond market has been front and center in the financial news lately, and unfortunately, for all the wrong reasons. Mounting debt, rising interest rates, and persistent inflation concerns are creating a growing number of challenges, and it’s difficult to see how these issues can be resolved without significant consequences. The reality may be that higher borrowing costs, and therefore higher prices for us all, are here to stay.

Trouble in US bond market could mean higher prices are here to stay -The Guardian

Americans who have been grappling with the higher cost of living over the last few years now face another issue: trouble in the US bond market that could mean elevated costs are here to stay.

US government bonds – known as treasurys – are supposed to be the most stable type of investment vehicle. But investor concerns over issues including rising inflation, the continuing war with Iran, and the US’s record national debt have shaken the market and slowed demand for US treasury bonds.

Loans for homes, cars and credit cards, along with money businesses borrow to keep things running, could get more expensive if the sell-off in the bond market continues.

Here’s what we know about the problems in the bond market and what it could mean for US consumers. READ MORE

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