China keeps buying Gold

Good Day... And a Tub Thumpin' Thursday to one and all! All ends well for my beloved Cardinals yesterday as they beat a great pitcher and the Phillies 7-1... They won 2 of 3 from the team ahead of them for the playoffs... So, a step in the right direction... It was very hot here yesterday, thus making that 3 consecutive days of dangerous heat... I like it hot, but this is too hot for even me! So, I haven't been outside to read, and I feel like something's awry... The Friends of Distinction greet me this morning with their 60's song: Grazing In The Grass

So, all the thoughts of a rate cut, have just about disappeared, and with it so does the beating down of the dollar... The dollar gained 1 index point yesterday and now has gained back all the index points it lost last Friday as it closed yesterday at 1,204... I knew in my heart of hearts that the loss the dollar took last week wouldn't last long, as it was built on a house of cards, thinking that they might be a rate cut....

The price of Gold gained yesterday, but Silver couldn't find a bid as the SPTs took it down for the day by 40-cents... Gold gained $41 on the day and closed at $4,410... Silver closed at $65.41... Still even with the STPs doing their business with Silver, Silver has recovered nicely from where the SPTs sent it a couple of weeks ago... 

The SUPID CPI played with the markets some yesterday... In July, the quants calculated that the STUPID CPI came in at 3.4% VS last year, that's a .1% drop, but the monthly STUPID CPI had gained .1%, so if I were their boss and they came to me with these levels, I would ask them to explain how in the hell did the monthly rate go up .1% the VS a year earlier it fell .1%? After stumbling around and hemming and hawing they wouldn't have an answer because they didn't know....  

So, the annual rate of 3.4% played with the rate hike folks... And made them question their status, and that helped Gold to gain.. '

In the overnight markets last night... The dollar ran into a roadblock and saw some selling with the BBDXY down 1 index point at 1,203 this morning... The dollar could be subject to a lot of back and forth in its price today, as the data cupboard is interesting...  

Gold/Silver are seeing some selling this morning, as the SPTs are at it again... Gold is down $25 and Silver is down 41-cents to start the day, with the SPTs working on their shorts to affect the prices negatively. 

The price of Oil slipped a buck overnight and starts today with an $81 handle. And the 10-Year remained at 4.66% yield overnight. 

I saw this on Zerohedge.com "With mortgage rates rising and the 'low hire, no fire' economy leaving many anxious about their household finances, the ugly spring selling season has not been followed by a consistent rebound in existing home sales in the U.S.

After falling 1.4% MoM in June (revised up from a 2.4% MoM decline), U.S. existing home sales fell again -1.7% MoM in July (worse than the -1.0% MoM expected). This dragged the annual increase in sales down to just 0.74% YoY..."

Chuck Again.... you could have bet your bottom dollar that rising mortgage rates were going to be a problem for housing.... And so, it appears to be... 

I didn't intend to start today's letter with data prints, but they did play hell for the markets yesterday, so they got top billing... 

Well, I can't get this out of my mind. The thought that China keeps buying physical Gold while the U.S. plays with paper money... I think the horde of Gold that China has is greater than that of the U.S. which is 8,000 tons... (supposedly they still have that much) Think about that for a minute... China buys physical Gold just about every day and the U.S. bleeds dollar bills.... Yes, the dollar is still the reserve currency of the world... But, if I had my druthers I would choose China over the paper world of the U.S.   

Longtime Pfennig Reader, Bob, forwarded an email to me that told me that China has built a Laser-Powered Grid that transmits electricity through the air..... The U.S. has copper wires that link from A to B, while the Chinese have a laser light carrying electricity to A and B.... 

Now, I don't know if this is true or not, but if it is true, and with the advances made in today's world, why wouldn't I believe it? But if it's true than the Chinese have got something...

My friend, and editor of 5 Bullets, David Gonigam has good piece in his letter yesterday regarding AI and how they will be seeking a taxpayer bailout soon... here's David: "Slowly, inexorably, the path is becoming clear: The AI industry will be asking for a taxpayer bailout next year. Or, at the latest, 2028."

Chuck again... this just rankles me to no end... These companies have been spending like drunken tourists and now that they haven't turned profit, they ask for a bailout.... I just get so darn mad at these companies... But it'll do no good, they'll get it and move on as if they didn't need it, when we all know better than that... Taxpayer bailouts are a bugaboo of mine... I think you can tell... 

The euro is still trying to recover, after the U.S. sold $10 Billion worth of the currency to buy yen... I just can't get over this, and you shouldn't either! The fact that we did this is bad enough in my opinion, but add in that we didn't even alert the European Central Bank adds salt to the wound... It will take a while for the euro to recover and get back to gaining VS the dollar, so patience my friend....

The U.S. Data Cupboard had yesterday's STUPID CPI and the previous day had the Existing Home Sales that we talked about above... Today's Cupboard has the July PPI (wholesale inflation) and the usual Thursday fare of the Weekly Initial Jobless Claims... The Jobless Claims had reached a level below 200,000 last week for the first time in month of Blue Moons.... So, it will be interesting to see if the number is above or below 200,000... 

And some things never change... The U.S. budget deficit soared to its highest monthly level in more than five years amid a surge in Medicare costs and as interest on the federal debt continued to weigh on the nation’s fiscal picture, the Treasury Department reported Wednesday.

In addition to the big single-month jump, the collective red ink across the first 10 months of the government’s fiscal year rose to nearly $1.8 trillion and surpassed the same period in 2025.

The July shortfall totaled $432.3 billion, up some 48% from the same period a year ago and the largest monthly deficit since March 2021. Geez Louise, this is getting to be too much for one country to bear.... 

To recap... The dollar has gained back all of its losses from last Friday as the rate cut folks have cowered into the corner and hid from the masses... Gold found a bid on Wednesday, but Silver struggled with the SPTs showing who's boss... The STUPID CPI was a bunch of bunk but played with the markets. And we're still hitting the till, with the monthly Budget Deficit making a high that hasn't been reached since March 2021... 

For What It's Worth... Man, to find a FWIW article this morning was like looking for a needle in a haystack... But, I did find one...

Here's your snippet:"Gold, when combined with other asset classes, can be a valuable component of a diversified retirement portfolio.

By allocating a share of your retirement savings to physical metals, you can enhance financial resilience and better safeguard your purchasing power as you move toward retirement.

But, before opening an account or buying IRA-eligible bullion, you need to start by asking questions that clarify the strategy, costs, rules, storage arrangements, and service you can expect.

Here's a simple checklist to prepare you for this step in your retirement strategy...

1. What role do precious metals play in my overall portfolio?

Are you looking for a diversifier, a potential hedge against inflation, or a way to reduce reliance on purely paper holdings? Defining the purpose of the allocation can help you decide whether a precious metals IRA is appropriate and how it may fit within your broader retirement plan.

In general, we recommend adding precious metals to a self-directed IRA after you have met your allocation of core holdings in gold, so that your core holdings are easily accessible in case of an emergency. A precious metals IRA is part of your longer-term strategy.

2. How much of my retirement portfolio should I consider allocating?

There is no universal allocation that fits every investor. Your time horizon, risk tolerance, existing holdings, income needs, and retirement objectives should all be considered. But don't put all your nest eggs in one basket!

A diverse retirement portfolio is essential, and this is precisely why gold and other precious metals can be so useful when held in combination with other asset classes. Gold and silver prices tend to move independently (low correlation) of stocks and bonds, which helps balance risk and can stabilize a portfolio during economic downturns.

3. Should I consider gold, silver, platinum, palladium, or a combination?

Each metal has different supply, demand, market, and industrial-use characteristics. Ask how the proposed metal mix supports your objectives and whether it aligns with your overall portfolio strategy. Most investors start with an allocation to gold, and add other precious metals to increase the diversification."

Chuck Again... obviously I couldn't list all 17, you'll have to click on the link above to see what the entire list has in store for you... But, you get the idea that starting a Gold IRA isn't just deciding that you want one.... 

Market Prices 8/13/2026: American Style: A$.7054, kiwi .5845, C$ .7173, euro 1.1536, sterling 1.3495, Swiss $1.2310, European Style: rand 16.1246, krone 9.5087, SEK 9.4804, forint 314.53, zloty 3.7321, koruna 21.0000, RUB 84.01, yen 159.30, sing 1.2799, HKD 7.8468, INR 95.44, China 6.7450, peso 17.05, BRL 5.1768, BBDXY 1,203, Dollar Index 99.89, Oil $81.67, 10-year 4.66%, Silver $65.01, Platinum $1,734.00, Palladium $1,364.00, Copper $6.58, and Gold... $4,385.

That's It for today... Well, my beloved Cardinals now go on a 3-city road trip, how they come home from that will decide if they are be taken seriously among the Playoff contenders or not.... The excitement around the start of Mizzou's Football Season is high; they've already announced the singer of the Anthem at the first game: Sheryl Crow! She of course used to be a Mizzou student! My wife is going to the Muny tonight, so I'll be batching this evening... I hope it's not one of those nights as the song suggests. Blind Faith takes us to the finish line today with their great song: Can't Find My Way Home.... I hope you have a Tub Thumpin' Thursday today and Please Be Good To Yourself!