Who on earth Is buying Dollars?

Good Day... And a Marvelous Monday to you! Well, Congrats to the Dodgers for their World Series win... They came back and won the last two games to win the series... No more baseball for me, until late Feb. When spring training games begin. UGH!Halloween was great, sitting outside by the firepit, with friends, Duane and Toni, and giving out treats... The weather was great, the moon was spectacular, and the night ended too soon... Derek and the Dominos greet me this morning with their great 70's song: Layla... 

There's a long story that goes with the song Layla, but I won't get into it, but if you every run into me, you can ask me about it and I'll be glad to tell you!

The selling was back in the metals on Friday... Gold lost $15 and Silver lost 24-cents... The selling in Gold & Silver was more like Profit taking and normal selling... I'll talk to you more about what I think about these two right now in the midst of their sell offs... Gold reached a high of $4,059 on Friday, before the SPTs arrived... And Silver has reached a high of $48.99 before it was taken down again. 

Gold ended the week at $4,008 and Silver at $48.72...  Still a large way from their recent highs, so the Blue Light Special is still shining... wink, wink... 

The dollar ended the week with the BBDXY at 1,218... There was some euphoria around the news that the U.S. and China had signed a Trade Agreement, and that boosted the dollar on the week, but... There were no details of the Agreement for the markets to digest last week, and so the dollar's rally fizzled out at 1,218... 

Over the weekend, details were released of the Trade Agreement, and they are as follows: China will suspend additional export controls on rare earth metals and end investigations into US chip companies, according to the new release. The US will pause some of Trump’s "reciprocal tariffs" on China for another year and will halt plans to slap a 100% tariff on Chinese exports to the US that was set to take effect this month. So, in the end, the tariffs are back to where they were with China before Liberation Day... All that hoopla and drama, over nothing!

So, the euphoria in the dollar is overdone, don't you agree? All this talk of tariffs is really getting to me... Businesses don't know what to expect, either the tariffs are on or not... and at what rate? I don't see how they can plan for their business in the next year with these things hanging over them like the Sword of Damocles... 

The price of Oil bumped higher on Friday and remained trading with a $60 handle all weekend, while the 10-year Treasury's yield ended the week trading with a 4.08% yield...  

I read this past weekend that the U.S. had added over $1 Billion of debt in the last week... Geesh! When will all this debt accumulation stop? Well, it won't stop the debt accumulation but, the devaluation of the dollar would help to lessen the strength of the dollar accumulation. 

And again, I ask, "Who's buying dollars"? And who in their right mind are buying dollars? Someone, or Some entity is and the buying is driving me batty! Because I just don't see the reason for the buying... The Gov't is spending like a drunken Sailor ( no offense to sailors, just an old saying) inflation is rising, the Central Bank is cutting interest rates, the money supply is soaring, the economy is teetering on the cliff, and other reasons for not buying dollars... 

In the overnight markets last night... Before I retired last night, I checked on Gold & Silver and they were getting the snot kicked out of them... But, as the night went on, buyers overwhelmed the short paper traders and both metals are up a bit as we start our day/ week. Gold is up $3 and Silver is up 11-cents... I'm telling you that the losses in Gold & Silver were HUGE last night, so to see them in the green this morning is quite the surprise...  

The dollar buying continued last night, and the BBDXY is sitting at 1,220 as we start our day/ week this morning. I shake my head in disbelief, that the dollar buying is continuing... Oh well, there's nothing I can do about it, but shake my head and say, "Who on earth is buying?"  

The price of Oil remained in the $60 handle overnight, and the 10-year Treasury starts the day/ week with a 4.08% yield. 

OK, I gave you a heads up above about me talking about Gold... So, let's get into it... 

First of all, the recent $100 moves in Gold don't faze me... Really, Chuck? Yes, you see I don't hold Gold to speculate in it... I don't wait for what might appear to be the top in the metal to sell it... I hold Gold because of all the reasons that I've talked about in the U.S. and the World in the past few years... I don't hold Gold for weeks, or even months, I hold it for years, decades, etc.... The U.S. is doing everything under the Sun and Moon to devalue the dollar, why wouldn't anyone hold Gold until the Gov't proves to me that they are not devaluing the dollar? 

So, what do I do when Gold gets taken down like it did last week? I simply shrug it off, because I truly believe that Gold is going to leave these levels in its rear-view mirror, and all will be right with the metals, the sun will shine, and unicorns will prance down the streets...  

If anything, I look to buy at cheaper prices, which is what the majority of people should be doing, because most individuals (not counting my dear Pfennig readers!) do not have an ounce of Gold or Silver in their investment portfolio... When that happens the Katy bar the door, because the buying will become hysterical... I'm just saying... 

OK, I got that off my chest... What else is new? Well, maybe, just maybe because you never know (Andujar) Someone at the European Central Bank (ECB) read the Pfennig when I chastised them for cutting rates at their last meeting, because at this month's meeting they decided to pause the rate cuts... Hey! You never know, eh? With all the dollar strength right now, the last thing the euro needed was for another rate cut/ debasement... 

Inflation in the Eurozone increased last month to 2.20 from 2.10%, so a pause was appropriate... And, if you recall... I chastised the ECB for cutting rates while inflation was still above their target rate... Wish they had listened to me, before cutting rates the last time, but maybe they listened to me this time...  

The news from the latest FOMC meeting was interesting, in that three U.S. central bank officials said they did not support a decision to cut interest rates this week, underscoring Federal Reserve Chair Jerome Powell’s warning Wednesday that another reduction in December is far from guaranteed. Yeah, to me this signals a revolt from chairman Jerome Powell... It would have been blasphemy if a Fed Head voted against Big Al Greenspan, or Big Ben Bernanke... I'm just saying... 

The Bank of England (BOE) will meet this week, and I think they too, will pause their rate cuts at this meeting... I think the budget problems are causing the BOE to pause their rate cuts, at this time. 

And in the de-dollarization arena... Australia, one of the U.S.'s allies, has announced that they will begin using their currency and China's currency when trading with China.... No more dollars needed to be held in reserve for trade... Another notch in China's belt folks... I recall years ago when writing for the Sovereign Society that China had begun to sign currency swap agreements with countries that would remove the use of dollars in the terms of trade...  And now we've come to Australia...  

And my suspicions came to fruition with the Chinese renminbi... Recall last week I pointed out that the renminbi had been allowed to gain VS the dollar to 7.09, and asked if that was just window dressing for the Trump/ Xi meeting? And it appears that it was, as the renminbi has slid back to 7.12... 7.12 is still a stronger level for the renminbi, it's that it's just not THAT strong... 

You know, inflation is a dastardly thing, it reduces your disposable income, and income that is designated for groceries is reduced... It eats into the buying power of your currency... and make the middle class hurt Big Time... In my youth I was incorrect in my thinking that a little inflation is good for an economy... But what qualifies as "a little?" Well, then I began to look into the long-term effects of inflation... And then I realized how wrong I was, for... two percent inflation compounded over a generation means 30 percent of your wealth is wiped out.

Let me repeat that: 30 percent of your wealth being wiped out is the best-case scenario, for low inflation...  I was shocked when I realized this, and began to look for ways to combat inflation, and that led me to Gold... As the great investor/ analyst, Ray Dalio says, "you should hold Gold in your investment portfolio, not as a speculation, but as a ballast"... Think about that for a minute, for it plays well with my statement above about holding Gold as a store of wealth...  

The U.S. Data Cupboard is still empty... Nothing to see here, nothing to say here, nothing, just nothing...

To recap... the selling returned to Gold & Silver on Friday reversing their early morning gains. Chuck explains how he views the Big Selloffs in the metals, and how you should look at your metals investment. The ECB left rates unchanged last week, and the BOE will leave them unchanged this week when they meet. And the Dodgers won the World Series!

Here's your snippet: " The gold market is ending its second week in negative territory as prices hover around $4,000 an ounce.

In this initial correction, gold has dropped about 11% from last week’s highs. While lower prices can’t be ruled out in the near term, the market appears comfortable at these elevated levels.

The pullback hasn’t dented long-term optimism. At the London Bullion Market Association’s annual Global Precious Metals Conference, delegates predicted gold would test resistance just below $5,000 an ounce by this time next year—a roughly 25% gain from current prices. This marks the most bullish outlook from LBMA participants in years, following two straight years of underestimating gold’s rally.

Major banks including HSBC, Bank of America, and Société Générale share similar forecasts, all calling for gold to hit $5,000 an ounce in 2026. The British research firm Metals Focus also expects gold to reach $5,000 and silver to hit $60 next year.

Despite recent volatility, analysts say gold remains well supported by global geopolitical uncertainty and expectations that the Federal Reserve will loosen monetary policy, weakening the U.S. dollar."

Chuck again... Take that with as many grains of sand that you wish to... I'm going to believe it when it comes to life... I'm from Missouri... I think I've told you that before... 

Currency Prices 11/3/2025: American Style: A$ .6551, kiwi .5731, C$ .7122, euro 1.1520, sterling 1.3143, Swiss $1.2388, European Style: rand 17.3002, krone 10.1077, SEK 9.4963, forint 336.10, zloty 3.6731, koruna 21.1183, RUB 80.84, yen 154.16, sing 1.3034, HKD 7.7737, INR 88.78, China 7.1215, peso 18.50, BRL 5.3537, BBDXY 1,220, Dollar Index 99.84, Oil $60.84, 10-year 4.08%, Silver $48.83, Platinum $1.6604.00, Palladium $1,477.00, Copper $5.09, and Gold... $4,011.

That's it for today... Welcome to November, my most disliked month of them all! A friendly neighborhood reminder that there will be no Pfennig tomorrow, but I will pick it back up on Wednesday from S. Florida... That is if the air Traffic Controllers arrive to work at the airports, I will be going through... Well, did you hear any good jokes from the Trick-or-Treaters Friday night? I can't say that I did... There were a couple that were so-so, but nothing that made me LOL! We turned back the clocks again this weekend, I wish we would leave them alone... I'm just saying... Chilliwack takes us to the finish line today with their great song: Fly At Night... I hope you have a Marvelous Monday today, and Please Be Good To Yourself!