Crash on Monday?

Following Trump’s new 100% extra tariffs on China, markets are expected to fall significantly this coming week. But precious metal paper markets are in crisis, driving prices higher.

In a metaphorical Up Yours! China has doubled down on exports of rare earths, notably to the US which prompted Trump’s response. Crypto markets fell heavily, with bitcoin losing 10% between Friday morning and Saturday evening. Early indications in futures contracts point to 6%+ falls in Asian markets when they open late tonight UK-time.

It’s a wake-up call to the west, with China signalling that it is prepared to do without America’s trade. The consequences for supply bottlenecks for US industry, and the impact on consumer prices should be obvious. As will be the impact on the high-flying tech stocks which correlate with a collapsing bitcoin.

Whether this is the start of the credit bubble bursting, we shall see. But what likely concerns readers of this column are the consequences for precious metals, particularly silver where lease rates in London reportedly soared to as much as 100% on Friday.