But low volatility goes beyond just stocks and the US$. Gold’s volatility has also collapsed. We have never seen it so low. None of this is to suggest that gold has finished its move nor that the stock market is not going to continue its upward trend or the US$ is about to burst up any time soon but what it does portend is that a sharp move is coming even if that move is weeks or even months away. Low volatility is a sign of complacency in markets and when markets are complacent, they can soon expect a “kick in the groin”. Full Story
The current stock market is the most dangerous stock market I have seen in my 34+ year career as a financial markets professional. This includes 1987, 1999-2000 and 2007-2008. The run-up in stocks has been largely a product of momentum-chasing hedge fund algos on behalf of the large universe of sophisticated hedge funds which are desperate for performance. In the context of the obviously deteriorating economic fundamentals, the performance-chasing game has become a combination of FOMO – “fear of missing out” – and the Greater Fool Theory – praying someone else will pay more for the stock than you just paid. There’s also likely some official intervention going on as well per the chart below. Full Story
Six years ago this week, COMEX gold and silver prices were deliberately smashed in order to take out critical support levels that had held since 2011. The parallels to present day circumstances are obvious and must be fully considered.
The key to understanding this is to recognize that the situation in 2019 is reminiscent of 2010. We've been writing about this for months, and below is the easiest link for you to review if you need to be brought up to speed. Full Story
Our main point here is the current market juggernaut can't continue at this rocketing trajectory. And the unnatural acts required to keep things elevated are going to fail at some point, likely very soon judging from the compressed chart trendlines.
The time for prudent action is now, before the breakdown. For certain get yourself educated. And if your studies reveal that immediate action is required, don't delay.
"After a thorough process, the Board of Directors has determined that Andrew has the ideal attributes to lead Golden Star. He combines significant experience in the sector with a real focus on creating value for shareholders, together with the leadership skills to take the company through the next phase of its development," stated Tim Baker, Chairman of the Board of Directors.
"Over the last six years, Sam has done an exceptional job in transitioning Golden Star into an underground mining company, attracting new shareholders, and improving its financial position. On behalf of the entire Board of Directors, I wish to sincerely thank Sam for his commitment and dedication and wish him all the best in his future endeavours," continued Mr. Baker.
Andrew will remain the Chief Executive Officer of La Mancha until April 30, 2019. Prior to joining La Mancha, Mr. Wray worked for Acacia Mining for over 7 years, where he was Chief Financial Officer. Formerly, he spent close to 15 years with JPMorgan Cazenove, advising companies in their capital-raising activities and other strategic objectives across a range of sectors. Prior to joining JPMorgan Mr. Wray worked for the Kuwait Investment Office in London. Full Story
"We are on the precipice of the greatest retirement crisis in the history of the world. And that makes perfect sense because, first of all, we have the largest elderly population in the history of the world.
Just focusing on the United States: our elderly are woefully unprepared to retire. And in the decades to come we will witness millions of elderly American's, Baby Boomers and others, slipping into poverty. 'Too frail to work, too poor to retire' will become the new normal for many elderly Americans."
So warns pension fraud whistleblower Ted Siedle. Full Story
By: Keith Weiner, Monetary Metals - 16 April, 2019
Au Contraire, Monsieur Friedman. Rising prices can be produced by forcing producers to add more useless ingredients!
They’re doing it to every industry. Not the Federal Reserve. It has nothing to do with the quantity of dollars. Yet everyone thinks the problem of rising prices is intrinsic to the dollar itself. If you participate in the gold or sound money communities online, you have seen many pictures of the eroding dollar, the shrinking number of goods in a shopping cart, nostalgic gas station signs advertising ˘20 a gallon, etc.
As an aside, inflation is a weak argument for the gold standard. We had quite a high rate in the 1970’s, but that was not (nearly) bad enough to make many people seriously propose to return to gold. Today’s much-tamer rate barely musters lip service even from the usual suspects. Wage earners care only that their wages go up as fast as prices—and when they don’t, they are mostly angry at their employers. Pensioners on fixed income care only about their annual cost of living adjustment (COLA), and if it doesn’t keep up, they get mad at the politicians who set it. The welfare classes care only that their EBT cards still work. And the one percenters are happy, because asset prices are rising much faster than consumer prices. Full Story
In another way though, central bank gold buying is undermining the dollar. It’s sending a signal to the US government, and the Federal Reserve, that the buck is no longer as important as it once was. It’s no longer risk-free, and the US is no longer considered to be the most powerful nation in the world, carrying the biggest stick and the fattest wallet.
What will be the future world currency? The yuan? Euro? A basket of currencies aka “special drawing rights” SDR set up through the IMF? Where will gold fit in a new currency arrangement? Full Story
By: Stewart Thomson, Graceland Updates - 16 April, 2019
- Global stock and bond markets continue to be driven by the macros of a possible trade deal, accommodative central banks, weaker earnings, continued stock buybacks, and rising government debt.
- Gold is driven by these same macros, but it has the additional price driver of seasonal Chindian physical market demand. Full Story
By: Gary Christenson, Deviant Investor - 16 April, 2019
Debt is too high and has reached, as it did in 2008, exhaustion levels. Perhaps the central banks of the world can “goose” markets higher and sustain a dangerous system, but the consequence will be falling currencies, devaluation, and more debt. There is a limit to how many heroin fixes a body can withstand. There is a limit to how many debt fixes an economy can absorb.
Silver prices are too low based on five decades of history and via comparisons to national debt, the S&P 500 Index and gold. Expect silver prices to rise far higher in coming years as the over-leveraged financial system resets and rebalances. Full Story
In my view, Tesla continues to circle the drain. The stock is down nearly 20% YTD in the context of one of the most torrid upside moves in the overall stock market in history. The stock appears ready to test the $250 level again. If it drops below that, it could fall below $200 quickly. Full Story
· Oliver Allen of Capital Economics writes that the group expects the S&P 500 to drop by roughly one-fifth in 2019 and that gold will come to the fore again as a safe haven asset. The research firm forecasts gold to rally to $1,400 per ounce by the end of the year. AO Chong of CITIC Securities cites a number of risk events that should bring gradual haven demand up for gold. The analyst says the IMF cutting global economic growth outlooks, rising geopolitical uncertainty, the downward trend of real interest rates and the continued central bank gold buying should all be positive for the yellow metal. Full Story
Thanks to Zero Hedge for calling attention tonight to the interview of the Zurich-based financial letter The Market with James Grant, editor of Grant's Interest Rate Observer, wherein Grant remarks that the Federal Reserve is manipulating the stock market up and interest rates down. Grant calls the latter rigging "very near to a crime."
But as always Grant has nothing to say about the rigging of the gold market by government, which seems especially strange since gold traditionally has maintained an inverse relationship with real interest rates. That is, in the old days low real rates meant high gold prices, and vice versa. Full Story
Here, if David Lawder and Leika Kihara of Reuters were serious journalists, and their editor, Paul Simao, had the wit for his job, someone from Reuters would have asked the managing director of the International Monetary Fund, Christine Lagarde -- in the name of the "accountability, transparency, and effective communication" she purported to be advocating -- to identify the markets in which her member central banks are surreptitiously trading and when they are surreptitiously trading, and to explain the objectives of their surreptitious trading.
Instead Reuters makes itself a mere press-release service, like PR Newswire. Full Story
By: John Mauldin, Thoughts from the Frontline - 15 April, 2019
- Losing Decades - Too Much, Too Fast - A $6 trillion $10 Trillion Federal Reserve Balance Sheet - Mastering Private Markets - Living on Puerto Rico Time Full Story
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