The bottom line is the mid-tier gold miners are thriving fundamentally. They are still rapidly growing their production while majors suffer sharp output declines. The mid-tiers are holding the line on costs, which portends strong leveraged profits growth as gold continues grinding higher on balance. The performance gap between the smaller mid-tier and junior gold miners and larger major ones is big and still mounting.
Investors and speculators really need to pay attention to this intra-sector disconnect. Gold and its miners’ stocks should power far higher in coming years as the lofty general stock markets roll over. But the vast majority of the gains will be concentrated in growing gold miners, not shrinking ones. This means the mid-tier and junior gold miners will far outperform the majors. The smaller miners have superior fundamentals. Full Story
By: Gary Christenson, Deviant Investor - 22 March, 2019
Self-destructive behaviors affect individuals, cities and nations. They include opioid addictions, alcohol abuse, excessive debt, corruption, negative interest rates, chemically poisoned food, wealth taxes, insolvent pension plans, insane spending, and hundreds more.
Narrow the focus to fiscal and monetary behaviors. The self-destructive list remains long. Many policies and behaviors on the list will result in tears.
Excessive debt: The road to economic hell for individuals is paved with easy monthly payments. Governments only pay the interest on their rapidly increasing debt. But they must borrow even more to pay the interest. Retiring the debt is seldom considered. A reasonable person will conclude... Full Story
“You’ve really seen the limits of monetary and fiscal policy in its ability to extend out a long boom period.” – Josh Friedman, Co-Chairman of Canyon Partners (a “deep value,” credit-driven hedge fund)
The Fed’s abrupt policy reversal says it all. No more rate hikes (yes, one is “scheduled” for 2020 but that’s fake news) and the balance sheet run-off is being “tapered” but will stop in September. Do not be surprised if it ends sooner. Listening to Powell explain the decision or reading the statement released is a waste of time. The truth is reflected in the deed. The motive is an attempt to prevent the onset economic and financial chaos. It’s really as simple as that. See Occam’s Razor if you need an explanation. Full Story
They do not see — often misguided by mainstream economics — that the root cause of the trouble is central banks’ downward manipulation of market interest rates in the first place, which is made possible by central banks running an unbacked paper money system.
To conclude: The indisputable insight that central banking brings about a “Revaluation of all Values”, which is neither in the economic interest of the people nor ethically justifiable, should encourage efforts to put an end to central banking.
Any such effort must propagate the intellectual insight that central banking is very harmful to the society, and it also requires truly bold and determined action, for “We know that no one ever seizes power with the intention of relinquishing it,” as George Orwell put it. Full Story
Q: A minor analyst recently remarked that he didn’t believe any of the claims you make about market manipulation and called it conspiratorial stuff. What do you say about that?
A: That’s the main reason my arguments have never caught on in a big way. Nobody wants to be associated with a conspiracy. However, I draw my conclusion from government data like the Commitment of Traders report and the Bank Participation report. There’s nothing conspiratorial about the data and my conclusions are factual. Full Story
Today, jewelry is at once the very same and vastly different from what it used to be.
The industry is worth upwards of $348 billion per year, and it’s not hard to see why. As an alternative asset, jewelry has grown 138% in value over the last decade – only outperformed by classic cars, rare coins, and fine wine.
However, perceptions of jewelry vastly differ. It’s not a stretch to say that Western jewelry buyers are enamored with diamonds, given their enduring association with special occasions – but it’s interesting to note how that ideal was fabricated. Full Story
In a previous analysis we examined how to create a 21% yield, as the incidental byproduct of the Fed's plans for the cyclical containment of recession.
In this analysis, we will deepen that examination and visually illustrate the financial mathematics that would create a potential 48% yield from what the Federal Reserve plans to do in the event of another recession. Full Story
The new normal is that monetary policy will never be neutral or tight again. We are in the age of permanent stimulus. But investors still don't seem to understand the ramifications. If they did, gold would be soaring and the dollar would be tanking. Perhaps surprise easing from the Fed, which may not be far off, will finally get the markets attention. Full Story
Moreover, if we do see a more immediate break out, then it would strongly suggest that the minimum target we could see resides in the 131 region, whereas before I thought it would be a minimum target of 128. Alternatively, if we were to see a sustained break of the 115 region, then my expectation would likely be wrong.
So, while it seems that the masses are standing against Eric and I on our near-term expectations for bonds over the coming 3-6 months, at least I know I will be riding this trade in TLT to 131+ in good company. Full Story
By: Keith Weiner, Monetary Metals - 18 March, 2019
My goal is to make you mad. Not at me (though I expect to ruffle a few feathers with this one). At the evil being wrought in the name of fighting inflation and maximizing employment. And at the aggressive indifference to this evil, exhibited by the capitalists, the gold bugs, and the otherwise-free-marketers.
So, today I am going to do something I have never done. I am going to rant! I am even going to use vulgar language (which is totally justified).
In researching several recent articles, I re-read old passages from Keynes. Consider these snippets.. Full Story
For now, the macro fundamental and technical is a mixed bag. I am not abandoning a forward bullish view, but that gold/stock markets chart needs to stabilize and other macro/sector fundamentals along with sentiment need to come in line.
And the next time the bullhorns sound across Goldbugville maybe one or two more bugs will tune them out. It really is a reliable short-term indicator all on its own.
A big part of the pitch a few weeks ago was the impending collapse of the US dollar. Well, Uncle Buck got thumped yesterday and so did gold! So we can tune that crap out as well. If USD breaks down, fine. We may have ourselves one hell of an ‘inflation trade’. But two things… Full Story
By: Chris Waltzek, GoldSeek Radio - 17 March, 2019
- Financial history may not repeat but it certainly harmonizes, as seen in a review of modern monetary operations. - John Law's Mississippi Scheme involved epic monetary expansion, where approximately 7 printing presses. - The mania remains the textbook schematics of today's global financial bubble. - Another comparable example, the Railroad Stock Financial Panic of 1873 echoes today in over-leveraged products. Dovish monetary policy over stimulated economic conditions, culminating in the now infamous 1929 market peak / crash. Full Story
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