And why are The Banks targeting this level? As we've been discussing for the past three weeks or so, the three primary moving averages are all bullishly crossed. This configuration prompts the Spec HFTs to buy the dips and this generally promotes price strength. Therefore, the first key to unwinding the Spec longs and allowing The Banks to cover shorts is to break price down below the key short-term MA...the 50-day.
From here, attempts will be made to take price all the way down toward the 100-day ($1274) and 200-day ($1252). The Banks likely won't be able to get there all at once due to that Spec buy-the-dip thing. However, they WILL try to get down there over the next two weeks. Full Story
By: Adam Hamilton, CPA, Zeal Research - 22 September, 2017
This week’s landmark Federal Open Market Committee decision to launch quantitative tightening is one of the most-important and most-consequential actions in the Federal Reserve’s entire 104-year history. QT changes everything for world financial markets levitated by years of quantitative easing. The advent of the QT era has enormous implications for stock markets and gold that all investors need to understand. Full Story
The U.S. dollar is not likely to be displaced as the world reserve currency by another country's currency, financial writer Charles Hugh Smith argues this week, because no other country has an economy large enough to support a reserve currency and the willingness to let its currency trade freely. Full Story
By: Chris Waltzek, GoldSeek Radio - 22 September, 2017
- Andy Schectman of Miles Franklin Institute (28 year old firm with $6 billion in sales) rejoins the show. - He outlines ways to avoid the hurdles of purchasing / storing PMs. - He makes a generous offer to swap gold bullion for BU Walking Liberties, a rare opportunity to stack ounces and numismatics, simultaneously. Full Story
The real CRISIS is the collapse of the $USD. And it's one the Fed doesn't want to stop. Indeed, as soon as stocks begin to correct, the Fed will start walking back all talk of a balance sheet reduction. And if we enter another crisis, the $USD will drop even farther as the Fed cranks up the printing presses with more QE. Full Story
We have not yet witnessed the public mania phase of this bull run. The difference between now and the late '70s, when gold lost half its value before rising 850% in less than 3 years, is that there are now even more legitimate reasons for an extended replay of this scenario.
Instead of less than 4% of the investing public then – mostly in North America, plus a few prominent Arabs, we've got just about the entire world on our side! And there is the Chindian Love Trade. Furthermore, we have an indebted global system that cannot pay back at anything close to its present value. And we're half way through the last act of The Fourth Turning, which one way or the other is destined to wring out the monumental financial excesses of the last half century.
You may be dispirited watching "the cartel" continually knock down metals' prices, just when they seem ready to fly. You may be tempted to give up on the metals and join the crowd into a stock market bubble that's been rising for nine years. Full Story
Gold Price: USD 65,000/oz in 5 years? Is it realistic that the price of gold could reach this level in the foreseeable future? This speech by BullionStar's CEO, Mr. Torgny Persson, was recorded during FreedomFest 2017. FreedomFest is the world's largest gathering for freedom oriented people. BullionStar participated by exhibiting and educating about the monetary system. Full Story
The low oil price is negatively impacting another OPEC oil exporter as it continues to liquidate its foreign exchange reserves. Algeria, like Saudi Arabia, has seen its international reserves plummet by more than 40% as the oil price fell in half since 2014. Algeria joined OPEC back in 1969 and is currently producing 1.1 million barrels of oil per day (mbd). While Algeria is not one of the larger OPEC members, it still exports roughly 670,000 barrels of oil per day. At $50 a barrel, the country receives $33.5 million a day in oil revenues. Full Story
Talk is cheap, never moreso than when it comes from the mouths of the charlatans and quacks who run the Federal Reserve. Their latest “plan” is to start selling assets from the Fed’s $4.5 trillion balance sheet in October; tightening perhaps 25 basis before 2018; then tightening three more times next year. Translation: We will initially unload whatever crap the traffic will bear, which could be zilch; we will continue to talk the talk as brazenly as possible, pretending that 25 basis points of alleged tightening every now and then constitutes real tightening; and, we will treat the recession currently gathering force in the U.S. economy as though it could not possibly happen. Full Story
Writing in the September issue of the World Gold Council's Gold Investor newsletter, London Bullion Market Association Chief Executive Ruth Crowell writes that the organization is committed to delivering transparency and so its members will disclose their transactions with governments, central banks, and the Bank for International Settlements, including gold swaps, leases, and gold-related derivatives. Full Story
I have been asked my opinion regarding cryptocurrencies. Let’s start by saying I have no doubt within only a short time, “crypto currencies” will be issued and embraced by central banks. This is not to say I am endorsing Bitcoin, Ethereum or any other digital currency. It is even possible that not a single existing crypto will exist when central banks finally make their leap. Full Story
Suppose the hypothetical American family has $200,000 in credit card and mortgage debt. Income is approximately $40,000 per year. Assume annual credit card and mortgage interest rates average 8%. The interest only on the debt is nearly half the annual income, before many taxes and living expenses. Reducing the principal balance with minimum payments consumes most remaining income – for a very long time, assuming this family could somehow survive without increasing their debt. Full Story
As well as being the largest importer of gold in the world, and the world’s largest consumer of gold, the Chinese gold mining sector is the world’s largest national gold producer. According to the China Gold Association, China produced 453.5 tonnes of gold from mining operations during 2016, maintaining its pole position as the world’s largest gold producer for the 10th consecutive year. Most of this gold production comes from direct gold mining, however, about 10-20% results as a byproduct of other non-ferrous mining. Full Story
Gold and silver rally late in the day. Tomorrow’s FOMC Announcement along with North Korea’s reaction to President Trump’s speech at the UN should provide gold and silver with plenty to trade off of. Full Story
Why, for instance, are there suddenly so many Cat 4 and 5 hurricanes? Is this due to man-made climate change and is this summer therefore our new normal? The answer: Maybe, but that misses the point. There have always been huge storms (like the one that wiped Galveston, TX off the map in 1900, long before global warming was a thing), and barring another ice age there always will be. So the US east coast will remain one of Mother Nature’s favorite targets. Full Story
If you watch and participate in markets long enough – and no, we’re not talking about, “On a long enough timeline…” – you’ll appreciate or get bitten (as we certainly have from time to time) by the sardonic irony that often becomes exposed by a market’s cycle. Consider Mohamed El-Erian’s “New Normal” market strategy, that aimed at the start of this decade to capture the anticipated outperformance of emerging over developed markets. Full Story
Gold and associated assets are clearly poised for an enormous increase in institutional ownership. I call it “The Golden Wave”. This buying is not event-based. It’s based on portfolio allocation to gold as an asset class, and that means the buying will be sustained. Gold bugs around the world can use my key prices zones of $1315 - $1295 and $1260 - $1270 now to get tactically positioned in key gold stocks to surf the golden institutional wave! Full Story
October 19, 2017 marks an important holiday in the Indian culture. Diwali begins. Diwali is one of the biggest festivals for Hindus, Sikhs, and Jains. It is a lavish celebration of the victory of light over darkness with its gleaming candles, luxurious works of art, and opulent feasts. Diwali is also characterized by gift giving. Buying and gifting gold is considered auspicious during Diwali. Full Story
Gold has broken its daily cycle trend line and is potentially in the process of making a larger degree ABC correction. The corollary cycle movement of the Japanese Yen supports this thesis. Meanwhile, the stock market continues to look like the place to be invested. Full Story
Gold swaps by the Bank for International Settlements, Dave Kranzler of Investment Dynamics writes today, correlate inversely with the gold price. That is, the more gold is swapped by the BIS, the more metal is made available to bullion banks for sale into the market and shipment to Asia to prevent demand there from boosting gold's price. Full Story
A quote often attributed to St. Augustine, the early Christian theologian, is: “The world is a book, and those who do not travel read only a page.” I feel blessed to be able to travel as much as I do—not because I’m a big fan of 10-hour flights or living out of a hotel room. I feel blessed because travel allows me to meet and speak at length with some truly fascinating and successful people, from CEOs of firms both large and small, to deal lawyers, to audit partners. Full Story
In a 2015 blog post titled “Unintended Consequences” I explained that policies implemented by the Clinton and Bush administrations to boost the rate of home ownership not only had unintended consequences, but the opposite of the intended consequence. This post is a brief update on the US home ownership situation. Full Story
Regarding gold, Friday was again a day when the gold market bears ruled and they are continuing to put pressure upon prices this morning. We draw attention then to the chart of gold included this morning at the upper left of Page 1, paying heed to the trend line drawn. It is under assault and is indeed in danger of being broken to the downside. Full Story
Physical demand for bullion rounds, coins, and bars remains somewhat soft in the U.S. This year’s run higher in prices as well as rising geopolitical tensions has whet the appetites of some investors, but it has not yet triggered broad participation. With strong gains both this year and last, metals prices have been responding to a host of issues – from unrestrained federal borrowing to the prospect of nuclear exchange. But they haven’t moved up as much as many expect. Full Story
The best performing precious metal for the week was gold, down slightly 1.86 percent. Jeff Christian, managing director of research consultancy CPM Group, thinks that the price of gold is headed much higher in the next three years, reports TheStreet.com. “We thought gold would find a bottom in 2015 and that by 2020 we could see gold set a new record gold price in nominal terms, above $1,700 an ounce,” Christian said. Full Story
Last week we presented a parade of indicators published by Grant Williams and Lance Roberts that warned of an approaching market correction as well as a coming economic recession. The key message was: When smart analysts independently find the same patterns in the data, it's time to take notice. Well, many of you did, by participating in this week's Dangerous Markets webinar, which featured Grant and Lance. Full Story
Back in mid-July, we called for the market to top within 3 weeks between 2487-2500. And, 3 weeks later, the market topped at 2490SPX within one day of the topping date we expected. And, since we struck that high, the market has followed through in an almost textbook fashion for the entire month of August, as we caught just about every twist and turn during the month. Full Story
Let’s start with an analogy, the engineering concepts of accuracy and precision. These related words are oft-confused, but not the same thing. The former refers to how close a measurement gets to reality, and the latter refers the repeatability of the measurement. If you put 1kg mass on a scale and it says 1.9501kg it is not accurate. However, if you do it again and again, and it consistently reads 1.9501kg it is precise. Full Story
In the aftermath of Tropical Storm Irma, the head of The Morgan Report, David Morgan rejoins the show running on generator power. Our guest outlines his perspective on the silver / gold market as well as rare earths. China has corned the rare earth market with a 90% share of the global output. Rare earths are essential to android / iPhones, electric cars. David Morgan expects an explosive price advance in 2018. Full Story
With the hurricanes over, the cameras have moved away to focus on something else. Yet it is what happens afterwards that is more important. Surprisingly, the death toll was not that high, estimated currently at around 81 including deaths in the Caribbean islands. Some of the Caribbean islands were so devastated it could take years to rebuild them—if they can even be rebuilt. Tens of thousands have been left homeless and businesses destroyed, especially the tourist business. Full Story
This time is different are the four most dangerous words any economist or money manager can utter. We learn new things and invent new technologies. Players come and go. But in the big picture, this time is usually not fundamentally different, because fallible humans are still in charge. (Ken Rogoff and Carmen Reinhart wrote an important book called This Time Is Different on the 260-odd times that governments have defaulted on their debts; and on each occasion, up until the moment of collapse, investors kept telling themselves “This time is different.” It never was.) Full Story
Disclosures in the August statement of account published by the Bank for International Settlements indicate that during August the bank increased substantially its use of gold swaps. An estimated 130 tonnes of new gold swaps were made last month, worth about $5.9 billion at the month-end gold price, and the total level of gold swaps at the end of August was close to 500 tonnes. Full Story
In China, nearly all physical gold supply flows through the Shanghai Gold Exchange (SGE). Likewise, nearly all gold demand in China is met by physical gold withdrawals from the Shanghai Gold Exchange’s nationwide network of precious metals storage vaults. Therefore, using the broadest definition of gold demand, SGE gold withdrawals are a suitable proxy for overall gold demand in China. This gold demand can be labelled as “Chinese Wholesale Gold Demand” and comprises two main categories, namely, consumer gold demand and institutional gold demand. Full Story
For what seems like decades, other countries have been tiptoeing away from their dependence on the US dollar. China, Russia, and India have cut deals in which they agree to accept each others’ currencies for bi-lateral trade while Europe, obviously, designed the euro to be a reserve asset and international medium of exchange. Full Story
It’s a science fiction writer’s dream: if AI becomes smart enough to create more advanced versions of itself, pretty much every outcome is on the table. Machines could empower humanity to become enlightened and virtuous. On the less optimistic side? Machines could instead ruthlessly enslave all of humankind to tickle their own warped sense of satisfaction. Full Story
The Morgan Report is all about YOU and how you can build and preserve Wealth for generations to come. We know it can sometimes seem a daunting task to protect your assets and preserve or grow your wealth. Over 15 years ago, a small group of us started The Morgan Report and formed an exclusive membership organization to promote personal freedom, an honest money system, free market wealth accumulation and asset protection. Full Story
I believe that the vertical bubble phase of the stock market is just beginning. This video will show you why I believe this and includes a survey of various markets including the SPX, Nasdaq, Dow, Russell, Transports, European stock markets and Semi Conductors. Full Story
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