By: Peter Schiff, CEO of Euro Pacific Capital - 24 June, 2016
Janet Yellen should send a note of congratulations to Nigel Farage and Boris Johnson, the British politicians most responsible for pushing the Brexit campaign to a successful conclusion. While she's at it she should also send them some fruit baskets, flowers, Christmas cards, and a heartfelt "thank you." That's because the successful Brexit vote, and the uncertainty and volatility it has introduced into the global markets, will provide the Federal Reserve with all the cover it could possibly want to hold off on rate increases in the United States without having to make the painful admission that domestic economic weakness remains the primary reason that it will continue to leave rates near zero. Full Story
Bill Holter, JSMineset, stopped by to share his thoughts on the current state of the precious metals markets, pre-Brexit thoughts and the failing confidence in central banks the world over – specifically the Western central banks. There are two situations that are currently happening in the gold market that make a person look twice and wonder if what they just witnessed is akin to seeing unicorn running down the freeway. Full Story
By: Adam Hamilton, Zeal Intelligence - 24 June, 2016
Gold’s recent weakness has dampened bullish sentiment, but the entire precious-metals complex has actually enjoyed record early-summer strength. The summer doldrums have always been a vexing time for gold, silver, and the stocks of their miners. Without any recurring seasonal demand surges in June and July, sideways-to-lower drifts are common in this seasonally-weakest time before big autumn rallies. Full Story
To finish, clearly today's unanimous winner in ALL currencies was gold. As I wrote above, I believe the action today is your road map and a "tell" as to where we are headed. Financially, the system blew up behind the scenes and we will soon hear "who, where and how much". We have gone nearly eight years with "unlimited paper" pushing, pulling and "pricing" markets in directions that supported the Alice in Wonderland world. The knee jerk reactions you saw today will only become more violent as today was only for starters. The only question remains, how long can they keep markets open? The carry trade unwind can only go so far without control being totally lost. Central banks will be mere straws in a hurricane of fear. A complete re set of "pricing" is not far off! Full Story
After a nation has peaked and a majority of the people have traded in their work ethic for the undeliverable promise of ever-increasing governmental largesse, the decline is set in stone. When this has taken place, it’s not only the work ethic that’s in a terminal decline. The nation heads inexorably downward in other ways. Publications decline in quality, partially because the more well-informed authors are retiring and are replaced by those with a less-global understanding. But the readership also deteriorates, as, increasingly, the potential audience is eager to hear more empty promises, along with theories that support them. Full Story
Even if Brexit had failed last night, the fact that it got close would have energized nationalist parties on the Continent, guaranteeing political drama for years to come. But with “leave” winning fairly decisively, that process has been turbo-charged. The result? Uncertainty as far as the eye can see. The entire European project is now in doubt, which will send trillions of euros pouring out in search of the certainty that can no longer be found at home. Full Story
On the surface, the results of last night’s referendum mark a major turning point in Britain’s relationship with Europe. They are anything but.
Tenuous evolving relations between the island and the subcontinent, have been staples of British life for decades.
The only real winners will be the armies of government employees and their handlers that will negotiate the new truckloads worth of new agreements, regulations and side-deals, that will govern that relationship. Full Story
It is a signal failure of government policy. Above all, it is a failure that undermines the state’s control over ordinary people. Time will tell whether it is just a temporary setback for the world’s economic planners, or the removal of a keystone supporting the whole structure of modern statism. There are, therefore, two aspects of this development that must be considered, domestic UK politics and the international economic and political consequences. Full Story
The Brexit vote is clearly the most massive anti-establishment groundswell in decades. We can thank the Brits for having a stiffer upper lip than the Greeks when it comes to risking the pain that will come from this life-changing, nation-changing international divorce. And, of course, there will be pain and lots of it from such a major but vital course correction, just as there will be a lot of pain when the entire global economy meets its inevitable collapse. Full Story
By: Chris Rossini, Ron Paul Liberty Report - 24 June, 2016
The propaganda used to get British citizens to stay in the European Union was astounding. It was around-the-clock and relentless. Even here in America, politicians and their subservient media were walking lockstep with each other in telling us why Britain should stick with the political elite's plan for the massive centralization of power.
The concentration of power is a great enemy of liberty. Full Story
The global elites know that this is a massive blow to their long term plans. They know that this is just the beginning and a tidal wave of nationalism and personal liberty is once again going to sweep across the globe. Those who cannot see this rising tide are either burying their heads in the sand or asleep at the wheel.
Today is one that should be celebrated. Today is the UK's independence day, a day of victory for the free people of the world and liberty lovers. Today is our day. Full Story
By: Steve St. Angelo, SRSrocco Report - 24 June, 2016
While the world awaits the BREXIT vote, the COMEX Registered Silver Inventories reached a new record as it pertains to leverage. Matter-a-fact, the number of owners per ounce of Registered Silver is higher than gold. In the beginning of the year, COMEX Gold Registered inventory owners per ounce spiked to over 500 to 1. Full Story
With the Brexit vote imminent we can expect to see big volatility in markets immediately following it, and possibly even before it, if the market thinks it has got wind of the outcome ahead of the final count. If Britain votes to leave the European Union, the presumption is that the euro will drop hard, because this would be a big prominent nail in the coffin of the failing Union, and because the dollar index is about 57% comprised of the euro, we can expect it to soar. If Britain votes to stay in, the outcome is less clear, since Britain staying in will not solve the mounting problems of the EU. Full Story
The EU serves Washington and the One Percent. It serves no one else. The EU is a murderer of sovereignty and peoples. The intent is for the British, French, Germans, Italians, Greeks, Spanish, and all the rest to disappear as peoples. Brexit is the last chance to defeat this hidden agenda, and apparently, the British will vote tomorrow without having a clue as to what is at stake and what the vote is about. Full Story
International currency speculator and leftist financier George Soros has slashed his fund’s overall equity holdings by 25%. Like him or not, Soros is no dummy when it comes to the financial system. He is an establishment insider who apparently sees turbulent times ahead. He owns a not insignificant amount of gold, and his largest single equity holding now is Barrick Gold (NYSE:ABX), a major gold mining company. Full Story
- Gold could top $2,000 possibly in 2016 or 2017. - Our guest notes that the founders of this nation: Washington, Franklin, Madison and Jefferson etc., were "Gold Bugs." - A new gold bull market could lift silver and related shares to record levels. - As the smart money like billionaires Jim Rogers / George Soros accumulate gold, tightening supply, demand conditions could boost the prospects of silver. - The world's most useful metal could regain the more traditional gold to silver ratio, perhaps returning to the natural mineral ratio of 10 : 1, sending the silver price north of triple digits.
The first thing you need to know is that this is NOT a done deal. The assumption since last Thursday is that Brexit will fail...and it likely will. The City of London almost always gets what The City of London wants. To think that the hoi polloi will be allowed to advance an agenda that is NOT in The City's interests is almost unfathomable, sort of like those believing that a new Glass-Steagall will be passed one day in the U.S.. The Financial-Political Complex overpowers everything through bribery, greed and corruption so to think that popular opinion would be allowed to override them?...Well, it's a longshot. Full Story
By: Julian D. W. Phillips, Gold Forecaster - 22 June, 2016
Without going into the technicalities of the Exchange Controls of the time, in essence capital that wanted to leave the U.K. had to go through the ‘Dollar Premium’ pool of capital purchasing it at the discount to a set exchange rate [related to the exchange rate at the beginning of the imposition of the Dollar Premium]. Should any capital want to enter the U.K. during this time it benefitted by the discount, gaining the ‘Premium’. Full Story
Once Gold closes above $2200 on a monthly basis, it will set the path for a test of the $3300-$3500 ranges. If there is a feeding frenzy stage and there usually is, then our high-end target for gold is $5,000. Those issuing targets of $20,000 and higher are getting ahead of themselves and in doing so, they are leading novice investors astray. Full Story
If gold is viewed from a western investment portfolio perspective, studies have shown that the gold price is inversely correlated with the prices of most other financial assets. Adding gold into an existing investment portfolio can therefore lower portfolio risk. This use of gold as a risk-reducing strategic asset class has been empirically validated by numerous studies (such as studies by the World Gold Council), and from the perspectives of different classes of portfolios, different investor backgrounds, and varying base currencies. Optimal allocations of gold in multi-asset portfolios by these empirical studies are usually found to be in the 5 - 20% range. Full Story
Gold bugs, who I have noticed are generally in full obsession mode (as in, ‘I am a gold stock trader’ as if it is the only sector out there) should be careful going forward. While we are working on a theme that could swing inflationary (benefiting the metals and Royalty companies if not as much gold miners) the relief that would be signaled if our view of the Semis (as upside leaders) is correct could hammer gold’s risk ‘off’ premium, along with that of Treasury bonds. Full Story
Gold stocks need very specific conditions in order to perform well. The last time most of these conditions were present was during the Great Depression. However, conditions are currently shaping up to be even more ideal. Full Story
This past week saw some very exciting movement in the metals. There was something for the bulls and the bears alike. But, for now, the bulls still have the edge, at least in my humble opinion. Yet, the price action and sentiment have many looking much lower now, and has scared many of those that were quite bullish coming into the week. Full Story
During my most recent webcast a couple of weeks ago, I had the pleasure of being joined by the CEO of the World Gold Council (WGC), Aram Shishmanian. As expected of someone of his stature, Aram brought another level of insight and expertise to our discussion of gold’s Love Trade and Fear Trade. Full Story
This year’s presidential election is getting lots of attention, and customers are asking about how the outcome might impact the gold and silver markets. The questions generally fall along two lines. One is whether we think a Donald Trump victory will be good for prices and another regarding what a Hillary Clinton presidency might mean. Full Story
Think about it in terms of the central bank’s stated objective, which is lowering the rate at which banks loan out money. As the recession went on, central banks tried to drive interest on loans like mortgages lower and lower in order to entice people to buy things with loans in order to stimulate the economy. Because that didn’t stimulate the economy enough, central banks started saying they might have to go from lowering interest (for banks) to the zero bound (zero interest rate policy — ZIRP) to taking interest all the way negative (negative interest rate policy — NIRP). Nope. Never happened anywhere. Full Story
Gold is the ultimate safe haven, and when global financial risks rise or fall substantially, enormous institutional liquidity can flow into gold, or out of it. In just a few weeks, gold surged from about $1200 to $1320, on Brexit fears. All of that upside gain can easily be unwound if the “stay” vote wins. The “unwind” would only be a short term event, partly because more key EU member states may soon launch their own referendums. Full Story
Dr. Martenson from PeakProsperity.com and co-author of Prosper! notes that the entire global economy could be facing an end game scenario. Citizens around the globe, from China to the US and beyond have lost faith in central banking as evidenced by Brexit / Grexit talks. While the 2016 crude oil market rebound from sub-$30 to $50 was impressive, Dr. Martenson expects the price to double again to meet global demand. Full Story
By: Steve St. Angelo, SRSrocco Report - 21 June, 2016
According to the figures in the 2016 World Silver Survey, Americans now lead the world in physical silver investment. This is quite an interesting change as India has been the number one market for silver bar demand in the past. For example, Indians purchased more than 100 million oz (Moz) of silver bar in 2008 of the approximate world total of 125 Moz. However, silver bar demand is only one segment of total global physical silver investment. There is also Official Coin demand. Full Story
With Friday's Commitment of Traders Report, the ridiculous has just metastasized into the sublime as the Commercial Cretins have just gone "over the top" and added another 5.4M "ounces" to their synthetic gold short position. At 298,077 contracts declared short, they are now carrying the largest short position in Crimex history. The scary part is that these figures don't include the big rise in open interest yesterday and you just KNOW that it ballooned out due to more Cartel shorting. Full Story
Much will depend on the dollar, as the Fed's announcement this week did not cause a break one way or the other. Perhaps Brexit will next week. The outside reversals on GLD and SLV were on very heavy volume, and that suggests liquidation. Caution is advised. Full Story
I want to continue the Brexit conversation from last week. With only three days left before U.K. voters head to the polls, expectations of which side might win are beginning to shift toward the “Brexiteers,” while betting markets are still putting money on the “stay” campaign. However, the probability of victory for those who favor keeping their European Union membership has weakened rather remarkably in the last month, falling from over 80 percent in mid-May to around 62 percent today, according to BCA Research. Full Story
It is my privilege now to welcome in Dan Norcini. Dan is a professional off the floor Commodities Trader bringing more than twenty years of experience in the markets. Dan's editorial contributions and supporting technical analysis charts cover a broad range of trade-able entities including the precious metals in foreign exchange markets, as well as the broader commodity world. He is a frequent contributor to both Reuters and Dow Jones as a marketing analyst and can be found as a source in the Wall Street Journal’s commodity section from time to time, as well as CBS's Market Watch. Full Story
We are revisiting a piece penned back in December of 2014 in an effort to draw useful comparisons pertinent at the time to current conditions in the markets we follow today – along with a new and important technical condition in the precious metals market right now exhibiting conflicting messages – ‘a tale of two cities’ if you will. The primary message behind the piece entitled A tail of Two Cities in 2014 was to draw attention to the growing income and wealth gaps between the top 1% and the rest of us, the same inequality that brought on the French Revolution, which continues to widen by the way, because of implications pertaining to the future. Full Story
By: Steve Saville, The Speculative Investor - 20 June, 2016
A lot of good economic theory boils down to the acronym TANSTAAFL, which stands for “There Ain’t No Such Thing As A Free Lunch”. TANSTAAFL is an unavoidable law of economics, because everything must be paid for one way or another. Furthermore, attempts by policymakers to get around this law invariably result in a higher overall cost to the economy. Unfortunately, central bankers either don’t know about TANSTAAFL or are naive enough to believe that their manipulations can provide something for nothing. Full Story
Last time our piece focused on what has come to be known as 'escape velocity' and how an aeronautical term has come to be used to provide some boost to the perception of the USEconomy when in fact it actually has no velocity whatsoever. This week we're going to take a look at another term, and even though it is an amalgam of two words, it still has profound meaning. Full Story
I would love to say “the Fed is dead,” but I’m afraid the monster at the helm lives on. Even though its recovery is falling out of the sky, hope dies hard. The failure of its fake recovery should bring about the Fed’s own execution since it brought all of this upon us with its policies of sloppy debt enticements and its bizarre notion that an economy can be built over an ever-expanding chasm of debt — a core idea so obviously stupid that it’s hard to believe the Fed can convince so many seemingly smart people to buy into it; but buy into it they still do … in spite of rampant signs of economic collapse everywhere in the world now and in spite of the fact that the Fed’s policy of saving the nation economically has only enriched the rich. We all know that, but we let them fumble on in the cockpit, blindfolded by their own ideas. Full Story
So Brexit and its aftermath are just symptoms of a deeper problem. To paraphrase an old saying about inflation, today’s political turmoil is always and everywhere a monetary phenomenon. We’ve borrowed too much money and now nothing works any more. Electoral turmoil is simply what you get at the tail end of an epic debt binge. In that sense it doesn’t matter (within reason) who ends up being prime minister, president, or premier unless they figure out a solution for their balance sheets. And that — assuming it’s even possible — won’t be quick or easy. Full Story
After a lifetime of watching financial markets, the speed at which traders react still amazes me. Sometimes it seems to me like they hail from the “ready, shoot, aim,” school of thinking. Economic trends almost never turn on a dime; and though we can look back and find a moment that was the exact bottom or top, there were forces building that caused people to move from one side of the boat to the other, tilting the economy or markets or society in a different direction. New data can alter our probabilities – but rarely as fast as trading algorithms seem to think. Long-term trends, by definition, change slowly. Full Story
Another very choppy week for stocks who are quite oversold and began to show the needed bounce Thursday which saw me get long a few stocks, but then it wasn’t to be Friday and I had to take a few small losses. The market continues to act poorly and show no direction, rhyme or reason to its actions, but there isn’t much we can do about it. Full Story
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