At the close of market on the Wednesday this essay was written, the price of one troy ounce of gold was US$1,229. A troy ounce of silver was trading at US$15.25. Around the world, the price of gold and silver is most commonly quoted in U.S. dollars. As Americans, we tend to think this is the pricing "gold standard." But it's easy to forget that foreign investors generally pay for a purchase in their country's dominant currency. Full Story
For a long time, I’ve advocated that the world’s governments should default on their debt. I recognize that this is an outrageous-sounding proposal. However, the debts accumulated by the governments of the U.S., Japan, Europe and dozens of other countries constitute a gigantic mortgage on the next two or three generations, as yet unborn. Savings are proof that a person, or a country, has been living below their means. Debt, on the other hand, is evidence that the world has been living above its means. And the amount of government debt and liabilities in the world is in the hundreds of trillions and growing rapidly, even with essentially zero percent interest rates. Full Story
Only about a week ago, one reader scoffed at me because oil prices had stabilized (or so the market theory d’jour went). The big stock market crash I had predicted had run its course, he thought. The Saudis and Russia had entered a deal on oil, and Iran was coming on board; the stock market was back up as a result. Everything was normalizing again. Whew! He could write off the doom-and-gloomers. Full Story
Chris welcomes back Monty Guild of Guild Investment - his sources insist that China is accumulating huge gold reserves under the table at deep discounts. Canada and many other countries have sold much of their gold reserve stockpiles to raise funds. The myopic decision will backfire, ultimately requiring the repurchase of gold reserves at much higher prices. Full Story
At some point, the question becomes "why". With gold now up 17% year-to-date, silver is up just half that amount at 9.5%. And yet, the latest CoT report shows the highest silver Commercial net short position since 2008. Again, why? Why now? That's truly the $64MM question. Why are The Silver Banks shorting so aggressively here? What's the difference in holding price below $16 versus $18 or $20? Full Story
By: Steve St. Angelo, SRSrocco Report - 26 February, 2016
According to the CME Groups recent release, Comex Registered Silver inventories reached an all time low yesterday. The Registered Silver inventories are those stocks ready to be delivered into the market. Looking at the data put out by Sharlynx.com, Registered Silver Inventories haven’t been this low going back to the 1970’s. Full Story
Mining industry professionals are already eyeing their calendars for the Prospectors and Developers Association of Canada’s (PDAC) annual conference, which will take place in Toronto early next month. There they will lick their wounds following a year of plunging raw materials prices and tanking exploration budgets. The only smiles will be on bargain hunters looking to pick up assets at near-distressed valuation levels, as well as gold fans hoping the sector has finally turned. Full Story
Gold is on a monster run already in 2016, gaining nearly 20%, while the rest of the market remains mired deep in the red. But many of you are sitting on the sidelines, fearful that you’ve missed gold’s move. Don’t worry: You haven’t missed it. In fact, this is just the first inning of a monster bull market for gold mining stocks. And it’s going to allow you to buy gold 50% off from its current price and you could make 100% to 200% over the next 12 months. Full Story
A Market crash can be viewed as a monumental tragedy or a splendid opportunity depending on what side of the fence you sit on. If you decided to pour all your money into the market close to the top, then it would be viewed as a tragic event. If on the other hand, you got in early and as the market trended higher, you banked some of your profits then it would be viewed as a splendid opportunity. Full Story
It’s widely discussed COMEX gold futures contracts (GC) can only be physically delivered with gold recorded as registered inventory in COMEX approved depositories, which currently stands at multi year lows. In the same spirit it’s discussed the ratio between the open interest and registered inventory is at an all time high. I would say this is technically true. However, essential to mention is that the COMEX facilitates a mechanism through which trading in GC does not have to be “executed openly and competitively on the Exchange”. Full Story
By now, regular readers are familiar with the eight-year, bubble-and-crash cycles in our markets and economies which are manufactured by the crime syndicate known as “the One Bank.” The reason the cycles are roughly eight years long has also been explained: to coincide with the U.S. political cycle, and the rotation of its two puppet parties. Full Story
By: Gary Christenson, Deviant Investor - 25 February, 2016
Ben Bernanke and hundreds of other “paper pushers” ignore gold, pretend not to understand it, and pressure the world to transact business using their paper currency Ponzi schemes. Why? Because the dollar (euro, yen, pound) Ponzi scheme produces power and profit for the financial community and politicians. But this is not about the bankers and politicians who want control over your money as they extract a slice from every transaction. Full Story
I’ll be upfront going in and say that some of this material is going to double a bit with a fantastic message preached by Chuck Baldwin a few weeks ago. As I listened, some different angles came to mind, and some different events altogether. As we get further and further into the silly season otherwise known as an election year, it is important to remember that sometimes we really do get what we wish for. Full Story
According to a press release the management team of the Dutch central bank has requested to investigate relocating the banknotes and gold vault that is currently located in the basement of bank’s headquarter at the Frederiksplein in Amsterdam. In the press release we can read the reason for the investigation to relocate the vault flows from preparations to renovate the building that dates from 1968. Full Story
Each time I look around the web, I see many calling a certain bottom in metals yet again. But, these same people have called so many certain bottoms over the years, I have lost count. So, how about if we speak a little more realistically about what is happening in the market, as we still need to look for confirmation that the bull market has returned. Full Story
A growing number of investors are beginning to realize that Central Banks are effectively out of ammo (for now). Last week I noted that the Bank of Japan’s implementation of NIRP only generated a brief rally in Japanese stocks. That rally has since been obliterated as Japanese stocks collapsed nearly 8%. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 24 February, 2016
GATA Chairman Bill Murphy was interviewed from Dallas tonight -- Wednesday morning Hong Kong time -- by Bernie Lo on CNBC Asia's "Squawk Box" program, discussing indications that central banks and their investment bank agents are having increasing difficulty in suppressing the price of gold. Murphy added that the banks seem especially scared of silver. Full Story
By: Steve Saville, The Speculative Investor - 24 February, 2016
I don’t need to read/watch the news to know that the supply-demand backdrop remains unsupportive for the oil price. All I have to do is look at the spread between spot prices and futures prices in the oil market. The larger the contango, that is, the higher the futures price relative to the spot price, the more abundant the current supply and the less price-supportive the so-called ‘fundamentals’. Full Story
By: Rick Ackerman, Rick's Picks - 24 February, 2016
It’s been a while since we looked in on the Gold Bugs Index, but as we might have expected, it has kept pace nicely with the rally in physical gold prices. The bullish pattern shown projects to as high as 175.68 over the near term (see inset). That’s a Hidden Pivot resistance, and its attainment would become an odds-on bet if and when HUI exceeds the secondary pivot at 166.41 by at least 1.50 (or so) points. The weekly chart is especially bullish, since the strong move off January’s 99.19 bottom is still uncorrected. The rally has already exceeded two ‘external’ peaks on the weekly chart, but if it were to get past yet another at 187.17 recorded in May, that would lend weight to the possibility that we are seeing the nascent stage of a major bull market. Full Story
By: Axel Merk, Merk Investments - 24 February, 2016
The way we assess the Yellen Fed is a bit like an ocean tanker, i.e. it moves very slowly. The reasons for that we discussed in a recent Merk Insight, but have mainly to do with the fact that Yellen is a labor economist and, as such, typically looks at data that will lag developments in the real economy. To us, this suggests risk premia may continue to widen (causing risk assets to remain under pressure), and that any rally in the markets may be a bull trap, i.e. deceptive. In our assessment, investors are likely to use rallies to diversify their portfolios as they continue to be over-exposed to equities and other risk assets. The question is whether gold will be part of their diversification efforts. We think investors may want to consider adding a gold component to their portfolio. Full Story
Given the fact that the two largest sectors of the Canadian stock market are the commodities sector and banking space, then we can expect a very bumpy ride in the future for the Canadian economy. Full Story
To finish, whether it is this weekend or not, a re set is coming and this will mean a redistribution of wealth. The world has moved down the rabbit hole of Alice in Wonderland, a re set will bring us back to reality and standards of living will be grossly changed. What is viewed as "wealth" currently will drastically change for generations to come! Full Story
This definitive sign of a currency collapse is easy to see… When paper money literally becomes trash. Maybe you’ve seen images depicting hyperinflation in Germany after World War I. The German government had printed so much money that it became worthless. Technically, German merchants still accepted the currency, but it was impractical to use. It would have required wheelbarrows full of paper money just to buy a loaf of bread. Full Story
In order to continue to reveal essential information about the physical and paper gold markets around the world, first I would like to expand on the inner workings of the gold wholesale market. In this post we’ll use the Gold Forward Offered Rates, in short GOFO, as an excuse to illuminate the most vital gears that drive the gold market engine. For, if we truly understand GOFO we also understand gold leasing, forwards and swaps, which are the building blocks of the gold wholesale market. Full Story
I can think of no better word except, “astounding”, when considering what is taking place with the giant gold ETF, GLD and its reported holdings increases. This afternoon’s reported gold holdings showed an increase of exactly 19.33 tons to 752.29 tons. This is identical to the increase seen last Friday ( 19.33 tons). In two days time, we have seen almost 39 tons of gold added to the vaults of GLD. I am hard pressed to find anything similar in its past. Full Story
Recent talk on the Internet has been about Peak Gold, Peak Silver and a general view that the planet’s natural resources are in danger of sliding into an irreversible decline in production which no amount of pricing or technology can reverse. The implication of this for those who hold gold or silver would be immense in financial terms but also in wider political and economic terms. With that in mind, I consulted the statistics of the US Geological Survey (USGS) for subscribers in a recent newsletter and came to some interesting conclusions. Full Story
By: Steve St. Angelo, SRSrocco Report - 23 February, 2016
I sat down with Kenneth at Crush The Street and discussed how the low price of oil will be the factor that sends the U.S. and world stock markets lower in 2016, while pushing up the values of the precious metals. This is a very strange situation as history has proven that gold and silver tend to increase with a rising oil price. However, the falling oil price is destroying energy and commodity producing countries and their currencies. Full Story
Nearly everyone can recall playing Monopoly as a child, and for many, the game served as their first exposure to handling different denominations of cash. It was exhilarating to have someone land on your Park Place property, complete with hotel, and in turn receive a fistful of $50s and $100s. A new generation of players might never get the chance to experience this, however, as Hasbro Gaming just released an “Ultimate Banking” version of the popular board game that nixes the funny money in favor of play credit cards and an electronic scanner. Full Story
By: Sol Palha, Tactical Investor - 23 February, 2016
Conventional wisdom states that precious metals trend upward when rates are rising. We are living in strange times, and central bankers are breaking rules left, right and centre so this old paradigm might not hold true. If the masses are forced to speculate, they could decide that Gold is a better storage of wealth. However, for that to come to pass, the average Joe would have to understand the true meaning of the word inflation and that Gold is a currency and not some ancient relic that has no place in the 21st century. Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 22 February, 2016
Operating under the mistaken belief that a modest dose of inflation is either a prerequisite for, or a by-product of, economic growth, the nation's top economists have been assuring us for quite some time that inflation will stay very low until the currently mediocre economy finally catches fire. As a result, they believe that the low inflation of the past few months has frustrated Federal Reserve policy makers, who have been supposedly chomping at the bit to keep hiking rates in order to restore confidence in the present and to build the ability to cut rates in the future if the nation were to ever, god forbid, enter another recession. Full Story
The war on cash is intensifying and bullion investors are wondering what the transition to a "cashless society" might mean. We'll cover that, but let's first recap why these organizations are, once again, allied together to the detriment of your ability to transact privately. The self-interest of bureaucrats is one factor. They don't like privacy. They dream of the day when they can access all of your spending with just a few keystrokes. The knowledge will help them more aggressively tax and regulate. Full Story
Here we are back on the Pink Floyd standard, a song about the corruption of the ‘old boys club’ in the music industry of the 70’s. Fast-forward to today, and we have the same situation on steroids gripping everything from business to government, which is nothing new. To think different would be naďve. The thing about it however, is it’s pervasive extent these days, where even mid-level bureaucrats need to be lumped in with the real crazies at the top because of the degrees of complicity they are willing to participate in – bringing us to the fascist states they enjoy today. Full Story
Yet they are being deceptive, for they are holding back on their true intentions. Central Banksters could care less about our safety and care about one thing and one thing alone: Control of the money system and control over every facet of your financial life. This is why they hate physical money and this is why they hate gold and silver. Resist this movement my friends, this won't be the last shot they fire. Full Story
No doubt "something" changed starting the second half of last year. In fact, in looking at many markets we saw change and reversals. The process took quite some time but global equity markets topped and many are now quickly into bear market (down 20% or more) territory. This is also the case in many credit markets if we exclude most sovereigns. Full Story
Tonight I would like to update a few of the ratio charts we’ve been following that are still showing an important low or bear market low is in place for gold. There are so many things we read where this analysis says this and that analysis says that but the more one reads the more confused they become. There is no Holy Grail when it comes to trading the markets although everyone is looking for one. Full Story
We have been wondering over the past week whether gold and silver have been starting to mark out bull Flags or whether they are instead at intermediate tops. That question is answered for us by the latest COTs which reveal that Commercial short positions have exploded in recent weeks, particularly in silver, where they are now at “nosebleed levels”. We therefore now expect a correction, which could be quite heavy – so Curb your Enthusiasm, people. When it happens don’t be fooled into thinking that the bearmarket is back on and Goldman is right. Instead take the opportunity to back up the truck and load up on PM sectors investments, many of which have risen too far too fast in recent weeks. Full Story
Markets and stocks reached very overbought readings this past week and are now setting up to either consolidate and move higher, or move lower. Both scenarios will work off the overbought condition. The metals rested, then shot back up in very volatile, unpredictable action so let’s check out the levels I’m watching in the metals this weekend. Full Story
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