Prudent investors have to overcome late 2016’s groupthink herd euphoria and protect themselves from what’s coming. That means lightening up on stocks, building cash, and buying gold. Central banks have a long history of trying and failing to eliminate stock-market cycles. The longer they are artificially suppressed, the worse the inevitable reckoning as the cycles resume with a vengeance. 2017 looks dangerous! Full Story
We believe the terms "power currency" (paper money) and "power money" (gold and silver) were coined by Trace Mayer*, a leading monetary and blockchain expert on Bitcoin. Applied to Exter's inverted pyramid, they provide excellent visual definitions of the two asset classes which have – throughout history – jockeyed for acceptance on the part of governments and the governed alike. And so far, as the late Richard Russell wrote a few years ago, "In experiment after experiment with fiat money, gold has always turned out to be the last man standing." Full Story
For the first time since 2011 - when on Labor Day Eve; coincident with the Swiss National Bank committing to their ultimately fatal, hyper-inflationary decision to peg the Franc to the Euro; the Cartel passed its "point of no return" when "dollar-priced gold" hit an all-time high of $1,920/oz; and subsequently, went all-in suppressing prices on a 24/7 basis - gold and silver prices will end the year higher than when the year started. Including, in many cases, dramatic gains - depending on which currency you're measuring prices in. Not to mention, surging physical premiums in the world's two largest gold consumers, China and India. Full Story
Yesterday's "why Bitcoin will make gold and silver go up" was a big hit - as it should be, given how momentous the rise of crypto-currency is; and consequently, how governments are guaranteed to respond. I mean, if they're this scared of something as intrinsically worthless as cash; let alone, non-interest bearing "barbaric relics" like gold and silver - which to date, they think they have mastered the art of suppressing in the futures markets; just think how terrified they will be of, as the wisest of all Bitcoin prognosticators, Andreas Antonopoulous, deems, the "internet of money" - particularly in light of the fact that for all intents and purposes, it can't be naked shorted. Full Story
In the last month, China has: 1) Burned through over $70 billion defending the Yuan. 2) Had to halt trading in its multi-TRILLION dollar bond market. 3) Had to issue emergency lending to financial firms to keep them afloat. Full Story
A weaker dollar tends to exert inflationary pressures in the economy. So far, however, the post-election trend in the dollar versus foreign currencies is up. The dollar can gain against other fiat currencies while still losing value against hard assets.
But gold bugs and “Trumpflation” forecasters will be looking for the dollar index to reverse course and confirm the other signals markets are giving for rising inflation during the Trump years ahead. Full Story
This year has been one for the history books. Donald Trump was elected as the 45th president of the United States, gold had its best quarter in a generation, Warren Buffett decided he likes airlines again and voters in the United Kingdom elected to leave the European Union. Loyal readers of the Investor Alert newsletter and my CEO blog Frank Talk know that we covered it all, too.
As we head into the New Year, I want to share with you the six most popular Frank Talk posts of 2016. Before I do that, however, I think it’s important to note one recurring theme I write about that continues to help our investment team and shareholders better understand the movement in commodities and energy: the purchasing managers’ index (PMI). Full Story
There are at least four reasons why gold will rise again:
1. Protection against inflation. 2. Reaction against Federal Deficits 3. A beneficiary of negative ‘real interest rates’, currently at – 1.22% 4. Several billion new investors since 1980. Most of these reside in Asia, where gold is appreciated as a ‘store of value’. Full Story
“In addition to false reporting, there is War. War is just like the Fed; it is never audited. This deliberate lack of oversight is how $6 trillion can go missing at the Army, alone. The Army’s missing funds are a small portion of the total amount that has disappeared into the military spending vortex. War spending is critical to topline GDP, and we can play a lot of non-detectible games with it. The saying, “War is the health of the state,” was coined for us. If we stopped fighting wars, GDP would crater. Wars are a necessary constant going forward, even if we have to invent them.
“This brings us to Perception, one of the most important factors of all. In reality, the economy and dollar have become a confidence game... Full Story
In other words, a "perfect Precious Metals storm" may be developing right in front of our eyes. Only you can decide if this is indeed the case - but as for me, I assure you I'll be putting my money where my mouth is! Full Story
If contrary sentiment analysis paves a way for a future risk ‘off’ view, the likes of Treasury Bonds and Gold, key components of the lowly risk ‘off’ trade, will have their day. I recommend you sit back, relax and let the contrarian signals come in without taking on the pressure and unrealistic expectations of pretending to know. It worked in 2016, after all. Full Story
Last week's "Geo-Economics" program on the Russia 24 television network, the round-the-clock news channel based in Moscow, gave your secretary/treasurer a lot of time to discuss gold's role as an international currency and the policy of Western governments to subvert it in favor of the U.S. dollar. The program cited the Russian government's steady acquisition of gold as well as the Indian government's interference with gold purchases by its citizens. Full Story
In other gold-related news from Deutsche Bank, the group assesses the value of the gold “cost curve” when it comes to providing a fair value reference for the metal. Skeptical at first, the bank now recognizes that since 2000, the 90th percentile producer has been a good indicator of the minimum weekly gold price in a given year. “Under these assumptions, the gold price in 2017 would average $1,200 an ounce, with the minimum weekly price falling to $1,060 an ounce. Full Story
By: Jeff Desjardins, Visual Capitalist - 27 December, 2016
The biggest factor? It’s Saudi Arabia, a country that is the largest oil producer in the group, but also a global low-cost leader. It has outsized influence in the cartel, but it also has way bigger margins to play with. This means that sometimes maintaining market share is more important than maximizing profit margins for the Saudis, and other countries disagree with this stance.
With the Saudis finally capitulating to a production cut, maybe the OPEC forces can remain aligned over the near-term. Then again, it might be a temporary fix as OPEC influence continues to slowly sink – especially now that OPEC as a whole is only the second biggest supplier of imports to the U.S., and shrinking. Full Story
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