Well, what a shame. Just when the survivalists had got their hopes up that they would actually be able to start using their vast stores of canned and freeze dried foods and unload some of their ammo magazines on waves of zombielike starving hordes lurching forwards relentlessly towards their bunkers, along comes the Fed and inaugurates QE4. QE4 has been launched in an almost clandestine manner, scarcely mentioned in the MSM, and started with a whimper rather than a bang as the Fed raced to plug the dyke when the repo market threatened to lock up a few weeks ago – but it’s nothing a few billion or trillion of freshly printed money can’t fix. Full Story
Last week, we wrote about the pending price correction in COMEX gold and silver due to the extreme level of futures contracts issued by the market-making Banks. With price getting smashed thus far this week, it's time to explain again the dynamics of this tried-and-tested price manipulation technique.
First of all, understand that the alchemy of " gold price exposure" was created in 1974 for the express purpose of managing price in lieu of physical metal supply. The London Gold Pool had collapsed in 1968, and Nixon had suspended the dollar's convertibility into gold in 1971. Absent new physical sources to control price, investment products were soon created as vehicles for the purpose of siphoning off physical investment demand. See this.. Full Story
In a September report, the World Gold Council (WGC) pointed out that some investors are underexposed to gold. The gist of the study is that investors may assume they have adequate exposure to gold because they’re invested in a fund that tracks a broad-based commodity index. The problem with this assumption is that most major commodity indices have a relatively small weighting in gold, and so their gold exposure is much smaller than they realized. Full Story
By: Keith Weiner, Monetary Metals - 5 November, 2019
Not too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not a theory. We called it a cargo cult. You’d think that everyone would know that donning fake headphones made of coconut shells, and waving tiki torches will not summon airplanes loaded with cargo. At least the people who believe in this have the excuse of being illiterate.
You’d think that everyone would know that printing fake money and waving bogus theories around will not create new wealth. The excuse is that the so called wealth effect is so pleasant. Like drugs provide a happiness effect. Full Story
Similarly, no national wealth is gained overall through the artificial interjection of monetary inflation by the Federal Reserve. But the central bank’s interventions do have the effect of transferring wealth – often from wage earners and savers to speculators and leveraged financial institutions.
The Fed’s recent stimulus campaigns and pronouncements on inflation may be setting up investors who buy into conventional asset markets for failure. Last week, Fed chair Jerome Powell reiterated his goal of achieving a 2% inflation objective.
Put another way, the Fed aims to destroy 100% of the real value of any bond or bank certificate of deposit that yields 2%. Full Story
But the recent massive and unexpected expansion of the Fed’s balance sheet may be a game changer for the dollar. Even if the Fed remains on pause when it comes to interest rate moves, it will still effectively be continuing to ease in the months ahead through its repo market operations and Treasury bill purchases.
The prospects of that translating to a weaker dollar and higher inflation rate are pretty good. And precious metals could be among the prime beneficiaries. Full Story
Remarks by Chris Powell, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. New Orleans Investment Conference
Since we gathered here a year ago the gold and silver markets feel much stronger.
The central bank-instigated smashdowns that used to depress prices for weeks or even months are failing to keep prices down for more than a few days.
The gold futures market of the New York Commodities Exchange is operating very differently. Most contracts seeking delivery are now being converted through a rarely used mechanism called "exchange for physicals" whereby they are settled somewhere off the exchange, apparently in London. Until recently the "exchange for physicals" mechanism was said to be used only in emergencies. Now it seems that everything is an emergency. The implication here is that there is little or no gold available immediately in Comex vaults. Whatever it means, there is a huge change here. Full Story
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