It is my privilege now to welcome in Axel Merk, President and Chief Investment Officer of Merk Investments and author of the book Sustainable Wealth. Axel is a highly sought-after guest at financial conferences and on news outlets throughout the world, and it's great to have him back on with us. Full Story
One way to get bear market insurance is to buy physical gold. In bear markets, gold tends to perform better than stocks. This is because investors see gold as a safe haven. Year to date, the gold price has increased 1.0%. And history shows that gold tends to perform better than stocks in periods of recessions or market corrections. For example, gold peaked in 1980 when its price soared to $850 per ounce. Full Story
The unnaturally-tranquil stock markets suddenly plunged over this past week. Volatility skyrocketed out of the blue and shattered years of artificial calm conjured by extreme central-bank distortions. This was a huge shock to the legions of hyper-complacent traders, who are realizing stocks don’t rally forever. With stock selling unleashed again, herd psychology will start shifting back to bearish which will fuel lots more selling. Full Story
Besides death and taxes – whose ultimatums we continue to try and cheat - the only two things you can truly depend on showing up on a regular basis are gravity and greed. Over the past week, the two collided in the equity markets in rather spectacular fashion, with gravity taking the day. Full Story
We live with the inevitability of death, and the predations of taxes and politics. Stock markets rise as the dollar inevitably devalues, and as investors become optimistic (higher P/E ratios). Stock prices fall when investors lose faith in the narrative that things are good, central banks are in control, this time is different… whatever. P/E ratios fall as investors lose confidence or earnings weaken. Full Story
But it is during market turmoil that gold’s safe haven qualities come to the fore. Since gold has no counterparty or default risk it is a universally known and universally used safe haven for preserving wealth during market crises. Gold's high liquidity also adds to its safe haven appeal. During financial market turmoil, gold's price therefore generally reflects this movement out of risk assets and into the safe harbour that gold provides. The below chart plots a relatively comparison between the US dollar price of gold and the SPX 500 index, over the week beginning Monday 5 February, showing gold's outperformance as the US stock market suffered a series of selloffs. Full Story
Nick Barisheff of Bullion Management Group (BMG) and author of $10,000 Gold: Why Gold's Inevitable Rise Is the Investor's Safe Haven (2013) returns to the show. Our guest notes that portfolio diversification remains the hallmark of financial success, yet the typical stock / bond portfolio embraces inadequate asset weighting. Proper diversification requires the adjustment of overall portfolio beta via negatively correlated assets to stocks / bonds. Full Story
Long ago in a distant galaxy called “2017,” stock prices rose every day. And the people were happy. With paper profits in hand they maxed out their credit cards and bank lines to buy flat-screen TVs and cars and cover their student loans. Full Story
Chris Blasi, President of Neptune Global LLC underscores gold's 4000 year track record as sound money, noting further that the year 2000 gold bull market is still underway. Now that the 50% retracement has past from the 2011 zenith, new records are anticipated. The third year of a multi-year bull advance could yield the most profitable stage of the 18 year bull market. Full Story
Before we look at tonight's chart I would like to reiterate once more that we have traded one of the best bull markets runs in history. There was hardly a time over the last year or so that the stock markets were down more than 2 or 3 days in a row. It seemed like everyday I would log on to Stock Charts in the morning the SPX would always be up 3 to 5 points. It was just a steady move higher with little volatility. Full Story
Some people in the Western world have heard of the Shanghai Cooperation Organization (SCO), not very many, and even fewer understand what it is and what it does. Hardly anyone in the Western world has ever heard of the EurAsian Economic Union (EAEU) which is headed by Russia and includes 4 other nations, Kazakhstan, Armenia, Belarus, Kyrgyzstan. Does that mean this alliance is weak or is of little importance? Absolutely not. Full Story
It’s no secret the central banking system (CBS) is a criminal, racketeering, counterfeiting, wealth stealing, money laundering system involved with long-term institutionalized larceny. The CBS permanently attached itself to the wealth of Americans in 1913 and, with just a few brief periods of instability, the parasite has persisted, almost without public notice, for more than 100 years. Full Story
While U.S. oil production reached a new peak of 10.25 million barrels per day, the higher it goes, the more breathtaking will be the inevitable collapse. Thus, as the mainstream media touts the glorious new record in U.S. production that has both surpassed its previous peak in 1970 and Saudi Arabia’s current oil production, it’s a bittersweet victory. Full Story
Economic data, across the world is strong. The US Fed is on schedule to raise interest rates 3 times this year. Fear that the Fed will get ahead of itself and slow down the US economy was seen this week. It was a major force in all the volatility we’ve seen this week. Last week’s job in US wage inflation spooked the markets. The question is whether gold will respond to inflation. My answer is that it already has and will continue to do so. Going up $129 in a matter of weeks and getting a pullback of 1/3 of that amount is not unusual. Nor would a bit more of a pullback, so 50% over or a $60 break do longer term damage to the weekly Chart. Full Story
There’s a sneaky development underway, one that’s been off the radar of most investors. It contributed to the recent stock market plunge, and if it really takes hold it has major ramifications for the three G’s: groceries, gas, and gold. Full Story
It took sixteen months to build the exceptionally steep Trump Rally, and just one week to eliminate a quarter of it. While I wouldn’t call that jolting reversal a stock-market crash in the ordinary sense, the largest one-day point fall in the history of the market (by far) certainly marks a massive change in market conditions. From this point forward, it won’t be the same market it was. Full Story
Over a week ago, in my analysis to my members, I noted that, ideally, I was looking for the market to pullback and test the 2800SPX region. And, the market certainly dropped down to the 2800 region, but also broke the 2796SPX support upon which I was focused. That had me begin to focus on the 2700SPX region of support. And, today, we dropped and broke my next level of support at 2700SPX. But, this is the pullback I have been looking for over the last several months which had not materialized. Now, it has come in with a bang. Full Story
Cryptocurrencies are rapidly joining the mainstream, all around the country, in communities just like yours, unsuspecting people are ambushed by their grandparents asking - Full Story
In this video, Mike Maloney gives an update on the recent market volatility. Watch Mike’s “Things to Come in 2018” video for his full forecast of the year ahead. Full Story
The price of no asset can move up or down in a straight line, so why should mining stocks be any different? They have been declining relentlessly for almost 2 weeks, erasing more than 10% of their value. Sharp? Definitely. Unsustainable? Perhaps. When will the turnaround take place? It depends. Full Story
Would it make sense to rebuild an international gold standard like the one we had in the late 1800s? Larry White says the idea has merit, David Glasner believes it isn't worth the risk. Over the years I've followed the back-and-forth between these two blogging economists, each of whom has done an admirable job defending their respective side for and against the gold standard. Let's look at one or two of the most important themes running through the White v Glasner debate. Full Story
Monday’s monster stock selloff is exhibit A for why I frequently recommend a 10 percent weighting in gold, with 5 percent in bullion and jewelry, the other 5 percent in high-quality gold stocks, mutual funds and ETFs. Full Story
Yesterday was amusing. The meat with mouths on the so-called financial networks were crying, “how could this have happened.” Funny thing, that. They don’t raise the slightest doubt of conviction when the Dow soars 2,676 points in less than two months – 23,940 on November 29th to 26,616 on January 26th. But when the market takes back that move in 6 trading days it’s a problem that Congress and the Fed need to “fix.” Full Story
The appointment of Jerome Powell as new Fed chair is likely the catalyst that ushers in a multi-decade era of rising inflation and soaring gold stocks. I’ve announced a long term target for GDX of $15,000. That really isn’t very high… given the strong inflation numbers that I am projecting for America in the years ahead. Full Story
The markets just changed. Few understand what happened to the financial system after 2008. What happened was that the debt based financial system began to implode as debt deflation took hold. The scary thing is that it wasn’t even a large amount of debt deflation. Remember the 2008 Crisis? That time when everyone thought the world was literally going to end? Full Story
On Janet Yellen’s last day as Fed boss the markets suffered their worst percentage loss in 20-months. Yesterday, on Jerome Powell’s first day as Fed Chairman, the VIX spiked by its largest amount on record and the Dow suffered its largest single day point drop ever (and 100th worst percentage drop in history). Intent on showering us with some logic as prices rain lower, the media tells us that last week’s jobs report is responsible for the ongoing collapse. Full Story
In the next downturn (which may have started last week, yee-haw), the world’s central banks will face a bit of poetic justice: To keep their previous policy mistakes from blowing up the world in 2008, they cut interest rates to historically – some would say unnaturally — low levels, which doesn’t leave the usual amount of room for further cuts. Full Story
Unfortunately for crypto investors “HODLING” onto Ripple, their huge gains have been wiped out in just the past few weeks. While Ripple’s price surged to massive percentage gains in a short period, it came down just as fast. Unbelievably, Ripple’s price surged from less than a penny in March 2017 to a peak of $2.81 on Jan 1st, 2018. Full Story
On the campaign trail, then-presidential candidate Donald Trump pledged to invest as much as $1 trillion in U.S. infrastructure if he were elected. Last week during his first State of the Union address, now-President Trump added half a trillion dollars more to that figure. Full Story
Is this the start of the Big One? Speaking as an inveterate permabear, my answer is no. I believe the selloff is merely corrective but that it won’t end until permabulls start showing signs of real fear. This has yet to occur as far as I can surmise, and it could conceivably take climactic selling far nastier than what has occurred thus far to bring them around. Full Story
While investors are justifiably focused on what may be the opening crescendo of a long overdue sell-off in stocks, there is not, as of yet, as feverish a discussion of the parallel sell-offs in bonds and the U.S. dollar, which have been underway for at least a year and a half in bonds and 14 months for the dollar. I contend that this should be widely understood as the root causes of the jittery Dow, and are ultimately far more important. A continued decline in the dollar and bonds holds the potential to ignite inflation while increasing mortgage rates, borrowing costs, and federal deficits. Full Story
The precious metals sector is on a long-term buy signal. The short term is on sell signals; a pullback is in progress. The cycle is up. COT data is supportive for overall higher metal prices. We are holding gold-related ETFs for long-term gain. Full Story
Much is made of the direct inverse correlation between gold and the dollar, but acknowledging that relationship does not really get us anywhere. The bigger question is whether or not the dollar will continue to track lower as it has over the past 18 months or will it suddenly reverse course and head higher. Full Story
The meteoric rise of crypto-currencies, including Bitcoin, captured the attention of many precious metals investors last year. Crypto’s potential to serve as private and decentralized currency – beyond the reach of bankers (central and otherwise) to corrupt and control – is an alluring combination for some speculative members of “honest money” crowd. Full Story
Despite the headwinds of rising interest rates, gold was the best performing metal this week, although down slightly by 1.24 percent. Gold traders are bullish for the fourth week in a row after the yellow metal posted its biggest monthly advance in five months in January, according to Bloomberg’s weekly survey. The government of India is presenting a policy to develop gold as an asset class and establish a trade-efficient system of regulated gold exchanges. Full Story
For those that follow me regularly, you will know that I have been tracking a set up for the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX), which I analyze as a proxy for the metals market. I believe that the GDX can outperform the general equity market once we confirm a long term break out has begun, and I think we can see it in occur in early 2018. But, that will depend if the market holds this test of support we are seeing right now. Full Story
In other words, we should really be calling it the “everything bubble” where stocks, real estate and “other assets” (such as bonds) are all at the top their curves. But that should be no concern; and, of course, she would not label any of these things as “bubbles” because that would mean she has presided over years of creating an empty world full of financial troubles. Full Story
As you are, or should be, aware the big market plunge on Friday came as no surprise to us – it was predicted just a few days before in the article BROAD US STOCKMARKET MELTUP update, in which the point was made that habitual victims Mom and Pop were at last getting stuck into the market, making the danger of a violent reversal even greater. Full Story
Most Americans have spent the last few years pressed up against the proverbial bakery window, watching the 1% enjoy a life of ever-increasing wealth and seemingly total indifference to the multitudes who aren’t favored by zero interest rates, big trust funds and political/corporate connections. Full Story
The headline blared The Next War, The Economist, January 27, 2018. Yes, The Economist. The 175-year-old English-language weekly magazine newspaper was tackling the sensitive subject of the potential for war between the “great-powers.” Empires rise and fall and war between the “great-powers” seems to go on forever. In modern times since the dawn of the 19th century the “great-powers” have varied, but the main ones have at various times been Austria-Hungary, Britain and the United Kingdom, China, France, Prussia and Germany, Italy, Japan, Russia and the Soviet Union, the United States and the Ottomans (Turkey). All have fought at various times with or against each other. Yes, even the U.S. and Britain were enemies during the War of 1812–1814. Full Story
Silver was just breaking to new highs, gold stocks (HUI) were above the 205 level and gold was at levels not seen since August 2016. Gold and silver bulls were cheering. They are not cheering anymore. Even though the above was the case just several days ago, it was all invalidated, just like we expected it to be. Based on what happened on Friday, silver and mining stocks are at their new 2018 lows and their entire 2018 performance is a one huge bearish reversal. Where will precious metals in the following weeks? Full Story
One of the things from which I occasionally enjoy a good chuckle is the insecurity displayed by bloggers or newsletter writers who are constantly in need of positive reinforcement derived by reminding readers of their "incredible market calls." It is always readily-predictable because just before they ask you to buy something (like a subscription), they post a link to emphasize their brilliance with phrases like "as you know" or "back in 2017" providing breathtaking introductions to their most recent "BUY SIGNAL" or "TRADE RECOMMENDATION." Full Story
Last week, we took a break from the theme of the consumption of capital, for our annual Outlook 2018 report. We are going to leave the topic for one more week, while we address a market move which is on everyone’s mind. Are interest rates now in a rising cycle? Full Story
John Scurci, head of Corona Associates Capital Management, outlines his view on the financial markets in 2018. The US Greenback struggled throughout 2017; investors should expect the theme to persist in the new year with profound implications for investors. Former Goldman Sachs, senior technical analyst, Charles Nenner of Charles Nenner Research Center, rejoins the show. As long as the Dow Jones Industrials Average maintains support above 23,000, the remarkable multi year share rally should continue. Full Story
If you travel as much as I do, you come to value nonstop flights. Connections introduce uncertainty and potential delays, not to mention what often feels like wasted time; but sometimes connections are just unavoidable. But you don’t want them to be too tight. Those five-minute sprints from one concourse to another are never fun. Better to have some breathing room. Full Story
Over and over again I’ve been making goofy headlines about the Amigos, the 3 macro riders who will reach (or abort) their respective destinations, at which point the macro is subject to change. The latest update was yesterday with a daily chart view. Full Story
Despite the substantial reduction made in December, the BIS is still party to a substantial volume of gold swaps and the amount held is still higher than any of the year-end gold swap levels quoted in the eight-year table below. It is evident that the BIS remains an active participant in the gold swaps market with seemingly high volumes of trade taking place regularly. Full Story
I’m pretty sure the nation’s favorite groundhog, Punxsutawney Phil, knows more about the weather than he does about markets, and I’m not all that sure he knows anything about the weather! In fact, I don’t understand the underground methods of this rodent resident of Gobbler’s Knob at all. It would seem to me that sighting his shadow should indicate a nice sunny day, which in turn should indicate spring is just around the corner. How can he scowl and crawl back into his hole on a day filled with sunshine? If you ask me, he’s somewhat of a weather permabear. Full Story
With the Dow Jones Index falling 665 points today, the risk of a large market correction has just increased significantly. Ironically, I discussed the very indicators that were setting up for a huge market correction in my newest video which I recorded on Tuesday. Unfortunately, I wasn’t able to get the video posted on my Youtube channel on Friday morning and now on my website until late in the evening. Full Story
The correction occurring in the stock market is a normal profit taking event following the development of an extremely right translated cycle. This video examines this correction in the context of stock's entire bull market and projects where stocks will go from here. Full Story
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