Ok pardon the play on a 1986 Kurt Russell action adventure flick entitled “Big Trouble in Little China”. China isn’t little but the bubble is potentially big. Apparently, the Chinese stock market has boomed to a value of $6.5 trillion in the past year. That still leaves the Chinese stock market well short of the NYSE whose value in February 2015 was $16.6 trillion. The Shanghai Stock Exchange (SSEC) is up 58% thus far in 2015 and a 152% since the low of 2014. To put that in some perspective the SSEC was up in 2007 129% to the top in October and had run 293% from the low of 2006. The current market is still about 20% below the highs of 2007. Full Story
I started investing in gold in 2005. Not a bad time, right? Here’s why I started: I was the ETF trader at Lehman Brothers at the time. A couple of guys came by to talk about this crazy idea they had about a gold ETF. I think one was from the World Gold Council and the other was from State Street. The WGC guy brought along a 10-ounce bar of gold. At the time, it was worth almost $6,000. Full Story
John Kaiser joins Cambridge House Live anchor Vanessa Collette to discuss the resource sector and junior resource market, the implications of higher interest rates, a breakout in the resource sector, stock buybacks from rising corporate debt, gold's prospects, China's shifting environmental policy, India's growth and foundation for the next super cycle, inflation, and much more! Full Story
You’ve probably read that there is a “war on cash” being waged on various fronts around the world. What exactly does a “war on cash” mean? It means governments are limiting the use of cash and a variety of official-mouthpiece economists are calling for the outright abolition of cash. Authorities are both restricting the amount of cash that can be withdrawn from banks, and limiting what can be purchased with cash. Full Story
Despite three consecutive weeks of losses precious metals have failed to mount much of a rally. Gold closed last week above $1170 and may close this week below $1180. Meanwhile, Silver has struggled to mount any rebound and appears to have lost $16 as the week comes to a close. While the risk of a final breakdown is growing, one positive we see is the relative strength in the riskiest parts of the mining sector. Full Story
In the early 2000s, Alan Greenspan was worried about deflation. So he hired Ben Bernanke, the self-proclaimed expert on the Great Depression from Princeton. The idea was that with Bernanke as his right hand man, Greenspan could put off deflation from hitting the US. Indeed, one of Bernanke’s first speeches was titled “Deflation: Making Sure It Doesn't Happen Here" Full Story
Back on April 15, we accurately projected that a major Spec short squeeze was brewing in the coming days. Nine days later, silver shot higher in a move of +14% in just over three weeks. Well, guess what. The conditions that created that move have returned and another significant short squeeze is right around the corner. Full Story
By: Adam Hamilton, Zeal Intelligence - 12 June, 2015
Gold remains deeply out of favor, languishing near major lows. Traders are still convinced gold is going nowhere, and want nothing to do with it. But provocatively that’s par for the course in early June, when gold slumps to its most-important seasonal low. Gold’s seasonals are now bottoming, just ahead of the usual major surges in global gold demand coming in late summer and autumn. This is a fantastic time to buy. Full Story
What are the possible scenarios for Greece and what do they imply for the gold market? The base-case scenario is that a bailout deal will be reached in coming days since no one wants the Grexit. Without the agreement, Greece would lose access to its external funding (like current bailouts funds, Eurozone’s crisis fund, IMF’s support or ECB’s Emergency Liquidity Assistance), whilst creditors risk Greece’s default, financial contagion and the loss of the euro’s prestige. Full Story
Markets typically bottom out when popular sentiment is negative. And a recent analysis by Bloomberg confirms that the public has all but given up on precious metals. Assets in exchange-traded products tied to metals prices fell to their lowest point since 2009. While holders of coins and other physical bullion products tend to hang tight during adverse market conditions, holders of derivate instruments are more likely to move in and out of the market – usually at the wrong times. Full Story
My last piece was quite long and involved, some liked it and "got it", others not so much. The breaking of confidence was the point I was trying to get to. I intend to try again with this writing but from a different viewpoint. Today, rather than continuing to hammer away at the fraud, collusion, and upside down logic of global politics, economics and finance, let's look at a real world case. I received a rather long note from a reader earlier this week who was visiting of all places ...Zimbabwe! Full Story
In the previous post Tom McClellan highlights Peter Eliades’ work on the cyclical top due in the S&P 500 this year. To add some color to it, here is the chart I produced for NFTRH subscribers several weeks ago after purchasing and reading an Eliades report myself. His work came to my attention by way of Robert Prechter. Full Story
Gold and Silver has stood the test of time, where debt systems from the First Agrarian Empires (3500 B.C. to 800 B.C.), the Axial Age (800 B.C. to 600 A.D.), the Middle Ages (600 A.D. to 1500 A.D.) to the Age of European Empires (1500-1971) have failed over and over again, Gold and Silver have retained and held its use and value. Full Story
Frank Holmes sits down with Cambridge House Live anchor Vanessa Collette to discuss his recent trip around the world in 7 days. They cover the three amigos and the greatness of the royalty model: Franco Nevada, Silver Wheaton and Royal Gold, China's stimulus program and stock market, PMIs, Gold and much more! Full Story
About 100 years ago, in his testimony before Congress, banking giant J.P. Morgan famously stated: “Gold is money, and nothing else.” At the time, this was true in every sense of the word “money,” as the U.S. was still on the gold standard. Of course, that’s no longer the case. Despite the fact that previous attempts in other countries to adopt fiat currency systems wreaked havoc on their economies, the U.S., under President Richard Nixon, cut all ties between the dollar and gold in 1971. Gold rose 2,330 percent during the decade, from $35 per ounce to $850. Full Story
It is time to buy gold and silver again as new central bank data shows that the European Central Bank and Federal Reserve have finally been successful in creating inflation. Whether they will now be able to control it is completely another matter, and buying gold to hedge against the very real possibility that they lose control is going to be the next big thing. Full Story
For six years straight, the Fed has been trying to “trash” cash. First it cut interest rates to zero… making it so that savings deposits produced almost nothing in the way of interest income. Consider that at current rates, a retiree with $1 million in savings earns a measly $2,500 per year in interest income. Full Story
So what gives? I am wondering if Kuroda is getting worried that the Yen has fallen so low that it is going to raise the cost for imported goods coming into Japan and actually hurt consumer spending. In other words, maybe the plan to push the yen lower is now having a counterproductive impact on the consumer in Japan and instead of spurring an inflationary bias might actually be working to crimp economic growth especially seeing that so much of the food and energy needs of the Japanese must be met from abroad. Full Story
Jay Taylor joins Cambridge House Live anchor Vanessa Collette to discuss gold as money, the paper and physical gold markets, interest rates, the US economy, the US dollar and FED policy. Full Story
Len Clough joins Cambridge House Live anchor Vanessa Collette to discuss the challenges and upside to toll processing & milling in Peru, a new low cost model that has been generating buzz in the industry. He is the President, CEO & Chairman of Standard Tolling (TON). Full Story
Another critical fundamental variable ignored by the financial media – and even Koos Jansen for that matter – is deliveries onto the Shanghai Gold Exchange. Yes, withdrawals are the ultimate barometer of Chinese demand for gold – minus the PBoC’s demand, of course – and Koos has done brilliant work on that. But gold can not be withdrawn it is not first delivered! As it turns out, just this week alone delivery volume onto the SGE has totaled 115.4 tonnes. Full Story
Not all objections and criticisms of gold are intellectually honest – they slant the narrative to support their bias in favor of the status quo, stocks, bonds, and central bank issued currencies, such as Federal Reserve Notes (dollars). The dishonesty is understandable since gold is often viewed as an anti-dollar and gold prices sometimes function as a check on the excessive debt creation and currency “printing” of central banks. Of course central banks and governments want no such restrictions on their creation of currencies so they downplay the importance and value of gold in the modern financial world. Full Story
There are two quite different narratives for explaining the financial crisis of 2008, the resulting Great Recession and the chances for a new crisis. The first narrative revolves around theory and jargon. It's Keynesian versus Austrian economics, it is societal debt levels, it is fractional reserve lending and the velocity of money, and so forth. Full Story
More than 50% of the world's population living in a land mass of 15% or less of the total. What exactly does this mean other than having good odds of being able to spit on your neighbor's house? I believe it means much more today than it did years ago, let me explain. Years ago, before we lived in an instant information age and before China/Asia had built up the world's largest manufacturing capacity, "it meant less". Full Story
By: Steve Saville, The Speculative Investor - 10 June, 2015
In the real world there is money supply and there is money demand. There is no such thing as money velocity. “Money velocity” only exists in academia and is not a useful concept in economics or financial-market speculation. As is the case with the price of anything, the price of money is determined by supply and demand. Supply and demand are always equal, with the price adjusting to maintain the balance. A greater supply will often lead to a lower price, but it doesn’t have to. Full Story
Mainstream economists tell us that the Federal Reserve protects us from economic waves, indeed from the business cycle itself. In their view, people naturally tend to go overboard and cause wild swings in both directions. Thus, we need an economic central planner to alternatively stimulate us and then take away the punch bowl. Full Story
Why are global central banks buying so much gold unless they still fear inflation? The World Gold Council estimates that 120 tonnes of gold were added to global central bank reserves in the first quarter of this year and that’s a whole lot more than they used to buy. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 10 June, 2015
Recent reports from the U.S. Commodity Futures Trading Commission and the CME Group, operator of the New York Commodity Exchange, indicate that JPMorganChase & Co. is administering the Federal Reserve's gold swapping and lending operations and that for the time being the exchange's gold contracts are being guaranteed by the U.S. government. Full Story
By: Miriam L. Campanella and Koos Jansen - 10 June, 2015
The New Silk Road initiatives, also known as the “One Belt, One Road” plan, proposed by President Xi Jinping in September 2013, have been joined by over 60 countries and will rebuild and amplify a network of land and sea routes from East Asia to the rest of Asia, Africa and Europe. The multiple projects aim to boost connectivity between Asia, Europe, the Middle East and Africa. Full Story
While many have been so certain that the November 2014 low was the final low for this multi-year correction in metals and mining stocks, our position has staunchly remained that lower lows will be seen. This past week has solidified that perspective even more. Full Story
We have enough downside targets in play at the moment to keep us on our toes, but this chart allows a more optimistic outlook for the near-term. Notice the very precise bounce from the 1161.70 midpoint pivot. This validates the pattern itself, along with its p2 (1126.10) and D (1090.60) coordinates. To put those bearish targets in play, however, the futures would first need to breach p=1161.70. Since this has yet to occur, we needn’t necessarily expect the worst. Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 9 June, 2015
The last attempt made by the Fed to raise rates gradually occurred after 2003-2004 when Alan Greenspan had attempted to withdraw the easy liquidity that he had supplied to the markets in the form of more than one years' worth of 1% interest rates. But by raising rates in quarter point increments for the succeeding two years, Greenspan was unable to get in front of and contain the growing housing bubble, which burst a few years later and threatened to bring down the entire economy. In retrospect, Greenspan may have done us all a favor if he had moved more decisively. Full Story
Something deep and dark has transpired behind the Orwellian “curtain” used by the elitists to hide the inner workings of the financial markets, especially with regard to big bank balance sheets and OTC derivatives. What’s happening right now reminds of the movie “Jurassic Park.” You can hear and feel the monster coming but you can’t see it yet and you don’t know it will pop up in your face or how big it is. Full Story
"Oil will fluctuate in the $40-$70 range in the next two years." Marin Katusa joins Cambridge House Live Anchor Vanessa Collette to discuss the oil price, how to make money in these resource markets & the new launch of Katusa Research. Full Story
Peter Spina joins Cambridge House Live Anchor Vanessa Collette to discuss the US economy, the Fed interest rate hike, the outlook for Gold and Silver prices, investing in lower cost gold and silver mining companies, toll milling in Peru and the Ukraine Russia situation. Full Story
Silver caught the attention of many precious metals traders earlier this year when it outperformed gold in a quite sharp manner and broke above the declining long-term resistance line. Many investors and analysts were cheering and emphasizing silver breakout’s importance and silver’s leadership as something bullish for the precious metals market. We respectfully disagreed. Full Story
A collection of items here to make certain that you are aware of what is happening and where this is headed. Every day, it seems that the calls to "eliminate cash" grow louder from the politicians and banking elite. Why, first and foremost, in a world of negative interest rates, savers have zero incentive to keep cash within the banking system. However, by removing cash from their accounts, savers effectively deleverage the current fractional reserve banking system. Full Story
With respect to the reasons for owning gold, I never flinch when taking a long-term value perspective. In the monetary and financial world gold is insurance and insurance is something you buy, but hope to never need. The value of insurance is in one of its definitions: “a thing providing protection against a possible eventuality”. Full Story
Quick, somebody call the Commerce Department! I am 100% convinced that they’re not including my college-aged children in their consumer spending calculations. The Commerce Department reported that consumer spending was unchanged in the month of April. Yup—absolutely zero increase in consumer spending whatsoever. Full Story
June is the most important time of the year to buy gold. Unfortunately, by the time this vital month gets underway, most gold analysts and investors are too afraid to take any action. They are forced to buy at much higher prices. Religion-oriented buying in India pushes gold relentlessly higher into August and September, in what is typically the year’s most powerful rally. Full Story
Although the longer-term bullish case for gold could scarcely be stronger, over the short to medium-term the picture continues weak, with it looking vulnerable to breaking down into another downleg to the $1000 area and perhaps lower. In the last update you may recall that there was some optimism expressed that it might perk up on the dollar topping out, but such has not proved to be the case – instead it has performed miserably and now looks set to drop more steeply to new lows. Full Story
By: Steve Saville, The Speculative Investor - 9 June, 2015
Although it is not possible to determine an objective value for gold (the value of everything is subjective), by looking at how the metal has performed relative to other things throughout history it is possible to arrive at some reasonable conclusions as to whether gold is currently expensive, cheap, or ‘in the right ballpark’. In particular, gold’s market price can be measured relative to the prices of other commodities, the stock market, the price of an average house, the earnings of an average worker, and the real (purchasing-power-adjusted) money supply. Full Story
First off let me dispel any notion that this was a natural bear market in gold. On the contrary, this has been a manufactured bear market brought about by intense paper market manipulation by the bullion banks ever since Germany asked for their gold back. It’s been my theory for almost 2 years now that the bullion banks are trying to force the gold market as far down as possible in order to maximize the potential upside once the secular bull market resumes. It’s also been my feeling that the manipulation would continue until gold at least retraces back to the $1000-$1050 level, and we may, and probably will, get a panic overshoot for a few days below that level. Full Story
By: Steve St. Angelo, SRSrocco Report - 9 June, 2015
The amount of fraud taking place in the major banks throughout the world is staggering to say the least. Ironically, the only market that isn’t manipulated, is the silver market… so they say. To make it seem as if the regulators are on the ball, many of the major banks have been found guilty of committing one fraud or another, paying large fines and settlements. Full Story
Market historians may remember the stock market mania of the early 1900’s referred to by some as ‘the rich man’s rally’, because like today, it was the top 1% of the 1% that really made out. In folklore it was the Gatsby’s, and in reality the Rockefellers. And today, it’s Warren Buffett and Bill Gates, all of whom who have one thing in common – maximization in the exploitation of credit and crony capitalism. In hindsight we can now see for John Rockefeller and his ilk it was just the beginning in this regard, as the Fed and larger US credit cycle were just getting rolling, born of volatility at the turn of the century in the rich man panics of 1903 and 1907 that brought The Creature From Jeckyll Island into existence. Full Story
So, there you have it. While price was rallying, The Bullion Banks were desperately issuing and selling naked paper gold contracts in their attempts to cap and contain price. Even after undoubtedly using the price weakness on the way back down to cover some of these ill begotten contracts, The Banks still show an increase in their NET SHORT position of over 28,000 contracts...ALL WHILE PRICE RALLIED, WAS CAPPED, AND THEn CLOSED UNCHANGED. Full Story
Global markets are changing drastically and showing volatilities like we saw back in late 2008. I am not talking about stock markets, it is the debt and currency markets that are schizophrenic. Oddly, even after all of the various Western "QE's", liquidity suddenly looks like it is drying up. A great article as to why even the depth in the U.S. Treasury market has disappeared can be read here. Various credit markets (important one's!) have cracked over the last month and the myth of "zero percent interest" rates is in the process of being shattered. I want to visit several topics in this piece, each one with the ability to break the derivatives chain which is exactly what we are headed for! Full Story
The Vietnam War in the US is often mentioned as a major cause of the inflationary 1970s. The war and spending escalated in the late 1960s after Johnson became President. The national debt increased about $20 Billion between 1967 and 1968, which was big money back then. But 11 years later the national debt increased by $80 Billion. Once deficit spending and currency devaluation began, it was difficult to return to fiscal sanity. Full Story
Shanghai Gold Exchange withdrawal volume came in at 37.1 metric tonnes for the week, reaching 982.7 metric tonnes for the year. The U.K. Royal Mint announced that its Signature Gold online service will allow investors to buy part of 400-ounce bars, to be stored in its vault. Customers will be allowed to buy and sell throughout the day but cannot take physical delivery as the Mint will remain the custodian for the bars. Full Story
In this Weekend Report I would like to show you an in depth look at some of the more important currencies on the planet to see where we’re at in the big picture and how they may affect the price of gold. In general when a currency (other than the US Dollar) is headed lower the price of gold tends to rise and just the opposite happens when a currency rises . So following the different currencies is important. Full Story
Back in March of 2012, when the EU Crisis first began to spin out of control, then Prime Minister of France Nicolas Sarkozy openly called for the renegotiation of the Schengen Treaty: the treaty that established the 26-nation EU as a “borderless” entity in which individuals could move from one country to another with little difficulty and which also made trade among EU members easier. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 7 June, 2015
Strange as it seems, given the letter's substantial circulation, but Casey Research, under new management, has dropped GATA Board of Directors member Ed Steer's Gold and Silver Daily letter, effective with yesterday's edition. So Steer aims to continue the letter on his own on a paid subscription basis, maintaining all the features the letter has included during its eight years of publication by the Casey organization. Full Story
Three weeks ago I co-authored an op-ed for the Investor’s Business Daily with Stephen Moore, founder of the Club for Growth and former Wall Street Journal editorial board member, currently working with the Heritage Foundation. Our goal was to present a simple outline of the policies we need to pursue as a country in order to get us back to 3–4% annual GDP growth. As we note in the op-ed, Stephen and I have been engaging with a number of presidential candidates and with other economists around the topic of growth. Full Story
Does the gold price still have to go to hell-and-back before it shoots very much higher? That’s certainly the opinion of many professional technical analysts and followers of the Elliott Wave theory. Elliott Wave theorists can point to some impressive past predictions. Then again they’ve had some real howlers. Remember the 2010 prediction of a huge crash in stocks (click here)? It never happened. Full Story
History has been pretty clear. When the Fed prints too much money, and holds interest rates too low for too long, it eventually it creates a bubble followed by a market crash. It happened in 2000 with tech stocks. Then again in 2006 with real estate. Followed not long after by a collapse in the banking system. Then a bubbling oil and commodities. And now I would argue we have the beginnings of a bubble in biotech. So the question is will we experience another crash like we did after each one of those previous bubbles? I think the odds are high we will. Especially if the Fed doesn’t immediately end its stock market interventions. Full Story
By: Steve St. Angelo, SRSrocco Report - 7 June, 2015
While demand for U.S. Silver Eagles declined somewhat during the first quarter of 2015, the Royal Canadian Mint sold the most Silver Maples ever. The U.S. Mint sold 12.1 million Silver Eagles in the first quarter of 2015 compared to 13.9 million during the same period last year, a decline of 13%. On the other hand, Q1 2015 Canadian Maple Leaf sales actually increased 8.5%. Full Story
Churning often leads to moves lower and markets are showing failed breakouts and June tends to be weak so I am cautious here. Gold and silver broke below the patterns I showed here last weekend and are set for more downside once again. When the metals are breaking a perfect bearish pattern which says lower, as they are now, all I can hear are the crickets! Full Story
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