By: Gary Christenson, The Deviant Investor - 13 March, 2020
Gold and silver have been money for several thousand years. They have no counter-party risk and are real, stored wealth.
The unbacked paper and digital stuff we use for currencies has lost purchasing power consistently and dropped to zero in many countries. These fiat currencies are useful for the political and financial elite, so we continue to use flawed currencies as a wealth transfer mechanism to benefit the elite. Fiat currency = fake money.
Flawed currencies are devalued every day by injecting currency units into the economy more rapidly than the economy grows. The coming recession will smack us in the face with this fact as central banks massively “print” to compensate for a slowing economy, and thereby accelerate consumer price inflation.
Printing trillions of currency units, lying about deaths, and lowering interest rates will NOT contain a global viral pandemic. Full Story
The traditional reason for investing in gold is to protect from inflation, but history shows that gold has far more valuable uses than if it were just a mere inflation hedge. In this chapter, using six stages of analysis, we will explore a powerful and highly consistent historical relationship between gold and stocks that offers investors the ability to use gold in ways that far exceed the profits produced by attempting to keep up with inflation. Full Story
As the coronavirus spreads fear, sickness, and death, a specter haunts investors – the specter of deflation.
Despite central bankers’ attempts to push inflation rates higher, equity and commodity markets are collapsing. Inflation expectations as reflected in tanking U.S. Treasury yields, meanwhile, appear headed toward zero – and perhaps even below.
“I think that we have a real danger of deflation in the economy right now,” former Trump economic advisor Stephen Moore told Fox Business’ Maria Bartiromo last weekend. Full Story
Panic has certainly settled in, and that was no accident. One thing for sure in my mind is that this crisis was created, and not accidental. Regardless of the severity of this so-called virus, in the end, as has happened on multiple occasions before with MERS, SARS, West Nile, swine Flu and others, it is likely that all the wild predictions will once again prove to be overstated or downright false. But the serious economic fallout will remain. The propaganda is being pushed at every level possible, from governments worldwide, to government “health” organizations, to all mainstream media, and from all those that stand to gain from this, including the pharmaceutical companies. Full Story
It seems neither bankers nor their pocket politicians can keep this bear from roaring. This evening, thanks to Trump’s stock-stimulus speech about killing all flights between Europe and the US while raising the national debt at a fever pitch with additional tax cuts and additional spending, Dow futures dove more than another thousand points in response! Oops. The Nasdaq and S&P also plunged 4.5%, basically resting on their down limit. That decline, if it holds tomorrow, will finish the fall of both of those major indices into bear territory, too, completing the market’s transformation. Futures were lumbering slowly downhill before the speech, but the bear — awakened out of winter hibernation — really roared right after.
Trump’s own stock market! Now that’s just, shall we say to be nice, “Fouled Up BEyond All Recognition.” Full Story
By: Steve St. Angelo, SRSrocco Report - 12 March, 2020
We haven’t seen this type of buying for quite some time. The U.S. Mint doesn’t sell Silver Eagles directly to the public, but rather to Authorized Purchasers who sell to the public. So, these sales figures represent purchases by the Authorized Dealers. Regardless, if the Authorized Dealers are buying a great deal more Silver Eagles in March, they are doing so because they are experiencing much higher demand from the public. Full Story
At Eric Sprott's urging in late 2017, we began to record daily the total number of COMEX contracts "Exchanged For Physical". As noted in the fourth link posted above, the two-year total for these alleged exchanges from COMEX contracts in New York to physical gold in London EXCEEDED 14,000 METRIC TONNES. That's physically impossible, as there is nowhere near that amount of unencumbered physical gold in London...or Hong Kong...or Dubai...or anywhere else on the planet.
However ridiculous this all may seem, I'm almost sorry to report that not only does this fraud continue in 2020, it has actually gotten worse. Let's take a look at just the past SEVEN market days as an illustration... Full Story
Last week, the Federal Reserve responded to Wall Street’s coronavirus panic with an “emergency” interest rate cut. This emergency cut failed to revive the stock market, leading to predictions that the Fed will again cut rates later this month.
More rate cuts would drive interest rates to near, or even below, zero. Lowering interest rates punishes people for saving, thus encouraging consumers and businesses to spend every penny they make. This may give the economy a short-term boost. But, it inhibits long-term economic growth by depleting the savings necessary for investments in businesses and jobs. The result of this policy will be more pressure on the Fed to indefinitely maintain low interest rates and on the Congress and president to create another explosion of government “stimulus” spending. Full Story
Extreme volatility in the equity markets has investors wondering what to expect. Even the hardiest of stock market bulls are finally asking some serious questions about whether the top is in.
Stocks have long been priced for perfection and suddenly conditions are looking far from perfect. The coronavirus may be the pin which pricks the latest Fed-blown bubble.
Precious metals investors have been preparing against a rainy day. They may be less surprised by the turmoil in markets over the past couple of weeks. But there are still big questions about how metals prices might behave, especially if the current turmoil in markets should evolve into a full-blown financial crisis. Full Story
Yesterday was the greatest crash in Wall Street history by one measure, and took down many other milestones. The Dow plunged 2,012 points in its largest single-session drop on record! Percentage-wise it was down 7.8%, which still knocked out decades of lows, leading to “Black Monday” being the hot search term on Google today as people sought a comparison worthy of this Monday crash.
For comparison, the 1929 event looked like this.. Full Story
Central bankers likely are working late tonight to devise the coordinated intervention Henrich predicts and investment banks and brokers everywhere are praying for, intervention presumably to be announced and undertaken by the opening of European markets in a few hours. Maybe the European central banks and the U.S. Federal Reserve or Treasury Department will start buying stocks openly and directly instead of though intermediary banks in an attempt to cushion the crash of inflated asset values.
This will not be the end of the world's market economy. As even a high school graduate could discern 12 years ago, and as perhaps only a high school graduate could afford to assert back then, "There are no markets anymore, just interventions": Full Story
There was an eye-watering deposit into GLD on Friday, as an authorized participant added 677,484 troy ounces of gold...21.07 metric tonnes. That's the biggest deposit that I ever remember seeing. There were no reported changes in SLV.
In other gold and silver ETFs on Planet Earth on Friday...net of any COMEX and GLD & SLV activity...there was a net 207,044 troy ounces of gold added, plus 2,078,794 troy ounces of silver was added as well. Full Story
Which brings us back to the dollar and the prospect of a short squeeze in which borrowers will be hard-pressed to come up with cash when short-term rollovers start to seize up. Here's my colleague Bob Hoye on what to expect: "We will stay with our old observation that the senior currency becomes chronically strong in a post-bubble contraction. And after building a base for a few weeks at this level there could be another rally. To better understand this it should be understood that with most prices deflating in a post-bubble contraction the senior central bank will not able to depreciate its currency. The senior currency is still the U.S. dollar. Another way of looking at it is that service debt due in U.S. dollars represents a massive short position in U.S. dollars. And a central bank that can’t depreciate its own currency is like a pub with no beer." Full Story
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