Gold World News Flash |
- All Depressions Are Not Created Equal
- This Index is Screaming a U.S. Dollar Decline
- Bill Holter’s Response To Bob Moriarty
- Automating Ourselves To Unemployment
- Gold Stocks Are As Cheap As EVER — Doug Casey
- Following ancients, explorers hunt gold in the Egyptian desert
- Interesting Silver Debate: Do Old Indicators Matter Or Is Physical About To Overrun Paper?
- Putin's decade-old dream realized as Russia to price its own oil
- Gold and Silver Update: It’s GAME ON
- This Is Where America's Runaway Inflation Is Hiding
- Silver Explodes Back On To the Trading Scene With the Comex May Contract
- Gold Price Closed at $1265.50 up $16.50 or 1.30%
- Venezuela Economy Literally Grinds To A Halt As Maduro Orders “Five Day Weekend” For Public Workers
- Why Is JPM's "Quant Guru" Suddenly Worried About The "Endgame"
- Full Speech: Donald Trump Holds Rally in Evansville, IN (4-28-16)
- Warning: Conspire to KILL THE DOLLAR (Economic Collapse 2016)
- WORLD WAR III is Coming
- Gold Daily and Silver Weekly Charts - Off We Go Into the Wild Blue Yonder
- Yellen, Trump… and Hillary
- Hillary Clinton forced Cathy O'Brien to have sex with her
- Will China Clash With The U.S And Cause Economic Collapse?
- Alasdair Macleod: Taking the petro out of the dollar
- CFTC has no comment on Deutsche Bank's admission of gold, silver market rigging
- The Battle of The Mahdi (World War)
- Bill Holter: This Is The End Days Of The Current Economic System And We Might Not Reach October
- Michael Burry Says Debt Is Our Biggest Problem…
- Hosea Prophecy -- Apocalyptic Mass Animal Deaths In April
- ALERT! Venezuela Runs Out Of Money! This Is What An Economic Collapse REALLY Looks Like!!!
- Dollar Selling Panic Coming-John Williams
- Taking the petro out of the dollar
- Will Stock Market Crash 24% in the Next Three Months?
- The Next Battleground for Gold Will Be At 1550 If the Cup and Handle Formation Completes
- The Central Banking Prisoner’s Dilemma: Fed Freezes, BoJ Stammers, Dollar Drops 2% Overnight
- Silver: The “Five Year Plan†and the Great Leap Forward
- Breaking News And Best Of The Web — April 29
- Gold miner Petropavlovsk stages a comeback with brace of deals
- AUD/USD - Trend Reversal or Just a Bigger Pullback?
- A Gold Revaluation Could Transform Your Financial Status - Overnight
- Gold Bullion vs Gold Miners
- The Two Best Calls Ever on a Gold Bottom
| All Depressions Are Not Created Equal Posted: 29 Apr 2016 12:00 AM PDT Authored by Project Chesapeake's Tom Chatham, via Alt-Market.com, It has been said that history may not repeat but it sometimes rhymes. Just as the generals always seem to fight the last war people seem to prepare for the last depression. Times change and the mechanism that leads to misfortune changes with it. Looking at the past may not give us the clear answer to how to deal with the future but it can help us to determine what might happen and how to deal with it when the time comes. We always look at the last incident because that is what we know. The problem is that social and economic conditions are always changing and they have a major impact on how things unfold. When people hear that they should prepare for another great depression they immediately think about how people survived the last one and how events unfolded. That is a good starting point but things will not be exactly the same the next time.
Many of the things that allowed people to get through the last great depression will not save them this time. Social and economic conditions have changed and different methods will be required to get through the depression we are now entering. Where once cash and bonds were a safe haven gold and silver will, be now. The ability to negotiate wages is gone and wage laws will insure massive closings of businesses forcing people to become self employed to avoid the wage laws. Overall the standard of living will drop dramatically and most people today will not be prepared to accept it. There are some things that are likely to be the same as before. Those who need help will once again need to turn to family and friends for help. Those that own land free and clear will be able to keep a roof over their head. Those that can supply their own needs will make out better than those dependant on others. Those with multiple job skills will make out better than those with no job skills. Those that can produce a product to sell will make out better than those in the service industry. In order to learn from the past you must look at current trends and extrapolate where we are headed from here. It is not an exact science but those that pay attention to details will likely fare better than those that go blindly along their daily lives expecting things to always be the same. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| This Index is Screaming a U.S. Dollar Decline Posted: 28 Apr 2016 11:00 PM PDT from The Daily Bell:
Two data points may establish a trend. Three can confirm the trend – with a margin of error. But what happens when six data points line up in the same direction? It's a full-blown, screaming signal. While strategists at Bloomberg are optimistic about the dollar's continued strength in the coming years, our analysis of six separate data points tells a very different story. The six data point signal is the U.S. Dollar Index, an index that measures the performance of the dollar against a basket of six currencies – the Euro, Japanese yen, British pound, Swiss franc, Canadian dollar, and Swedish krona. Post-U.S. financial crisis of 2008, King dollar had tremendous gains against these six currencies. The lowest gain was against the British pound at 19%, with the rise starting in 2014. Also with the rise dating from 2014, the U.S. dollar gained 24% against the Euro. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bill Holter’s Response To Bob Moriarty Posted: 28 Apr 2016 09:42 PM PDT by Bill Holter, JS Mineset:
In response to my article yesterday The Chances Of A COMEX Default… (Public Article), Bob Moriarty decided to respond and attack me personally in this article. He claims me to be a "GURU" (an insult according to him), a fool, a bad writer with poor grammatical skills (I agree), with poor logic …and a liar. To start, calling someone a "liar" is a very big leap because it means there is an "intent to deceive" as opposed to just being wrong or even stupid. Moriarty says I "feed people's fantasies" to entice them to subscribe to our newsletter which is now one month old. I wonder had I written the article over a month ago when all of my work was public what he would have claimed my motives to be? Many have read my work since 2007 at http://www.lemetropolecafe.com/ and dozens of other sites, does anyone see a shift in my logic since those days in order "fool subscribers"? As for my grammatical skills, I agree, they suck! People do not read my work to make sure whether proper tense or punctuation is correct, they read it for the logic. I try to take complicated subjects and break them down so the average person can understand what is happening. The logic in this case is there are several hundred ounces of gold/silver represented by paper contracts but backed by only one ounce. Put simply, COMEX is a fraud.
A call on this contractual metal cannot be met because the metal simply does not exist. I believe when the "call" for delivery comes, COMEX will be forced to declare force majeure and settle with cash. As I asked in the article, is this a default or is it not? In the real world it will make no difference at all whether it is "legally" a default or not, "practically" IT IS! In the real world the prices of gold and silver will have exploded and the "cash" so generously provided by COMEX to "settle" will not purchase the ounces you thought it would. In essence, while gold and silver supplies go into hiding, you will be left holding a pile of devaluing and worthless dollars that will not "buy" what you were promised. If you want to be "technical", here are several passages from COMEX rules: Section 702 of the rules states in part: "In the event a clearing member fails to perform its delivery obligations to the Clearing House, such failure may be deemed a default pursuant to Rule 802." Section 714 of the rules states in part: "A failure by a clearing member carrying a short futures position to tender a Delivery Notice on or before the time specified by the Clearing House on the last day on which such notice is permitted shall be deemed a violation of this Rule, except that the President of the Clearing House may, for good cause, extend the time to present such notice. Unexcused failure to make delivery shall be deemed an act detrimental to the interest or welfare of the Exchange. In addition to any penalties imposed as provided in Chapter 4, the Clearing House Risk Committee shall determine and assess the damages incurred by the buyer." Section 802 of the rules states in part: "1. Default by Clearing Member If a clearing member of CME, CBOT, NYMEX , COMEX, or an OTC Clearing Member, (i) fails promptly to discharge any obligation to the Clearing House or (ii) becomes subject to any bankruptcy, reorganization, arrangement, insolvency, moratorium, or liquidation proceedings, or other similar proceedings under U.S. federal or state bankruptcy laws or other applicable law, the Clearing House may declare such clearing member to be in default. For purposes of this Rule 802, each default by a clearing member will be considered a separate default event, provided that if a clearing member has been declared in default, subsequent failures to pay by such defaulting clearing member shall not be considered separate default events unless and until the original default has been fully resolved and such clearing member has been restored to good standing." The obvious question is this, if COMEX uses the word "default" in their own legal language then how is it impossible to ever occur? Would they really address an impossibility? While these rules pertain to individual members, what happens collectively were the longs to demand delivery of non-existent metal? What will it be called when collectively the members cannot perform and deliver? "Default(s)" as in "plural" or just one grand default? Further, Mr. Moriarty wrote "If Mr. Holter and Ted Butler want instead to make an argument that since the short position is so large you will never be able to take delivery because there won't be any silver, they can say that. Butler did in 2001 and managed to pick the absolute bottom of silver in real terms in 5000 years. Not only was there a lot of silver, it was at a low. There was no shortage then, there is no shortage now." I would ask this, if far more "paper" silver has been sold than actually exists, isn't this a "shortage" of real metal in and of itself? Buyers have "paid" for silver that doesn't even exist. This aids in suppressing price because the paper was used as a "relief valve" to divert real demand into fake supply. Is this not a scam? This by the way is "manipulation" pure and simple, something Moriarty denies. Deutsche Bank has graciously now moved what was "conspiracy theory" into the category of FACT! After discussions with the CFTC, Harvey Organ has told me "the CFTC insists cash settlement is a no no, gold or 'equivalent' must be delivered for settlement". As a side note, I find it quite odd COMEX which trades in 100 ounce gold bars continually reports ".000″ (triple zero) movements which is a statistical impossibility. They have also been reporting many movements and adjustments that are divisible by 32.15 indicating these are kilo bars. It is also odd because the 100 ounce bars are only 99.5 fine while kilo bars are 99.99 fine, how is this accounted for if kilo bars are used to settle? Something fishy here? Mention of "naked shorting" definitely needs mentioning because there certainly IS such a thing. One needs look no further than COMEX itself. What exactly are the contracts sold over and above available metal? Or look at shorts in various stocks, there have been times where more stock was sold short than authorized and issued. What would you call this? "Naked shorts" are the reason for the old saying "he who sells what isn't his'n, buys it back or goes to prison". As for fake bars of gold, they have already intermittently shown up at this point.https://www.sprottmoney.com/blog/fake-gold-is-back-hk270-million-discovered-in-hong-kong-nathan-mcdonald-sprott-money-news.html Rob Kirby is cited in this article saying 6,000 400 ounce bars were discovered in Chinahttp://www.silverbearcafe.com/private/03.10/phonygold.html. The New York Post reported on fake gold in New York http://nypost.com/2012/09/23/fake-gold-hits-nyc/ followed by more fake gold found in New Yorkhttps://www.youtube.com/watch?v=trMTQBKbZlk. As I see it, when the call for delivery comes, either fake bars, no bars or cash will be the only options available. When it comes to derivatives, Mr. Moriarty wrote "I only know of three people who seem to understand derivatives. That would be Adam Hamilton, me, and a guy named Jim Sinclair". He followed later with "Maybe Mr. Holter could get someone to introduce him to Jim Sinclair. Sinclair knows who does and doesn't understand derivatives. He also knows about commodities and how they cannot default. I don't think he would dream of charging people $119 a year just to feed people's fantasies." Isn't this interesting? I am not sure I understand, at the beginning of his piece he acknowledges Jim Sinclair as my partner but now someone "should introduce us"? And …there are only three people in the world that he knows of who understand derivatives …and one of them is my partner Jim Sinclair? I'm pretty sure the feeling is not mutual on Jim's part, he wrote me prior to my first article written "Bill, I dismissed Moriarty for poor knowledge many years back. His insistence derivatives net out to zero was evidence of real world ignorance. Denial of notional value as total true value is warped logic. Notional value will become full value at that very moment in time they are called on to perform. As long as derivatives have no need to perform they remain unimportant. As you have written, what is a contract worth that cannot perform? COMEX comes immediately to mind. Respectfully, Jim" I must confess, I wrote poorly and incorrectly when writing "I do want to point out, this is the same man who said a derivatives blowup can never happen." I should have included "because of 'notional' value". For this I apologize publicly. Failing to include "because of notional value" is the main point to where we disagree. This is where he and Jim Sinclair vehemently disagree. We believe notional value when markets become stressed will become real and TOTAL VALUE. Jim and I believe too much "notional value" is exactly what will cause a de facto default on the COMEX with gold and silver. You see, the notional value of all the futures contracts, the puts and calls, and OTC derivatives simply dwarf COMEX inventories. The derivatives on gold and silver dwarf ALL THE METALS EVER MINED IN ALL OF HISTORY FOR THAT MATTER! THIS is where we disagree. Notional values will ultimately be the root cause of cross party defaults in EVERYTHING …INCLUDING COMEX GOLD AND SILVER! | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Automating Ourselves To Unemployment Posted: 28 Apr 2016 09:20 PM PDT by Adam Taggart, Peak Prosperity:
Students of Austrian business cycle theory are familiar with the term malinvestment. A malinvestment is any poor use of resources or capital, commonly made in response to bad policy (usually artificially low interest rates and/or unsustainable increases in the monetary supply). The dot-com bubble that popped in 2001? The housing bubble that similarly burst in 2008? Those were classic examples of malinvestment. With this article, I’d like to introduce a related term: malincentive. While not part of the official economic lexicon, I consider a ‘malincentive’ a useful word to describe any promise of short-term gain whose long-term costs outweigh any immediate benefits enjoyed. The temptation to urinate in one’s pants on a cold winter day to get warm is a (perhaps unnecessarily) graphic example of malincentive. Yes, a momentary relief from the cold can be achieved; but moments later, you’ll have a much larger problem than you did at the outset.
Malincetives and malinvestment go hand-in-hand. In my opinion, the former causes the latter. As humans, we respond remarkably well to incentives. And dumb incentives encourage us to make dumb investments. In this current era of central planning, malincentives abound. We raced to frack as fast as we could for the quick money, while leaving behind a wake of environmental destruction and creating a supply glut that has killed the economics of shale oil. Our stock exchanges sell unfairly-fast price feeds for great sums to elite Wall Street high-frequency-trading firms, and as a result have destroyed investor trust in our financial markets. The Federal Reserve keeps interest rates historically low to encourage banks to lend money out, yet instead the banks simply lever up to buy Treasurys thereby pocketing vast amounts of riskless free profit. The list goes on and on. One particular malincentive has been catching my attention recently, one that feels especially pernicious because it does not seem easily reversible, if at all. For US employers both large and small, it’s becoming increasingly less appealing to employ human labor. The High Cost Of LaborThe cost of a human employee is much more than just the salary he or she receives. There’s:
The above combined typically result in a cost between 1.25-1.4x a worker’s base salary. But this is not the ‘all-in’ cost. There’s also the cost of office space, equipment, management & supervision, training. Of HR services. Of paid time off. Of lost productivity if a worker turns out to be a bad hire. Simply put, people are expensive to employ. But the situation is getting even worse. Employers of every size are experiencing a growing surge of additional costs in regards to their human workforce. The recent push to dramatically increase the minimum wage over the next several years is currently being hotly debated. However, one thing that is not up for debate is that this rise will make the cost of labor substantially greater for businesses — especially smaller businesses, as a greater percentage of their employees are at the minimum wage level. For instance, the hike to $15/hour now legislated for California and New York represents rises of 50% and 67% respectively from current levels. Businesses will not be able to absorb that labor cost increase without reducing headcount, raising prices and/or cheapening quality. Likely some combination of all three. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Stocks Are As Cheap As EVER — Doug Casey Posted: 28 Apr 2016 09:15 PM PDT from The Power And Market Report: Bestselling author Doug Casey joins the program to discuss gold stocks, Argentina’s default and return to the debt market, speculating, and his recent visit to Africa. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Following ancients, explorers hunt gold in the Egyptian desert Posted: 28 Apr 2016 08:52 PM PDT Still another rich country insisting on being poor. * * * By The Associated Press EASTERN DESERT, Egypt -- Off the off-road tracks deep in Egypt's eastern desert, prospectors are ramping up the hunt for the treasure once revered by the pharaohs as the "skin of the gods" -- gold. Essential for ancient artifacts like the famed burial mask of Tutankhamun and still highly desired in Middle Eastern culture today, gold has been mined in Egypt for millennia. But experts say the country is heavily underexplored and that modern technology now allows much deeper excavation of the ancient sites shown on pharaonic treasure maps. If developed, gold and mineral mining could prove a boon to the country at a time it is desperate for foreign currency, and provide jobs for its burgeoning population of 90 million. But miners and experts say current legislation is out of step with global practices and doesn't give enough incentives to bring in foreign investment. "Mining has been going on here for over 5,000 years, but in the 21st century it's essentially virgin ground," said Mark Campbell, president of the Canadian exploration company Alexander Nubia, which is increasing its drilling this year in a 1,070-square mile area in the desert. "Exploring for gold and minerals in Egypt today with modern technology is like having a map where X marks the spot." ... ... For the remainder of the report: http://www.nytimes.com/aponline/2016/04/28/world/middleeast/ap-ml-egypt-... ADVERTISEMENT Silver mining stock report comes with 1-ounce silver round Future Money Trends is offering a special 18-page silver mining stock report about how to profit with the monetary and industrial metal, and it comes with a free 1-ounce silver round. Proceeds from the report's sales are shared with the Gold Anti-Trust Action Committee to support its efforts to expose manipulation in the monetary metals markets. To learn about this report, please visit: Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interesting Silver Debate: Do Old Indicators Matter Or Is Physical About To Overrun Paper? Posted: 28 Apr 2016 08:21 PM PDT
For as long as most gold and silver investors can remember, the paper markets — that is, banks and speculators placing bets with futures contracts — have set the price of those metals. And within the paper markets, “the commercials” — fabricators and big banks | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Putin's decade-old dream realized as Russia to price its own oil Posted: 28 Apr 2016 08:10 PM PDT By Eduard Gismatullin Russian President Vladimir Putin is on the verge of realizing a decade-old dream: Russian oil priced in Russia. The nation's largest commodity exchange, whose chairman is Putin ally Igor Sechin, is courting international oil traders to join its emerging futures market. The goal is to increase revenue from Urals crude by disconnecting the price-setting mechanism from the world's most-used Brent oil benchmark. Another aim is to move away from quoting petroleum in U.S. dollars. If Russia is going to attract international participation in Russian-based pricing, the Kremlin will need to persuade traders it's not simply trying to push prices up, some energy analysts said. The government is dependent on oil revenue to fund its budgets. "The goal is to create a system where Russian oil is priced and traded in a fair and straightforward way," said Alexei Rybnikov, president of the St. Petersburg International Mercantile Exchange, or Spimex, in a phone interview. ... ... For the remainder of the report: http://www.bloomberg.com/news/articles/2016-04-28/putin-s-decade-old-dre... ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold and Silver Update: It’s GAME ON Posted: 28 Apr 2016 07:40 PM PDT from Sprott Money:
That move will require some kind of impetus and there are many options to provide the push: more stimulus announcements in Europe or Japan, weak Q1 earnings, increasing inflation expectations, rising general economic uncertainty, US dollar weakness, and interest rate roulette, to name a few. We don't know if these things will transpire, let alone when. The US dollar is certainly declining, if in fits and starts:
That helps gold, from both the fundamental angle that gold is priced in greenbacks and the investment rationale that a declining greenback encourages savers to find another safe haven hideout for their savings. But a declining dollar is only one cog in a machine driving investor interest towards gold. Another is the fact that super low interest rates have removed investors' go-to tool for hedging their stock portfolios: bonds. No matter what you think the odds are of a recession in the near to medium term, the fact is we are in uncharted waters. Very low or zero to even negative interest rates had their intended effect, which was to force savers and investors into riskier assets like bonds and equities. That created a seven-year bull market in equities and bonds – but one not representative of the actual economy, which remained stagnant. That is what already happened. Of interest now is what will happen next. Bonds have long been the go-to hedge against equities. Bonds are supposed to rise in price when recessionary periods push equities down, because recessions prompt central banks to lower interest rates and that lifts bond prices. But how's that supposed to work when interest rates are already rock bottom? Bonds will not hedge stocks if we enter a recession because central banks can't do anything to support bonds. That means investors will look elsewhere for a hedge. Gold will be a natural conclusion. As John Hathaway of Tocqueville Asset Management calculated, if investors were to increase their gold allocation from 0.55% (the current level) to 1.55%, that would represent 56,075 tonnes of demand. That is far more gold than is currently available in London. In fact, a 0.1% increase swamps the supply of physical gold. [2] That is the kind of logic that backs the idea that gold has a good run ahead. Gold moving sideways and consolidating supports the view that gold's run has truly begun. The way equities are acting adds weight. Gold stocks outperform gold at the start of a bull cycle. Take a look back to the last cycle: gold bottomed in April 2001 but then ascended slowly, not making a new 52-week high until early 2002 and not establishing a higher high until almost the end of that year. Meanwhile, gold stocks as per the HUI more than doubled during 2002 while many juniors moved far more. Gold stocks outperform the yellow metal the most at the start of the bull cycle. We are seeing that kind of outperformance now. Then there's silver, which has finally started to move.
It doesn't look like much on the five-year chart, but silver seems to have carved out a bottom. It is up 21% this year, making it the best-performing metal. And silver has more ground to regain. Gold may have lost 45% in the bear market, but silver lost more than 70%. The fact that silver is moving now matters. Silver never moves lock step with gold. When uncertainty prompts investors to seek out safe havens, they look to gold long before silver because gold is a far more straightforward safe haven. Silver, by contrast, is also an industrial metal, which means demand waxes and wanes more with economic demand. However, after some time silver's safe haven status starts to catch up. And once it starts to look like a safe haven, it acts increasingly so. That process usually starts when gold is consolidating its first big move and preparing to take out its next resistance. In other words: we're seeing gold consolidate, which gives confidence in the new price range, and gold is trailing gold equities, which is precisely the pattern we see to start new bull markets. Silver's recent move only confirms the pattern. Explorers, miners, and resource investors have been waiting for this pattern to emerge for years. With evidence of a new bull market mounting, they are getting busy. Here's a good comparison: in the fourth quarter of last year, miners and explorers raised a measly $565 million. The average placement totaled just $3.3 million. In the first quarter of this year, the sector has raised $3.5 billion and the average size rose to $23 million. [3] That's a massive change. Granted, a few huge raises tipped the scale, including Franco Nevada's $1 billion, Silver Wheaton's $623 million, and Goldcorp's $250 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| This Is Where America's Runaway Inflation Is Hiding Posted: 28 Apr 2016 07:09 PM PDT The Census Bureau released its quarterly update on residential vacancies and homeownership for Q1 which is closely watched for its update of how many Americans own versus rent. It shows that following a modest pickup in the homeownership rate in the prior two quarters, US homeowners once again posted a substantial decline, sliding from 63.8% to 63.5%, and just 0.1% higher than the 50 year low reported in Q2 2015.
And perhaps logically, while homeownership continues to stagnate, the number of renters has continued to soar. In fact, in the first quarter, the number of renter occupied houses rose by precisely double the amount, or 360,000, as the number of owner occupied houses, which was a modest increase of 180,000. This brings the total number of renter houses to 42.85 million while the number of homeowners is virtually unchanged at 74.66 million. A stark representation of the divergence between renters and owners can be seen in the chart below. It shows that over the past decade, virtually all the housing growth has come thanks to renters while the number of homeowners hasn't budged even a fraction and has in fact declined in absolute numbers. What is obvious is that around the time the housing bubble burst, many Americans appear to have lost faith in homeownership and decided to become renters instead.
An immediate consequence of the above is that as demand for rental units has soared, so have median asking rents, and sure enough, according to Census, in Q1 the median asking rent at the national level soared to an all time high $870.
Which brings us to the one chart showing where the "missing" runaway inflation in the US is hiding: if one shows the annual increase in asking rents, what one gets is the following stunning chart which shows that while rent inflation had been roughly in the 1-2% corridor for two decades, starting in 2013 something snapped, and rent inflation for some 43 million Americans has exploded and is currently printing at a blended four quarter average rate of just over 8%, the highest on record, and 4 times higher than Yellen's inflationary target.
So the next time Janet Yellen laments the collapse of inflation, feel free to show her this chart which even she can easily recreate using the government's own data (the sad reality is that rents are rising even faster than what the governmet repoirts) at the following link. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver Explodes Back On To the Trading Scene With the Comex May Contract Posted: 28 Apr 2016 07:05 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Price Closed at $1265.50 up $16.50 or 1.30% Posted: 28 Apr 2016 07:02 PM PDT
I sat staring at the silver chart yesterday, wondering why it was saying it wanted to go higher. Today I found out: samurai central banker! It seems the market expected Bank of Japan head criminal Kuroda to take interest rates further into negative-land. Instead, Kuroda left them unchanged. In the market's mind, this equaled an interest rate rise, meant the yen was not going to depreciate to toilet paper, and the dollar was not going to shoot the moon. Here's what it looked like: http://schrts.co/UuqBFa Samurai central banking caught everyone by surprise. The Yen, which had fallen down out of a rising wedge and was playing footsie with its 50 day moving average, promising to fall mightily, shot back up inside the wedge, rising 3.03% in a market where daily moves are normally measured by nano-percentages. The Euro didn't move much, up 03% to $1.1358, but the US dollar took it personally. Very personally. Look: http://schrts.co/OkJ5UT US dollar fell 69 basis points (0.73%) to lodge at 93.68. That took it below the bottom border of the month long trading range and pretty well wrecked beyond repair the earlier break out from that (green) falling wedge. Last low was 93.62. Any close below that is liable to precipitate a free fall. Below 92.50 there is only -- AIR. Clouds. Not enough support for a hummingbird to perch on. Let me be clear, speaking without forked tongue: US dollar is teetering on the lip of an escarpment whose bottom is a massive 13 points lower. Should the dollar fall off that lip, it will send silver, gold, & commodities soaring. Stocks didn't like anything about today. In Japan, where the Nipponese version of Quantitative Easing has left the BoJ owning almost all Japanese government bonds, 40% of all stock ETFs, and untold other stocks, Kuroda's announcement that the BoJ would stop buying all that sent the Nikkei 225 down 3.61%. In the US, Apple has fallen from 104.35 two days ago -- Mercy, 112.10 on 14 April! -- to 94.83 today, a modest 9.1% loss in two days. Carl Icahn fired tear gas into the panicked crowds when he disclosed he'd sold his Apple shares. That, combined with the rubber bullets out of Japan implying an end to free central bank money for speculation, spooked the mob into stampeding. Dow fell 210.79 (1.17%) to 17830.76. S&P500 plunged 19.34 (0.92%) to 2,075.81. I can't remember where I heard it, but somebody said yesterday stocks were floating on borrowed time. Today their creditor came calling. Oh, and just LOOK at that Dow in Silver! http://schrts.co/ohwLZP 'Tain't going any direction but down, and this leg now started will be a BIG one. DiS ended at 1,013.11 oz. Below all the moving averages, below the uptrend line from the 2011 low, below, below, below. When it breaks 991.46 (last low), why, a waterfall will become the Gulf Stream. Dow in Gold is no slouch, either. http://schrts.co/8Sv0tc Gold's lethargy compared to silver has slowed the DiG, but today its downward flight bumped into the uptrend from the 2011 low and the 50 DMA. Closed at 14.06 oz, down 2.79%, and will be cheaper tomorrow. Silver leapt 26.7¢ (1.54%) to 1755.3¢ on Comex. Gold vaulted $16.3 (1.3%) to $1,265.5 Gold/Silver ratio fell today from grossly oversold to even-more-grossly-oversold, & stopped at 72.096. I'll be switched. Much as indicators and time scream they ought to correct, silver & gold act like markets beginning to break out skyward. Of course, both have been tanked up with central bank rocket fuel, so that casts doubt. Here's a gold chart, http://schrts.co/hLQF2d Gold's MACD turned up today, as did the rate of change. It pulled away upwards from its intertwined 20 & 50 DMAs, and jumped BACK over the uptrend line from the January low. It did everything, in fact, except close above the last high ($1,272.40), & didn't miss that by much. If gold gets above $1,287.80, the March high, it'll be gone like a lean hog in a ripe cornfield, and you'll never get it back. At its 1769¢ high, silver was exactly three cents off its last high at 1772¢. It is straining at the leash, ready to run. http://schrts.co/zsmR7J It's also as overbought as antimacassars at an old ladies' convention. Can it go higher? Yes, but it is surely bucking expectation. Bottom line: Today is either one monstrous trap for gold and silver bulls and both markets are going to turn and burn tomorrow, OR both are fixing to break out to new rallies that will see 1850 and $1,350 before June closes her pretty doors. But whether that rally comes tomorrow or next week, 'tis coming SOON. MISTAKE: Yesterday's commentary contained -- I know this'll astonish y'all's dentures right out of your mouths -- a mistake. Dennis Hastert was not sentenced to 15 years in prison but 15 months. Y'all are so picky. I was only off by a factor of twelve. Y'ALL ARE GOING TO LOVE THIS! Here's how the Italians solved their banking crisis, and thumbed their nose at Mario Draghi & the ECB. Italian banks have 360 billion euros in bad loans, most in Europe, but here's the solution. All the banks contribute 5 billion euros to a bailout fund called "Atlas" (get it? Bears the weight of the banks on his shoulders.) The bailout fund will buy new stock issued by the troubled banks, AND will buy loans from troubled banks. Now this is exceptionally bad math, even for bankers. The bailout fund is exactly 1/72 of the bad loans. This ain't even smoke and mirrors, its just smoke, from a little bitty match. POOF! Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2016, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Venezuela Economy Literally Grinds To A Halt As Maduro Orders “Five Day Weekend” For Public Workers Posted: 28 Apr 2016 06:50 PM PDT from Zero Hedge:
“This plan for 60 days, for two months, will allow the country to get through the most difficult period with the most risk,” Maduro said on state television in early April. “I call on families, on the youth, to join this plan with discipline, with conscience and extreme collaboration to confront this extreme situation" of the drought blamed on the El Nino weather system. As a reminder, the reason for the electrical rationing was the water content of Venezuela’s Guri Dam, which supplies more than two-thirds of the country's electricity. As The Latin American Herald Tribune wrote a month ago, the dam "is less than four meters from reaching the level where power generation will be impossible. Water levels at the hydroelectric dam are 3.56 meters from the start of a 'collapse' of the national electric system. Guri water levels are at their lowest levels since 2003, when the a nationwide strike against Hugo Chavez reduced the need for power, masking the problem.” Yesterday the water levels at Guri dam reached a record low of 241.67 meters, according to state power utility Corpoelec. If levels drop below 240 meters, the dam's operator may be forced to shut down units at the plant that produces about 75 percent of the electricity that Caracas, the country's capital and largest city, consumes.
Alas, since this plan was doomed to fail as the Venezuela economy would produce even less output as a result of the extended weekend, things went from comical to farcical overnight when the Venezuelan gift kept on giving, and the nation expanded the three-day weekend to five days, declaring a two-day work week for government workers, adding it was seeking international help to save its power grid amid a drought that threatens the capital's main source of electricity. The two-day work week, after the government added Wednesdays and Thursdays as non-working days to save more power, will last at least two weeks, President Nicolas Maduro said on his weekly program broadcast on state television. Schools will be closed on Fridays starting this week, he said. "The public sector will work Monday and Tuesday, while we go through these critical and extreme weeks where we are doing everything to save the Guri," Maduro said, referring to the giant hydroelectric dam that has become like a "desert." The collection of electricity-saving measures have reduced Guri's daily drop from 22 centimeters a day to 10 centimeters, he added. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Why Is JPM's "Quant Guru" Suddenly Worried About The "Endgame" Posted: 28 Apr 2016 06:28 PM PDT When JPM quant Marko Kolanovic released his latest report today, we were expecting him to read his latest insight on the positioning of quant funds, on the relative imbalance of risk parity, or perhaps whether market gamma was suggesting that the market is poised for an inflection point, either lower or higher. Instead, we were surprised to read an extended analysis looking at how trapped the "out of options" central banks are, what the next steps are for the global economy, how the market is now as overvalued as it was before the 2000 crash, how rising rates "would make the current S&P 500 level look like a bubble", and the exhaustion of all available policy options, which he dubbed the "endgame." To wit:
We were most surprised by Kolanovic's strong case to buy gold, although considering it comes just one week after a Pimco economist dared to propose that central banks should monetize gold next in an attempt to massively boost inflation expectations (while send the price of gold to $5,000), perhaps we are not that surprised. * * * . We are confident readers will find it just as an engaging read. From JPM's Marko Kolanovic Central banks, Inflation, and Debt Endgame With the Fed and BoJ meetings behind us, markets are increasingly accepting that central banks are nearly out of options. Central banks can hardly raise interest rates, and there is a growing realization that negative interest rates simply make no sense (see analysis below). Unconventional approaches of buying corporate bonds (ECB) and stocks (Japan) so far have not produced significant results, and run the risk of tainting these assets for private investors. The next attempt to boost the economy or prevent a potential market crisis will likely need to be accomplished by fiscal measures. Fiscal measures may be employed even if there is no crisis (e.g., post US election), and over the next months investors will look closely at potential measures and their impact on equity markets, commodities (potential positive impact on certain sectors – e.g., from infrastructure spending), and the value of debt and currencies (likely negative impact). Before we discuss the implications and risks that could result from such developments, we present an analysis that suggests that central banks face the risk of entrenched low inflation (rather than the risk of high inflation) and likely will not be able to raise rates meaningfully. Figure 1 shows the cumulative PCE (relative to the Fed's 2% target) that shows significant and persistent undershooting over the past 8 years. Since 2000, the cumulative undershoot is 6% on the core PCE measure. Over the past 4 years, core PCE undershot by more than 1.5 % (and headline by 3.5%, the difference being largely due to the 2014 decline in energy). This undershooting is fairly significant: over the past 2 years headline PCE undershot by 3% (2 standard deviations) and Core by 1% (1 standard deviation). What should be more worrying is that PCE readings historically show strong persistence (serial correlations). This means that a low core PCE reading today implies that PCE is more likely to stay low in the future as well (e.g., core PCE reading today has 80% correlation with the reading of 12 months ago). Our quantitative model of core PCE indicates the most likely level is still below the Fed's 2% target and continuing to undershoot over the next 3 years. In that context, the Fed should welcome any overshooting of the target as that is the only way it can end up closer to the stated 2% target over any meaningful time period (e.g., 2, 5, or 10 years). For instance, overshooting the target over the next 2-3 years by ~0.5% each year (or over the next 1-2 years by ~1%) would put the inflation averages within the margin of the stated 2% target. The problem is that it simply may not happen, and inflation breakeven rates in the US, Europe and Japan point to the same direction. Over the past 20 years, PCE overshoots (undershoots) tended to coincide with S&P 500 rallies (declines). However, over the past 8 years, PCE kept trending lower, while the market rallied strongly. While the Fed's QE programs did not prevent inflation to persistently undershoot the 2% target, a potential byproduct was inflated S&P 500 valuations. Indeed, many clients ask us how much of the S&P 500 rally can be attributed to near zero rates and can be at risk should rates continue to rise? Assuming the S&P 500 returning to median P/E levels for comparable rate and inflation environments in the past, it would suggest a 5%-15% de-rating of the equity multiple should rates continue to rise at a moderate pace and assuming no increase of recession probability. If rates increase the probability of recession, it would likely result in a larger market pullback, as both earnings and multiples would suffer. Should the problem of low inflation go away (e.g., if there is an oil price shock, or upside growth surprise) and there is need to raise rates more significantly, the Fed will face another problem. That is how to hike but not push the equity market significantly lower. The reason is that with current levels of leverage, rates behave like a ratchet (easy to turn lower, but hard to turn higher without breaking the gears). Over the years of ZIRP, asset prices and business models adjusted to low rates. For example, home buyers make decisions based on monthly mortgage payment levels, and S&P 500 companies (ex-financials) have the highest leverage since 2007 (when leverage was at record levels), with some of the debt used to buy back shares. Indeed, the current S&P 500 P/EBITDA ratio is at the same level as shortly before the market crash of 2000. The distinction between current market valuations being reasonable vs. bubble-like is due to low interest rates (as well as lower effective tax rates). Significant increase of rates (e.g., to levels implied by 2018 Fed dots) would make the current S&P 500 level look like a bubble. As we argued above, it is hard to see short-term rates moving meaningfully higher any time soon. We also think that rates cannot go much lower either as negative rates fundamentally don't make sense (issues such as physical storage of cash can make negative yields viable only over short periods of time). So the attempt to boost growth or fight a potential crisis will likely need to be accomplished by fiscal measures. However, fiscal measures also bring an increased level of government debt and increased market and credit risk of owning government bonds. These risks are in addition to current low yields and a less favorable correlation of bonds to risky assets. The unfavorable risk-reward of government bonds near the point of zero yields will likely prevent asset managers from increasing holdings of government bonds. If there are no private buyers, governments can still place their bonds with central banks. This trend is of course already in place – for instance, the Fed's holdings of US Treasuries increased from ~18% in 2008 to ~34% today. Increased government spending, financed by central banks could indeed create inflation, but will further elevate the problem of debt viability. If investors lose confidence that the debt can ever be repaid, they will reduce their holdings, increasing the cost to governments or inviting more central bank buying. This can eventually result in the devaluation of all currencies against real assets such as gold, high inflation or even outright defaults (as was the case in Greece). If such a trend develops in one of the large economies, it could have far-reaching consequences. Once fiscal measures replace monetary measures, we think investors will increasingly focus on the dynamics of government debt and currency valuations, particularly in Japan and the US. How can an investor hedge against the risk of these potential developments? One can reduce allocation to bonds and increase allocation to real assets and equity sectors related to real assets. Investors can also move away from bonds that are not backed by reserve assets such as currency reserves or gold. The ability of a government to pay back debt and at the same time as maintaining the value of the currency should be measured by hard assets for which transfer to bondholders is politically viable. For example, during the Greek crisis, the option of selling islands owned by the government was off limits. On the other hand, governments can easily part with assets with no national or cultural attachments such as FX reserves or gold, as was recently the case with Ukraine and Venezuela. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Full Speech: Donald Trump Holds Rally in Evansville, IN (4-28-16) Posted: 28 Apr 2016 04:40 PM PDT Thursday, April 28, 2016: Full replay of the Donald Trump for President rally in Evansville, IN at the Old National Events Plaza. Full Speech: Donald Trump Holds Rally in Evansville, IN (4-28-16) The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warning: Conspire to KILL THE DOLLAR (Economic Collapse 2016) Posted: 28 Apr 2016 03:00 PM PDT Also you can check out this other youtubers and their videos! SO, WHERE IS THE COLLAPSE? -- Bill Holter Watch this please! The 72 HOUR RED FLAG Before MARTIAL LAW! 2016 FEMA CAMPS Exposed!! What Will You Use for Money When the SHTF After the Collapse? HERE WE GO! Austria Initiates First Ever Bank... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 28 Apr 2016 02:30 PM PDT The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Off We Go Into the Wild Blue Yonder Posted: 28 Apr 2016 02:18 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 28 Apr 2016 01:43 PM PDT This post Yellen, Trump… and Hillary appeared first on Daily Reckoning. Janet Yellen left interest rates unchanged yesterday. She sees a patient on the mend… but too weak to stand on its own… Labor markets have tightened, but economic growth proceeds at a trickle. Real household income has increased, but household spending is off. Inflation flickers, sometimes here, sometimes there. But it can't crack 2%. Exports are soft. The Fed draws a sketch of neither bust nor boom, but an extended visit from a nagging mother-in-law — not ideal — but generally bearable. So it did nothing. And suggested only gradual rate increases going forward: "The committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run." (Expected by whom? And when does the "longer run" arrive, if we may be so bold?) How'd the markets take the news? In stride, one could say. Both the Dow and S&P edged higher on the news. Nothing dramatic, though. Markets had already baked the nonhike into the cake. Oil topped $45 a barrel on news that U.S. production has dropped to its lowest level since October 2014. And expectations of a steady, if not falling, dollar. Well worth noting: This morning, the Bank of Japan (BOJ) shocked the world by keeping its own rates steady. Experts all believed it would cut rates to stimulate the comatose Japanese economy. All experts but Jim Rickards, that is. He said the world's leading central banks reached a secret agreement when they met in Shanghai recently. The plan was to weaken the dollar and the Chinese yuan at the expense of the yen and the euro. According to Jim, "The secret plan devised by the central banks has three parts: Tighten in Europe and Japan, ease in the U.S. and maintain the U.S.-China peg." Its purpose is to avoid another Chinese devaluation that could shake the markets, as they did last August and this January. The BOJ's inaction today makes perfect sense in that context. Now all eyes turn to the Fed in June… The futures market is now pricing in a 26% chance of a June rate hike. That's up a shade from 21% before the announcement, observes CME's FedWatch group. "Looks as if we will continue with the 'slower growth, lower rates for longer' scenario," explains Chris Gaffney, president of EverBank World Markets. "Nothing here would indicate a June hike is any more likely than before the statement. Markets are still predicting a hold in interest rates until the end of 2016." Be it so. But the Fed stuck a joker in the deck yesterday… It omitted critical language from its March nonhike announcement that read, "global economic and financial developments continue to pose risks." Yesterday, the Fed only said it will "closely monitor" global economic conditions. A subtle but potentially significant switch for Fed watchers given to reading tea leaves and studying entrails. "Their removal of the line on risks is pretty significant," observed Carl Tannenbaum, chief economist at Northern Trust Corp. and former Fed understrapper. "That might reflect increased comfort on the committee that global influences appear more manageable." The Fed's now passed three times this year after predicting four 2016 rate hikes. If it doesn't raise in June, it might as well hoist the white flag of surrender. The next plausible date would be December… Yellen won't likely tinker with rates in September, because it's too close to the November election. Yellen's a Democrat from UC Berkeley. Raising rates could result in a market sell-off — and possibly put Trump in the White House. As Jim Rickards explained, Obama recently summoned Yellen to the White House to deliver a highly public message — "No rate hikes!":
Tough to imagine Yellen handbagging Obama over the head with a September rate hike. Nor could she cut rates in September, even if conditions warranted. Politically, she can't be seen as putting her thumbs on the scale. Caesar's wife must be above suspicion, after all. Jim again:
That Republican nominee may well be one Donald J. Trump. If Trump's somehow elected this November, he's suggested he'd replace Yellen as Fed chair. But maybe he'd be better off leaving her in… They say hell hath no fury like a woman scorned. Now, we're not suggesting she will. But what if Yellen jacks rates up to a Paul Volcker-like 20% on her way out… just to spite The Donald? "Ha, try making America great again now, jack. And you thought the president was the most powerful man in the country…" He'd be sunk in a month. Below, David Stockman shreds Donald Trump's likely opponent in this year's presidential election. As usual, he gives it with the bark off. Read on, unless you're a Hillary Clinton supporter. Brian Maher P.S. What's the latest on gold, oil, the Fed, or the stock market? What's China going to do next? You'll find the answers in the free daily email edition of The Daily Reckoning. It provides an independent, penetrating and irreverent perspective on the worlds of finance and politics. And most importantly, how they fit together. Click here now to sign up for FREE. The post Yellen, Trump… and Hillary appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hillary Clinton forced Cathy O'Brien to have sex with her Posted: 28 Apr 2016 01:30 PM PDT Tim Rifat with Jeff Rense, April 27, 2016. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Will China Clash With The U.S And Cause Economic Collapse? Posted: 28 Apr 2016 12:30 PM PDT In this video Luke Rudkowski breaks down the tense relationship the U.S has with the world's 2nd largest economy in the world China. We go over the military geopolitical moves regarding the man made south asian Chinese military bases, the new Chinese backed Yuan that cannot be traded with the... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alasdair Macleod: Taking the petro out of the dollar Posted: 28 Apr 2016 11:29 AM PDT 2:30p ET Thursday, April 28, 2016 Dear Friend of GATA and Gold: With China moving to internationalize its currency and Saudi Arabia looking for another sugar daddy, GoldMoney's Alasdair Macleod writes, the oil trade's decades-long support of the U.S. dollar may be coming to an end. Macleod's commentary is headlined "Taking the Petro Out of the Dollar" and it's posted at GoldMoney's Internet site here: https://www.goldmoney.com/research/goldmoney-insights/taking-the-petro-o... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| CFTC has no comment on Deutsche Bank's admission of gold, silver market rigging Posted: 28 Apr 2016 11:01 AM PDT 2p ET Thursday, April 28, 2016 Dear Friend of GATA and Gold: The U.S. Commodity Futures Trading Commission will not answer questions arising from Deutsche Bank's reported agreement to pay damages for and implicate other banks in the manipulation of the gold and silver markets, a commission spokesman said today. Last week your secretary/treasurer put to the commission three questions about the development with Deutsche Bank: -- Does the commission have any reaction to Deutsche Bank's admission to manipulating the gold and silver markets? -- Is the commission responding to Deutsche Bank's admission in any way? -- In September 2013 the commission reported that it had been investigating the silver market for five years and had found nothing improper. In light of the development with Deutsche Bank, is the commission reconsidering that conclusion? ... Dispatch continues below ... ADVERTISEMENT We Are Amid the Biggest Financial Bubble in History; With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong. Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed. Crucial guides to storage in Singapore and Switzerland can be read here: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals. Email the GoldCore team at info@goldcore.com or call our trading desk: UK: +44(0)203-086-9200. U.S.: +1-302-635-1160. International: +353(0)1-632-5010. Visit us at: http://www.goldcore.com Today's "no comment" from the commission spokesman also covered an additional question put to the commission today. Today's question noted that after your secretary/treasurer reported to you, in a dispatch on April 23, his inquiries to the commission -- http://www.gata.org/node/16404 -- a GATA supporter asserted to your secretary/treasurer that soon after the announcement of Deutsche Bank's plan to settle the market-rigging lawsuit, he reached a market surveillance official for the commission and this official said the commission was very much aware of the development with Deutsche Bank. Such an admission by a CFTC market surveillance official would contradict the impression the CFTC spokesman gave to your secretary/treasurer a week ago, conveyed in the April 23 dispatch -- that the commission had not been aware of the development with Deutsche Bank until GATA inquired. So today's rejected question was: Prior to GATA's inquiry to the CFTC, was a market surveillance official for the commission contacted about the Deutsche Bank development and did he confirm that the commission was aware of it? Since the CFTC's annual budget is around $250 million, these refusals to comment about or even acknowledge awareness of reports of commodity market rigging could seem a bit overpriced. CHRIS POWELL, Secretary/Treasurer Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Battle of The Mahdi (World War) Posted: 28 Apr 2016 10:30 AM PDT The End Times series will explain all the major events that will happen leading up to the end of the world. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bill Holter: This Is The End Days Of The Current Economic System And We Might Not Reach October Posted: 28 Apr 2016 10:00 AM PDT Bill Holter: This Is The End Days Of The Current Economic System And We Might Not Reach October Economic collapse and financial crisis is rising any moment. Getting informed about collapse and crisis may earn you, or prevent to lose money. The Financial Armageddon Economic Collapse... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Michael Burry Says Debt Is Our Biggest Problem… Posted: 28 Apr 2016 09:49 AM PDT This post Michael Burry Says Debt Is Our Biggest Problem… appeared first on Daily Reckoning. And now… today's Pfennig for your thoughts… Good day, and a tub thumpin’ Thursday to you! Well, we had three central bank meetings with rate decisions yesterday afternoon, and all three walked away from the rate move table, and threw in their cards, and folded. That’s what it seemed like to me. Of course for the Bank of Japan (BOJ) and Reserve Bank of New Zealand (RBNZ) not cutting rates was like manna from heaven for their respective currencies, and both have rallied nicely overnight and through the morning sessions. The Fed’s meeting was met with a different feeling toward what’s going on. You see the Fed was supposed to be wearing rate hike clothes by now and sipping Champaign, and high-fiving each other, as they celebrated the economy rebounding, that warranted another rate hike. But that’s not the scene at the Eccles Building, where the Fed meets. Instead, the Fed said that they were “in no hurry to hike rates in the coming weeks”. And instead of high-fiving each other for a rebounding economy they were citing a mixed economic backdrop and lingering concerns about low inflation and global economic and financial developments. That certainly doesn’t sound like a Central Bank that’s ready to hike rates does it to you? And today’s Data in the U.S. is going to confirm what the Fed is feeling. The first print of first quarter GDP will print today. I told you yesterday that my GDP Tracker has first quarter GDP at 0.4%, which is basically a rounding error away from negative growth! Of course, the government could throw all kinds of hedonic adjustments in there that we don’t’ know about right now, but without them, the first quarter GDP is going to look very weak, and that’s going to linger on the minds of the Fed members all the way to the June meeting. So, the Japanese yen and New Zealand dollar/kiwi both soared on their respective Central Bank leaving rates and monetary policy unchanged, and the dollar got whacked for not hiking rates. So, let’s see if you’ve been paying attention all these years. If the dollar is getting whacked what’s the euro doing? Yes, the euro is on the rally tracks this morning, and with the price of oil holding yesterday’s gains, the petrol currencies are all trading stronger this morning. So, it’s one of those days, when the strong dollar trend looks tenuous at best. The BOJ left all facets of their monetary policy unchanged against a widespread thought that they would add to stimulus with one of their directives. Remember, earlier this week, I explained to you that the BOJ has been warned by the IMF to not do anything deliberately to weaken the yen, and the BOJ complied with that warning. I don’t make this stuff up folks, and if I do, I tell you. So, anyway, it looks as though the so-called Shanghai Accord is still in place. And for those of you who missed class that day, the Shanghai Accord is an apparent agreement between the U.S., Eurozone, Japan, China and maybe the U.K. to weaken the dollar, to remove the pressures on these countries and the Emerging Markets. According to some analysts, this agreement was reached at the G20 meeting in Shanghai in late March. And the IMF is the body that carries out these directives of the G20. And gold is up $8 this morning, adding to yesterday’s gain which took the shiny metal to the cusp of the dreaded $1,250 level again. So, just wait until the NY boys and girls come in and see that gold is $1,258 this morning. Three times in the past couple of weeks gold has traded past $1,250, but each time it has seen major resistance (price manipulation to be blunt) and has had to regroup and build back up to get to $1,250 again. I’ve always told you that whenever you see a trading pattern like this, what you get are traders that will attempt to get past resistance a few times, and then if they don’t succeed, they will walk away from the asset, and look for something else to trade. So, let’s hope we’re not “there” yet! I was reading my friend’s weekly newsletter written by John Mauldin, and he was talking about retirement, which is a subject that’s near and dear to my heart, as I grow older each year (And am thankful I am allowed to do so!) Here’s John with some very scary statistics:
His idea to combat the fact that Social Security is wobbling, and pensions are proving to be false promises; “Don’t retire.” Of course that’s easy for him to say, he owns his own business, and does investment research and analysis, that certainly isn’t available to everyone! I also do investment research and analysis, but I don’t own my own business. One day they could call me in an office, pat me on the back for all my years of working long hours, and travel, and so on, and show me the door. And I can’t get a job as a greeter at a Big Box Store, because I can’t stand for that long! That’s where my good friend, the retirementor, Dennis Miller comes in. And he has been helping individuals nearing retirement, or already retired for years now. And you can find him through a letter that he sends out weekly of which you can review and subscribe by clicking here. The Reserve Bank of New Zealand (RBNZ) left rates unchanged last night, as I suspected they would. There were a small number of economists that believed the RBNZ would cut rates last night. Apparently, they don’t read the Pfennig! HA! The RBNZ basically took the previous meeting’s notes and reprinted them, saying that future rate cuts will depend on the economy’s performance. And there we have another example of a Mr. Obvious playing Central Banker. But the markets loved the non-move and like I said above kiwi is soaring this morning. The Aussie dollar (A$), after getting whacked yesterday for a weaker than expected inflation report, is rallying with kiwi, and the A$ grabs ahold of kiwi’s coattails. It’s usually the other way around, since the Aussie economy and size is much larger than New Zealand’s, but today, kiwi is the leader. And the A$ is following the leader, the leader, the leader, The A$ is following the leader wherever it may go. We will get an idea of how the Reserve Bank of Australia (RBA) feels about the weaker than expected inflation report when a RBA member speaks. As I said yesterday, I don’t think the RBA will panic reading the soft inflation report, for right now, it’s just one report. I guess we’ll see tonight what the RBA really thinks about it. I actually forgot about another Central Bank meeting that took place yesterday afternoon – The Brazilian Central Bank (BCB) left their Selic Rate unchanged at 14.25%. The Selic Rate is the internal rate for the country, like our Fed Funds Rate. The BCB has said on numerous occasions that they would love to start a rate cut cycle to help the economy, unfortunately, inflation in Brazil remains a major obstacle to cutting rates. Brazilian inflation has been trending downward, and that is a result of the high Selic Rate, so if I were the BCB I wouldn’t do anything until you know for sure that inflation is on a downward path that won’t be reversed by a rate cut. In January this year, inflation in Brazil was 10.71%, Feb it fell to 10.36%, and March it fell to 9.39%… On the right path, but still way too high. The stronger real has really helped with inflation in Brazil. And all countries should take note of what a stronger currency can do to inflation, for one day, the global deflationary environment will change, and when it does, I think it will change quickly, and the move to high inflation will surge. Remember last year, when I would talk about Ireland coming out of the dark abyss, and getting back on their feet, thanks to the austerity measures they took when things (debt) got out of hand? Well, guess who’s the next eurozone country to look like their getting back on their feet thanks to austerity measures? Spain. I didn’t want you to have to wait for that answer! Recent PMI’s (manufacturing index) from Spain show strong rebounds, and now the Labor Sector is seeing robust moves to get stronger! First QTR Labor Force for Spain saw the unemployment rate drop to 20.4% (last year it was over 25%!). Spain needs to keep the momentum going here and make reforms in their labor market so that we can continue to see drops in the Unemployment Rate! Now, a few of you will recall me telling you all over a year ago, that what I was seeing was a building shortage in silver. I really thought that 2015 would be the year that silver took off and closed that gap on the price ratio between silver and gold, which used to stand at 15, but is now much wider. And as usual, I was early on the call. UGH! One of these days, I’ll learn to hold on to something longer before telling everyone what’s coming! But probably not, I just can’t keep ideas under my hat! Anyway, according to Bloomberg:
Here’s the link to the article on Bloomberg in case you want to read the whole enchilada. Supply troubles. Hmmm… Well, if you bought silver last year, (like I did because I really thought the supply problem was going to hit in 2015) at least you bought it cheaper than it is today, and potentially could be in the coming years! Well. Remember back in January of this year I told you that Chuck and Kathy went to the movies and saw the movie The Big Short? One of the principal persons in the movie was an fund manager named Michael Burry. He’s the guy that did all the research into the securitized mortgage bonds and found all the bad loans in them, and decided to short the market. He was very early to this idea, and had to suffer through months of agony and losses, nasty customers, and so on, before the housing sector finally collapsed. This guy is a genius, no mistake about it. And New York Magazine did an interview with him a couple of months ago and asked him what he thought about what’s going on now. Let’s listen in:
In the end when asked about what he sees now – “he doesn’t see imminent destruction, just the slow build of yet another doom machine.” I’ve got to give kudos to my friend and colleague, Ty Keough, who found this interview and sent it to me. Thanks Ty! And if you want to also read this entire interview, which I think is very good you can find it here. The U.S. Data Cupboard yesterday had a couple of minor things to report. The Trade Deficit, fell to $56.9 billion in March from $62.9 in February. That’s a huge chunk from that deficit, but you must remember that in March we were seeing the dollar begin to back off its strong trend, and if I’m right about this, of which I’m sure I am, next month’s Trade Deficit will be even lower, because of the further weakening of the dollar in April. March Pending Home Sales also printed, and showed that there could be some strength still holding on in the housing sector. But in reality no one really looks at this for market moving data, so moving on. The U.S. Data Cupboard today has the first reading of first quarter GDP here in the U.S. And I’ll remind you that my GDP Tracker has this print at 0.4%, while the “experts” surveyed think that GDP will be 0.7%. Either way, the data shows the economy is very close to going negative on growth. And this is where I’ll remind you that I’ve long thought that GDP was not the best way to measure the growth in the economy. Too many things that don’t make sense are included in the calculation. Instead I like to think that Final Sales is a better way to measure the economy’s growth. I haven’t seen the most recent Final Sales data in over a month, but at last checked last month, Final Sales were still trudging along with an avg. since 2007 of just 2%. This is an article on Russia and China trading gold, and can be found on Reuters here, and here’s your snippet:
Chuck again. When I read this article, my first thought was that I would have thought this to be case already, that whatever gold Russia produced and didn’t keep for themselves they were shipping to China. I also see that Ed Steer thought that too, so two great minds can’t be wrong can they? HA! That’s it for today. I hope you have a tub thumpin’ Thursday! Be good to yourself! Regards, Chuck Butler P.S. Will the Fed raise rates at its next meeting? Is China preparing to shock global markets by devaluing the yuan? You'll find the answers to these questions and more in the free daily email edition of The Daily Reckoning. In a way you're sure to find entertaining… even risqué at times. Click here now to sign up for FREE. The post Michael Burry Says Debt Is Our Biggest Problem… appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hosea Prophecy -- Apocalyptic Mass Animal Deaths In April Posted: 28 Apr 2016 09:12 AM PDT The "Hosea Prophecy" as 192 Mass Animal Deaths world wide in 57 Countries this year already The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALERT! Venezuela Runs Out Of Money! This Is What An Economic Collapse REALLY Looks Like!!! Posted: 28 Apr 2016 08:29 AM PDT HEED THE WARNING! SEE THE WARNING SIGNS AHEAD OF TIME!!!! Because things are getting from BAD to WORSE... REAL FAST!!!! Not only has Venezuela run out of money (the bolivar) to print, the food, water, oil, and energy crises have skyrocketed beyond measure. In fact, it's getting to the... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dollar Selling Panic Coming-John Williams Posted: 28 Apr 2016 08:16 AM PDT By Greg Hunter's USAWatchdog.com Dear CIGAs, Economist John Williams has long predicted the $16 trillion in U.S. dollar assets held outside of America will be sold in a panic. The time draws near for that scenario to unfold, and Williams explains, "When people start selling the dollar, or dollar denominated assets, you will see the... Read more » The post Dollar Selling Panic Coming-John Williams appeared first on Jim Sinclair's Mineset. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taking the petro out of the dollar Posted: 28 Apr 2016 08:02 AM PDT Finance and Eco. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Will Stock Market Crash 24% in the Next Three Months? Posted: 28 Apr 2016 07:12 AM PDT Will stocks collapse 24% (a Crash) in the next three months? For the first time since the 2009 bottom, Earnings Per Share (EPS) have diverged sharply to the downside from stocks. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Next Battleground for Gold Will Be At 1550 If the Cup and Handle Formation Completes Posted: 28 Apr 2016 07:07 AM PDT If and when gold breaks out of this cup and handle formation, which is a matter of probability and not certainty, the next real battleground in a new bull market will be around $1550. One of the more interesting variables will be the manner of any breakout, and the 'time' it takes to reach a minimum measuring objective. This is quite appropriate as 1550 marks the major support level for the channel in which gold had been moving prior to the recent bear market. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Central Banking Prisoner’s Dilemma: Fed Freezes, BoJ Stammers, Dollar Drops 2% Overnight Posted: 28 Apr 2016 07:01 AM PDT In today’s communist-style, centrally planned world, when big central bankers meet and make decisions, no matter how small, markets quake and currencies shake. And that’s what just happened. Bankers at both the Federal Reserve and the Bank of Japan met in the last 12 hours to decide where they would take monetary policy next. But when they sat down to make decisions, they were faced with a classic prisoner’s dilemma: Options were precluded. There was a lot they wanted to do but little they could do. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver: The “Five Year Plan†and the Great Leap Forward Posted: 28 Apr 2016 06:57 AM PDT Five years ago paper silver contracts on the COMEX hit a multi-decade high over $48 on April 29, 2011. At the end of April 2016 the silver price is bouncing around $17, down about 65% from its April 2011 high. The low occurred at about $13.60 in December of last year, when paper silver prices were down about 70% from their April 2011 high. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Breaking News And Best Of The Web — April 29 Posted: 28 Apr 2016 06:19 AM PDT US growth stalls. Bank of Japan fails to ease further; yen soars and Nikkei plunges. Fed does nothing, says next to nothing. Apple sheds $40 billion in market cap while Facebook soars; next up is Amazon. China’s bond market spinning out of control? Trump and Clinton take aim at each other. Gold jumps on Japan […] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold miner Petropavlovsk stages a comeback with brace of deals Posted: 28 Apr 2016 05:32 AM PDT By Jon Yeomans Gold miner Petropavlovsk, which last year nearly went out of business, has staged a comeback with a brace of deals that could mark a new era for hard-pressed investors. The Russia-focussed company, founded by Peter Hambro, scion of the family that founded City institution Hambros Bank, is to buy another gold miner in an all-share deal worth $144 million (L99 million), while launching a joint venture to help finish a costly processing plant. The acquisition of Amur Zoloto will help the company "bulk up," according to Mr Hambro, Petropavlovsk's chairman, making it more attractive to institutional investors. "Shareholders have been keen for us to buy things. ... It's to help us bulk up the maths of Petropavlovsk, and there has been a move toward consolidation in the industry." ... ... For the remainder of the report: http://www.telegraph.co.uk/business/2016/04/28/gold-miner-petropavlovsk-... ADVERTISEMENT Free Storage with BullionStar in Singapore Until 2016 Bullion Star is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore. Bullion Star's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in Bullion Star's bullion vault, which is integrated with Bullion Star's shop and showroom, making it a convenient one-stop-shop for precious metals in Singapore. Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage is FREE until 2016 and will have the most competitive rates in the industry thereafter. For more information, please visit Bullion Star here: Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| AUD/USD - Trend Reversal or Just a Bigger Pullback? Posted: 28 Apr 2016 03:18 AM PDT Earlier today, the Australian Bureau of Statistics showed that the consumer price index dropped by 0.2% in the first quarter, missing analysts' forecast. Additionally, consumer prices (year-on-year) rose by 1.3% in the first three months of the year also disappointing expectations. Thanks to these numbers, the Australian dollar declined sharply against the greenback, which pushed AUD/USD under previously-broken important line. Is it enough to trigger further deterioration in the coming days? | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| A Gold Revaluation Could Transform Your Financial Status - Overnight Posted: 28 Apr 2016 01:23 AM PDT David Smith writes: As we move through 2016, the Horsemen of the geopolitical, economic, and social apocalypse are on the march. China burns through its currency reserves as billions in yuan flee the mainland for safe harbor. Japan prints mountains of yen debt in an effort to create inflation - and thereby the conscious devaluation of its citizens' purchasing power. Saudi Arabia's gamble of cutting oil prices to the bone in an effort to break the back of the shale oil industry is becoming so costly that it may have to sell a portion of mighty Aramco to outside investors, while keeping secret the amount of its U.S. debt. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 28 Apr 2016 01:07 AM PDT For thousands of years, gold has been used as money, a store of wealth, fought over and sought after. Over the last 45 years, Western populations have had a mixed impression of gold. A minority of the population understands that gold is a monetary asset that should be held as wealth insurance. A larger percentage of the population is confused about gold because of mainstream sources of information. Many people consider gold a risky investment when in fact gold bullion is not an investment at all, but rather money itself. Just like any fiat currency held in a vault, gold does not pay interest or dividends. Investors often look upon gold mining companies in the same light as physical gold bullion. Gold mining shares are investments, and can be good tactical investments from time to time. However, the characteristics of gold bullion and gold miners are very different. In some ways, those differences are similar to the difference between an insurance policy and shares of an insurance company. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Two Best Calls Ever on a Gold Bottom Posted: 28 Apr 2016 01:00 AM PDT Bob Moriarty of 321Gold calls out the work of two men who got it right on gold and silver. |
The dollar has an opportunity to make history. After three straight years of gains, strategists are forecasting the US currency will be a world beater again in 2016, strengthening against seven of 10 developed world peers by the end of the year. – Median estimate from Bloomberg Survey
Gold continues to consolidate. Two months of sideways price action is proving the yellow metal's early-year gains were justified while setting the foundation for another move up.
Just three weeks ago, the Venezuela socialist paradise gifted local workers with one extra day of rest each week when, as a result of the crippling economic crisis and collapsing power grid, president Maduro designated every Friday in the months of April and May as a non-working holiday in his desperate bid to save electricity as a prolonged drought pushes water levels to a critical threshold at hydro-generation plants. Never without a scapegoat, Maduro immediately blamed El-Nino for implementing the three-day weekend.
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