Saturday, February 4, 2017

Gold World News Flash

Gold World News Flash


In The News Today

Posted: 03 Feb 2017 07:30 PM PST

Long Time U.S. Vassal State Japan To Bypass Dollar And SWIFT To Transact Using China’s CIPS System In Inter-Bank Settlement February 3, 2017 Ever since China began to duplicate Western financial institutions starting in 2013, more and more nations have begun matriculating towards the East, and away from dollar hegemony.  And one of the most... Read more »

The post In The News Today appeared first on Jim Sinclair's Mineset.

"The Center Didn't Hold"

Posted: 03 Feb 2017 06:15 PM PST

Submitted by Howard Kunstler via Kunstler.com,

The Purpose of Decadence and the Pleasures of Coercion

I guess you’ve noticed by now that the center didn’t hold. Instead of a secure platform for political premises like tradition, precedent, rationality, and cultural norms, you see a fiery maw of sheer emotion between the camps of the so-called Left and the so-called Right.

I say so-called because the campus Left and the Trump Right have escaped the categorical corrals they formerly occupied. And they may have left their customary official parties stranded and dying too. It may be fatuous to say whether that is a good or bad thing; it just is, for the moment. They are two halves of a polity so broken and so far apart that it is also hard to see how they might ever come back together into a consensus about how a society might operate successfully.

Not having a consensus — some substantial overlap between circles of perspective — it’s not surprising that America can’t construct a coherent view of what is happening, or make a plan for what to do about it. Mainly what’s happening is the running down of fossil fuel based techno-industrial economies, and the main symptom is falling standards of living, with fading prospects for future happiness and security.

As I’ve said before, our economic picture is basically untenable due to the falling energy-return-on-investment of the crucial oil supply (shout-out to Steve St. Angelo). At the high point of 1920s oil production the ratio was around 100-1. The shale oil “miracle” is good for about 5-1. The aggregate of all oil these days is under 30-1. Below that number, you’ve got to shed some activities in our complex economy (or they just get too expensive to support) — things like high-paying labor jobs, medical care, tourism, college, commuting, heating 2500 square foot homes…). Oddly the way it’s actually working out is that America is simply shedding its whole middle class and all its accustomed habits and luxuries. At least that’s how it adds up in effect. Naturally, that produces a lot of bad feeling.

President Trump is unlikely to be able to fix that essential problem, unless he can pilot the whole political-economy into a glide-path leading toward neo-medievalism — what I call the World Made By Hand. Trump’s call for restoring the factory economy of 1962 is a low-percentage prospect. Instead, he’ll be saddled with the collateral damage caused by the dishonest effort of his recent predecessors to borrow from the future to pay for the way we live now — that is, racking up debt. This mighty debt-load, never before seen in history, and the accounting fraud that enables it, has helped produce all kinds of distortions, perversities, and fragilities in our money system (finance and banking) which can easily slip into collapse if a crucial prop fails here or there, and that is exactly what I think will happen under Trump. It will not be his fault, but he’ll get blamed for it. And when it happens, he won’t be able to give his attention to anything but that.

In the meantime, society shows all the symptoms of this literal economic disease in the political and cultural fissures of the day. The political Right failed in its role as prudent conservator of values, resources, and practical custom; the political Left has taken refuge in sentimental fantasy, using the semantic ploys of the graduate school seminars to pretend that reality is whatever they wish it to be. Uncomfortable with the age-old tensions of sexuality? Then pretend that you can opt out of the dynamics of biology by declaring yourself “non-binary,” a term with a pleasing science-y flavor. Tensions gone? Not really. You’ve only made them worse as, for instance, expressed in “non-binary” suicide rates. The perversities of transsexual triumphalism are related directly to the falsehoods of Federal Reserve trans-monetarist triumphalism, and all parties are subject to the matrix of racketeering that has taken the place of plain dealing in goods, money, and ideas in this society — especially ideas grounded in reality.

Societies may not exactly be organisms with intentions, but they move in a particular direction because they are emergent phenomena. That is, they are self-organizing according to the circumstances and forces they are subject to at a certain time and place in history. Decadence is specifically the decay of social and cultural boundaries, a process that is manifestly accelerating now. Both sides of the political spectrum are acting out this dynamic, with the vacuum in the middle sucking vitality out of each side. The Left has become a kind of pagan religion of sacred victims and victimhood, collecting sacred injuries and martyrs. Its dark secret, though, is that these sacred things are only straw-dogs and wicker-men. The real animating motive for the Left these days is simply the pleasure of coercion, of exercising the power to punish their adversaries and watch them suffer.

The Trump Right also enjoys the writhings and sufferings of its adversaries, squashed bug style, as it goes forth in the quixotic battle to bring back 1962 at all costs. Both the Left and the right show not a little sadism in their methods. In the background of these histrionics, the great groaning machine of Modernity lurches toward collapse — not the end-of-the-world as many foolishly imagine, but the end of a phase of history when things that used to work, don’t. At a certain point, we’ll have to try other ways of being with each other on this planet, and then for a while things will come together again.

Fed says Americans in for a "Nasty Surprise". Massive Silver Price Rise 2017

Posted: 03 Feb 2017 06:00 PM PST

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Don't Blame Trump When The World Ends

Posted: 03 Feb 2017 04:55 PM PST

Submitted by MN Gordon via EconmicPrism.com,

There was, indeed, a time when clear thinking and lucid communication via the written word were held in high regard.  As far as we can tell, this wonderful epoch concluded in 1936.  Everything since has been tortured with varying degrees of gobbledygook.

The fall from grace was triggered by the 1936 publication of John Maynard Keynes’ The General Theory of Employment, Interest and Money.  The book is rigorously indecipherable.  What’s more, it has the ill-effect of making those who read it dumber.

Nonetheless, politicians and establishment economists remain enamored with Keynes’ gibberish.  For it offers academic rationale for governments to do what they love to do most – borrow money and spend it on inane programs.  In particular, Keynes advocated filling bottles with money and burying them in coalmines for people to dig up as a way to end unemployment.  Somehow, this public works egg hunt would make everyone rich.

Over the years this reasoning has inspired countless government stunts to save the economy from itself.  Not long ago, Keynes devotee, Paul Krugman, took this logic and ran with it to the outer limits of deep space.  In the process, he seems to have lost his mind.

According to Krugman, the proper way to propel an economic growth chart up and to the right is to borrow massive amounts of money and spend it preparing for an alien invasion. Naturally, it takes a Nobel Prize winning economist to come up with such nonsense.

Better Markets

Unfortunately, Keynes’ drivel became the archetypical for illogical economic thought, and still infects economic discourse to this day.  You can hardly browse the headlines of Yahoo finance without your eyeballs being lacerated by it.

Just this week, for instance, we came across a headline titled, The Coming Trump Financial Crash. The author, Dennis M. Kelleher, happens to be President and CEO of the oddly named company Better Markets.  The company website clarifies that Better Markets is “a nonprofit that promotes the public interest in the financial markets.”

What exactly this Washington, D.C. based nonprofit does – or how they keep the lights on – is unclear.  But what is clear is that Kelleher is very comfortable applying words and terms to construct sentences with haphazard syntax.  Kelleher also seems panicked that financial deregulation by Trump is going to cause a great big crash:

“If the Trump administration does just half of what it says it’s going to do in economic policy and financial regulation, another financial crash is almost certain and sooner rather than later.  Worse yet, if they do that, the next crash will be much worse than the last one.

 

“Why another crash?  Because it appears he is going to cause an asset and stock market bubble at the very same time he is reducing or eliminating the most sensible financial regulation designed to prevent the highest risk gambling on Wall Street.  Tax changes that favor the wealthiest and repatriation of overseas profits that will most likely fund stock buybacks and M&A will be a short-term boost for the stock market.  However, there has been almost no discussion of concrete policies that would actually produce sustainable and durable economic growth in the real economy.

 

“We have already seen the beginnings of the stock market bubble, with financial stocks leading the way as investors think that Wall Street’s highly profitable, but highest risk activities will create outsized returns […].  If financial regulation designed to protect Main Street’s jobs, homes and savings from Wall Street’s excesses are weakened or eliminated, then those activities will lead to financial excesses and almost certainly end in a financial crash.”

Do you follow the logic?

Don’t Blame Trump When the World Ends

Here at the Economic Prism we think Kelleher is giving President Trump too much credit for what he can and can’t do.  While we agree a stock market crash is in the cards.  Unlike Kelleher, when the crash does inevitably come, we don’t think President Trump is who the fingers of blame should be pointed at.

Regulations, which Kelleher advocates, don’t get at the core of the problem.  Rather, the core of the problem is that today’s fiat money system is completely out of control.  Until something is done about it, we’ll continue to experience epic asset bubbles and busts.

President Trump’s efforts to ease corporate tax policy or financial regulations are small potatoes compared to the destructive market whipsaws that come with rampant credit creation.  Offshore corporate coffers would’ve never been stuffed so full if we had sound money with honest limits.

You may love the man.  You may hate him.  But the fact is, President Trump has been dealt the worst hand of any incoming U.S. President since James Buchanan – or maybe ever.

He’s taking over at a time when the national debt has experienced exponential growth for over 45 years.  The national debt was under $400 billion when Tricky Dick Nixon closed the gold window in 1971.  Today it’s nearly $20 trillion.

In short, the debt curve is entering a hyperbolic state.  No amount of monetary gas will be able to propel it straight up forever.  Of course, when you tack on unfunded liabilities, like social security, prescription drugs, and medicare, the debt runs up to a breathtaking $104.6 trillion.  Each taxpayer’s on the hook for over $874,800.

At the same time, the stock valuations are at nose bleed heights.  The Shiller’s Cyclically Adjusted Price Earnings (CAPE) ratio, for instance, is currently 28.5.  That’s 70 percent higher than the CAPE’s long-term historical average.

In addition, there have only been two occasions over the last 100 years that saw the CAPE at a higher valuation than today.  One was during the late 1920s, right before the stock market crash.  The other was the late 1990s, just prior to the popping of the internet bubble.

Similarly, the Buffett indicator, which is a ratio of the total market capitalization over gross domestic product, also shows that stocks are significantly overvalued.  The ratio currently stands at about 126 percent.  A fairly valued market is a ratio somewhere between 75 and 90 percent.  Anything above 115 percent is considered significantly over valued.

The point is a century of scientific mismanagement of the currency has pushed the economic, financial, and social order well past any rational limit.  Total government debt and stock valuations are at all-time extremes.  Something big is coming.  You can guarantee it.

But don’t blame Trump when the world ends.  There ain’t a doggone thing he or anyone else can do to stop it.

Gold Price Closed at $1218.50 Up $30.10 or 2.5% This Week

Posted: 03 Feb 2017 04:39 PM PST

Here's the weekly scorecard:

27-Jan-173-Feb-17Change% Change
Silver Price, cents/oz.1,710.001,745.3035.302.1
Gold Price, dollars/oz.1,188.401,218.5030.102.5
Gold/silver ratio69.49769.8160.3190.5
Silver/gold ratio0.01440.0143-0.0001-0.5
Dow in Gold Dollars (DIG$)349.52340.51-9.01-2.6
Dow in gold ounces16.9116.47-0.44-2.6
Dow in Silver ounces1,175.071,150.03-25.05-2.1
Dow Industrials20,093.7820,071.46-22.32-0.1
S&P5002,294.692,297.422.730.1
US dollar index100.5699.60-0.96-1.0
Platinum979.401,003.2023.802.4
Palladium738.00749.4511.451.6
3-Feb-17PriceChange% Change
Gold Price, $/oz1,218.501.800.1
Silver Price, $/oz17.450.040.2
Gold/Silver Ratio69.8160.1020.1
Silver/Gold Ratio0.01430.00000.2
Platinum1,003.207.100.7
Palladium749.45-9.65-1.3
S&P 5002,297.4216.570.7
Dow20,071.46186.550.9
Dow in GOLD $s340.512.700.8
Dow in GOLD oz16.470.130.8
Dow in SILVER oz1,150.038.200.7
US Dollar Index99.76-0.04-0.0
IMPORTANT NOTE: The following are wholesale, not retail, prices. To figure our retail selling price, multiply the "ask" price by 1.035. To figure our retail buying price, multiple the "bid" price by 0.97. Lower commissions apply to larger orders, higher commissions to very small orders.
SPOT GOLD:1,219.10


GOLDFine Tr.Oz.BIDASK$/oz
American Eagle1.001,248.361,259.331,259.33
1/2 AE0.50627.32641.861,283.71
1/4 AE0.25319.75327.631,310.53
1/10 AE0.10127.90133.491,334.91
Aust. 100 corona0.981,186.001,195.001,219.14
British sovereign0.24289.13302.131,283.47
French 20 franc0.19227.61233.611,251.24
Krugerrand1.001,233.731,243.731,243.73
Maple Leaf1.001,229.101,243.101,243.10
1/2 Maple Leaf0.50700.98640.031,280.06
1/4 Maple Leaf0.25310.87326.111,304.44
1/10 Maple Leaf0.10129.22132.881,328.82
Mexican 50 peso1.211,456.521,467.521,217.15
.9999 bar1.001,219.101,231.101,231.10
SPOT SILVER:17.45


SILVERFine Tr.Oz.BIDASK$/oz
VG+ Morgan $B4 19050.7723.0027.0035.29
VG+ Peace dollar0.7717.0020.0026.14
90% silver coin bags0.7212,262.2512,548.2517.55
US 40% silver 1/2s0.304,956.005,106.0017.31
100 oz .999 bar100.001,735.001,760.0017.60
10 oz .999 bar10.00176.00181.0018.10
1 oz .999 round1.0017.7018.0018.00
Am Eagle, 200 oz Min1.0018.9520.4520.45
SPOT PLATINUM:1,003.20


PLATINUMFine Tr.Oz.BIDASK$/oz
Platinum Platypus1.001,018.201,048.201,048.20

IMPORTANT NOTE: The following are wholesale, not retail, prices. To figure our retail selling price, multiply the "ask" price by 1.035. To figure our retail buying price, multiple the "bid" price by 0.97. Lower commissions apply to larger orders, higher commissions to very small orders.

SPOT GOLD:1,215.20


GOLDFine Tr.Oz.BIDASK$/oz
American Eagle1.001,244.361,255.301,255.30
1/2 AE0.50625.31639.801,279.61
1/4 AE0.25318.73326.591,306.34
1/10 AE0.10127.49133.061,330.64
Aust. 100 corona0.981,182.211,191.211,215.27
British sovereign0.24288.20301.201,279.54
French 20 franc0.19226.88232.881,247.34
Krugerrand1.001,228.571,238.571,238.57
Maple Leaf1.001,225.201,239.201,239.20
1/2 Maple Leaf0.50698.74637.981,275.96
1/4 Maple Leaf0.25309.88325.071,300.26
1/10 Maple Leaf0.10128.81132.461,324.57
Mexican 50 peso1.211,451.861,462.861,213.29
.9999 bar1.001,215.201,227.201,227.20
SPOT SILVER:17.45


SILVERFine Tr.Oz.BIDASK$/oz
VG+ Morgan $B4 19050.7723.0027.000.04
VG+ Peace dollar0.7717.0020.000.03
90% silver coin bags0.7212,226.5012,512.5017.50
US 40% silver 1/2s0.304,956.005,106.0017.31
100 oz .999 bar100.001,735.001,760.0017.60
10 oz .999 bar10.00176.00181.0018.10
1 oz .999 round1.0017.7018.0018.00
Am Eagle, 200 oz Min1.0018.9520.4520.45
SPOT PLATINUM:996.10


PLATINUMFine Tr.Oz.BIDASK$/oz
Plat. Platypus1.001,011.101,041.101,041.10

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Making Jam from Chinas Gold Investing

Posted: 03 Feb 2017 01:30 PM PST

Bullion Vault

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Roughly 2% on the Week

Posted: 03 Feb 2017 01:22 PM PST

Gold fell $4.76 to $1210.54 at about 8AM EST before it shot to as high as $1221.29 by midmorning in New York and then fell back off at times, but it still ended with a gain of 0.3%. Silver rose to as high as $17.538 and ended with a loss of 0.06%.

Trump Declares War Against Himself

Posted: 03 Feb 2017 01:00 PM PST

This post Trump Declares War Against Himself appeared first on Daily Reckoning.

President Trump has trade in the dock, giving it a good hard grilling.

The indictment reads thus: Leading exporters China, Japan and Germany are fudging their currencies to goose exports — at Uncle Samuel's expense.

China and Japan are allegedly "playing the devaluation market." Germany is using a "grossly undervalued" euro to "exploit" the United States.

The accused plead innocent on all counts. The prosecution presses on.

Yet the prosecution finds itself in a bit of a thicket. Trump's pledges of deregulation, tax reduction and infrastructure spending all spell a stronger dollar. And the dollar rallied post-election on visions of renewed American growth.

A stronger dollar also attracts foreign investment. That means greater investment in the U.S. economy. And American jobs.

But Trump wails the dollar's grown too bulky for its own good. It's "killing us," he moans. He wants to let out some of the air. A softer dollar gives American products a fighting chance in global markets, goes the reasoning. Brings jobs home. And helps U.S. corporations.

So we've come to a strange realization: The new president is at war with himself.

Strengthen the dollar… and weaken the dollar. He can't have it both ways. It's trying to take both sides of the seesaw.

Joseph Gagnon, senior fellow at the Peterson Institute for International Economics:

If the administration is talking the dollar down but pursuing policies that will push it the other way, then that’s a recipe for uncertainty, if not volatility… I see a tension between policies that will push the dollar up, and their desire for it to weaken. You could say it’s a paradox, or incoherent. And it could end up in a bit of a mess.

That "bit of a mess" could be the next major battle of the currency wars (see Jim Rickards below for more). Trump may have fired the opening shots at China, Japan and Germany.

Ulrich Leuchtmann, analyst with Germany's Commerzbank, thinks Team Trump has "fired the next salvo in the currency war." He's warned his clients to "buckle up for a currency war that might become nasty."

Is another currency war what the world needs right now? It goes on eggshells as it is. Jim, raising the hair a bit:

The real lesson of currency wars is that they don't produce the results you expect, which are increased exports and jobs and some growth. What they generally produce is extreme deflation, extreme inflation, recession, depression or economic catastrophe.

No thanks. But maybe a weaker dollar isn't such a bugaboo after all?

The strong dollar has sucked vast sums of capital out of China and the emerging markets. That's resulted in a potentially destabilizing debt crisis around the world. A strong dollar makes it harder for countries holding large amounts of dollars to service their debt.

Maybe a softer dollar lightens the burden. And maybe all that capital stays put if the dollar's not such a gaudy alternative.

But foreign investment in the American economy drops with a weaker dollar. Investment creates jobs. And do you really want to pay more for gas? Bread? And everything else?

Maybe it's a Goldilocks dollar the world needs. Not too strong… not too weak.

We don't pretend to know the proper value of the dollar. But our slender understanding tells us it's an achievement to have a strong currency, not a weak one.

Any damn fool country can have a currency. But who wants the currency of any damn fool country?

We're proud to count ourself citizen of a republic whose currency is wanted around the world. It's a beacon offering promise… solid prospects… and a square deal within a framework of law. A strong dollar therefore seems a national point of honor.

Why stain it?

So you can go ahead and put us down for a strong dollar. It has nothing whatsoever to do with the fact that a stronger dollar means cheaper gas for us. And bread. And booze. And anything else our heart fancies.

No, nothing at all to do with that. Our only concern is the national honor. We swear…

Regards,

Brian Maher
Managing editor, The Daily Reckoning

The post Trump Declares War Against Himself appeared first on Daily Reckoning.

Trump About to Declare Currency War!

Posted: 03 Feb 2017 01:00 PM PST

This post Trump About to Declare Currency War! appeared first on Daily Reckoning.

[Ed. Note: Jim Rickards latest New York Times best seller, The Road to Ruin: The Global Elites' Secret Plan for the Next Financial Crisis (claim your free copy here) transcends politics and media to prepare you for the next crisis in the ice-nine lockdown.] 

Six years ago in my first book, Currency Wars, I wrote, "There is nothing today that suggests the currency wars will end anytime soon." Today, those words seem as true as ever.

A currency war is a battle, but it's primarily economic. It's about economic policy. The basic idea is that countries want to cheapen their currency. Now, they say they want to cheapen their currency to promote exports. Maybe it makes a Boeing more competitive internationally with Airbus.

But the real reason, the one that's less talked about, is that countries actually want to import inflation. Take the United States for example. We have a trade deficit, not a surplus. If the dollar's cheaper it may make our exports slightly more attractive.

It's going to increase the price of the goods we buy — whether it's manufactured good, textiles, electronics, etc. — and that inflation then feeds into the supply chain in the U.S. So, currency wars are actually a way of creating monetary ease and importing inflation.

How many times have you heard the Fed say they want 2% inflation? They analyze it over and over and over. They're desperate to get there.

The problem is, once one country tries to cheapen their currency, another country cheapens its currency, and so on causing a race to the bottom.

Currency wars are like real wars in more ways than one. They can last longer than the combatants expect, and produce unexpected victories and losses. Real wars do not involve all fighting, all the time. There are quiet periods, punctuated by major battles, followed by new quiet periods as the armies rest and regroup.

There are critical turning points where a long-term directional trend is set to reverse. Today's "winners" (the strong currencies) suddenly become "losers" (the weak currencies), contrary to most expectations and Wall Street forecasts. Today we could be at one of those turning points, which we'll explore in a moment. But first, let's see how we got here.

The currency wars of the early 1930s are potentially instructive for what we could be experiencing today. The U.K. devalued the pound sterling in 1931. Soon after, the U.S. devalued the dollar in 1933. Then France, which devalued the franc in the '20s, and the U.K. devalued again in 1936.

You had a period of successive currency devaluations and so-called "beggar-thy-neighbor" policies.

The result was, of course, one of the worst depressions in world history. There was skyrocketing unemployment and crushed industrial production that created a long period of very weak to negative growth. This currency war was not resolved until World War II and then, finally, at the Bretton Woods conference. That's when the world was put on a new monetary standard.

The next currency war raged from 1967 to 1987. The seminal event in the middle of this war was Nixon's taking the U.S., and ultimately the world, off the gold standard on August 15, 1971.

He did this to create jobs and promote exports to help the U.S. economy. What actually happened instead?

We had three recessions back to back, in 1974, 1979 and 1980.

Our stock market crashed in 1974. Unemployment skyrocketed, inflation flew out of control between 1977 and 1981 (U.S. inflation in that five-year period was 50%) and the value of the dollar was cut in half.

The real lesson of currency wars is that they don't produce the results you expect which are increased exports and jobs and some growth. What they generally produce is extreme deflation, extreme inflation, recession, depression or economic catastrophe.

But they're very, very appealing to politicians because they can stand up say, "Hey, it's good to have a cheap dollar because we promote jobs." But the reality is, it doesn't promote jobs. It just promotes inflation.

You're actually better off with a strong currency because that attracts capital from overseas. People want to invest in the strong currency area, and it's that investment and those capital inflows that actually creates the jobs. So as usual, the politicians and the central bankers have it completely wrong. But they're not listening to me or necessarily reading my newsletters.

The period between 1985 and 2010 was the age of what we call "King dollar" or the "strong dollar" policy. It was a period of very good growth, very good price stability and good economic performance around the world.

The United States agreed to maintain the purchasing power of the dollar and our trading partners could link to the dollar or plan their economies around some peg to the dollar. That gave us a generally stable system. It worked up until 2010 when the U.S. tore up the deal and basically declared another currency war to boost U.S. exports. President Obama did this in his State of the Union address in January 2010.

The currency wars have been ongoing ever since, with varying intensity. But with the election of Donald Trump, they look set to enter a new major battle.

Today, the currency wars have brought the U.S. to the cusp of a trade war. President Trump and several of his top advisers in recent days have complained that not only is China a currency manipulator, but so are Japan and Germany. It seems the U.S. is tired of the new "king dollar" phase it's been in lately, and is willing to take action to cheapen the dollar.

But how can the administration actually do this?

The Fed will not lower rates because it is in a tightening cycle. The Fed will probably be raising rates in March and possibly later this year. That makes the dollar stronger.

China is trying to prop up the yuan but is running out of dollar reserves to do so and will have to devalue before they go broke. Germany might like a stronger euro to fight inflation, but the decision is not entirely in their hands — it's up to the European Central Bank, and the ECB is still engaged in QE for the time being.

Japan cannot afford a stronger yen, because they have the highest debt-to-GDP ratio of any major economy and are desperate to get inflation. Japan needs inflation to lower the real value of that debt.

If China, Germany and Japan cannot give Trump what he wants in the foreign exchange markets, what options does the U.S. have?

The main option is tariffs, exactly what Richard Nixon did on Aug. 15, 1971.

You may remember that date as the day Nixon ended the convertibility of dollars for gold. But he also imposed a 10% across-the-board tariff on all imported goods as part of his New Economic Plan. Nixon combined the currency wars and trade wars in one policy by hoarding gold and imposing tariffs.

Historically, currency wars do lead to trade wars and, ultimately, to some form of systemic collapse. That seems to be happening again. I'll be analyzing each side of this coin in the coming weeks.

Regards,

Jim Rickards
for The Daily Reckoning

The post Trump About to Declare Currency War! appeared first on Daily Reckoning.

COT Gold, Silver and US Dollar Index Report - February 3, 2017

Posted: 03 Feb 2017 12:31 PM PST

COT Gold, Silver and US Dollar Index Report - February 3, 2017

Why Gold is the Ace Up Trump’s Sleeve

Posted: 03 Feb 2017 12:00 PM PST

This post Why Gold is the Ace Up Trump's Sleeve appeared first on Daily Reckoning.

Trends are born, they grow, mature, reach old age and die…

The Donald Trump, businessman/reality show star turned President of the United States trend has just been born.

I've never seen anything like it.

Never in modern history has the nation stood so divided and nations across the globe so alarmed following the election of the leader of the world’s largest economy and most powerful military.

And with each passing day, social tensions rise, equity markets tremble and geopolitical uncertainty grows with each new executive order, accusation, proclamation and tweet.

People are taking to the streets.

Immediately following Trump’s inauguration, The Women’s March of nearly 5 million women and men across America and throughout much of the western world took a stand, vowing to protect “our rights, our safety, our health, and our families… and that women’s rights are human rights.”

Just a week later, following Trump’s executive order to restrict immigration into the US from seven Muslim-majority countries, mass demonstrations spontaneously erupted across America.

From Silicon Valley to Wall Street, CEOs condemned Trump’s travel-ban directive. In response, equity markets shuddered and gold prices rose. The Wall Street Journal wrote on Jan. 31: “Travel Upheaval Sets Back Stocks. U.S. stocks stumbled, sending the Dow Jones Industrial Average in its worst day since the election.”

It's sent the markets into a frenzy…

But gold spiked some $15 per ounce, gaining more than 5 percent in January, its best month since June 2016, and the Brexit circus.

Assess the impact of Trump’s tough stance on immigration and growing concerns of trade protectionism…

Consider the implications of White House accusations that China is purposely devaluing its currency…

Consider the implications that Germany is using a “grossly undervalued” euro to “exploit” the US, whose strong dollar makes American-made products more expensive to export…

…And you can clearly see why stocks lost momentum and gold prices rose as tensions built.

But when you go beyond the cause-and-effect, one theme emerges. As a New York Times headline read, “Trump’s Unpredictability Makes Foreign Leaders Wary.”

On Tuesday, European Council President Donald Tusk wrote in a letter to European leaders that “worrying declarations by the new American administration all make our future highly unpredictable,” and that there should be no surrender “to those who want to weaken or invalidate the transatlantic bond.”

Uncertain times. Wary foreign leaders. Protests in the streets.

It may be early in the life-cycle of the President Trump trend, but the outlook is clear: This is good for gold. Gold is the ace up Trump's sleeve.

Considering the unprecedented socioeconomic and geopolitical fear and uncertainty levels associated with the Trump White House, I maintain my forecast of a limited downside risk for gold and a strong upside potential during this administration.

And, of all the world’s currencies and commodities, gold outshines them all as the ultimate safe-haven asset in times of high anxiety, deep concern, social unrest and geopolitical instability.

Trends don't lie. And this one shines golden.

Until next time,

Gerald Celente
for The Daily Reckoning

The post Why Gold is the Ace Up Trump's Sleeve appeared first on Daily Reckoning.

US Mint Bullion-Coin Sales 5

Posted: 03 Feb 2017 09:30 AM PST

Zealllc

US Mint Bullion-Coin Sales 5

Posted: 03 Feb 2017 08:58 AM PST

Gold's first new bull market since 2011 last year was overwhelmingly driven by stock investors flooding into gold ETFs. Traditional physical bar-and-coin demand was actually quite weak, falling considerably year-over-year. Nevertheless, it's still important to stay abreast of classic gold and silver investment demand. One key microcosm of that comes in the form of the US Mint's sales of its popular American Eagle coins.

US Mint Gold and Silver Bullion Coin Sales

Posted: 03 Feb 2017 08:07 AM PST

Gold’s first new bull market since 2011 last year was overwhelmingly driven by stock investors flooding into gold ETFs.  Traditional physical bar-and-coin demand was actually quite weak, falling considerably year-over-year.  Nevertheless, it’s still important to stay abreast of classic gold and silver investment demand.  One key microcosm of that comes in the form of the US Mint’s sales of its popular American Eagle coins. When American investors buy physical gold and silver bullion, it’s often in the form of these American Eagle 1-ounce coins.  They have a really interesting history.  Back in the early 1980s, foreign national gold coins led by South Africa’s famous Krugerrand were soaring in popularity.  The US Congress didn’t want the States to be left out of the prestigious national-gold-coin business, so it finally acted in 1985.

The US Dollar Bulls Are Falling for a DANGEROUS Trap...

Posted: 03 Feb 2017 07:08 AM PST

As we have repeatedly warning, anyone who is betting on the Trump Presidency unleashing a massive $USD bull market in the near future is going to get taken to the cleaners. This has already begun… One of the single most dangerous traps for traders to avoid is a "False Breakout." False breakouts are moves in which an asset "breaks out" of a formation, leading many to believe that the move is legitimate… then suddenly KA-BLAM, the move reverses violently.

Gold in the Post-election Market

Posted: 03 Feb 2017 07:07 AM PST

The current spurt comes at a time of dollar weakness, on profit-taking following the post-Trump election rally. There is little doubt that the post-election euphoria is wearing off somewhat, as the markets digest the unprecedented pace of executive orders being issued from the White House, some of them pregnant with unintended consequences. However, it is too early perhaps to call a top for the dollar measured against other currencies. Gold's performance in the four major currencies is the subject of our next chart.

Gold and Reflation

Posted: 03 Feb 2017 06:09 AM PST

In recent years, deflation was considered one of the biggest threats to the global economy. These fears are vanishing. As deflation becomes the thing of the past (there was even the end of deflation in Japan at the end of 2016), reflation is now attracting the attention of investors. What does it mean? According to the most popular definition, reflation is an increase in economic activity and inflation, usually caused by using inflationary measures to reverse deflationary trends. We simply take reflation to be acceleration in the rate of inflation, i.e. the opposite of disinflation, which is a decrease in the rate of inflation.

Ignore Trump Sabre-Rattling and Buy Gold

Posted: 03 Feb 2017 06:06 AM PST

Gold hits 12-week high USD Gold price up 4.85% in last month Sabre-rattling from Trump administration set-to benefit gold Iran upset and Middle East tensions could drive oil and gold prices up. Financial Times foresees “not only currency wars but a fully fledged trade confrontation that could be disastrous for the world economy.” Royal Mint producing 50 % more gold bullion coins and bars compared to 2016 Utah moves to hold public funds in gold WGC report demand for gold hit four-year high in 2016 Investment demand climbed by 70% last year fuelled by geopolitical uncertainties

Buy Gold Because of Uncertainty not Doomsday

Posted: 03 Feb 2017 05:02 AM PST

gold.ie

Gold Price and Reflation

Posted: 03 Feb 2017 04:56 AM PST

In recent years, deflation was considered one of the biggest threats to the global economy. These fears are vanishing. As deflation becomes the thing of the past (there was even the end of deflation in Japan at the end of 2016), reflation is now attracting the attention of investors. What does it mean? According to the most popular definition, reflation is an increase in economic activity and inflation, usually caused by using inflationary measures to reverse deflationary trends. We simply take reflation to be acceleration in the rate of inflation, i.e. the opposite of disinflation, which is a decrease in the rate of inflation.

Decision reinstating silver-rigging suit against JPM posted by Avery Goodman

Posted: 03 Feb 2017 04:40 AM PST

7:41a ET Friday, February 3, 2017

Dear Friend of GATA and Gold:

Securities lawyer and market analyst Avery Goodman today notes the U.S. 2nd Circuit Court of Appeals' reinstatement of the silver market-rigging anti-trust lawsuit against JPMorganChase and posts the appeal court's decision at his internet site here:

http://averybgoodman.com/myblog/2017/02/03/jp-morgan-silver-manipulation...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org



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At 3 Aces Project, Golden Predator Finds 7.5 Meters of 33 Grams-Per-Tonne Gold


Company Announcement
Thursday, January 19, 2017

VANCOUVER, British Columbia, Canada -- Golden Predator Mining Corp. (TSX.V: GPY; OTCQX: NTGSF) is pleased to report assay results for the first 13 holes of a total of 54 holes completed in the winter 2016 drill program at the 3 Aces Project in southeastern Yukon Territory.

Drilling has demonstrated an extension of high-grade gold at the Ace of Spades zone, as well as the exciting discovery of a blind vein and the occurrence of significant assay values in stockwork zones.

Significant results reported at true width include:

-- Hole 3A16-RC-032 intersected 7.54 meters of 32.86 grams per tonne gold from a depth of 16.76 meters, including 0.54 meters of 252 grams per tonne gold; and a new blind vein at a depth of 71.63 meters returned 3.23 meters of 10.04 grams per tonne gold. (The hole ended in mineralization. ...

For the remainder of the announcement:

http://www.goldenpredator.com/_resources/news/nr_2017_01_19.pdf



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