A Collapsing Dollar And China’s Monetary Strategy

Alasdair Macleod – Re-Blogged From Gold Eagle

This article describes how China can escape the fate of a dollar collapse by tying the yuan to gold. There is little doubt she has access to sufficient gold. Currently, her interest is to preserve the dollar, not destroy it, because it is the principal means of Chinese foreign interests being secured .

Furthermore, a return to sound money requires China to reverse its interventionism under Xi, returning to Deng Xiaoping’s original vision. Sound money can only last if the relationship between the state and the wider economy is properly addressed.

Of all the major economies, China’s is best placed to implement a sound money solution. At the moment it seems unlikely the necessary reforms will be forthcoming; but a general collapse of the global fiat currency regime presents the opportunity for reassessment and change.

Continue reading

Gold, Copper And Silver Are Must-Own Metals

Gold surged on Monday after a spike in coronavirus cases worldwide dashed hopes of a quick economic recovery. Within 24-hours the number of infections globally rose 183,020, a new record, the World Health Organization reported, Reuters said the US saw a 25% increase in new COVID-19 cases over the week ending June 21st.

Continue reading

The Crisis Goes Up A Gear

By Alasdair Macleod – Re-Blogged From Gold Eagle

Dollar-denominated financial markets appeared to suffer a dramatic change on or about the 23 March. This article examines the possibility that it marks the beginning of the end for the Fed’s dollar.

At this stage of an evolving economic and financial crisis, such thoughts are necessarily speculative. But an imminent banking crisis is now a near certainty, with most global systemically important banks in a weaker position than at the time of the Lehman crisis. US markets appear oblivious to this risk, though the ratings of G-SIBs in other jurisdictions do reflect specific banking risks rather than a systemic one at this stage.

A banking collapse will be a game-changer for financial markets, and we should then worry that the Fed has bound the dollar’s future to their fortunes.

The dollar could fail completely by the end of this year. Against that possibility a reset might be implemented, perhaps by reintroducing the greenback, which is not the same as the Fed’s dollar. Any reset is likely to fail unless the US Government desists from inflationary financing, which requires a radically changed mindset, even harder to imagine in a presidential election year.

Continue reading

The Law-Of-Diminishing Returns Is Taking Hold Of The FOMC’s “Monetary Policy”

By Mark J Lundeen – Re-Blogged From Gold Eagle

I had excellent timing for my vacation, with not much happening until this week; and what happened this week? On Monday’s close the Dow Jones came within 7% of its last all-time high (BEV Zero). What could go wrong and prevent the Dow Jones from making a historic new all-time high sometime in the coming weeks? Only Mr Bear, who in the next three days began clawing back market valuation with relish.

On Thursday the venerable Dow Jones began upchucking dollars, coughing up 1,862 of them in a single NYSE trading session, taking the Dow Jones all the way back down to its BEV -15% line in the chart below. Last Monday, it appeared the BEV -17.5% line was no longer a technically important level. The question in my mind now is will the Dow Jones once again advance into single digits in the BEV chart below, or find itself closing below its BEV -17.5% line?

Continue reading

Orphaned Silver Is Finding Its Parent

Introduction

So far this year, the story in precious metals markets has been all about gold. Speculators have this idea that gold is a hedge against inflation. They don’t question it, don’t theorise; they just assume. And when every central bank issuing a respectable currency says they will print like billy-ho, the punters buy gold derivatives.

These normally tameable punters are now breaking the establishment’s control system. On Comex, the bullion establishment does not regard gold and silver as money, just an idea to suck in the punters. The punters are no longer the suckers. With their newly promised infinite monetary expansion, central banks are confirming their inflationary fears.

Continue reading

Is America Headed For A Post-Apocalyptic Currency Collapse?

By Stefan Gleason – Re-Blogged From Silver Phoenix

Just when it seemed as though America may be turning the corner after months of lockdown… just when it seemed as though we were on a path to reopening and gradually returning to normalcy… just when the prospects of panic-induced social unrest seemed to be behind us…

…America’s cities erupted into flames.

Antifa and BLM-organized rioting, looting, violence, and mayhem have pushed cities across the country into pandemonium. Even if the insurrections are soon quelled – as President Donald Trump promised to do in a speech in front of the White House on Monday – the consequences won’t soon go away.

Silver Miners’ Q1’20 Fundamentals

By Adam Hamilton – Re-Blogged From Silver Phoenix

The silver miners’ stocks have surged higher since mid-March’s COVID-19 stock panic, clocking in some big and fast gains.  Nevertheless, this long-struggling sector remains vexing.  By mid-May as their latest earnings season was wrapping up, the silver stocks were lagging the gold stocks’ powerful upleg.  And the silver miners’ Q1’20 operational and financial results were disappointing compared to the gold miners’.

Silver and its miners’ stocks have had one heck of a roller-coaster ride in recent months.  With primary silver miners a dying breed, and silver stocks languishing deeply out of favor for years, there are only a couple silver-stock ETFs trading in the US.  The leading one remains the SIL Global X Silver Miners ETF.  And it is still tiny, a rounding error with just $527m in net assets in mid-May.  Silver stocks are left for dead.

Continue reading

You Can’t Just Print More Gold

By Frank Holmes – Re-Blogged From Gold Eagle

“I think there is a strong likelihood we will need another bill.”

That’s according to Treasury Secretary Steven Mnuchin, who supports additional fiscal stimulus to combat the economic impact of the novel coronavirus—within reason.

The secretary’s statement comes after the House passed a record-shattering $3 trillion relief package, though leaders in the Senate have said they will not put it up for a vote. Senate Majority Leader Mitch McConnell has made it clear that the next coronavirus bill “cannot exceed $1 trillion,” according to reporting by Axios.

Even so, the U.S. government’s response is already massive, dwarfing anything that’s come before it.

The Global Forest Fire Is Here

It drives you absolutely mad to see a whole world living a lie. How can anyone believe that the fake world the Fed and their fellow central bankers have created has anything to do with reality. We have fake money, fake markets, fake companies, fake banks, fake interest rates, fake income, fake pensions, fake social security, fake wealth, fake bail outs, fake buildings, fake holidays, fake cars etc which create false lives for most of us especially in the West. All these fake material values have also created false moral and ethical values.

IT IS ALL AN ILLUSION 

Continue reading

Gold Mid-Tiers’ Q1’20 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The mid-tier gold miners in the sweet spot for stock-price upside potential have enjoyed a massive run since mid-March’s stock-panic lows.  They’ve already more than doubled in the couple months since!  Their just-released Q1’20 operational and financial results reveal whether these huge gains are righteous fundamentally, whether this uptrend is likely to persist, and how COVID-19 shutdowns are affecting gold miners.

Interestingly the leading mid-tier gold-stock ETF is the famous GDXJ VanEck Vectors Junior Gold Miners ETF.  Despite its misleading name, GDXJ is overwhelmingly dominated by mid-tier gold miners.  They produce 300k to 1m ounces of gold annually, between the smaller juniors and larger majors.  The mid-tiers offer an excellent mix of sizable diversified production, output-growth potential, and smaller market caps.

Continue reading

Rates Eye Negative Territory As Capital Prepares For Slow Death

By Mike Gleason – Re-Blogged From Silver Phoenix

Precious metals markets appear to be gearing up for another leg higher. On Thursday, the metals complex rose sharply across the board. Gold gained about 2.5% while silver packed on nearly 4%.

Both of the monetary metals showed signs of breaking out of the sideways trading ranges they’ve been stuck in over the past four weeks. Silver price closed solidly above its 50-day moving average for the first time since late February.

Bulls will be looking for confirmation with strong weekly closes today and then follow-through early next week.

Continue reading

Barron’s Confidence Index Is Collapsing

By Mark J Lundeen – Re-Blogged From Gold Eagle

The week closed with the Dow Jones’ BEV -17.5% line of resistance holding, though on Wednesday the Dow Jones did close above this critical level, for a few hours anyway.  Friday’s close found the Dow Jones at its lows for the week.  But for the bulls out there, hope springs eternal as there is always next week.

What if the Dow Jones clears this line of resistance?  I’ll just have to find another important BEV level in the chart below to see if it’s willing to perform as a proper line of resistance, better than the BEV -17.5% level has.  What BEV level had for years provided a line of support during the bull market’s advance that can now perform as a line of resistance?

Continue reading

Silver’s Epic Mean Reversion

By Adam Hamilton – Re-Blogged From Silver Phoenix

Silver is powering higher in a new bull market after getting clobbered in March’s stock panic.  Investors have been flocking back to silver in the aftermath of that ultra-rare extreme-fear event.  That brutal selloff also utterly wiped out speculators’ upside bets in silver futures, giving them massive room to buy back in.  After being pummeled to record-low levels relative to gold, an epic silver mean reversion higher is underway.

A couple weeks ago, I wrote a popular essay “Big Silver Bull Running!”.  It explained what happened to silver in this recent COVID-19 stock panic, and why silver soared in its wake.  Sucked into that blinding fear maelstrom, silver was thrashed to a miserable 10.9-year low.  This metal plummeted in a near-crash, fueled by speculators’ fastest long purge ever witnessed!  That exhausted their selling, totally resetting longs.

That meant these super-leveraged traders’ capital firepower was fully available to buy back into silver.  And much more bullish than that, strong and relentless silver investment demand emerged since that mid-March collapse.  That’s evident in the soaring silver-bullion holdings of silver’s leading exchange-traded fund, the SLV iShares Silver Trust!  This dominant silver ETF is the best daily proxy for global investment demand.

Continue reading

Golden Vaccines And Dow To Gold Ratio

By GE Christenson – Re-Blogged From Gold Eagle

Things appeared normal, and then everything changed…

U.S. COVID-19 official cases on March 7: 338.

U.S. COVID-19 official cases on April 28: over 1,000,000, if you believe the Johns Hopkins numbers. Exponential growth in sickness, debt, and expenditures are “killers.”

The economic, emotional, and physical scars from the virus will torture us for a long time. Disneyland and Disneyworld are closed indefinitely.

Continue reading

Central Banks And The Ponzi Scheme That Will Bankrupt The World

By Egon von Greyerz – Re-Blogged From Gold Eagle

The destiny of the world is now in the hands of 6 central banks, Fed, ECB, BoE (England), PBOC (China), BoJ (Japan), SNB (Swiss). This in itself bodes extremely badly for the global financial system. This is like putting the villains in charge of the judicial system. For decades these central banks have totally abused their power and taken control of the world monetary system for the benefit of their banker friends and in some cases their private shareholders.

The central banks have totally corrupted and destroyed the financial system, by printing money and extending credit that doesn’t exist. Everyone knows that creating money out of thin air makes the money totally worthless. These bankers know, that if you stand next to the printing press and get the money first, it does have some value before it circulates. And this is exactly what they have done. Once the money reaches the people, it devalues rapidly. As Mayer Amschel Rothschild said over 200 years ago: “Permit me to issue and control the money of a nation, and I care not who makes its laws.”

Continue reading

Gold, Crouching Silver And Hidden Oil Market

By Keith Weiner – Re-Blogged From Gold Eagle

The price of gold has been up steadily for the last 30 days (with a few zigs and zags), now re-attaining the high it achieved prior to the big drop in March. Gold ended the week at $1,662. Alas, it’s not quite the same story in silver, whose price drop was bigger. Now its price blip is smaller. Silver ended the week at $15.19.

One does not need to look to the gold-silver ratio, which is currently off the charts, to see that the world has gone mad. Silver, it has long been understood, has both industrial as well as monetary demand. With the plunge in economic activity of all kinds due to the response to the coronavirus, the industrial component of silver demand is drastically reduced.

Continue reading

The Extreme High In The Gold/Silver Ratio

By Jeff Clark – Re-Blogged From Gold Eagle

There are a few times in an investor’s life where, as Jim Rogers once put it, you see a pile of money sitting in a corner and you can go pick it up. In other words, an investment opportunity that’s not just obvious, but has a high reward-to-risk ratio.

It may not have been expected by many investors, but the gold/silver ratio (gold price divided by the silver price) has stretched to never-before-seen levels. It’s soared to not just a generational high, but a historic high. As in 5,000 years of history.

Does this extreme reading suggest there is a pile of money sitting in a corner that we can go pick up? At a minimum it suggests a highly compelling investment opportunity.

Let’s take a look at the ratio and see what message it might be sending…

Continue reading

A Massive GOLD Bull Market Is Building

Imagine, if you will, there was no coronavirus. No haz-mat suits, medical masks & gloves, no make-shift morgues. No terminally ill patients hooked up to ventilators, no horrible deaths without love ones close, no lockdowns, no social distancing, no deserted streets, no bailouts, no emergency wage supplements, just a regular spring with birds chirping and flowers blooming.

Of course there is no getting away from the covid-19 pandemic that has slammed into populations and economies like a “God of chaos” comet. It seems to have permeated civilization, threatening lives, livelihoods, and the way we conduct ourselves professionally and socially.

Continue reading

The Four Horsemen Hate Silver

The Four Horsemen of the Apocalypse bring pain and reset expectations. They are, according to some sources, pestilence, war, famine, and death.

Pestilence: News stories besiege us about the dangers of COVID-19, the pestilence released upon the world by (take your choice) bats, the United States, China, or a bioweapon lab. This pandemic is creating trauma for everyone. Confidence in governments and health agencies will decline. Trust in central banks will, hopefully, reset to much lower levels. Paper assets and fake money will be unmasked and understood for what they are. Real money will (someday) be appreciated as the only money without counter-party risk. But until that day… the paper derivative exchanges on COMEX “manage” prices.

Continue reading

COMEX Search And Seizure

By Craig Hemke – Re-Blogged From Gold Eagle

These are dark times for The Bullion Banks. Their Fractional Reserve and Digital Derivative Pricing Scheme is in great peril as refineries, miners, and mints all shut down in response to the coronavirus pandemic. Will these Banks be able to scrounge up enough physical metal to keep their scheme afloat through June? That remains an open question.

You may recall that we’ve been warning of the outrageous volume of COMEX EFPs (Exchange For Physical) for years. For the calendar years 2018 and 2019, the COMEX swapped out over 14,000 metric tonnes of contracts for alleged “physical metal” in London. And this process grew even more extreme in 2020, as the first three weeks of the month saw 290,000 COMEX gold contracts “exchanged” this way. Here’s the link from the last post dedicated to this subject, written on March 10: https://www.sprottmoney.com/Blog/comex-gold-efp-us…

Continue reading

Welcome To The Hyperinflationary Depression

By Clive Maund – Re-Blogged From Silver Phoenix

The title of Leo Tolstoy’s massive tome, War and Peace, which many have heard of but few have read, implies a cyclical alternation between these conditions, which never ends, no matter how great the level of technological advance, because of the nature of men, which does not change.

It is the same with the great economic cycles which alternate between boom and bust. Once a parasitic overclass gain absolute power and a society is riven with corruption, decadence, graft and nepotism then its downfall is assured and is only a matter of time – and what empowers the parasitic overclass more than anything else is a fiat money system, which enables them to award themselves unlimited funds the better to live off the backs of the labor of everyone else, and no entity on the planet provides a more graphic example of this than the US Federal Reserve.

Continue reading

Crisis Ready Investment Portfolio

Michael Kosares – Re-Blogged From Gold Eagle

In a recent essay published at Project Syndicate, Harvard economics professor Kenneth Rogoff sets an ominous tone. Humanity, he says “is facing something akin to alien invasion” – an apt analogy, we thought. “With each passing day,” he goes on, “the 2008 global financial crisis increasingly looks like a mere dry run for today’s economic catastrophe. The short-term collapse in global output now underway already seems likely to rival or exceed that of any recession in the last 150 years.”

At the moment, as shown in the chart below, the level of stress in financial markets is at its highest point since the credit crisis of 2008. Keep in mind the current high reading is without the impetus of any financial institution or fund of consequence reporting serious difficulties and/or requesting a bailout. Note with that in mind the acceleration in the index after the Bear Stearns and Lehman failures in 2008.

Continue reading

Historic Week for Wall Street, Gold Market as Dollar Slides Toward “Junk”

Wild price action and unprecedented interventions once again characterized this holiday-shortened trading week.

Oil prices whipsawed lower Thursday on concerns about expected oil production cuts from Russia and Saudi Arabia. But the general trend for most other assets, including metals and equities, was up – way up.

Stocks finished out the week with the major averages posting their biggest weekly gains in decades in the space of just four trading days. Investors went on a buying spree based on hopes that we will soon see a definitive peak in coronavirus cases and begin the process of restarting the economy.

Continue reading

The Greatest Financial Crisis And Hyperinflation

By Egon von Greyerz – Re-Blogged From Gold Eagle

A Hyperinflationary Depression has always been the inevitable end to the biggest financial bubble in history. And this time it will be global. Hyperinflation will spread from country to country like Coronavirus. It could start anywhere but the most likely first countries are the US and the EU or ED (European Disunion) They will quickly be followed by many more like Japan and most developing countries. Like CV it will quickly jump from country to country with very few being spared.

CURRENT INTEREST RATES ARE A FALSE INDICATOR

Ever since the last interest cycle peaked in 1981, there has been a 39 year downtrend in US and global rates from almost 20% to 0%. Since in a free market interest rates are a function of the demand for credit, this long downtrend points to a severe recession in the US and the rest of the world. The simple rules of supply and demand tell us that when the price of money is zero, nobody wants it. But instead debt has grown exponentially without putting any upside pressure on rates. The reason is simple. Central and commercial banks have created limitless amounts of credit out of thin air. In a fractional banking system banks can lend the same money 10 to 50 times. And central banks can just print infinite amounts.

Continue reading

A Primer For Gold Newbies

By Alasdair Macleod – Re-Blogged From Gold Eagle

The purpose of this article is purely educational. Increasingly, the wider public is turning to gold in a spontaneous reaction to financial and economic problems that have become suddenly apparent, hastened by the spread of the coronavirus. For everyone now thinking of buying gold it is a leap into the unknown, so they should know why.

It is not just the financially inexperienced, but investment managers and financial advisors are equally unaware of what is happening to money and capital markets. We are in the early stages of a radical debasement of state-issued currencies which is on course to collapse the entire financial system.

I explain the two phases of this destruction of fiat money, the one experienced so far and the one we are about to suffer. I explain why sound money has always been physical gold and silver, returned to by the people after government and banks have collectively destroyed state-originated unsound money.

Continue reading

Silver and Sanity

Silver is real money, not a debt-based fiat currency that will eventually fail. Silver bullion production requires capital and effort to mine and refine. We use it for solar panels, iPhones, cruise missiles and thousands of other items. Silver is monetary sanity.

Prices for silver rise as currency units are devalued. Silver sold for $1.29 in the 1960s. Today’s COMEX price is around $16.00 because dollars buy less. Prices for physical silver are much higher. The continual devaluation benefits the political and financial elite who own most paper assets – stocks and bonds. The bottom 90% pay higher prices for necessities plus interest on their debts. Savings in silver coins will offset devaluation and loss of purchasing power.

Continue reading

The Out Has Not Yet Begun To Fall

By Keith Weiner – Re-Blogged From Gold Eagle

So, the stock market has dropped. Every government in the world has responded to the coronavirus with drastic, if not unprecedented, violations of the rights of the people. Not to mention, extremely aggressive monetary policy. And, they are about to unleash massive fiscal stimulus as well (for example, the United States government is about to dole out over $2 trillion worth of loot).

The question on everyone’s mind is what will be the consequences?

The standard analysis is that governments will print massive amounts of money. And, this will, of course, cause massive inflation (i.e., skyrocketing consumer prices). There’s just one problem with this analysis.

Continue reading

A Tale Of Two Markets

2020 Gold Price Forecast And Gold Thesis

By Don Durrett – Re-Blogged From Gold Eagle
Gold is currently showing some strength, with a price over $1600. However, there is still a lot of paper gold selling (where the spot price is determined), and there is no clear direction in price. In fact, I have been saying all year that until silver gets above $18.50, I won’t consider this a gold bull market.

Silver Miners’ Q4’19 Fundamentals

By Adam Hamilton – Re-Blogged From Silver Phoenix

The carnage in the silver miners’ stocks has been apocalyptic, fueled by the astounding COVID-19 stock panic.  As terrified traders frantically dumped everything and ran for the hills, silver and its miners’ stocks crashed.  That catastrophic anomaly has potentially created epic contrarian buying opportunities.  The silver miners’ recently-reported Q4’19 results reveal whether their fundamentals support a massive rebound.

As long-time silver-stock traders are painfully aware, this tiny sector is no stranger to adversity.  Only the most-hardened contrarians dare chasing the white metal’s occasional monster skyrocketings.  Back in late February, silver was rallying nicely as gold surged over $1600 on mushrooming COVID-19 fears.  But over the next 17 trading days silver collapsed 35.8%, with nearly 3/4ths of that loss in the final week alone!

Continue reading

The Demise Of The Financial System Is Imminent

By Egon von Greyerz – Re-Blogged From Gold Eagle

“Next five years is not about winning but surviving.” This is the headline of an article I wrote in early August 2019. At that point I was primarily thinking of economic survival. But now the world is facing multiple threats and multiple failures. As I have already stated, the Coronavirus is not the cause of global market crashes but the catalyst.

But even if I have been totally certain that the world will see an economic collapse greater than any crisis for 100s of years, this is the worst catalyst that anyone could have expected. Yes, a global virus was always one of the potential risks but of all triggers, this one was certainly the most unwelcome and horrible.

Continue reading

Three Stages Of Bull And Bear Markets

By Mark J Lundeen – Re-Blogged From Gold Eagle

What a wild week; I’m overwhelmed!  In my articles I usually find a narrative theme with which to insert my graphics in.  But this week the only theme that comes to mind is what an awful week it was – just awful.  Come to think of it, that’s actually a pretty good theme to use for a week like this.  So all hands standby for heavy rolls to both the port and starboard, as here’s the Bear’s Eye View of the Dow Jones.

Every day this week the Dow Jones saw a 2% day, a day of extreme-market volatility and almost broke below its BEV -30% line on Thursday.  It’s hard to believe, but the Dow Jones saw its last BEV Zero (all-time high) just a month ago (twenty-two NYSE trading sessions ago) on February 12th.  Since then the bottom has fallen out of the stock market as painfully evident in the BEV chart below.

Starting next week, I’m recalibrating my Dow Jones Corrections based on something more than just a 30% decline.  Thursday saw the Dow Jones’ BEV value close at -28.26%.

Continue reading

Do You Solemnly Swear?

Stay with me on this… the purpose will become clear soon.

Assume (without laughing or crying) that our U.S. senators are honest individuals filled with integrity. Yes, I know, but stay with me…

They voted during the impeachment trial for President Donald Trump. They swore to uphold the following oath:

Do you solemnly swear that in all things appertaining to the trial of the impeachment of Donald John Trump, president of the United States, now pending, you will do impartial justice according to the Constitution and laws, so help you god?”

Continue reading

A Week Of Stock Market Turmoil With More To Come

By Mark J Lundeen – Re-Blogged From Gold Eagle

Can you believe it? After a week where the Dow Jones saw four days of extreme market volatility (Dow Jones 2% days), and the NYSE saw two days of extreme market breadth (NYSE 70% A-D days), the Dow Jones closed UP 455 points from last week’s close. After all that the Dow Jones in its Bear’s Eye View Chart below is little changed from last week.

Looking at the Dow Jones in its daily bars (next), it’s very apparent how after Friday, February 21st someone (Mr Bear?) changed the rules. From October 1st to February 21st average daily volatility for the Dow Jones was only 0.50%. In the past two weeks it has leapt to 3.01%. And though the Dow Jones closed up 455 for the week, looking at the chart below one thing comes to my mind – Mr Bear is once again hard at work.

Continue reading

Socialism And Gold

By Keith Weiner – Re-Blogged From Gold Eagle

Most people assume that the central bank prints money when it buys bonds. They further assume that this increase in the quantity of money causes an increase in the general price level. And, this leads them to assume that the value of the money is 1 / P (P is the general price level). Therefore, when the central bank prints money to buy bonds, it is diluting the value of the money held by everyone—in proportion to the amount printed divided by the total amount in circulation.

This is not even wrong. So let’s look at how it really works.

Of course, as we’ve said many times before, the dollar is not money. It is irredeemable credit. And so is the Treasury bond. The difference between the currency and the bond is maturity. The currency is credit of zero duration and the bond has a duration of e.g. 10 years.

The Fed is not printing, but merely exchanging one irredeemable credit for another.

Continue reading

Mr Bear Took His Pound Of Flesh From The Stock Market This Week

By Mark J Lundeen – Re-Blogged From Gold Eagle

At last week’s close, with the Dow Jones’ BEV value at -1.89%, I said I’d remain long-term bullish as long as the Dow Jones stayed above its BEV -7.5% line, or even if it remained in single-digits BEV values.  As it turned out I could only remain long-term bullish until Wednesday of this week with the Dow Jones closing at a BEV of -8.78%.  Thursday the Dow Jones closed with a BEV of -12.81%, and Mr Bear’s slaughter of the innocents on Wall Street continued on Friday, closing the week with the Dow Jones seeing a BEV of -14.02%.

Continue reading

Baltic Dry, Copper, Oil, Tech And China Continue To Call For Market Crash Soon…

By Clive Maund – Re-Blogged From Gold Eagle

In this update we are going to review a small but important range of commodities / lead indicators which strongly suggest that the seemingly endless bullmarket in US equities is living on borrowed time and will end sooner rather than later, and given how long it has lasted and how extremely overvalued it has become, the downturn will likely start with a crash phase.

Regardless of what the eventual impact of the Coronavirus epidemic is, US stockmarkets in particular seem to be in a state of denial about the actual real-world consequences of the Chinese shutdown and impact on the global supply chain and corporate profitability everywhere, and some elements even seem to be gloating about China’s misfortune and predicament, completely oblivious to the fact that this is going to have a negative impact on almost everyone.

Continue reading

The Great Dichotomy

By Michael Ballanger – Re-Blogged From Gold Eagle

One of the advantages of being a sexagenarian is that after forty years investing in stocks, bonds, commodities, and currencies you have a pretty good idea when something is not exactly “right.” If you have lived a good, normal life and you still have decent control of over your mental faculties and bodily functions, you remember moments in time that impacted your sensibilities, not unlike your first crush on a girl, or that final exam, or an authoritarian coach’s dressing-down.

However, given my chosen profession, nothing gets more indelibly etched into one’s psyche than a big price “move” in something one owns. Be it a loss or a win, one can recall all the inputs that created that “move” and, sometimes elatedly and sometimes sadly, one can recall all of the ramifications and repercussion from the “move.” You will, later in life, regale in the joy (or sorrow) of recounting the story of the “move” until people roll their eyes in angst upon being subjected to their ninth or tenth serving.

JPMorgan Chase Confirmed as Target of Metals Price Rigging Prosecution

By Clint Siegner, Money Metals News Service – Re-Blogged From Headline Wealth

The U.S. Department of Justice investigation of criminal activity in the precious metals markets has taken an interesting new turn.

According to Bloomberg, prosecutors are targeting the bank itself and not just the individual traders involved in rigging prices. If convicted, the bank as an institution could be held accountable for years of structured and pervasive cheating.

The DOJ investigation of JPMorgan’s metals trading desk began more than two years ago. It came on the heels of a guilty plea by Deutsche Bank.

Deutsche Bank copped to spoofing prices and agreed to turn state’s evidence. DB then handed over hundreds of thousands of pages of documents, along with chat logs and voice recordings which featured traders gleefully conspiring with one another to cheat clients and other market participants.

Continue reading

The Only ‘Bubble’ That Counts

By Michael Ballanger – Re-Blogged From Gold Eagle

Ever since Sept. 19, 2008, when Hammerin’ Hank Paulson appeared in front of the U.S. Congress on bended knee and begged those clueless politicians for a bailout—which he did successfully—the spread of moral hazard throughout the world has been a contagion that makes the Bubonic plague appear as harmless as the common cold.

That was, in fact, the day that shall go down in fiscal infamy as a most dangerous precedent was etched into the fabric and soul of the U.S. financial system. Not only did it set the behavioral course for the banker-politico alliance, it laid out as an insidious blueprint the operation manual for treasury departments and central banks around the world, the result being where we are today, a global economy teetering on an Mount Everest of debt with no solution on any horizon.

Gold Correction Not Over

By Adam Hamilton – Re-Blogged From Gold Eagle

Gold has been correcting following last summer’s powerful bull-breakout upleg. Since peaking, gold has inexorably drifted lower in a well-defined downtrend. Traders are wondering when this necessary and healthy sentiment-rebalancing selloff will bottom, paving the way for gold’s next upleg. But this correction still has a ways to run, according to speculators’ gold-futures positioning which dominates gold’s price action.

Gold has enjoyed a strong 2019, still up 15.0% year-to-date as of the middle of this week. Unfortunately its gains have been overshadowed by a bigger stock-market surge, driven by extreme Fed easing. This central bank shifted its rate outlook from hiking to cutting, made 3 rate cuts in just 3.0 months, and birthed its massive 4th quantitative-easing campaign to monetize Treasuries! That’s incredible in just a half-year.

The resulting stock-market euphoria from the hyper-easy Fed squelched traders’ interest in gold. Yet it still enjoyed a strong surge after breaking out to its first new bull-market highs in 3.0 years in late June. Over the next 2.5 months it blasted 14.3% higher, a major move compressed into such a short span of time. That climaxed a bigger 32.4% upleg that unfolded over 12.6 months, the largest of this secular bull so far.

Continue reading

Fiat’s Failings, Gold And Blockchains

By Alasdair Macleod – Re-Blogged From GoldMoney

The world stands on the edge of a cyclical downturn, exacerbated by trade tariffs initiated by America. We know what will happen: the major central banks will attempt to inflate their way out of the consequences. And those of us with an elementary grasp of economics should know why the policy will fail.

In addition to the monetary and debt inflation since the Lehman crisis, it is highly likely the major international currencies will suffer a catastrophic loss of purchasing power from a new round of monetary expansion, calling for a replacement of today’s fiat currency system with something more stable. The ultimate solution, unlikely to be adopted, is to reinstate gold as circulating money, and how gold works as money is outlined in this article.

Instead, central banks will struggle for fiat-based solutions, which are bound to face a similar fate with or without the blockchain technology being actively considered. The Asian and BRICS blocs have an opportunity to do something with gold. But will they take it?

Continue reading

Silver Miners’ Q3’19 Fundamentals

By Adam Hamilton – Re-Blogged From Silver Phoenix

The silver miners are finally enjoying higher prevailing silver prices, a great boon for this sector. Silver surged this past summer after gold’s first new bull-market highs in several years rekindled enthusiasm for precious metals. The long-neglected silver stocks rallied strongly with their metal. Their recently-reported Q3’19 results reveal whether those gains are justified, and how much fundamentals improved on higher silver.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders. They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.

Continue reading

Gold and the Lender of Last Resort

By GE Christenson – Re-Blogged From The Deviant Investor

Investopedia says“In the United States, the Federal Reserve acts as the lender of last resort to institutions that do not have any other means of borrowing, and whose failure to obtain credit would dramatically affect the economy.”

The Fed has created $billions in the past ten weeks (more on the way) and fed those billions into troubled banks, hedge funds, foreign banks and others. Lack of Fed transparency forces us to guess which institutions the Fed helped with $billions of nearly free currency units.

The Fed “Party Line:” We don’t disclose the recipients because it might cause a run on that institution. The Fed is important because it protects the economy from massive and destabilizing failures.

This is like announcing that we ignore graft and corruption in congress because telling the truth about our “leaders” could destabilize trust in congress.

Continue reading

Gold Mid-Tiers’ Q3’19 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The mid-tier gold miners just reported their results for a phenomenal gold quarter.  In Q3’19 this metal surged after its first bull-market breakout in years, driving much-higher prevailing prices.  That should’ve led to soaring profits for these mid-tiers in the sweet spot for stock-price upside potential.  Last quarter’s results are the most important this sector has seen in a long time, a key fundamental test for gold miners.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports.  Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders.  They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.

The global nature of the gold-mining industry complicates efforts to gather this important data.  Many mid-tier gold miners trade in Australia, Canada, Mexico, the United Kingdom, and other countries with quite-different reporting requirements.  These include half-year reporting rather than quarterly, long 90-day filing deadlines after fiscal year-ends, and very-dissimilar presentations of operating and financial results.

Continue reading

150 Years Of Bank Credit Expansion Is Near Its End

By Alasdair Macleod – Re-Blogged From GoldMoney

The legal formalisation of the creation of bank credit commenced with England’s 1844 Bank Charter Act. It has led to a regular cycle of expansion and collapse of outstanding bank credit.

Erroneously attributed to business, the origin of the boom and bust cycle is found in bank credit. Monetary policy evolved with attempts to control the cycle with added intervention, leading to the abandonment of sound money. Today, we face infinite monetary inflation as a final solution to 150 years of monetary failures. The coming systemic and monetary collapse will probably mark the end of cycles of bank credit expansion as we know it, and the final collapse of fiat currencies.

This article is based on a speech I gave on Monday to the Ludwig von Mises Institute Europe in Brussels.

Continue reading

Gold Stocks Now?

You know the monetary drill:

  1. Commercial bankers and central bankers create more digital dollars from nothing, inject them into the economy, dollars devalue and prices rise. They issue press releases claiming they are doing a great job.
  2. Commercial and global central bankers are counterfeiting (legally). This benefits the financial and political elite. Don’t expect this nonsense to change.
  3. Prices for stocks, food, consumer goods and gold rise as dollars buy less.
  4. Inflation statistics (official) are “managed” to show minimal inflation. Check out the Chapwood Index.

Continue reading

2020 Vision

By USAGOLD – Re-Blogged From Gold Eagle

Five charts to contemplate as we prepare for the New Year

 1. Gold’s annual returns 2000 to present

In the February edition of this newsletter, we ran an article under the headline:  Will 2019 be the year of the big breakout for gold? Though we would not characterize gold’s move to the upside so far this year as ‘the big breakout,’ 2019 has been the best year for gold since 2010 even with the recent correction taken into account.  Back in September when the price gold reached $1550 per ounce – up almost 22% on the year – 2019 was looking more like a breakout year. Now with the move back to the $1460 level, the market mood has become more restrained. As it is, gold is up 15 of the last 19 years and still up 14.45% so far this year.

Continue reading