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A Survival Guide For 2019

A Survival Guide For 2019

How to safely navigate the ‘Year Of Instability’ 

As the first month of the year concludes, it’s becoming clear that 2019 will be a very different kind of year.

The near-decade of ‘recovery’ following the Great Financial Crisis enjoyed a stability and tranquility that suddenly evaporated at the end of 2018.

Here in 2019, instability reigns.

The world’s central banks are absolutely panicking. After last year’s bursting of the Everything Bubble, their coordinated plans for Quantitative Tightening have been summarily thrown out the window. Suddenly, no chairman can prove himself too dovish.

Jerome Powell, the supposed hardliner among them, completely capitulated in the wake of the recent -15% tantrum in stocks, which, as Sven Henrich colorfully quipped, proved what we suspected all along:

The global tsunami of liquidity (i.e. thin-air money printing) released by the central banking cartel has been the defining trend of the past decade. It has driven, directly or indirectly, more world events than any other factor.

And one of its more notorious legacies is the massive disparity and wealth and income resulting from its favoring of the top 0.1% over everyone else. The mega-rich have seen their assets skyrocket in value, while the masses have been mercilessly squeezed between similarly rising costs of living and stagnant wages.

How have the tone-deaf politicians responded? With tax breaks for their Establishment masters and new taxes imposed on the public. As a result, populist ire is catching fire in an accelerating number of countries, which the authorities are anxious to suppress by all means to prevent it from conflagrating further — most visibly demonstrated right now by the French government’s increasingly jack-booted attempts to quash the Yellow Vest protests:

Meanwhile, two other principal drivers of the past decade’s ‘prosperity’ are also suddenly in jeopardy.

 …click on the above link to read the rest of the article…

Hard Assets Alliance: The Role Of Gold (And Silver)

Hard Assets Alliance: The Role Of Gold (And Silver)

An update on the case for holding precious metals

Longtime PeakProsperity.com readers know that the Hard Assets Alliance is this website’s officially-endorsed gold & silver bullion dealer (the list of reasons why can be read here).

Given the painful slog over recent years for precious metals investors, we thought it was high time to bring them back on the program to offer an update on the fundamental reasons for continuing to own bullion.

This week, Chris sits down with HAA executive Ed D’Agostino to discuss the role of gold (and silver) in an investment portfolio during the age of bitcoin and endless central bank liquidity:

As for what’s next for prices, in terms of supply, I think that the sector, in many ways, has a self-correcting aspect to it. If producers can’t produce and make any profit — and that’s really where they’re at now in the silver mining sector — eventually that situation will correct. Mines will shut down, and the price will go up. We’re seeing something similar to that in oil right now.

But then when you introduce the short position on the COMEX, things become more nefarious. In the US, the government has, in my opinion, beaten gold out of the collective consciousness of the American citizenship. So because of that, Americans tend to be very under-invested or under-exposed to gold.

My general sense is I think we’ll kind of keep grinding sideways as we’ve been for a while until a trigger event happens — and then you’ll see the real value of holding gold in your portfolio. During a black swan event, gold tends to hold up quite well whereas other more conventional investments — like equites which have all the headlines these days — will struggle.

…click on the above link to read the rest of the article…

Marc Faber: In the Age of Cyber-Terrorism, Every Investor Must Own Gold

Marc Faber: In the Age of Cyber-Terrorism, Every Investor Must Own Gold

Take it from “Dr. Doom”: own some physical gold and keep it out of the banking system.

Dr. Marc Faber, a legendary investor and the editor/publisher of the Gloom, Boom & Doom Report, is well known for his contrarian investing style.

In a recent Metal Masters interview with the Hard Assets Alliance, he noted that the biggest geopolitical risk for Americans today is not a conventional war but rather cyber-attacks that could take down the US power grid.

In such a scenario, gold would become an irreplaceable medium of exchange. But it’s not the only reason to own gold today.

Diversified Assets Outside the Banking System

Faber grew up in Switzerland right after World War II, a tough time that caused his family to distrust paper money and taught him the importance of precious metals as a safety net.

Faber remembers how his father talked about rich people as millionaires. That, in the ‘50s and ‘60s and ‘70s, was a lot of money. Today, a million is nothing at all—small change. Unfortunately. When people talk about, ‘Oh, there is no inflation in the system,’ this is nonsense. Compared to assets, money has lost a tremendous amount of purchasing power.”

After working on Wall Street for over two decades, Faber’s assets consisted mainly of bonds, equities, and real estate. He says it was in the 1990s when he realized that “it’s good to have a diversified asset outside the banking system and not financially related” and began to purchase some physical gold every month.

The Fed largely ignores gold as an asset, he says, because “gold is an embarrassment to central banks.”

…click on the above link to read the rest of the article…

Olivier Garrett: Buying Gold & Silver

Olivier Garrett: Buying Gold & Silver

Precious metals and the Hard Assets Alliance

With financial markets becoming increasingly volatile (the Shanghai Composite’s loss of over $2 trillion in the past month, for example), along with growing global economic instability and currency risks (Greece contagion, anyone?), we think it time to reiterate more loudly our core belief that everyone should own some precious metals.

As detailed out in our report The Screaming Fundamentals For Owning Gold & Silver, the primary reasons are:

  1. To protect purchasing power against monetary recklessness (e.g. central bank money printing)
  2. As insulation against fiscal foolishness (e.g., chronic deficit spending by governments)
  3. As insurance against the possibility of a major calamity in the banking/financial system
  4. For the embedded ‘option value’ that will pay out handsomely if gold is re-monetized

And while there are many ways to purchase precious metals, we continue to be impressed by the full-service set of solutions offered by the Hard Assets Alliance. Peak Prosperity joined the HAA as a founding member back in 2012, and since then, we’ve appreciated how well they’ve executed on their mission and continued to launch features targeted at what their customers value most.

In this week’s podcast, Chris sits down with Olivier Garrett, the CEO of the Hard Assets Alliance to discuss the current state of the precious metals market, why the reasons for owning bullion make more sense than ever today, and what the HAA, specifically, is doing to make it as affordable, easy and secure as possible for people everywhere to own gold and silver.

The podcast gets into much more detail, but the main advantages of the Hard Assets Alliance is that it makes the same advantages enjoyed by institutions available to the retail bullion investor:

 

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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