Home » Posts tagged 'precious metals' (Page 17)

Tag Archives: precious metals

Justin’s note: Volatility has come storming back.

Just look at the CBOE Volatility Index (VIX), which measures how volatile investors expect the market to be over the next 30 days.

It’s up 89% since the start of the year. Last week, it hit the highest level since 2016.

Investors aren’t used to this. After all, last year was the least volatile year ever for U.S. stocks. That lulled many investors to sleep. It led them to take risks they would normally never take.

Now, those same people are wondering what to do. They aren’t sure if this is just a run-of-the-mill pullback…or the start of something much worse.

To help answer this question, I called up Doug Casey. I knew he would have an interesting take on this matter…

Justin: Doug, U.S. stocks took a beating recently. Where do you see things going from here?

Doug: Well, I hate to make a firm prediction of timing. The fact that things have held together, against all odds, since 2009, has underlined the old saying about just because something is inevitable doesn’t mean it’s imminent. Predictions of disaster, and all these things unwinding, have been wrong over the last half a decade. And the smart bet is always for muddling through, in the direction of progress. But it seems that we’ve finally reached a peak, a major turning point.

Justin: So, what have you done to protect your wealth?

Doug: At the beginning of the year, I took all my original capital out of cryptos, plus 150% profits. I also took profits on crypto stocks. I got in late, and out a bit late. But it was a happy experience.

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

Lynette Zang: ‘The CRIMINAL BANKS Know Something Is VERY WRONG’

February 15, 2018

Lynette Zang: ‘The CRIMINAL BANKS Know Something Is VERY WRONG’

lynettezang

Lynette Zang from ITM Trading recently joined the SGT Report to discuss the economy, precious metals, and the disastrous storm that’s brewing. According to Zang, the criminal banks have stopped lending to each other because they know something is very wrong with the economy.

The interview jumps straight to the point. The big banks are not lending to each other. What is Zang’s take on the drop in interbank lending?

“During the 2008 crisis, it absolutely plummeted but they’ve been trying to keep it a little supported at the levels back in the 80’s and…it’s plunged below where it was when they came out in ’73; and what I find interesting…is that banks don’t trust each other. They know they’re insolvent. They’re not gonna get the money back.”

Zang is then asked about Deutsche Bank. Since it’s leveraged “to the gills” is it the first bank to go?

“I don’t know whether Deutsche Bank will be the first to go, but their leverage ratio remains at 3.8%, which means if the value of their assets falls 3.9%, they are insolvent. But that can really start anywhere. It doesn’t have to start at Deutsche Bank, but Deutsche touches every single financial product in every bank. I wouldn’t say this is ‘the canary in the coal mine,’ because I’ve really been talking about pattern shifts that I’ve been witnessing since October. The pattern shifts really started in 2017. People think nothing happens until it becomes visible, but you have to look a little below…to see what you’re not seeing…the banks know that they’re not loaning to each other. And the central banks know that they’re attempting to support the mortgage markets and keep everything floating.

We’re inside of a great experiment…this is an accident that’s in the process of unfolding.“

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

The Importance Of Gold In 2018 And Beyond

February 13, 2018

The Importance Of Gold In 2018 And Beyond

If you’ve held physical gold for the past five years, you’ve likely been frustrated by its lack of price appreciation. Of course, physical gold always retains its value as sound money and wealth “insurance,” but while prices of paper assets have flourished since 2013, the dollar price of gold has languished. That, it seems, is about to change.

At long last, gold, silver and all commodities appear poised for a price breakout in 2018 (and beyond) as the lower dollar, price inflation and higher interest rates that so many expected in 2010-2011 finally come to pass. In addition to those factors, several gold-specific positives have recently appeared, and they demand your consideration:

Global gold demand is strong, with the only restraining component being western investment demand. Since western investors are typically trend followers, you’d expect low investment demand to appear at price lows. This is exactly what the recent Gold Demand Trends report from the World Gold Council showed when it was published earlier this month: https://www.gold.org/research/gold-demand-trends/g…

Traditional technical and cycle analysis also augurs for a price bottom and trend change. Respected market analyst Tom McClellan recently declared the current cycle to be upward for gold, with the next three years providing some unusually strong price gains. You can read more of his analysis here: https://www.themaven.net/mishtalk/economics/eight-…

In late 2017, many investors began to think of Bitcoin and other “crypto-currencies” as alternatives to gold. But with the recent sharp price correction and looming legislation to regulate (or even ban) crypto trading, the investment world is realizing that cryptos are not a replacement for a sound money strategy of holding precious metal. Instead, they are at best a supplement to a diverse portfolio.

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

The Dollar–From Bohemia to Bust

February 12, 2018

THE DOLLAR – FROM BOHEMIA TO BUST

Virtually no investor studies history and the few who do always think it is different today. The most important lesson is that people never learn. If they did, they wouldn’t be invested in a stock market that on any criteria is now at a bubble extreme. And they wouldn’t be invested in a global debt market which has grown exponentially in recent decades and which will become worthless in the next few years as debtors default. Nor would anyone hold paper money which is down 97-99% in the last 100 years and which is guaranteed to soon fall the final bit to take the value to zero.

The history of money clearly illustrates that “Plus ça change, plus c’est la même chose” (the more it changes, the more it is the same thing). The most constant factor in the history of money is the cycle of boom and bust or euphoria and despair. Cycles are part of nature just like the change of seasons.

But throughout history, mankind has always believed that they know better than previous generations and can eliminate the cycle of boom and bust. This is what the British prime minister Gordon Brown proudly declared before the economy collapsed in 2007. And the Nobel Prize winner in Economics, Paul Krugman, also believes that eternal prosperity can be generated by creating endless debt and printing unlimited money.

But history has time and time again turned hubristic know-it-alls into humbled has-beens.

FOR 6,000 YEARS GOLD HAS OUTLIVED ALL CURRENCIES

Whenever mankind has deviated from sound money, the consequences have without fail been catastrophic. The only money which has survived since it first came into use around 6,000 years ago is gold. All other money has been destroyed by greed and economic mismanagement. I believe I have quoted Voltaire for over 20 years and will continue to do so: “Paper Money Eventually Returns to its Intrinsic Value – ZERO”.

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

Red Screen At Morning, Investor Take Warning

February 10, 2018

Shutterstock

Red Screen At Morning, Investor Take Warning

It’s time for safety. And it’s beginning to pay better, too

Growing up as I did in coastal New England, this old rhyme was drilled into us as children:

Red sky at night, sailor’s delight;

Red sky at morning, sailor take warning.

Because many of the people in town still made their living on the sea, the safety of person and property depended on being able to recognize the signs of approaching danger.

A notably red sky at morning is usually due to sunrise reflection off of moisture-bearing clouds, signifying an arriving a storm system bringing rain, wind and rough seas. Those who ignored a red sky warning often did so at their peril.

Red Sky In The Markets

I’m reminded of that childhood rhyme because the markets are giving us a clear “red sky” warning right now. One that comes after (too) many years of uninterrupted fair winds and smooth sailing.

The markets have plunged nearly 8% over just a single week. And the losses are across the board. Nearly every asset class from stocks to bonds to commodities to real estate are participating in the pain. Market displays are a sea of red.

We’ve written so often and recently of the dangerous level of over-valuation in asset prices (caused by years of central bank intervention) that to re-hash the premise again feels unnecessary.

But the chart below is worth our attention now, as it really drives home just how dangerously over-extended the markets have become. It’s a 20-year chart of the S&P 500, showing how it has traded vs its 50-month moving average (the thin green line).

Importantly, the chart also plots the Bollinger bands for this moving average. These are the thin red (upper) and purple (lower) lines above and below the green one.

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

Should we Restore the Gold Standard?

February 7, 2018

Should we Restore the Gold Standard?

Would it make sense to rebuild an international gold standard like the one we had in the late 1800s? Larry White says the idea has merit, David Glasner believes it isn’t worth the risk. Over the years I’ve followed the back-and-forth between these two blogging economists, each of whom has done an admirable job defending their respective side for and against the gold standard. Let’s look at one or two of the most important themes running through the White v Glasner debate.

Like a ruler measures distances, a nation’s monetary standard serves as a measuring stick for the value of goods and services. People need to be able to set sticker prices with the unit, calculate profit and loss, negotiate labour contracts, and establish the terms of long-term debts using it. If the measuring stick is faulty, then all these important tasks becomes unnecessarily difficult.

Gold as Unit of Account

Since 1971 we have been on a fiat money standard in which all currencies float against each other. Central banks try to ensure that, within the confines of their nation, the general level of domestic consumer prices stays constant, or at least rises at a constant rate of around 2-3%. And while the first decade of the fiat standard was a disaster characterized by high and rising inflation, central bankers in developed nations have generally managed to keep inflation on track for the last thirty or so years.

To re-establish a modern gold standard, each nation’s unit of account—say the $ or ￥ or £—would have to be redefined as a certain fixed number of ounces of gold.

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

Trump Tax Cuts Have Postponed Economic Collapse: “The U.S. Has Become The Tax Haven Of The World”

February 5, 2018

Trump Tax Cuts Have Postponed Economic Collapse: “The U.S. Has Become The Tax Haven Of The World”

The last several years have seen massive gains for both stock market and digital currency investors with prices hitting unprecedented levels of growth. But one particular asset class, despite its necessity for day-to-day global activities, has been totally ignored by the general investing public. According to venture capital financier Carlo Civelli, there are varying reasons for why mining companies involved in commodity metals like copper, zinc, gold and silver have been either stagnant or seen disproportionate drops in their market value versus broader stocks, but one in particular stands out as of late:

The exploration stocks are just not attracting the following that they used and the reason for that could be the whole blockchain and Bitcoin mania… which is diverting a lot of speculative money from what used to be the commodities markets.

And while we’re likely to see continued interest in crypto currencies over coming years, Civelli notes that recent political developments in the United States, as well as favorable supply demand fundamentals, suggest that 2018 will be a breakout year for commodities markets after having hit cyclical lows. In an interview with Future Money Trends, Civelli says that President Trump’s tax cuts have shifted the global balance and may have postponed any serious economic problems for another ten years.

The United States has become the tax haven of the world.

Coupled with Trump’s trillion dollar infrastructure plan, the widespread tone of economic optimism across the global economy explains why Civelli has been aggressively gobbling up mining stocks (and he’s not talking about digital blockchain mining):

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

WORLD’S LARGEST SILVER MINES: Suffer Falling Ore Grades & Rising Costs

January 30, 2018

WORLD’S LARGEST SILVER MINES: Suffer Falling Ore Grades & Rising Costs

The world’s two largest silver mines have seen their productivity decline substantially due to falling ore grades and rising costs. Gone are the days when silver mines could produce silver at 15-20 ounces per ton. Today, the Primary Silver Mining Industry is likely producing silver at an average yield of 4-5 ounces per ton.

In my newest video, I discuss the changes that have taken place in the world’s two largest silver mines, the Cannington Mine in Australia and the Fresnillo Mine in Mexico. Falling ore grades and rising energy costs have contributed to the doubling and tripling of production costs at many silver mining companies. Investors who believe it still only costs $5 an ounce to produce silver, as it did in 1999, fail to grasp what is taking place in the silver mining industry:

A big problem that has confused investors is the reporting of the “CASH COST” metric by the mining industry. Some silver mining companies can brag that they have a very low cast cost of $5 an ounce, but they arrive at that figure by deducting their “by-product credits.” By-product credits are the revenues they receive from producing copper, zinc, lead, and gold along with their silver.

For example, Hecla Mining stated their silver cash cost of $0.16 per ounce for the first three-quarters of 2017. They were able to report that very low $0.16 cash cost by deducting $175 million of their zinc, lead and gold revenues. Hecla’s three silver mines had total revenues of $278 million, but they deducted $175 million in by-product credits to get the low $0.16 cash cost. They deducted 63% of their revenues to arrive at that low meaningless cash cost.

According to Hecla’s financial statements, they only made $4.2 million in net income on a total of $417 million in total revenues Q1-Q3 2017 (including $140 million from their Casa Berardi Gold Mine).

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

Economic Collapse and Dollar Hegemony – How Did This Start?

January 26, 2018

Economic Collapse and Dollar Hegemony – How Did This Start?

In the previous article I explained why bitcoin should be considered a reaction to US dollar hegemony and how other nations and central banks are facing the crisis of the dollar brought on by de-dollarization. In this article I will go into how we came to this point and what mechanisms helped to bring about a debt-based society. In the third and last article we will examine the nature of the future geopolitical and geo-financial transition as well as the signals we need look out for in the immediate future.

From Gold to Paper

To understand what is happening today we must look back to simpler times, back when people bartered with each other. The utility and availability of commodities determined their value. Gold in particular represented a finite good that was difficult to find and was useful in various fields. For this reason gold has always been considered the highest example of a valuable good, together with diamonds, platinum, silver and other elements that are difficult to find but have a common or daily use. For example, the importance of utility transformed uranium, an otherwise worthless element, into a valuable commodity following the discovery of atomic energy. Returning to gold, one can understand how in the era of barter, gold was the reference element with which to price the value of everything. Little by little, gold was joined by silver and then bronze in simplifying the exchange of goods and increasing convenience of use.

Gold had its own intrinsic value and was valid in every empire around the world; the same with silver and bronze. Gold had become not only a means of exchange and a measure of value but also a reservoir of value to be bequeathed to heirs. Above all it was a means of payment.

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

Will The Coming Big Oil Price Drop Cause The Next Stock Market Crash?

January 17, 2018

Will The Coming Big Oil Price Drop Cause The Next Stock Market Crash?

The oil market price is setting up for one heck of a fall. Now, could this large oil correction cause the next stock market crash? Time will tell. However, the indicators in the oil market are showing the largest net commercial short positions in history. The current net commercial short positions in the oil market are even higher by 174,000 contracts than the level when the oil price fell from $105 in mid-2014 to a low of $30 at the beginning of 2016.

Furthermore, there was a previous trend in the 1980’s that suggests we are setting up for a MAJOR stock market crash. I discuss the details of the current record net commercial short positions and the similar setup that took place during the 1980’s in my newest video, Will The Coming Big Oil Price Drop Cause The Next Stock Market Crash?

Here is one of the charts discussed in the video presentation above:

As we can see in this COT Report (Commitment Of Traders), the commercial net short positions jumped from 648,000 to 674,000 in the past week. However, this chart only shows the change traders’ positions over one year. To see how large the present commercial net short positions, please check out the short 12-minute video.

I believe the oil and stock markets are setting up for one large correction or even a market crash. Thus, as the stock markets crack, we will likely see a huge move by retail investors into Gold ETF’s as well as precious metals investors tremendously increase their demand for physical gold and silver investment.

Gold and Silver Bullion Are Only “Safe Investments Left” – Stockman

January 17, 2018

Gold and Silver Bullion Are Only “Safe Investments Left” – Stockman

Gold and Silver Bullion Are Only “Safe Investments Left” – Stockman

– Gold is the “ultimate and only real money” – Former Reagan White House Budget Director David Stockman
– Trump tax cuts will lead to a ‘fiscal calamity of biblical proportions’
– China downgrades U.S. over political ‘deficiencies’
– Expect a ‘huge reset in the bond market’ and a ‘massive drop in household wealth’
– ‘People will flee the stock and bond markets in favour of gold and silver
– Time to buy (gold and silver bullion) is ideal
– “Only safe asset left is gold”

‘There is nowhere to go from here’ are the words that ring in your ears after listening to a recent interview on USA Watchdog with former Reagan White House Budget Director David Stockman.

This might seem a depressing perspective to take but what Stockman is referring to is the fiscal and financial crisis that is on its way. The final straw of which is Trump’s massive tax cuts and the huge costs therein. It will contribute to a ‘thundering collision’ in the ‘bond market’ and the impending collapse of the third financial bubble in the last 17 years- arguably the largest bubble in world history.

For investors there is still somewhere to go, believes Stockman, and that is into gold and silver bullion:

‘If you have $10,000 to put in a safe place, put it into gold and silver not in the Wall St. stock and bond market,’ advises Stockman.

“Fiscal calamity of biblical proportions”

These quotes are taken from an interview Stockman gave at the end of December, on the very day the US Senate approved drastic changes to the US tax code.

Whilst Stockman has believed for some time that the gig is up when it comes to the current state of play, he expresses his concerns that the decision to implement major tax cuts will be the icing on the cake.

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

Chinese Physical Gold Investment Demand Surges While Americans Pile Into Stock & Crypto Bubbles

January 16, 2018

Chinese Physical Gold Investment Demand Surges While Americans Pile Into Stock & Crypto Bubbles

Chinese demand for physical gold investment surged in the first three-quarters of 2017 while Americans ditched the shiny yellow metal for increased bets in the crypto mania and stock market bubble market. Even though China’s Hang Seng Stock Market outperformed the Dow Jones Index last year, Chinese citizens purchased the most gold bar and coin products Q1-Q3 2017 since the same period in 2013, when they took advantage of huge gold market price selloff.

According to the World Gold Council, Chinese gold bar and coin demand increased to 233 metric tons (mt) in the first three-quarters of 2017 compared to 162 mt in the same period last year. Furthermore, if we include Indian gold bar and coin demand, China and India consumed nearly half of the world’s total:

As we can see, China and India consumed 338 mt of gold bar and coin products which accounted for 47% of the total 715 mt Q1-Q3 2017. German gold bar and coin demand of 81 mt took the third highest spot followed by Thailand (49 mt), Turkey (47 mt), Switzerland (31 mt) and the United States (30 mt). Chinese gold bar and coin demand of 233 mt nearly equaled the total demand by German, Thailand, Turkey, Switzerland and the United States of 238 mt.

If we compare gold bar and coin demand by these countries in the same period last year, we can see some interesting changes:

While the increase in Chinese gold bar and coin demand was the big winner (162 mt to 233 mt), Turkish demand nearly doubled from 24 mt in 2016 to 47 mt this year. However, the biggest loser in the group was in the United States. U.S. Gold bar and coin demand fell substantially to 30 mt Q1-Q3 2017 from 66 mt during the same period last year.

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

U.S. Gold Market Switches From A Surplus In 2016 To Deficit In 2017

January 6, 2018

U.S. Gold Market Switches From A Surplus In 2016 To Deficit In 2017

The U.S. gold market suffered a net deficit this year compared to a small surplus in 2016. This was quite interesting because U.S. physical gold demand will be down considerably this year. In 2016, total U.S. gold demand was 212 metric tons versus an estimated 150 metric tons this year. The majority of the decline in U.S. gold demand is from the physical bar and coin sector that is down 56% in the first three quarters of 2017 compared to the same period last year.

So, why will the U.S. gold market suffer a deficit if gold demand is down sharply this year? Well, it seems as if the culprit is the huge increase in net gold exports. Last year, the U.S. imported 374 metric tons (mt) of gold and exported 398 mt for a net 24 mt deficit. However, this year, estimates for U.S. gold imports will fall to 250 mt while exports increase to 475 mt. Thus, the U.S. net export deficit will be 225 mt in 2017:

However, if we look at all the data in the chart above, the U.S. gold market will experience a net 76 mt deficit in 2017 versus a 44 mt surplus last year (bars right-hand side of chart). Again, we can see that U.S. gold imports are estimated to decline significantly this year to 250 mt compared to 374 mt in 2016. Furthermore, total U.S. gold exports are forecasted to increase to 475 mt this year versus 398 mt in 2016.

When we factor in U.S. gold mine supply, domestic consumption, and gold scrap supply, the market will go from a small 44 mt surplus in 2016 to a 76 net deficit this year.

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

The Leveraged Economy BLOWS UP In 2018

January 5, 2018

The Leveraged Economy BLOWS UP In 2018

Enjoy the good times while you can because when the economy BLOWS UP this next time, there is no plan B. Sure, we could see massive monetary printing by Central Banks to continue the madness a bit longer after the market crashes, but this won’t be a long-term solution. Rather, the U.S. and global economies will contract to a level we have never experienced before. We are most certainly in unchartered territory.

Before I get into my analysis and the reasons we are heading towards the Seneca Cliff, I wanted to share the following information. I haven’t posted much material over the past week because I decided to spend a bit of quality time with family. Furthermore, a good friend of mine past away which put me in a state of reflection. This close friend was also very knowledgeable about our current economic predicament and was a big believer in owning gold and silver. So, it was a quite a shame to lose someone close by who I could chat with about these issues.

While some of my family members know about my work, I don’t really discuss it with them. If they ever have a question, I will try to answer it, but I found out years ago that it was a waste of time to try and impose my knowledge upon them. Which is the very reason I started my SRSrocco Report website… LOL. So, now I have a venue to get my analysis out to the public. I don’t care about reaching everyone, but rather to provide important information to those who are OPEN to it.

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

How The Investor Fundamentally Changed The Silver Market

December 31, 2017

How The Investor Fundamentally Changed The Silver Market

While silver investors continue to be discouraged about the low price, the market has experienced a fundamental change that needs to be understood. Ever since governments removed silver from official coinage, over 50 years ago, the market has been supplemented by several billion ounces of silver. The majority of that supply has been depleted.

The reason the United States and other countries stopped producing official silver coinage wasn’t due to any monetary conspiracy; rather it was based on a straightforward problem; supply versus demand. Because industrial silver consumption had skyrocketed after World War 2, the silver market would have suffered deficits if the U.S. Treasury didn’t sell silver into the market.

It was quite simple; there just wasn’t enough silver to go around. So, governments started to reduce, then eliminate silver from their coinage in the 1960’s. A lot of this silver, known as “junk silver,” was either purchased by investors or remelted and sold back as supply into the market. While there is no way of knowing how much of the older official junk silver remains in the market, the majority of it was recycled for much-needed supply.

We can see the dwindling down of government stocks and older official silver coinage in the following chart:

The BLUE bars represent silver scrap supply, and the OLIVE colored bars show the amount of net government silver sales. From 2000 to 2013, governments sold 636 million oz (Moz) of silver into the market. Net government sales were from stockpiled silver and older official coins. However, in 2014, this supply totally dried up. For the past four years, there haven’t been any government silver sales.

Another interesting aspect of this chart is the declining amount of silver scrap supply. Even though the price of silver during the 2015-2017 period was much higher than from 2000-2007, scrap supply is considerably less.

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

Tag Archives: precious metals

Content

Post categories

Economic Links

Energy/Resource Links

Environmental Links

Geopolitical Links

Liberty Links

News Links

Other Links

Survival Skills

Post Archives by Category

Red Sky In The Markets

Gold as Unit of Account

Post navigation

Latest Posts