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QUESTION: What did Martin mean by gold having a 21 year high. I simply can’t see how it is possible for it not to go up from here as sovereign debt collapses and printing presses are on turbo

I’ll be getting the gold report when it’s out but…. I’m about to get my hands on a few million pounds and I just want it to vanish into the ether so they don’t tax it, gold coins seemed the obvious option

Cheers B

REPLY: The major low was 1999. We have to be concerned that this agenda does not seek to also regulate gold once again. They are manipulating the currencies and several countries are starting to buck the trend. The question becomes this assumption that gold will survive simply printing money. They have far more power than people realize.

Look at Andrews in Victoria, Australia. He has turned the place into East Germany. He is leading the way and setting an example of how to crush freedom.

They are trying desperately to retain power using this fake virus to justify suppression. They are moving to digitize all money. They will not tolerate free markets.

“Panicking” Central Banks to Power Gold Higher

September 23, 2020

“Panicking” Central Banks to Power Gold Higher

Panicking Central Banks to Power Gold Higher

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Institutions will be the drivers of gold demand, Ray Dalio issues warning about the greenback, and silver believers could soon be rewarded.

Institutional demand will power gold prices as central banks panic

As Egon von Greyerz notes via ZeroHedge, uncertainty has been the theme across the board this year, and it is unlikely to dissipate any time soon. von Greyerz believes that the uncertainty is tied to the end of a cycle, and while the full timeline of the cycle isn’t entirely clear, its social and economic aspects are directly tied to the abolishment of the gold standard in 1971.

This accelerated the precarious path that the Federal Reserve set for the U.S. when it was created in 1913, one of perpetually expanding debt and an economy based on faith. That there is no solution to the debt issue has been painfully demonstrated by various administrations. The Clinton administration from 1998-2001 and the current Trump administration have been among the most vocal regarding the issue, yet neither has been able to prevent the U.S. national debt from roughly doubling every 8 years.

von Greyerz sees central banks as being on exceptionally shaky grounds, as the aforementioned untethering started the fall of fiat currencies. Most of them have lost around 85% against gold since 2000, and all of them have lost upwards of 97% of their value since 1971. While the U.S. dollar stands out as exceptionally long-lasting, von Greyerz sees economic factors that are beginning to threaten it.

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

Institutional Demand Will Drive Gold Ever Higher

September 18, 2020

INSTITUTIONAL DEMAND WILL DRIVE GOLD EVER HIGHER

Embrace uncertainty has long been one of my personal mottos. Because from this moment on, everything is uncertain whether it is your personal health, the stock market or the economy. Sure, we work with probabilities and the most likely is that the sun will rise tomorrow again and that I won’t die today. But we are now at a point in history when trend extrapolation is going to be not only precarious but also both foolish and impossible.

END OF A MAJOR CYCLE

That we are at the end of a major economic and social cycle is totally clear in my mind. But cycles don’t end overnight, if the world isn’t hit by a massive meteorite or nuclear bomb. Whether we are at the end of a 300 year cycle or a 2,000 year cycle, only future historians can tell the world. What is clear, at least to me, is that the end of this cycle started in 1971 when Nixon closed the gold window. Since then global debt has gone up exponentially and now we are in the very final stage of the cycle. This end of the end, that we are now in, was first evidenced by gold turning up at the beginning of this century.

This significant trend change in gold that started 20 years ago was a clear indicator that we are now seeing the end of the fiat money system. Even though manipulated through a corrupt paper market, gold still reveals the deceitful actions of governments and central banks. There is no better evidence than the fall of fiat in this century.

CENTRAL BANKS ARE PANICKING

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

A Powerful Ally to the Fed Just Boosted the Prospects for Inflation

September 16, 2020

A Powerful Ally to the Fed Just Boosted the Prospects for Inflation

Inflation Calculator

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: ECB could follow the Fed’s pro-inflation policy, precious metals in a pandemic, and legendary silver coin to be sold for more than $10 million at an auction.

Gold could move up further as the ECB looks to keep the euro down

If one believes that central bank policies are a primary driver of gold prices, the yellow metal should have plenty of room to go up even as it sits above its previous all-time high. Besides the Federal Reserve’s openness to inflation, gold should be buoyed by a surge of the euro and the European Central Bank’s (ECB) efforts to contain it.

Experts like Mechanical Engineering Industry Association’s chief economist Ralph Wiechers and Natixis strategist Dirk Schumacher note that an overly strong euro poses problems for the eurozone. It hinders both exporters and importers, slows the European economy, and can cause inflationary spikes in individual countries.

While the ECB might not be able to control the euro as easily, Schumacher’s firm expects them to try and push it down by introducing looser monetary policies. BNP Paribas’ analysts share a similar view, stating in a recent note that the ECB would also voice its desire to keep the euro lower. This was exemplified when former ECB vice president Vitor Constancio stated in an interview that the ECB would follow in the Fed’s wake by allowing inflation to run above the targeted rate for periods of time.

Strong currencies are among the biggest headwinds for gold prices, and inflation is one of its most powerful drivers. Given recent statements by officials from both central banks, it should come as no surprise that prominent investor Peter Schiff points to inflation as the next big thing that will power gold’s gains.

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

$65 Oil And $5000 Gold: Traders Expect Volatility In Key Commodities

September 13, 2020

$65 Oil And $5000 Gold: Traders Expect Volatility In Key Commodities

The year of the pandemic put two commodities under the spotlight, but for different reasons. Gold prices hit an all-time high in August, while crude oil slipped into negative for a day in April, when demand crashed and inventories soared.

Both oil and gold have seen much volatility this year. Oil prices started 2020 at over $60 a barrel, dipped to the low teens in April – with front-month WTI Crude futures settling one day at a negative price – and rose to $40 in the summer, staying rangebound since then. The crash in demand pushed oil lower, while increased uncertainty over the economic and oil demand recovery, as well as the fears of a second COVID-19 wave, pushed investors to seek safe havens such as gold, driving the precious metal’s price to an all-time high of $2,075 an ounce last month.

The wild rides in the two commodities could represent buying opportunities, analysts argue, expecting oil and gold to rise in the medium term.

For oil, the uptrend may not come as soon as it could in gold, because of the heightened concern about the stalled demand recovery. Still, investment banks and analysts expect prices to increase from current levels over the next one to two years, especially if an effective vaccine hits the markets in 2021.

For gold, low or negative interest rates, continued economic stimulus, and the perception that gold is a hedge against uncertainty about the economy and the upcoming U.S. presidential election are expected to drive prices higher.

Alissa Corcoran, Director of Research at Kopernik Global Investors, told MarketWatch’s Myra P. Saefong that the short-term volatility in commodities could be an opportunity instead of risk.

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

U.S. Mint Silver & Gold Eagle Sales Explode In August

September 12, 2020

U.S. Mint Silver & Gold Eagle Sales Explode In August

With the recent update from the U.S. Mint, Silver and Gold Eagle sales surged in August. While Gold Eagle sales continue even higher during August, the real explosion took place in the Silver Eagle figures. After the U.S. Mint adapted its fabrication processes to incorporate protections for employees due to the virus, production and sales of Silver and Gold Eagles took off again in August.

And, when I say that Silver Eagle sales EXPLODED in August, I wasn’t exaggerating. In June, the U.S. Mint sold a bit more than one million Silver Eagles, but this more than quadrupled in August. Total Silver Eagle sales in August were 4,477,000, higher than the total sales from August to December 2019 at 3,591,500.

In just one month, the U.S. Mint sold more Silver Eagles than during the last five months of 2019. That is an impressive figure. We finally see monthly sales figures similar to the monthly sales figures that took place during 2015 when the U.S. Mint sold 47 million Silver Eagles.

Already, Silver Eagle sales for January to September (first ten days) 2020 are higher at 19.1 million versus 14.8 million for full-year 2019.

If Silver Eagle sales continue to be healthy for the rest of the year, and the U.S. Mint can keep up with demand, we could easily see a total of 25-28 million sold for the entire year. Furthermore, it seems as of premiums on Silver Eagles are finally coming down to a more reasonable level for investors. Interestingly, investors are willing to pay these high premiums for Silver Eagles to acquire these U.S. Government official silver coins.

Now, if we look at the Gold Eagle sales for August, there were also quite impressive at 121,000 oz. The U.S. Mint sold 121,000 oz of Gold Eagles in August compared to 152,000 oz for full-year 2019.

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

This Analyst Says Gold’s Pullback is Proof that Higher Prices Are to Come

August 29, 2020

This Analyst Says Gold’s Pullback is Proof that Higher Prices Are to Come

Precious Metals Soaring

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Gold has more room to run, why central banks have been buying gold for over a decade, and two massive gold nuggets worth $250,000 found in Australia.

Standard Chartered: Gold has more to show this year despite hitting a new all-time high

For a steady asset such as gold, a rapid breach of its decade-old all-time high is quite a showing. Yet, according to multiple analysts, the metal could stagger market watchers some more by the end of the year. Since blazing past $2,000, gold has pulled back as some expected, yet seems unwilling to go below the $1,940 level if the previous two weeks are any indicator.

Standard Chartered Private Bank’s Manpreet Gill attributes gold’s correction to a slight recovery in the 10-year Treasury yield amid an increase in risk sentiment. If this is indeed the reason for the pullback, the development is actually positive for gold, as the general consensus is that sovereign bond yields are on a firm downwards spiral, with no central bank showing any inclination towards elevating its benchmark rate.

“We have quite a bit of one-sided positioning in gold and I think, you know, that’s actually unwound quite quickly. A lot of our proprietary indicators are telling us exactly that,” said Gill, while acknowledging that central bankers are favoring a cap on their bond yields.

In a recent note, Fitch Solutions’ analysts likewise said that gold should keep moving up for the rest of the year and pass its August high in doing so in the absence of any notable headwinds. “We expect gold prices to remain supported in the coming months with rising geopolitical tensions and an uneven and slow global economic recovery,” said the team in the note.

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

Is High Inflation Now A Bigger Danger Than A Deflationary Crash?

August 27, 2020

Is High Inflation Now A Bigger Danger Than A Deflationary Crash?

What’s the more likely event at this point: a deflationary crash or runaway inflation?

For a long time, Peak Prosperity co-founder Adam Taggart and I have hewed to the “Ka-POOM!” theory, which states that a major deflation will scare the central banks so badly that they overreact and pour too much liquidity into the system, thereby destroying it.

To visualize how this will play out, think of what happened in Beirut this week. Customs officials there stored thousands of tons of ammonium nitrate fertilizer at their seaport, for years. The pile just sat there doing absolutely nothing.

After years of inaction, the port authorities became lulled into the erroneous conclusion that nothing would ever happen.

But then one day a spark came to life, starting a fire, and then all at once — POOM! — the entire thing blew up with devastating effect.

This analogy works pretty well here as we approach the Keynesian endgame facing the global economy. The pile of $trillions in bad debts issued over the past decades has been the fertilizer. Covid-19 was the spark. And now we’re simply waiting for the entire economic and financial system to explode.

The same process began in the US and has been unfolding across the world ever since after the gold standard was abandoned in 1971. Untethered from any restraint, all that was left to staunch the flow of red ink was self-restraint and a concern for the future, both of which were in short supply.

Not only has debt been growing far faster than income (GDP) at the national level, but debts have been growing exponentially (i.e., ‘compounding’) ever since 1971:

That debt growth is a nearly perfect exponential curve upon which the entire systems of politics, banking and the economy have come to rely.

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

Why Martians Are Wrong About Gold

August 22, 2020

Why Martians Are Wrong About Gold

A martian — Warren Buffett once razzed — would marvel that earthlings dig gold from the ground… only to rebury it in vaults.

That is, the business is idiotic… pointless… and wasteful.

At first blush, our space man is justly puzzled. Why would humans shovel up hunks of metal — only to lock them away, idle?

Yet the martian — and the Nebraskan — jump past a fundamental truth of human nature.

As one insightful fellow (whose identity we cannot recall) has noted…

Men act with purpose. They do not squander their time or resources on pointless, juiceless pursuits.

Why would they expend vast resources to haul up gold… and risk their lives deep in dangerous mines to grab it… if they lacked compelling reasons?

We note that Mr. Buffett has recently purchased 21 million shares of Barrick Gold. Has this man forgotten his martian?

And so we arrive at this question: Why do men still toil extravagantly to wrest gold metal from stingy earth?

The Gold Standard of Money

Perhaps men continue digging up gold because thousands of years of history demonstrate that gold is worth digging up.

Gold is perhaps the ideal money, money par excellence — if you will forgive the expression, the gold standard of money.

Money must be rare. Rocks cannot be money — for example. Nor can dirt.

Yet there must be enough money to “go around.”

Gold is rare. But there is enough to go around. Hence it meets money’s strict conditions.

Gold is also durable. Gold mined thousands of years ago lives yet, fresh as a sprig, no wrinkles, no sags.

And unlike gems or diamonds, gold is divisible. It can be fashioned into bars or coins as needed.

Meantime, money must be a store of value. And gold maintains its value across centuries, across millenia.

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

Gold and Free Banking Versus Central Banks

August 16, 2020

GOLD AND FREE BANKING VERSUS CENTRAL BANKING

In spite of the officially declared “independence” of the Federal Reserve from the immediate political control of either Congress or the White House, America’s central bank is, nonetheless, a branch of the U.S. government that is responsible for setting monetary policy, overseeing a variety of banking regulations, and influencing market interest rates. As a result, politics is always present when it concerns the Federal Reserve, as witnessed in the nomination of Dr. Judy Shelton to serve on the central bank’s board of governors.

Dr. Shelton has become a lightning rod for angry opposition, not only due to Donald Trump, who as president of the United States nominated her to fill one of the seven slots on the Federal Reserve’s Board of Governors, but the fact that she has long been a public and vocal advocate for a return to some version of the gold standard as an “anchor” for limiting discretionary policies by the central bank.

Most academic and policy-oriented economists apparently are both flabbergasted and fearful that if she were to serve on the Fed board, she might actually attempt to limit the virtually unrestrained latitude the central bank currently has to seemingly create money and bank credit in practically any quantity, and, in the process, influence the level of interest rates at which banks make money available for borrowing purposes.

What is clearly horrifying to so many in the wide mainstream of the economics profession is the notion of a check on the powers and prerogatives of what amounts to America’s system of monetary central planning. But that is the very point of a commodity-based monetary system such as a gold standard, to limit abuse of the monetary printing press.

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

Market Friday: Is This the End of COMEX Paper Gold?

August 15, 2020

Market Friday: Is This the End of COMEX Paper Gold?

There’s been a lot of speculation in the Gold community about what’s happening in the market this year. 2020 has been wracked with unprecedented gyrations in the gold market.

It’s also seen gold finally breach the $2000 level and, this week after a nasty correction, is still holding onto most of its recent gains.

This rally in gold and the persistent supply tightness which has kept gold futures in contango for most of the year are indicators that something has fundamentally shifted in the gold market.

And now, the question on a lot of people’s minds is whether we’ll see the end of the fiction of the paper gold market as epitomized by the futures market on the COMEX.

Alistair Macleod’s recent article detailed the gyrations of the gold futures market explains why he felt the so-called bullion banks who work with the central banks to keep gold control have, in fact, lost control.

His detailed the use of open interest on the COMEX to push and pull the price of gold and how the market changed after March 23rd when the futures premiums blew out to a high of $70 over the cash price in the forex markets.

Using mass liquidation to crater the price of gold and force thinly-margined, weak longs off their positions is a classic COMEX raid on the gold and silver markets.

And if you look closely at this chart you’ll see a few moments where dramatic drops in open interest didn’t result in big price drops. So, either longs ponied up the cash to stay in their positions or the buying into those ‘raids’ so intense that attempt failed to break the psychology of the gold market.

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

Buyer Beware–Gold ETFs Like GLD Own No Gold

August 15, 2020

BUYER BEWARE – GOLD ETFs LIKE GLD OWN NO GOLD

Two major asset classes are major beneficiaries of the unlimited money printing and credit creation that is now taking place globally. One of them will end in tears and the other one has just started a major secular bull market.

As the world economy and financial system is disintegrating, investors are under the illusion that all is well with many stock markets still not far from their all time bubble highs.

THE DISCONNECT BETWEEN STOCK AND THE REAL ECONOMY CONTINUES

Many companies and services are haemorrhaging cash and are not going to recover for years and some never. As very few people are travelling, many airlines, cruise lines, hotels and restaurants for example will not survive. This is a global industry that employs 330 million people and represents 10% of global GDP. International tourism could fall as much as 60-80% in 2020 according to some estimates. The car industry is 3% of global GDP and is expected to drop 25% in 2020.

Real and hidden unemployment is a major problem and if furlough or social benefits are stopped many people will not survive. As many can’t pay their rents they will also become homeless.

Currently 31 million Americans are on some kind of unemployment benefits. That is 20% of all workers.

But if we include workers who are not receiving any benefits the total unemployment is 30% according to Shadow Government Statistics. This is worse than in the 1930s depression.

DREAMLAND STOCK INVESTORS IGNORE DEFICITS

Stocks market investors still live in dreamland and translate all the bad news to good news as the continuous flood of printed money and credit inject liquidity. This has always worked before so why won’t it this time? No one knows what the US deficit will be at the end of calendar 2020 but it could easily be $10 trillion as the debt grows to over $30t and on to $40 trillion within a year or two.

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

Massive Surge In U.S. Gold Imports Signals BIG TROUBLE Ahead For The Financial System

August 14, 2020

Massive Surge In U.S. Gold Imports Signals BIG TROUBLE Ahead For The Financial System

The U.S. imported a record amount of gold bullion in April during the global contagion and shutdown of many economies. The United States imported more gold in April than it did during all of last year. A lot of the gold imported into the U.S. was due to delivery issues, as many of the large gold refineries were shut down.

While the huge surge in U.S. gold bullion imports during April was mainly due to supply disruptions, it’s an IMPORTANT SIGNAL that all is not well in the Global Financial System. The panic to get more gold to the U.S. exchanges suggests that there is way too much paper gold leverage in the system.

The highly leveraged gold trading system has worked fine for decades due to an important factor not considered by most in the precious metals community… and that’s rising global oil production. Let me explain. World GDP growth is tied to global oil production growth… PERIOD. While a few other analysts and I have made this point, Jean-Marc Jancovici explained this to a large group of the OECD.

Total world oil consumption on a three-year average corresponding closely to total world GDP per capita on a three-year average. While investors may deny this relationship, do so at your peril.

Because the world has been able to add 1-2% of new global oil production on average each year, except for the down-turns, the highly leveraged Financial Ponzi Scheme can continue to grow and expand. However, when global oil production stops increasing on an annual basis, then global GDP growth is DEAD for good. And, I mean it.

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

Gold’s (And Silver’s!) Time Has Arrived

July 31, 2020

Gold’s (And Silver’s!) Time Has Arrived

Are you well-positioned for it?

Peak Prosperity publishes ALERTs very rarely, and only when my co-founder Chris Martenson and I are concerned enough to take personal action.

On May 8, I released an ALERT informing our premium subscribers that, concerned by the ramifications of the global central banks’ response to the coronavirus, I was moving a material percentage of my portfolio’s cash reserves into precious metals, notably into silver as the gold/silver ratio then of 110:1 remained near a record high.

Since the issuance of that ALERT, gold has broken above it’s previous all-time high price, moving up 14%, from $1,717/oz to $1,950/oz.

And silver has performed strikingly better: rising over 55% from $15.75/oz to $24.50/oz. As anticipated, the gold/silver ratio has fallen nearly 30% to 80:1.

However, much more important than this near-term pop in the precious metals is their outlook going forward.

We’ve been writing for years here at PeakProsperity.com about gold and silver’s extreme undervaluation given the risks we’re facing in our monetary and financial systems. And yet, for years, the metals languished as capital flowed eagerly into “paper wealth”, fueled by central bank liquidity, record low interest rates, and a rampant increase in debt and deficits.

Back in 2017, Grant Williams famously and correctly nailed the neglected state of the precious metals in his prescient work, Nobody Cares.

A year ago, as gold managed to break above it’s longtime ceiling of $1,350/oz, we began loudly alerting our readers that the years of neglect were finally over. That, indeed, investors were beginning to “care” again.

Fast forward to where we are today, a pandemic and +$5 trillion in global central bank liquidity later, and now it’s seeming that suddenly Everybody Cares about the precious metals.

Gold’s — and silver’s — time has arrived. Precious metals are finally back in a secular bull market.

Key questions to address at this moment are:

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

Gold’s Record Price Is All About Currency Debasement

July 28, 2020

Gold’s Record Price Is All About Currency Debasement

Gold broke its all-time price record on Monday and held above that level throughout the day.

So, what is this telling us?

It’s easier to understand gold’s record-breaking move up if you look at it from the other side of the equation. The dollar is now at its all-time low compared to gold.

In simple terms, the dollar is losing value.

This is a direct result of US government borrowing and spending backed by Federal Reserve money printing.

TD Securities reiterated that dollar debasement is driving gold in a note.

The USD weakens amid massive fiscal and central bank stimulus, a bloating debt pile and a slow growth environment.”

Since the economy crashed thanks to the governments’ shutdowns in response to the coronavirus, the federal government has borrowed trillions of dollars for its stimulus program. The June budget deficit was bigger than all but five of the yearly deficits in history. Meanwhile, the Fed is monetizing a big chunk of that debt through its government bond purchase program. In effect, it is buying up US debt and paying for it with money printed out of thin air.

All of this money creation is inflation. The rising price of gold reflects the inflationary pressure.

As more dollars go into circulation, each individual dollar is worth less, all other things equal. That’s why the price of gold is going up in dollar terms. We have more dollars chasing roughly the same amount of gold. That means it takes more dollars to buy an ounce.

This isn’t mere speculation. Money supply growth hit a new all-time high for the third month in a row in June. The only time we’ve seen money supply growth anywhere near this level was during the inflationary years of the 1970s. In June, year-over-year growth in the money supply came in at 34.5%. That was up from 29.5% in May.

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

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