Did you ever ask yourself what this central bank obsession with inflation is really all about? After all, it is highly ironic that these erstwhile stewards of price stability have now perversely morphed into the frantic pursuit of currency destruction. This is...
Gold Editorials & Commentary
February 25, 2016
Over a century ago JP Morgan understood that gold was money and the rest was credit. But he lived when you could buy groceries with a gold eagle and a cup of coffee cost a few cents. Ben Bernanke and hundreds of other “paper pushers” ignore gold, pretend not to...
Gold is currently working on a ‘full house’, with three of a kind (gold out performs stock markets, gold rises vs. commodities and gold rises vs. global currencies). We can call the pair needed to complete the full house economic contraction (to varying degrees...
It appears that Great Britain might actually do the until-recently-unthinkable, and leave the European Union. The reasons for this dramatic break-up are many, and can be Googled easily enough. For our purposes, suffice to say that traders are scrambling to figure...
When the next great financial crisis strikes, millions will be blindsided by what is coming and will be shocked by a "New Great Depression of The 21st Century". This does not have to happen to you. It is empowering to know what is coming and to understand why it is...
February 24, 2016
I’ll be upfront going in and say that some of this material is going to double a bit with a fantastic message preached by Chuck Baldwin a few weeks ago. As I listened, some different angles came to mind, and some different events altogether. As we get further and...
A growing number of investors are beginning to realize that Central Banks are effectively out of ammo (for now). Last week I noted that the Bank of Japan’s implementation of NIRP only generated a brief rally in Japanese stocks. That rally has since been obliterated...
Gold never changes; it's the world around it that does. Why is it that we see a renewed interest in gold now? And more importantly, should investors buy this precious metal?
We talked yesterday about the upcoming G-20 finance meeting, I said I believed it would not be "benign". Many readers have questioned why and to paraphrase "rarely has the G-20 made important announcements or decisions, why would they do this now"? We'll get to...
Japan is at the forefront of the Keynesian central planning that has been in the markets for the past few decades. The Federal Reserve first went to ZIRP and launched quantitative easing in 2008. The European central bank went to ZIRP and they launched QE in 2015....
I don’t need to read/watch the news to know that the supply-demand backdrop remains unsupportive for the oil price. All I have to do is look at the spread between spot prices and futures prices in the oil market. The larger the contango, that is, the higher the...
February 23, 2016
Gold prices soared last week when Fed market pricing went to extremes, with bond prices indicating that there was next to no chance of a rate hike in the next twelve months. We have covered the cause of this irregular pricing, which was the stopping out of 2016...
This definitive sign of a currency collapse is easy to see… When paper money literally becomes trash. Maybe you’ve seen images depicting hyperinflation in Germany after World War I. The German government had printed so much money that it became worthless....
Gold was higher in the overnight session, reaching 1223.40, at the time that this Post was being written. We believe that we are in wave !iv!. The first option that we are following is the triangle, as follows:
All lights for gold are green. And rather than beginning a correction, gold may be poised to intensify its rally. Investors with widely differing views on gold all seem to be pressing their buy buttons at the same time.
Slowing economic growth globally has led for some rough days on Wall Street lately. The Dow Jones industrial average and the Standard & Poor’s 500 index are both down by 6 percent so far this year. It’s sometimes hard to figure out where to park one’s money...
I can think of no better word except, “astounding”, when considering what is taking place with the giant gold ETF, GLD and its reported holdings increases. This afternoon’s reported gold holdings showed an increase of exactly 19.33 tons to 752.29 tons. This is...
February 22, 2016
Government bureaucrats, central bankers, and Wall Street executives all have their own reasons for hating the cash in your wallet. So, no surprise, they are working closely together to rid you of it. The war on cash is intensifying and bullion investors are...
Operating under the mistaken belief that a modest dose of inflation is either a prerequisite for, or a by-product of, economic growth, the nation's top economists have been assuring us for quite some time that inflation will stay very low until the currently...
Nearly everyone can recall playing Monopoly as a child, and for many, the game served as their first exposure to handling different denominations of cash. It was exhilarating to have someone land on your Park Place property, complete with hotel, and in turn receive...
The S&P500 Index shows a top in May 2015, a correction into August…and a deeper fall this month – February 2016. Look out below.
No doubt "something" changed starting the second half of last year. In fact, in looking at many markets we saw change and reversals. The process took quite some time but global equity markets topped and many are now quickly into bear market (down 20% or more)...
Last we visited on the subject of US inflation (November, 2015) we wrote: "Using those simplistic numbers suggests that U.S. inflation as measured by the [headline] CPI could rise to an annual rate of about 4% ..." That possibility is now increasingly likely given...
The internet is filled with predictions for the price of gold, from $500 to $50,000 per ounce. It depends on your world view. If you are a central banker or a powerful financial player which often supplies loyal employees to serve as Secretary of the US Treasury,...
I would like to update a few of the ratio charts we've been following that are still showing an important low or bear market low is in place for gold. There are so many things we read where this analysis says this and that analysis says that but the more one reads...
The big news is that the gold-silver ratio closed at 80. This is not only a new high for the move. It’s higher than it has been since 2008. It’s also exactly what Monetary Metals has been calling for. Last week, we said the gold fundamental was $1,450 and the silver...
This has been a momentous month for gold, with it finally breaking out of its long downtrend to commence a major bullmarket. Thus it is amusing to see Goldman Sachs talking about it dropping back to $1000 again. Those timorously wondering whether they are right...
February 21, 2016
SPX is correcting the decline from 2116 -- and has already fulfilled the minimum expectation by retracing a third of that downtrend. At this time, I would not bet that this is all we get, but it could be if it cannot get past 1947 before significant weakness re-...
Gold speculator and large futures traders sharply added to their gold bullish positions higher last week for a fourth consecutive week and brought bullish positions to the highest level since October, according to the latest Commitment of Traders (COT) data released...
I know, I know, Goldman Sachs Smart Alecks are now on record as of this past Tuesday (16 February) for Gold to return back down to 1100 within three months time, and then to further tumble to 1000 by a year from now. To be sure, as we again update straightaway the...
