He’s encouraged by the recent turn around in gold and silver prices. However, he’s wary and wants to see prices advance further. Until then he urges caution, but he believes that you buy when prices are favorable, not when they’re high.
David Morgan of The Morgan Report believes that if a precious metals raid is coming, it will come on the Monday after the July 4th holiday weekend. So far today, he’s looking pretty right. He thinks that we’ve seen the bottom in the metals markets and that the trend is up from here. The mining stocks will find their way again. The key is to diversify into a number of them. That way if one or two fail, you’ll still be positioned to realize tremendous profits. After all, since the Crash of 2008 nothing has been fixed. We’re on our way to something potentially worse. So get ready now.
UPDATE: Gold is down 2.5% – the biggest daily drop since early Dec 2013
[...] And this is how it happened… looks like fiduciary dutry just got F**ked…
[...] That US open print was a $1.37 billion notional flush…
In a status-quo reinforcing smackdown, gold and silver prices have been clubbed lower this morning to one-month lows with the biggest drop in almost 2 months. The customary USDJPY surge (and risk asset spike) has accompanied this high volume dump just to make sure everyone believes that BES is fixed, Ukraine is fioxed, Iraq is fixed, earnings are great, and the water is warm….
In the first four months of the year, the U.S. exported more gold to Hong Kong than it produced from its domestic mining industry. Actually, gold shipments to Hong Kong were 29% higher than total mine supply from Jan-Apr. That’s a pretty big deal when we consider U.S. gold production ranks third in the world.
In order to cut costs, many gold producers resorted to “high-grading” their mines. This has a benefit of increased profit margins at the expense of lower production. If we look at the chart below, we can see that U.S. gold production declined 5% in the first four months of the year from 72.7 metric tons (mt) in 2013, to 69.1 mt this year.
Federal Reserve Chair Janet Yellen, facing tough questions from U.S. lawmakers this week on health of the U.S. economy and the timing of the first Fed rate hike, will be under pressure to acknowledge an uptick in inflation and improvement in the labor market.
Such an admission would mark a significant shift in tone towards a more hawkish rates outlook, a development which would help buoy the U.S. dollar or at least help put a floor in the currency, strategists told CNBC.
“I think it is too soon to expect a less dovish tone from her,” said Jens Nordvig, global head of G10 FX strategy at Nomura. “Eventually the tone from the FOMC (Federal Open Market Committee) will shift, but I think September-October is the more likely timing.”
It’s now going on close to 30 years since I first discovered that silver was manipulated by excessive and concentrated short selling on the COMEX. I remember the exact moment like it occurred yesterday. It’s hard to believe I was in my 30’s when this started. As I’ve explained previously, I was looking for an answer to Izzy Friedman’s question as to how and why silver prices remained so low when the market was in a supply/demand deficit.
Through no great accomplishment on my part, aside from having a futures market background of almost 15 years at the time, it suddenly dawned on me that silver prices were dictated on the COMEX, to the point of price manipulation. Everything that has transpired since has only confirmed to me that silver prices are still manipulated on the COMEX.
With year-end target after year-end target having been met and raised by the oh-so-ethical sell-side strategists and asset-gatherers, it appears the Fed’s grand plan of dragging every bit of cash into the increasingly more risky equity markets is working. After a rally driven more by financial engineering that real sustainable growth, Bloomberg reports,individual investors are plowing money back into the U.S. stock market just as professional strategists say gains for this year are over. As one senior equity manager warned, “if Wall Street, after poring over all known data, comes up with a target and we’re already there, and you still see individual investors buying and they’re typically the ones that are late to the party, it would seem there is limited upside,” but that didn’t stop about $100 billion being added to equity mutual funds and exchange-traded funds in the past year, 10 times more than the previous 12 months. We have found this cycle’s greater fool and once again it is the retail investor.
F or public consumption, the fatuous haircut-in-search-of-a-brain, a.k.a. Secretary of State John Kerry, hauled out the dog-eared playbook for “negotiating a ceasefire” between the Palestinian Hamas leadership and Israel. Neither side takes him seriously, of course. In this historic moment of Islamic uproar across the entire region, Hamas is just following the larger script: act up and act out.
They would like to catch the momentum of rampaging ISIS next door, but Hamas is not a mobile force of mostly young male psychopaths. They’re stuck in Gaza embedded among their women and children doing what they can to eliminate Israel and replace it with an Islamic state. For the moment that means lobbing rockets from launch sites planted among the homes and institutions of daily life in the densely urbanized Gaza strip.
(Interview conducted 11 July 2014) James Turk, Founder & Director of GoldMoney, co-author of “The Money Bubble – What to do before it pops”, and keynote speaker at the 7th Gold Investment Symposium being held in Sydney, 8-9 October 2014.
In the interview, James talks with Symposium’s Managing Director Kerry Stevenson about his book, believers of gold vs non-believers, how to educate people about what money is and its role, his views on the Chinese and their strategy, as well as what investors will take away from his presentation.
The title of James Turks’ presentation at this year’s Gold Investment Symposium is “Returning to Gold: Money in the 21st Century”.
The Gold Investment Symposium is Australia’s leading precious metls summit.
From 2004 to 2014, student debt increased over 400% to reach about $1.2 trillion, becoming the second highest debt in U.S. households after mortgages.
My best friend graduated from a four year, private university two years ago. She double-majored in biology and psychology with the goal of becoming a clinical psychologist.
But instead, with more than $28,000 of debt, she was forced to find a service job at a restaurant to start paying back her student loans, which kicked in six months after graduation. She doesn’t have the means to find an unpaid internship or to continue collecting debt in grad school.
Her debt matches up with the national average of about $29,000, and Maryland’s of almost $26,000.
Silver is not just any old commodity. It is old money. Despite massive efforts and price fixing, clipping and manipulation, it has remained central to monetary and political systems for centuries. Today it is small and relatively dark in the context of modern investing.
Desperate times call for desperate measures. And the desperation to buy and hold metal should simply be proportional to the desperation of the will of the monetary powers to maintain the status quo.
Here’s a quote from ZeroHedge that sums up the demise of fiat:
Picture the scene. It’s 2020. You’re at the checkout in a convenience store with a carton of milk. But you’ve got no cash and you’ve left your cards at home. No problem. You scan your right index finger; the green light flashes. Purchase approved and you leave. Easy.
Is this a realistic vision of the future, or are we only ever likely to see such scenes in science-fiction movies such as Minority Report? Predicting the future is never easy, but I believe that new technologies will prove the death knell for cash. We’re not there yet, but a cashless society is not as fanciful as it seems. Recent research suggests that many believe we will stop using notes and coins altogether in the not-too-distant future.
Good Day! … And a Marvelous Monday to you! Well, my beloved Cardinals made it all the way back to first place on Saturday, only to fall back to second on Sunday… It’s the All-Star break now, so with all their trials and tribulations, injuries, and what not, they are not in that bad of shape… I don’t know how, magic I guess! Magic is a powerful thing, eh? It can also be considered to be smoke and mirrors in some cases… And it’s with smoke and mirrors that we keep churning out data reports that somehow illustrate an economy that’s going great…
And once again, I’ll ask the question, that I would ask, if I were a lawmaker, and sitting through the 2 Janet Yellen testimonies on the economy that will take place this week… “Ahem, thank you, for picking me, I’m a long time listener, first time question asker… But I have this question for you…
Janet Yellen could be a little clearer … What the Fed Really Meant to Say … The gap between what the Federal Reserve says about monetary policy and what investors think it’s saying would be funny if it weren’t so important. Most of this gap is the listeners’ fault – but not all. The Fed could do a better job of explaining itself. – Bloomberg
Dominant Social Theme: If we just tweak the process, the Fed can do better …
Free-Market Analysis: Another article, among thousands every year, explaining how the Fed can be more effective if it would just do … this. Or that …
The rhetorical element always involves explaining what the Fed has done wrong, and continues to do wrong, and why the Fed can become more effective – and realize its true potential – if the commentator’s advice is taken.
The above excerpted Bloomberg article is a prime specimen of this particular dominant social theme.
If one were so inclined, one could imagine that the relentless barrage of domestic scandals plaguing Obama have been orchestrated with a simple reason: to divert attention from the worst US foreign policy in four decades. And sure enough, even a casual glimpse of all the raging international crises, in which the US is currently embroiled, is enough to make one wonder if the next global crisis will be fought not in the capital markets but in the actual battlefield. As the WSJ recounts, “a convergence of security crises is playing out around the globe, from the Palestinian territories and Iraq to Ukraine and the South China Sea, posing a serious challenge to President Barack Obama’s foreign policy and reflecting a world in which U.S. global power seems increasingly tenuous. The breadth of global instability now unfolding hasn’t been seen since the late 1970s, U.S. security strategists say, when the Soviet Union invaded Afghanistan, revolutionary Islamists took power in Iran, and Southeast Asia was reeling in the wake of the U.S. exit from Vietnam.“
Ockham’s razor is a principle that states that among various hypotheses that might be used to explain a set of observations, the hypothesis – consistent with the evidence – that relies on the smallest number of assumptions is generally preferred. Essentially, the razor shaves away what is unnecessary and retains the most compact explanation that is consistent with the data. The same basic principle runs through the history of thought from Ptolemy (“We consider it a good principle to explain the phenomena by the simplest hypothesis possible”) to Einstein (“A theory should be made as simple as possible, but not so simple that it does not conform to reality”).
Suppose, for example, that one periodically sets hot cherry pies near the window to cool, and sometimes they disappear, with an empty pie tin usually later found in the kids’ treehouse, and cherry stains around their lips. When pies go missing, one would normally not assume that aliens had come down to earth, taken the pie, devoured it in mid-air, brushed by the kids’ lips leaving cherry stains in the process, erased the kids’ memory, discarded the tin in the treehouse, and then returned to Xenon.
LONDON (Mineweb) – The signs are all there. The big investment banks – JPMorgan in particular – which have the financial clout to move the markets on their own through massive paper sales in the futures markets have, it is reported, been building short positions in gold and silver to a level not seen since just ahead of the big gold price smashdown of April last year.
Is history about to repeat itself? If we get another high profile bank analyst issuing a strong ‘sell short, or ‘slam dunk sell’ gold recommendation in the next few days then it may presage another attempt to knock the gold price, and the silver price, down very sharply. As was shown last April, such a move could negate any gold price gains so far this year – and more.
As Ed Steer commented in his most recent newsletter in an analysis of the latest COT report which showed that the Commercial net short position on COMEX increased by 5,548 contracts, or 554,800 troy ounces. The Commercial net short position now stands at 16.6 million troy ounces.
Thomas Piketty is a new rockstar in the Keynesian and Marxist economic world. In the best-seller Capital in the Twenty-First Century, an onslaught of data I haven’t read nor plan on reading, he demonstrates how he is an obsolete economist ignorant of 21st century economic tools.
The book demonstrates that wealth inequality is bigger than income inequality. This is common sense. Anyone who has spent a bit of time thinking about how the world works has seen that there are some very established interests who have been a sort of ruling class for a very, very long time. Piketty paints a picture, with statistics, that the elite hold the rest of the world in debt to itself. In other words, they are not productive, but earn via economic rent from debtors. In other words, they are not producing anything, not building any wealth. The ruling class is a class of debt collectors.
Last week, I listed concerns of a stock market correction in the U.S., including high valuations and a weaker-than-expected economy. Investors seemed to acknowledge those risks, as stocks drifted steadily lower on the week.
At the same time, European equities had a shock as the solvency of a major Portuguese bank was called into question. Shades of the 2011 European debt crisis spooked investors, and stocks across Europe slid.
With trouble in developed markets and yields on interest-bearing assets still paltry — and perhaps threatening to drift even lower given recent trends with the 10-year Treasury — then where is an investor to turn?
Today’s AM fix was USD 1,321.25, EUR 969.87 and GBP 771.53 per ounce. Friday’s AM fix was USD 1,336.50, EUR 981.78 and GBP 779.39 per ounce.
Gold climbed $1.90 or 0.14% Friday to $1,337.70/oz and silver rose $0.05 or 0.23% to $21.43/oz. Gold and silver were both up for the week at 1.37% and 1.42%.
Gold pulled back from its recent highs from $1,340/oz to $1,316/oz. There are a number of factors supporting gold’s price level and we believe will likely give it a boost in the near term.
Quantitative Easing or money printing and ultra low interest rates have flooded the market with cash and that cash is seeking yield. As a result equity markets at are near all time highs, bonds are on the floor and mad speculative bets on anything that moves, are on the rise. Risk is being ignored on an industrial scale, with corporate bonds yields at risk defying lows.
America Fails the ‘Rule of Law’ Test … The U.S. doesn’t even come close to meeting the standards articulated by its own army. Why isn’t establishment Washington alarmed? … The U.S. Army field manual defines “the rule of law” as follows: “The rule of law refers to a principle of governance in which all persons, institutions and entities, public and private, including the State itself, are accountable to laws that are publicly promulgated, equally enforced, and independently adjudicated, and which are consistent with international human rights norms and standards. It requires, as well, measures to ensure adherence to the principles of supremacy of law, equality before the law, accountability to the law, fairness in the application of the law, separation of powers, participation in decision-making, legal certainty, avoidance of arbitrariness and procedural and legal transparency.” Going by that definition, the U.S. government does not operate according to the rule of law. – The Atlantic
Dominant Social Theme: The US is a lawful country, top to bottom.
Free-Market Analysis: Here comes The Atlantic magazine – that bastion of international socialism – with a scathing article about the US’s rising lawlessness.
Of course, we have no idea why this article appeared in The Atlantic, a publication dedicated to advancing an ever-closer union between the US and Europe.
[Ed. Note: They don't mind their currency being repeatedly destroyed, and their livelihood being sucked away slowly, but don't question their willingness to fight over what happens when grown men play children's games with an inflated piece of rubber. It's all about priorities, really.]
Most attentive parents today rarely allow their children to go unsupervised, particularly in public. It starts with the wireless baby monitor for the crib and ends with the ever-present cell phone at college graduation.
This is what makes reports from the US-Mexican border so perplexing to most Americans. It is hard to believe that parents would send their children, even young children, to travel many hundreds of miles, up to 1,600 miles without guardianship, or under the control of “mules” who guide the children with the hope of a safe voyage to the United States.
The journey is both harsh and dangerous. The northern region of Central America (i.e., Guatemala, Honduras, and El Salvador) and Mexico is one of the most dangerous areas of the world. The climate can be harsh, roads and travel conditions are mostly poor, and the children are subjected to robbers, kidnappers, rapists, government police and soldiers, drug cartel members, and bandits of all sorts.
Once the deadwood piles high enough, the random lightning strike ignites a fire so fast-moving and so hot that it cannot be suppressed, and the entire financial system burns to the ground.
In discussing our broken healthcare system with a 22-year college graduate, I opined that Obamacare hadn’t fixed anything that was broken. She observed that real reform was impossible due to vested interests and the only real solution was to “start over.”
People constantly ask me for solutions to our all-too visible ills. You want solutions? Here’s the solution for every systemic, structural problem we face: Avoid getting hurt when it collapses, then start over.
Over the nine years I’ve been writing this blog, I’ve offered dozens of systemic solutions, and have reprinted dozens more submitted by readers. For example:
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