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February 19 2019

moneymetals

Gold & Silver Prices Firm Despite Dollar, Stock Market Strength

gold-silver-prices-stock-market-social.jpg

Silver has fallen about $.45/oz from the early January highs, and gold has lost around $9/oz. Frankly, price action could be a lot worse.

During that time, the Federal Reserve Note dollar rallied and the equity markets roared higher. That combination should be bad news for gold and silver markets, but the premier precious metals have held onto most of their recent gains.

Perhaps the metals markets are seeing past the rally in the dollar. There isn’t much to support that move higher, after all. The Fed recently signaled a dramatic about face on monetary policy.

Inflation of the dollar

Two months ago, tighter monetary policy was a near certainty. Now, central bank officials are publicly putting the brakes on rate hikes and “Quantitative Tightening” – the program of steady selling from the massive hoard of bonds accumulated during the years of Quantitative Easing.

Recent inflation data (flawed as it may be) shows consumer and producer prices below the central bank’s target. The equity markets clearly can’t tolerate much more tightening given the stock market carnage last Fall.

The Trump Administration was none too happy about rising interest rates and the stronger dollar before stocks began selling off. More recently, Trump officials ramped up pressure on the Fed to change course. The Fed is now cooperating.

Why currency traders are currently bidding up the U.S. dollar is a mystery. It doesn’t look like a sustainable move to us, given the people who manage its value are aiming lower.

Full Article: https://goo.gl/fXYLEa

February 15 2019

moneymetals

February 14 2019

moneymetals

The Battle for Venezuela’s Gold Serves as a Lesson in Counterparty Risk

venezuela-gold-counterparty-risk-social.jpg

He who controls the gold makes the rules. That old adage applies aptly to the present crisis in Venezuela.

An international battle for control of Venezuela’s gold is currently underway. At stake is the country’s political future – and with it, the global market for its immense oil reserves.

In a desperate effort to cling to power, Venezuelan strongman Nicolas Maduro has been depleting his country’s gold reserves.

The oil-rich nation once had gold reserves of over 160 tons. But in recent months, Venezuela has sold off dozens of tons of gold to allies such as Turkey, United Arab Emirates, and Russia in exchange for euros and other globally recognized currencies.

Nobody in their right mind wants to conduct international business in the Venezuelan national currency, the bolivar. Even ordinary Venezuelans have largely ditched the bolivar for cryptos and other alternatives as inflation rates in the troubled country top 1,000,000%.

Even as the Venezuelan government was busily hyperinflating its currency and ripping off its people, it still held gold in reserve in order to retain the confidence of foreign creditors including Russia and China. Ordinary Venezuelans couldn’t redeem their rapidly depreciating bolivars for gold, of course. But foreign creditors could effectively demand payment in gold through the conversion of Venezuela’s gold into their preferred currencies.

For several months, President Maduro has been trying to retrieve some $1.2 billion worth of official gold being held in Bank of England vaults.

Fearing reprisals from the United States, which has imposed far-reaching economic sanctions on Venezuela, the Bank of England stalled, gave excuses, and ultimately refused to return Venezuela’s gold.

Venezuelan flag

The Maduro government charges that its gold has been illegally confiscated, in contravention of internationally recognized norms.

Maduro’s U.S.-backed rival, Juan Guaido, is demanding that the Bank of England hand over the gold to him instead!

Guaido is an inexperienced and until very recently obscure political figure in Venezuelan politics. Nevertheless, he has been recognized by the United States as the interim President of Venezuela – even though he hasn’t actually formed a government or removed Maduro from power.

If Guaido gets control over the country’s gold, it could be game over for Maduro. His international creditors would likely begin abandoning him.

Continue reading: https://goo.gl/AW5Xpo

February 11 2019

moneymetals

February 07 2019

moneymetals

If Financial Markets Make You Nervous, It’s Time to Own Physical Gold in Your IRA Instead

physical-gold-in-your-ira-social.jpg

If the sharp selloff in stocks late last year has you looking for other places to invest your retirement money, self-directed IRAs are worth a look. These accounts allow you to switch some of your Wall Street assets for tangible assets such as gold, silver, and real estate.

Retirement

Nervous investors are making the switch in increasing numbers. In addition to the diversification away from paper assets, it is easy to transfer funds from an existing IRA.

And the cost of maintaining the account is often well below what Wall Street charges to “manage” the funds.

Banks and brokerages successfully cultivated the idea that IRAs should contain only conventional securities – stocks, bonds, and mutual funds. The vast majority of retirement funds are invested in those assets, and financial institutions get a rake on every nickel invested. It is no accident that paper is the ONLY option in most accounts.

Annual maintenance and storage fees for $100,000 in IRA funds invested in physical gold, including the storage at Money Metals Depository, are roughly 35 basis points (.0035) for the first year and 20 basis points (.002) ongoing. The maintenance and management fees built into many ETFs and mutual funds are triple that amount.

Word is getting out about the “Self-Directed IRA” alternative. In return for assuming personal control over investments, people can buy a wider range of assets – including many options their stock brokers and financial planners either don’t mention at all or speak of dismissively.

Today, there are a number of good IRA companies offering self-directed plans, so it is worth covering how an investor might go about choosing one.

Find out more: https://goo.gl/ZBq5z5

February 05 2019

moneymetals

February 04 2019

moneymetals

U.S. Mint Silver Eagle Sales Jump In January

us-silver-eagle-sales-jan-2019-social.jpg

As the demand for precious metals shows some life once again, sales of the U.S. Mint Silver Eagles jumped in January. Not only have Gold, and Silver Eagle sales increased, so have the precious metals prices. In the past two months, gold and silver prices have gained 7% and 11% respectively. Today, gold reached $1,320, while silver topped $16.

While January sales of Silver Eagles fell to a low last year at 3.2 million oz (Moz), down from 5.1 Moz in 2017, they picked up this month surpassing 4 Moz. According to the U.S. Mint’s most recent update, Silver Eagle sales totaled 4,017,500 versus 3,235,000 last year:

U.S. mint silver eagle sales january 2018 vs 2019

Thus, Silver Eagle sales have increased nearly 25% more than the same month the previous year. While it is true that overall Silver Eagle sales have been much lower than the peak of 47 million set in 2015, it is good to see an uptick in demand. Furthermore, Gold Eagle sales for January rose by more than 10% to 64,500 oz versus 58,500 oz last year.

Here are the total Silver Eagle Sales for the past five years:

2014: 44,006,000

2015: 47,000,000

2016: 37,701,500

2017: 18,065,500

2018: 15,700,00

As we can see, total Silver Eagle sales in 2018 were 67% less than the peak in 2015. However, sales are still much stronger than before the 2008 Financial Crisis. In 2007, annual Silver Eagle sales were a little less than 10 Moz. If the situation in the economy and markets continue to deteriorate this year, I believe we are going to see much stronger Silver Eagle sales than the 15.7 Moz last year.

Check it out here: https://goo.gl/MTdn4C

January 31 2019

moneymetals

Peak Gold and the Coming Supply Crunch

peak-gold-supply-crunch-social.jpg

During the lackluster and otherwise unremarkable trading of 2018, a hugely important development took place in the precious metals markets. Gold production, in the estimation of some top industry insiders, peaked.

Peak gold represents the point at which the total number of ounces being pulled out of the ground by miners reaches a maximum.

It doesn’t necessarily mean gold production will suffer a precipitous fall. But it does mean the mining industry lacks the capacity to ramp up production in order to meet rising global demand and even higher prices would not make it happen.

One of the leading proponents of the peak gold thesis is Ian Telfer, chairman of Goldcorp (which was recently acquired by Newmont Mining to become the world’s biggest gold company).

Telfer remarked in 2018, “In my life, gold produced from mines has gone up pretty steadily for 40 years. Well, either this year it starts to go down, or next year it starts to go down, or it’s already going down… We’re right at peak gold here.”

We’ll soon find out whether his call for gold production to fall in 2019 pans out. If it does, the implications for precious metals investors are enormous.

The concept of peak gold is controversial, to be sure.

Skeptics point to the thwarting of peak oil over the past decade. Just as technological breakthroughs in fracking and horizontal drilling caused an unexpected surge in crude oil supplies, could not advances in gold mining techniques also lead to an unforeseen supply surge?

When human ingenuity combines with the right market incentives, nothing can be ruled out. But unlike crude oil which is a byproduct of decayed living organisms and exists in various grades all over the world, gold is a basic element that came to us from exploding stars billions of years ago.

Top 5 gold miners production 2017 vs 2018

The amount of gold in earth’s crust is fixed. By contrast, oil and other hydrocarbons can be produced synthetically from renewable biomass.

Perhaps one day we’ll mine for gold in space or generate it in nuclear reactors or particle accelerators. Theoretically, it’s possible. Practically, there’s no prospect of these unconventional methods of boosting earth’s gold reserves becoming economically viable in our lifetimes. It would take a true “moon shot” in the gold price and/or a technological breakthrough that might be decades away from coming to fruition.

In the meantime, the gold mining industry is experiencing a major wave of consolidation.

Last year Barrick Gold and Randgold merged. This year Newmont Mining acquired Goldcorp. Many lesser known junior mining and exploration companies have been or may soon be gobbled up by senior producers looking for an economical way to grow their reserves.

Developing new mines is expensive, time consuming, and risky.

Continue reading: https://goo.gl/siinuz

November 08 2018

moneymetals

Rep. Alex Mooney: Bring Back Gold!

Washington has been quite the circus lately. Bret Kavanaugh’s appearance in front of the Senate Judiciary Committee prompted dozens of interruptions from Democrats and numerous protests from leftists.

During Twitter CEO Jack Dorsey’s testimony to the House Commerce Committee, journalist Laura Loomer demanded to be verified on the social media platform, and Representative Billy Long (R-MO) held an auction.

Alex Jones tried to fight Senator Marco Rubio, a has-been actress got escorted from the premise, and CNN's Oliver Darcy was on the brink of tears.

What a time it was on Capitol Hill.

But as the crazies enveloped these events, a more subdued and mundane hearing occurred at the same time.

Entitled “The Future of Money: Coins and Banknotes,” the House Subcommittee on Monetary Policy and Trade discussed cryptocurrencies, counterfeit currency, intellectual property, and the U.S. Mint’s security developments.

One distinguished GOP representative took the opportunity to home in on two issues important to libertarians, constitutionalists, and sound money advocates: the gold standard and the Federal Reserve.

Representative Alex Mooney (R-WV), who has ostensibly continued where former Representative Ron Paul (R-TX) left off, alluded to the Fed’s inflationary policies, taxing legal tender under the Constitution, and his bill that returns the nation to money backed by the yellow metal.

Continue reading... 

November 07 2018

moneymetals

Post-Election Run Down: Biggest Winner, Biggest Loser

Tuesday's elections produced some winners, some losers, some surprises, and some lingering uncertainties.

For investors, the potential for a major shock to the markets was averted. But with Democrats poised to take control of Congress, new legislative threats to wealth holders loom on the horizon.

Even though the GOP lost the House of Representatives, it gained seats in the Senate – a rare feat during a mid-term election for a party that controls the White House. President Donald Trump hailed the night a “tremendous success.”

Biggest Winner: President Trump

Donald trumpIn more ways than one, President Trump emerged as a big winner on election night. He campaigned aggressively for several Senate candidates in states he had won in 2016. Thanks in no small part to his ability to energize the GOP base, a few races that had been widely thought to favor Democrat incumbents flipped to Republicans.

Trump-backed GOP candidates unseated Democrats in North Dakota, Indiana, Missouri, and Florida. Rick Scott’s narrow victory over a three-term incumbent in the Sunshine State was one of the more surprising and electorally important outcomes.

The perennially “too close to call” state of Florida once again lived up to its reputation as Republicans picked up the Senate seat and the governorship by less than 1-point margins each. Looking ahead to 2020, the newly elected Republican governor and Senator can be expected to serve as assets on the campaign trail in helping Trump win the state’s critical electoral votes.

At the end of the night, Trump didn’t put all of his endorsed candidates over the top. His party DID lose control of the House.

That’s not necessarily a bad outcome for Trump politically.

Full Article here: https://goo.gl/CGYZhc

November 06 2018

moneymetals

Sadly, Sound Money ISN’T on the Ballot

Americans will be headed to the polls to cast ballots in the midterm elections. Polling suggests that Democrats will return to power in the House of Representatives. Republicans are favored to hold on to the Senate.

However, political polls have proven less than reliable. There are plenty of people expecting a surprise once the votes are counted.

But there are many policies that won’t change regardless of who holds Congressional power come Wednesday.

U.S. debt bubble

For starters, we can count on the continuation of huge deficits. The Treasury Department’s most recent estimate is that government borrowing will double in 2018 versus last year. The bureaucracy is going to blow through $1.34 trillion more than this year’s record tax revenue.

That deficit will be the highest since 2010, back when the U.S. economy was mired in deep recession. Today, the IRS stands in high cotton. Imagine what deficit would look like if tax receipts were at recessionary levels and/or Congress was launching a major stimulus program.

The best-case scenario for deficit hawks would be a Republican victory in tomorrow’s election (although an argument could be made that a splitting of power between the two chambers would result in somewhat of a stalemate in Washington, possibly meaning less expansion of governmental programs).

Unfortunately, the “best case” is not all that good. Big government Republicans are already in control of Congress, and even the President’s supporters admit Donald Trump is not conservative when it comes to borrowing and spending.

Full Article: https://goo.gl/2FGBS8

November 05 2018

moneymetals

A Tale of Two Metals: One WAY More Valuable Than Gold, The Other Historically Undervalued

Gold is the metal of kings, the ultimate money, an eternal store of value, an un-tarnishable embodiment of beauty. Gold is all those things. But it is not the most valuable metal you can own on a cost-per-ounce basis.

Often, platinum commands a higher price than gold. Lately, platinum has traded at an abnormally large discount to the yellow metal.

Metals investors who want to hold the most concentrated wealth in a single ounce bullion product should opt not for gold or platinum…but for a different platinum group metal called rhodium.

Rhodium is scarce and thinly traded. Frankly, it’s a little-known metal even among metals investors.

Like platinum and palladium, the primary application for rhodium is catalytic converters for cars and trucks. It is alloyed with platinum and palladium to enhance resistance to corrosion. Rhodium is also used in some types of jewelry.

Rhodium has quietly been in a raging bull market over the past couple years. Prices bottomed out in 2016 at around $600/oz. This September, they surged to over $2,400/oz and have remained there.

As impressive as that quadrupling is, rhodium still trades far below its all-time high from 10 years ago. From 2004 to 2008, rhodium launched from $500 to as high as $10,000/oz. At its current value of $2,425/oz, the niche metal still has lots of room to run.

Of course, the trade off associated with rhodium’s explosive price potential is that it also carries significant downside risk. This metal isn’t for the faint of heart.

Folks just getting started in precious metals investing should first build up core holdings in gold and silver. But more seasoned hard assets investors who want to add a high-risk/high-reward speculative component to their precious metals portfolio might consider rhodium.

The high-flying metal is currently available to investors in the form of one-ounce bullion bars. They come sealed and authenticated by either of the reputable mints Baird & Company or PAMP Suisse.

More options are available for the more popular catalytic metals, platinum and palladium. Bars, privately minted rounds, and even some sovereign coins are available to investors.

Continue reading: https://goo.gl/wSqPno


November 02 2018

moneymetals

Chris Martenson Warns: Markets Are Making Faulty Assumptions about Growth & Resources

Chris martenson

Well now, without further delay, let’s get right to this week’s exclusive interview.

Mike Gleason: It is my privilege now to welcome in Dr. Chris Martenson of PeakProsperity.com, and author of the book Prosper! How to Prepare for the Future and Create a World Worth Inheriting. Chris is a commentator on a range of important topics such as global economics, financial markets, governmental policy, precious metals and the importance of preparedness among other things. And it's always great to have him with us.

Chris, it's been too long, but welcome back and thanks for joining us again.

Chris Martenson: Hey Mike. Thank you so much. It's great to be back with you.

Mike Gleason: Well Chris, we continue to follow your work closely, and your Crash Course video remains in our opinion, a must watch for people who are concerned about the road we are all on. You have summarized the problems we face as “expecting infinite growth in an infinite world.” No amount of money printing and Wall Street wizardry can change the fact that resources and energy in particular are limited. Unfortunately people are not always ready to listen, lots of folks tuned in following the 2008 financial crisis, but years have passed, and many Americans have forgotten about those darker times. Home prices and stock prices have been rising and few people are worried, at least with regards to the markets.

It isn't fashionable to be preaching caution, but the need for it is, we think, greater than ever. What are you saying to people who might think 2008 was just another bump in the road and now is not the time to be bearish, Chris?

Chris Martenson: Well, they have a point. They've got 10 years under their belt of the most expansive monetary policy ever, and I got dinged because I saw a lot of bearishness in 2011, and called it at the time, and of course, things just bottomed a little bit and then went up. Same thing in 2016, beautiful head and shoulders top, there was emerging market trouble everywhere, bonds were exploding overseas, and the dollar was spiking, as carry trades unwound, called that too, said, "Uh oh, this looks bad" and then was 50-degree rocket ride of monthly gains on U.S. equities after that.

Well, now we have the data, Mike. We look back, we say, "Oh, the central banks just printed more, then even more, and then even more." Most people mistakenly think the crisis was in 2008, they did a few extraordinary things on the fiscal side, they had TARP on the monetary side, there was all this quantitative easing, and then that's in the rear view.

But the truth is, the largest ever amount of printing happened in 2015, '16, and '17. Those in '16 and '17 in particular. Those were the years. If you want to understand why things denominated in freshly printed money go up in price, you don't need a PhD in economics. It's just how it works. And the central banks printed like crazy, tens of trillions, shoved it into the markets and guess what happened? Exactly what we predicted in the Crash Course in 2008.​...

Continue reading: https://goo.gl/47gwK4​

October 31 2018

moneymetals

WAITING FOR THE BUY SIGNAL: What’s Going On With Silver Investment

invest-in-silver-social.jpg

The Silver Market is setting up for one heck of a move higher as investors are waiting for the signal to start buying. While the silver price has shot up due recently, it still isn’t clear if this is the beginning of a longer-term uptrend. The reason for the quick spike in silver was likely due to a small short-covering rally by the Large Speculators trading on the Comex.

For the first time in a quite a while, the Large Speculators (Specs) were net short silver. For example, the Large Specs were net long by more than 100,000 contracts last year when the silver price was $18.50. However, the last COT Report showed that the Large Specs were net short silver by 17,000 contracts:

Net commercial short positions silver fell from 7,400 - 2,600

The Large Specs are shown in the Light Blue bars. Typically, the Large Specs are long, not short silver. You can see the Large Specs going short three weeks ago as their light blue bars turned down. On the other hand, the Commercials (in Red) are usually net short. However, the Commercials had the lowest net short position in years. So, to see the price of silver shoot by nearly $1.00 in a few days isn’t surprising when I have seen this setup for a few weeks.

However, it’s difficult to know if this is the start of a long uptrend in the silver price. It’s coming, but I just don’t know if this is it yet. We will know when the Silver price is making a big move when it finally gets above $20 as the broader markets crash. Now, many silver investors might be a bit frustrated because silver sentiment and investment demand dropped to a low last year.

Continue here to read the article: 
https://www.moneymetals.com/news/2018/04/23/is-it-wise-to-invest-in-silver-001460

October 29 2018

moneymetals

Greg Weldon Forecast: Dollar to Get Whacked, Catalyzing Gold & Silver Rally

Well now, without further delay, let’s get right to this week’s exclusive interview.

Greg weldon

Mike Gleason: It is my privilege now to welcome in Greg Weldon, CEO and president of Weldon Financial. Greg has over three decades of market research and trading experience, specializing in the metals and commodity markets, and his close connection with the metals led him to author a book back in 2006, titled Gold Trading Boot Camp, where he accurately predicted the implosion of the U.S. credit market and urged people to buy gold when it was only $550 an ounce.

He is a regular presenter at financial conferences throughout the country and is a highly sought-after guest on many popular financial shows, and it's always great to have him on the Money Metals Podcast. Greg, good to talk to you again and welcome back.

Greg Weldon: Thanks, Mike. My pleasure.

Mike Gleason: Well, Greg, let's start by getting your update on what impact trade policy and tariffs may be having on the U.S. economy. We last spoke in July. Tariffs were just beginning to actually take hold. Since then, the President has imposed additional tariffs. Anecdotally, we have seen some effect. We've recently ordered some steel storage lockers for our client storage vaults and the price was increased 10% based on the higher cost of imported steel. There are also wholesale price increases coming on one line of the preparedness products we offer on our SurvivalGoods.com website. We can assume lots of businesses are experiencing the same sort of thing. Do you think tariffs are now having a significant effect? Is any of the recent weakness in the equities markets attributable to trade policy, do you think?

Greg Weldon: Yes, no, and yes. First of all, in the sense of is tariffs having an effect, absolutely. But maybe not in the way you think and not in the way you couched the question. What I find really interesting is the Fed just published a really comprehensive survey last week in which they asked businesses, manufacturing firms, I should quantify, but this is where we're talking about in terms of trade ... Manufacturing firms in terms of the impact of tax cuts versus the impact of tariffs. And the results were fascinating, because the impact of tax cuts was dramatically positive, as you might suspect. But what you might not have suspected was the impact of tariffs, which were there a degree of percentage of firms which had negative impact from tariffs? Yes. I don't remember the exact numbers, but it was somewhere less than 20%.

At the same time, there was roughly something like 13% of firms that said that tariffs actually helped their businesses in terms of generating high revenue and to whatever degree there would be benefits to certain businesses, so offsetting and mitigating the negatives of the 20%, the 13%. So the net-net negative was not as big as you might think and was overwhelmed by the positives still from the tax cuts. We know that to be true as it relates to labor, stock buybacks, and even wages.

I think from the U.S. economic slowdown perspective not a big deal, and that's what Trump's counting on. But the bigger picture, absolutely an impact, because it's affected China so much, and China was already slowing. So the GDP numbers that came out, and you know that we look at most things from a mathematical perspective, and one of the knocks on China is the slowdown in retail sales, the slowdown in money growth, the slowdown in GDP growth, the slowdown in industrial production and FDI.

But the nominal numbers are so high in trillions of renminbi that of course you're going to have a percentage slowdown, because you came from such a low base. So something like retail sales, you've gone from a 15% year-over-year rate to 9, and everyone's up in arms because the consumer in China's slowing. No, it's a record number every month. It's just a lower percentage gain because the nominal numbers are so huge now.

But right here, the third quarter numbers, were different. There was real weakness, and it's kind of even ahead of tariffs, which are going to cause more problems for China. We already see inflation on the rise. We see commodity prices in renminbi breaking out here, big thing that nobody's really talking about too much. And the renminbi's about to take out 7, probably going to 7-1/4. So yes, major impact, but it's on China.

Then you see the flow through to how this affects the U.S. and how this affects other global markets, and this coming at a time when you have a lot of other things going on: The Fed, what's happening with emerging markets, how emerging markets, specifically Turkey, might flow into Spain, and how Europe is vulnerable. So, there's a lot more than just tariffs going on. Yes, there's a major impact, but it's not on the U.S. economy. It's in the market vis-a-vis what's happening in China as a result.

Full podcast: https://goo.gl/rKxkuN

October 26 2018

moneymetals

Win Big in Gold and Silver without "Buying the Bottom"

Last month in this space, I penned an essay titled "Are Silver and Gold 'at the Flood'"?. A few weeks later, two other essays on another widely-read site discussed this topic from the same perspective and sourcing – a case of "great minds thinking along similar lines"?

Please take time to read or review that Money Metals Exchange Post of August 28.

I made the case of a misalignment in the precious metals' markets regarding price versus value which had become so pronounced that – in the near term – an explosive change in trend catching most participants by surprise was pretty much baked into the cake.

Since that day, gold has notched its largest one day up move in two years, palladium has risen $200 an ounce, platinum and silver have penetrated the first layers of resistance, and mining sector ETFs have moved forcefully from their basing platforms.

Does this signify the end of the seven-year metals' bear market stretching back (with the six-month exception in 2016) to mid-2011? And is the bullish case risk/reward profile still compelling?

What follows could be one of the most valuable (and perhaps prescient) series of comments David Morgan has made in recent memory. Concerning the past few weeks' market action of the overall markets in general, and the impact on the precious metals' space in particular, he tells us:

The best way out is always through. Precious metals investors have gone through an extensive "wear you out" phase, in what may prove to be the most important precious metals bull market in the past century.

These words will no doubt be scoffed at during the initial publication of these thoughts. Yet the very few who have gone through this trial of holding a position in the precious metals need to understand that the shift from paper forms of wealth to real forms of wealth has now begun.

Almost everything in today's world is not what "appears" to be true. U.S. Bonds are thought to be the safest investment possible, yet monetary history is clear that there is a 100% failure rate of currency [which has been] issued beyond the markets' capacity to utilize it for productive means.

At that point, rank speculation takes over the markets, and gambling becomes the fashionable way to "invest." Gold has proven through thousands of years to remain a final means of payment, as currencies come and go. This lesson – which is missed by the vast majority – will once again be taught to the world.

A number of charts and comments by market participants could be presented here to bolster the bullish case, but let's just look at two charts from many, plus a comment -- then summarize how you might either add to your metals' holdings, or step up to the plate for the first time and "catch a wave" on what may become a major wealth-creating bull run.

Continuous gold contract - bull continuation hs pattern

The above chart, posted by Stewart Thomson of the Graceland Updates active traders' Letter - to which I have been a paid subscriber for a number of years - speaks eloquently for itself. As wizened traders with decades of experience in the markets like to say, "The bigger the base, the greater the upside case!"

Article source: https://goo.gl/Y57j3L

October 25 2018

moneymetals

How the Midterm Elections Might Affect Gold and Silver

midterm-elections-affect-gold-silver-social.jpg

The outcome of the November 6th voting will be a big deal for investors, including gold and silver bugs. The metals, perhaps more than most other asset classes, are sensitive to geopolitics.

Let’s break down what the potential voting outcomes might mean for the factors currently driving the metals.

Election

Let’s start with the equity markets. Stocks got a boost from President Trump’s election and subsequent tax cuts. Last week, the President floated the idea of additional tax cuts and he wants to pass a major infrastructure spending bill.

Not much of what he wants will get done unless Republicans do well at the ballot box. Republicans retaining control in Congress almost certainly represents the best-case scenario for stock prices.

Perversely for metals investors who favor the President’s policies, a positive outcome for the GOP could negatively impact gold and silver prices, at least in the short run.

Rising stock prices and the pervasive “risk on” attitude on Wall Street limits demand for safe-haven assets. We will need plenty of inflation reaching beyond equity markets and real estate for metals to win in that scenario.

Alternatively, gridlock in Washington based on Democrats winning one or both houses may not be good news for stocks. The metals may get a boost, however.

Full Article: https://goo.gl/7o7QTi

October 22 2018

moneymetals

Bitcoin or Gold: Which One's a Bubble and How Much Energy Do They Really Consume

is-gold-or-bitcoin-a-bubble.jpg

If you are investing in either Bitcoin or Gold, it’s important to understand which asset is behaving more like a bubble than the other. While it’s impossible to understand how the market will value these two very different assets in the future, we can provide some logical analysis that might remove some of the mystery associated with the market price of Bitcoin vs Gold.

I’ve read some analysis on Bitcoin profitability and energy consumption that seemed unreliable, so I thought I would put my two cents in on the subject.

For example, many sites are using the Digiconomist’s work on Bitcoin energy consumption. However, I believe this analysis has overstated Bitcoin’s energy consumption by a large degree. According to the Digiconomist, Bitcoin’s annual electric use is approximately 24 TerraWatts per year (TWh/yr):

Digiconomist bitcoin energy consumption

In a recent article that was forwarded to me by one of my readers, How Many Barrels Of Oil Are Needed To Mine One Bitcoin, the author used the information in the chart above to calculate the energy cost to produce each Bitcoin. He stated that the average energy cost for each Bitcoin equals 20 barrels of oil equivalent. Unfortunately, that data is grossly overstated.

Check out the article here: https://goo.gl/QEwGi4

October 19 2018

moneymetals
moneymetals
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Schweinderl