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May 03 2019

moneymetals

Which Metal Has the Most Upside & How to Avoid Costly Mistakes

A few weeks ago we heard the first half of an interview Money Metals president Stefan Gleason did during a recent 360 Gold Summit. Today we’ll hear part two of that interview. Stefan gives some important warnings to precious metals investors, discusses why he favors one of the precious metals over the others and also talks about some really important things to consider when selecting a precious metals dealer. Don’t miss the eye-opening conclusion of Stefan’s interview, coming up after this week’s market update.

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Well, the big headline in markets this week – the S&P 500 pushed to a new all-time high in nominal terms.

But is it a new high in real terms? Most in the financial media don’t want to ask that question. They would rather join their Wall Street sponsors in celebrating a new official record.

President Donald Trump certainly didn’t miss the opportunity to boast about the stock market’s strength under his watch.

Donald Trump: The stock market and our country from an economic standpoint is doing the best probably it's ever done. We're hitting new highs again. We've hit new highs, I guess, close to or over 100 times since I'm president from the time of the election.

CNBC Reporter: You heard the President starting off there with the stock market, obviously he sees that as a piece of good news, and an overall barometer for the economy under his leadership. I asked the President how high he thinks the stock market can go, he didn't respond to that one.

The Trump tax cuts for corporations and his administration’s relative business-friendly approach to regulation have certainly given equity markets a boost. But stocks have also benefited from a general rising sea of liquidity thanks to the Federal Reserve.

Investors shouldn’t be fooled by records that get set because of artificial stimulus from central bankers. There has never been a clearer case of the Federal Reserve goosing the stock market than the current rally that began off last year’s pre-Christmas lows.

Under pressure from Wall Street and the White House Plunge Protection Team to back off on rate hikes, Fed Chairman Jerome Powell announced a pause. Earlier this spring he confirmed the pause would continue for the remainder of the year. For Wall Street, it has been perhaps the greatest pause of all time judging by the nominal gains registered over the past four months.

Despite the celebratory mood surrounding stocks, there is a striking number of what market technicians call “non-confirmations.” The transportation index hasn’t hit a new high. The small-cap Russell 2000 index is nowhere near a new high. And the S&P 500 itself is far short of a new high when measured against raw materials including crude oil and gold.

Check out the full podcast here: https://bit.ly/2ZQhTpd

April 30 2019

moneymetals

Silver Market Alert: Powerful Bullish Setup Takes Shape

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The silver market appears to be setting up for a big move.

After spending this spring stair-stepping lower in a narrowing range, silver prices have formed a falling wedge pattern. That pattern usually resolves in a powerful directional breakout. The good news for bulls is that falling wedges usually break out to the upside.

Silver price (chart) - april 29, 2019

Commercial hedgers and bullion banks (i.e., “smart money”) in the silver futures market have significantly trimmed their short positions over the past couple weeks – a bullish development. While their net positioning isn’t yet at an extreme, it is more favorable than not for a price rally to commence in the near future.

Of course, neither futures traders nor chart patterns are 100% reliable. Nor do they have any particular implications for where prices may be headed years from now.

Long-term investors can benefit from identifying opportune entry points on the charts. But if a big multi-year bull market is to come, it will be driven by fundamentals – supply, demand, relative valuations, inflation rates, and investor sentiment.

Let’s therefore drill down into silver’s fundamentals.

The Silver Institute is widely considered to be an authoritative source. The Institute released its annual World Silver Survey in April, which showed global silver demand rose by 4% in 2018 to more than 1 billion ounces. At the same time, supply from mine production fell 2% last year to 855.7 million ounces.

At first glance, these numbers present a compelling case for higher silver prices. Demand appears to be outstripping supply.

However, there is no actual physical shortage. The mining supply deficit is (for now) being made up by scrap recycling and other secondary above-ground sources of physical silver.

There ultimately will be a physical shortage if demand continues to rise while mining production falls. The market’s way of averting such a shortage is through higher prices to incentivize more output and encourage thrifting by industrial users.

Silver is a difficult market to forecast in part because there are few primary silver miners in existence. Most silver production comes from gold and base metals mining operations.

Continue reading: https://bit.ly/2VCFD0E

March 29 2019

moneymetals

So Why Should You Own Gold?

Maybe you have some gold (and silver) but not enough. Maybe you haven't added to your stash for quite awhile, and you kinda' forgot why you bought it in the first place.

Or perhaps you don't own any precious metals at all!

If one of these circumstances fits you, then it's time to refresh your memory on the multiple reasons why you should own gold, assess your risk profile and unique financial circumstances... then act!

The oft-stated Gresham's Law tells us that when a government dictates the exchange rate between different types of money, the "good," or undervalued method of exchange gets chased out by the "bad," or overvalued version.

Thus the "bad" money stays in circulation and, as debasement (inflation) picks up, is quickly spent.

Unbeknownst to most – for now – U.S. inflation (greatly understated by "official" statistics) is increasing across the board. It doesn't need to hit double digits in order to move the dial on gold and silver prices. Invariably, the "smart money" sniffs out the potential well beforehand – which is what it's been doing for the last 9 months!

The "good" money in the U.S. is in reference to gold after FDR's infamous 1933 edict banning circulation… and later, the removal of silver from our coinage starting in 1965.

Today, a pre-1965 quarter at $16/ounce silver is worth about $2.75. Why would anyone exchange it for an 8% copper/92% nickel slug? As for a gold coin, don't even bother doing the math!

In Venezuela, according to the IMF, inflation will rocket along this year at 10 million percent! How long do you think the ironically-named Bolivar Fuerte ("strong bolivar") stays in someone's pocket, bank account, backpack... or large cardboard box?

You probably recall the reasons for owning gold. Here’s a timely review...

It's durable. Spanish gold bars and coins have been recovered from shipwrecks submerged for centuries... no worse for the wear!

It's portable. A 25 (troy) ounce tube weighs less than two (avoirdupois) pounds and is worth around $33,000 today.

It's divisible into small portions. 1/10th of an ounce is the size of a thin dime, but you can buy/store it by the gram - or in blocks of grams.

It's difficult to counterfeit. Just about any quality coin shop can spot a "weight problem" in relation to the expected size of a bullion coin or bar that a crook – or a naive buyer – might bring in for fiat trade.

It stores easily. Significant dollar amounts can be squirreled away just about anywhere.

Gold available for purchase is in finite supply. At a fairly consistent production rate of around 2%/year (and falling), gold is unlikely to experience a "production spike" like a base metal might.

It can serve as collateral for loan agreements, and as financial insurance.

Annual gold production (2003-2024)

Gold (and silver) make great gifts. My daughter still has the 1 troy ounce Krugerrand she received as a high school graduation present. The cost: $275. Her brother has a tube of 25 American Silver Eagles purchased for $7.50 apiece.

It's costly to mine. The industry gauging standard of All-In-Sustaining-Costs (AISC) for even the most efficient miners is still about 80-90% per ounce of what they're paid from the sale of production. What's more, miners have a wasting asset that – unless the deposit can be replaced with additional ore – diminishes the value of their project with every ounce they sell.

Read the full article here: https://goo.gl/B9eKau

March 27 2019

moneymetals

The Staggering Amount Of Gold & Silver Investment Since The 2008 Financial Crisis

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While the demand for precious metals is certainly off its highs from prior years, investors would be quite surprised by the astonishing amount of physical gold and silver investment since the 2008 financial crisis. Only by comparing the gold and silver investment demand to the prior decade, can we truly understand how the precious metals market has changed, and probably forever.

Now, before I get into the information, I wanted to say a few things about precious metals sentiment and the disillusionment, and at times, the outright disgust, by a percentage of former gold and silver investors. I am not going to name any names, but rather focus on the inability of these individuals to CONNECT THE DOTS in regards to the disintegrating Global Financial Ponzi Scheme.

And… for those few who still believe in the “Crypto Miracle,” to overtake 2,000+ years of gold and silver as money, you have my sympathies. I am not going to get into any details, but just to say… don’t count on High-Tech to solve our problems in the future. High-tech only creates more problems. So, if you believe high-tech is going to solve problems, then you don’t understand the historical record on the “Collapse of Complex Societies.”

Regardless, I believe part of the reason the “once” precious metals bugs, have now become quite frustrated, is that they have been taken in by the Mainstream Financial Koolaide. And why shouldn’t they? Stocks and real estate prices have been going up and up, until recently, for the past seven years while the metals peaked, declined, and have been virtually flat.

Yes, it’s frustrating to see the value of precious metals underperform the market while everything else seems to be heading toward the moon. But, that in itself should give anyone with a decent amount of intellectual know-how the ability to sniff out that… SOMETHING JUST AIN’T RIGHT. For some odd reason, all the negative aspects of the economy, the massive debt, derivatives, and leverage are all but forgotten when all we do is focus on the highly inflated stock, bond, and real estate asset values.

Unfortunately, the inability to see how the debt, derivatives, and leverage have created the biggest Global Ponzi Scheme in history will create the largest financial collapse ever witnessed, causing most investors to go bankrupt. It’s only a matter of time, and time is running out.

So, when I write about gold and silver, I am not doing so because I want to see a 1,000+% gains in the metals (that wouldn’t bother me either), but because there really isn’t much else worth owning as “Liquid Investments” when the Phat Financial Lady finally sings. Thus, I don’t focus on price targets or timelines, because that’s a fool’s game (one I was guilty of doing several years ago… no longer).

Frustration occurs when something doesn’t happen when or how we expect. Which means, it’s best to focus on the critical information, make one’s investment decisions, and let the system unfold in its due time.

The 2008 Financial Crisis Was A Game-Changer For Gold & Silver Investment

Because we focus on day-to-day news, we tend to overlook longer-term trends. While short-term information is important, it doesn’t override longer-term fundamental trends. Well, yes… maybe in some cases, but if we take the collapse of the Ancient Roman as an example, it cannot be attributed to just the events that occurred over the last few years of the empire, but instead, the centuries it took for its Falling EROI – Energy Returned On Investment, to destroy it from within.

Today, we are in the same predicament as the Ancient Roman Empire. However, the overwhelming majority of people don’t see it because they are only focused on short-term results and information. Thus, to truly understand the future, we have to look back in the past. And, if we do this with gold and silver investment, we will see a very interesting trend.

According to some of the best industry sources, the World Gold Council and World Silver Surveys, investors purchased 16,200 metric tons (mt) of gold and 57,800 mt of silver from 2009-2018:

Total physical gold & silver investment (2009-2018)

That turns out to be 520 million oz of gold and a nearly 2 billion oz of silver. Now, these figures only represent the physical bar and coin demand, including central bank net purchases. I did not include ETF’s or similar products. First, there is no way of knowing if the gold or silver is over-subscribed in these precious metals ETF’s or secondly, if all the metal that is listed, is contained in the vaults. So, the figures are likely much higher, especially for silver.

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

March 26 2019

moneymetals

Fed Gives Up on "Normalization"

Chairman Jerome Powell confirmed what many expected. The Fed is ending the effort to "normalize" – long before interest rates and the central bank’s balance sheet size gets close to normal.

Financial markets are hopelessly addicted to stimulus. The central bank fostered the addiction and has no intention of forcing markets into withdrawal.

In fact, if stock prices deteriorate and growth continues to slow, investors can expect the Fed to quickly ramp up the stimulus, once again.

The FOMC announcement was a complete about face. Until December, Fed bankers acted confident their extraordinary policy measures had promoted sustainable economic growth. Now, after only modest monetary tightening, that growth appears to be in jeopardy.

It is good to see the mainstream financial press and more institutional voices on Wall Street beginning to question the Fed’s credibility.

Article Source: https://goo.gl/pvWXwG

March 25 2019

moneymetals

What Do Airline Crashes and the Precious Metals Markets Have in Common?

Boeing and the Federal Aviation Administration worked closely together to hustle a new passenger jet through the safety certification process. The combined efforts to save time and cost, coupled with little sense of accountability, resulted in a tragic safety flaw.

Boeing airplanes

Now hundreds of passengers are dead, albeit in other countries. The public is finding the enormous trust placed in the manufacturer and the agency tasked with monitoring safety was badly misplaced.

The regulator tasked with safety appeared more interested in protecting Boeing’s monopoly and bottom line.

Here is an excerpt from an article last week in the Seattle Times:

Federal Aviation Administration managers pushed its engineers to delegate wide responsibility for assessing the safety of the 737 MAX to Boeing itself. But safety engineers familiar with the documents shared details that show the analysis included crucial flaws.

The FBI announced it will join a criminal investigation into the process for certifying the 737 MAX.

Precious metals investors will find many elements of the Boeing story familiar.

Gold and silver bugs have already learned just how dangerous it is to trust corrupt and captured federal regulators. Now that lesson is being taught to Americans at large.

By the time all the details of this sordid tale have been published, more Americans will wonder who federal regulators really work for.

Gold and silver investors who have been similarly betrayed by the regulators. Regulatory malfeasance and corruption is a theme the precious metals markets and airline industry have in common.

Concerns over regulatory capture and a track record of failure were largely ignored. Editors at Bloomberg outlined some of the history of the FAA in a March 21st editorial. Suffice it to say the recent crashes aren’t the only examples of the agency putting the needs of airlines and plane manufacturers ahead of public safety.

Continue reading: https://goo.gl/8LMy2W

March 22 2019

moneymetals

What Soaring Palladium Prices Mean for Silver

A once-rare property crime is now trending higher around the world. Thieves are stealing precious metals from automobiles.

These opportunistic criminals don’t bother rummaging through glove compartments in the hope of finding stashed jewelry or gold coins. Instead, they go for the certain score of exposed catalytic converters.

A car’s catalytic converter is attached to its exhaust system and converts toxic emissions into less harmful byproducts. It contains corrosion-resistant noble metals – typically platinum, palladium, and/ or rhodium – in relatively small quantities.

Those relatively small quantities are valuable, especially in the case of palladium. “Soaring palladium prices are inspiring an unusual band of criminals: catalytic converter thieves,” reported the Wall Street Journal.

In March, palladium prices spiked to a record $1,600/oz. They appear poised to set more records this spring.

Fears of a chronic supply deficit are prompting not only thefts, but also panic buying of palladium by industrial users and abnormalities in futures and leasing markets, including backwardation and double digit lease rates.

Since early 2016, the palladium spot price has more than tripled – from just under $500/oz. to over $1,500/oz. Despite the huge move, demand for palladium continues to outstrip supply. The move may be far from finished.

However, long-term investors who are focused on finding value – who aim to buy low when markets are depressed and out of favor – likely won’t find palladium attractive at these lofty levels.

But they may find palladium’s recent tripling encouraging for the prospects of other metals that have been beaten down and overlooked by most investors.


Continue reading: https://goo.gl/VKMn4C


March 11 2019

moneymetals

Palladium Blowup Could Expose Scam of Gold & Silver Futures

Craig hemkeCraig weighs in again and offers a concise and clear explanation on what’s been happening in the broken and rigged silver futures markets. And also tells us why he sees 2019 being a similar setup to what we saw in gold and silver back in 2010 and 2011 when the metals went on an historic run. Don’t miss a fantastic interview with Craig Hemke, coming up after this week’s market update.

Markets got roiled this week on some downbeat economic reports and a surge in the U.S. dollar.

The Dollar Index broke out to a 21-month high on Thursday after the European Central Bank came out swinging with more stimulus measures. The ECB indicated it intends to leave ultra-low interest rates in place at least through early 2020. That coupled with bleak new forecasts for European economic growth helped drag down the euro and give life to the dollar on foreign exchange markets.

Dollar strength is usually negative for precious metals, and this week was no exception, at least until today. With a bit of a bump here on Friday gold now shows a slight weekly gain of 0.3% to bring spot prices to $1,298 per ounce. Similar story in silver, which seems to have found a temporary bottom perhaps and is now moving off of it. The white metal currently comes in at $15.40 an ounce, up 0.8% now on the week. Platinum is lower since last Friday by 5.2% to trade at $818. And white-hot palladium is succumbing to selling pressure – down 2.2% this week to trade at $1,515 per ounce as of this Friday morning recording.

For the near term, metals markets appear vulnerable to further selling if the dollar breakout holds. So the question is: How high can the Dollar Index go?

The dollar closed Thursday at 97.63 on the Index. If it continues to rally, then the key level to watch would be 100. The dollar rally of 2015 stalled twice right at 100.

Check out the full podcast here: https://goo.gl/uBmjM2

March 08 2019

moneymetals

Practical Prepping for Financial SHTF Scenarios

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Preppers – the sort of people who build bunkers, stockpile supplies, and bear arms – aim to survive “SHTF” scenarios.

When war breaks out, when the power grid goes down, when the banks fail, when the U.S. dollar collapses, when social unrest spreads, when the stuff hits the fan… will you be prepared?

DoomsDay clock

Risks are rising.

The Bulletin of the Atomic Scientists maintains a “Doomsday Clock.” For 2019, it “sets the Doomsday Clock at two minutes to midnight—the closest it has ever been to apocalypse.”

The Atomic Scientists are issuing “a stark warning to leaders and citizens around the world. The current international security situation—what we call the ‘new abnormal’—has extended over two years now.

It’s a state as worrisome as the most dangerous times of the Cold War…”

If you don’t have an underground fallout shelter in your backyard… don’t worry. The likelihood of your neighborhood being the target of a nuclear attack is slim.

However, other SHTF scenarios are far more likely impact you or your finances at some point in the future. It could be something specific like an identity thief draining your investment accounts. Or it could be something systemic like a currency crisis.

Full article: https://goo.gl/yTzojx

March 07 2019

moneymetals

Insane Stock Market Rally Due To Massive Global Monetary Liquidity

If you’re puzzled by the magnitude of the stock market correction since late December, you can thank the central banks for the rally. Yes, that’s correct… after the Dow Jones suffered the worst Christmas Eve trading day ever, the massive central bank monetary liquidity helped push the index up 20% from its low over the next two months.

Dow jones (daily chart) - february 28th, 2019

Of course, the markets were due for a reversal as nothing goes down in a straight line, but to see the sort of buying in the face of negative economic news and lack-luster earnings means that the inevitable CRASH will be even bigger when it finally arrives.

Now, according to the article, Back To Fundamentals, Daniel Lacalle stated the following in regards to the markets:

In 2018 we saw the first drop in global liquidity in more than a decade, and that generated significant losses in financial markets. Since the end of December stock markets have rebounded strongly because the data, although poor, is not as bad as feared, and mainly because the Federal Reserve changed its tone on the number of rate hikes, the ECB announced that it would be much more accommodative and the Central Bank of China introduced the largest injection of liquidity in five years.

In fact, between December 26 and February 15 we have seen the largest injection of liquidity in the markets of the last two years, bringing the global money supply to record levels.

The two key points stated above were that a drop in global liquidity in 2018 generated significant losses in the financial markets and the largest injection of global liquidity from December 26 to February 15th brought the money supply to a record level and pushed global stock markets back higher. 

Continue reading: https://goo.gl/oApVJ9

March 06 2019

moneymetals

The OTHER Debt Bubbles: How Private Sector Debt Could Trigger the Next Financial Crisis

The $22 trillion official national debt is a much discussed problem, even as politicians exhibit zero motivation to do anything about it. But as big an economic overhang as it is, government debt isn’t likely to trigger the next financial crisis.

Yes, servicing the growing federal debt bubble will depress GDP growth, cause the value of the dollar to drop, and raise inflation risks. But the bubble itself won’t necessarily burst – not anytime soon.

Debt

As long as politicians face no political consequences for deficit spending, and as long as the Federal Reserve keeps the Treasury bond market propped up… then many more trillions can be added to the national debt.

Meanwhile, more fragile debt bubbles exist in the private sector. Unlike government debt – which carries the implicit backing of the Fed’s unlimited printing press – debts incurred by corporations, investors, consumers, and students can default.

Globally, there exists $250 trillion in debt against economic assets of around $100 trillion. The notional value of all derivatives now approaches a quadrillion dollars.

It’s been called the “everything bubble”… and it could soon lead to the “everything bust.”

U.S. household debt rose to a record $13.5 trillion in the fourth quarter of 2018. Mortgages, student loans, car loans, and credit cards represent enormous burdens even during a good economy. These burdens will prove unbearable for millions of Americans in the years ahead.

Check out the full article here: https://goo.gl/y1cDk

March 05 2019

moneymetals

Warren Buffett’s Confusion & Disorientation about Gold

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Warren Buffett’s famed annual letter to Berkshire Hathaway shareholders landed in the mail last week. Buffett has built a vast fortune investing in the shares of publicly traded companies. He has long been critical of gold. His most recent letter takes another swipe at the precious metal and implores readers to buy stocks instead.

Before his fans start dumping gold and calling their stock brokers, we thought it would be worth examining Buffett’s argument.

Buffett got started investing in 1942. He bought $114.75 worth of shares and says had that amount been invested in a no-fee S&P 500 Index Fund, the current value would be $606,811.

He compares that to making a different choice and buying gold:

To “protect” yourself, you might have eschewed stocks and opted instead to buy 3 1⁄4 ounces of gold with your $114.75.

And what would that supposed protection have delivered? You would now have an asset worth about $4,200, less than 1% of what would have been realized from a simple unmanaged investment in American business.

It sure looks like a no-brainer. Only suckers would buy gold when they can buy stocks instead, right?

Hold on a second...

The comparison leaves out some critical facts. For starters, there was no such thing as an S&P 500 index fund in 1942. The notion of investors buying a “no-fee” variety of an asset type that didn’t exist is even more unfair.

The S&P 500 index as we know it began in 1957 and the first index fund representing a basket of those shares launched in 1976. Prior to that, investors would have been forced to pick stocks and take even more risk.

Gold price has crushed the market so far this century

Most would not have had the fortitude and discipline to manage a portfolio of stocks and get the sort of returns Buffett is implying. Of the 500 companies initially included in the 1957 index, only 60 remain. Plenty of those firms failed, and their share prices went to $0.

Shares of any stock can become worthless while physical gold cannot. Buffett neatly sidesteps the concept of risk with his comparison.

Buffett also fails to mention the gold price was tightly controlled for the first 30 years of his comparison period. While shares of public companies were free to appreciate as America clawed its way out of Depression and war in what was perhaps the greatest economic boom of all time, gold was officially suppressed. The U.S. government fixed the price at $35/oz and then $42/oz from 1934 to 1971.

In truth, Buffet could not have bought gold in 1942 had he wanted to do so. Franklin Roosevelt had long since outlawed private ownership of gold via Executive Order 6102.


Continue reading: https://goo.gl/SiF9F6

March 04 2019

moneymetals

Central Banks Now Buying Gold Like Crazy

Well now, for more on how the mainstream media is seldom giving you the full story, plus much more, let’s get right to this week’s exclusive interview.

Gerald celente

Mike Gleason: It is my privilege now to welcome in Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is perhaps most well-known trends forecaster in the world and it's always a joy to speak with him.

Mr. Celente, thanks for the time again today and welcome back.

Gerald Celente: Oh, thanks for having me on, Mike.

Mike Gleason: Well, Gerald, the Trends Journal is forecasting Economic 9/11 as one of the big trends for 2019. There are plenty of indicators which just support your thesis for a major slowdown. Debt levels – both public and private – have exploded, China is slowing down and all the stimulus in Europe has failed to generate results there. Higher interest rates are hurting, everything from real estate to auto sales, et cetera. But none of this is reflected in the stock markets, which are roaring higher. Once again, it looks like the Fed is up to its old tricks, promising to stop the rate hikes they had planned and end the program for selling bonds. The constant intervention of the Fed has always been one of the major wildcards when trying to predict where things are headed in recent years. What do you think? Can the central bankers kick the can one more time to avoid a recession, or are they finally going to lose control in the months ahead?

Gerald Celente: Well, I think you've summed everything up pretty well in analyzing it, and the general situation. When we made that forecast of an Economic 9/11, remember how trends for the new year go out in December. In December, we just saw the Dow have its worst month since the Great Depression, and all of a sudden on January 4th, 2019 it all turned around. What happened was the Federal Reserve Chairman bent over to Trump, and he backtracked on his aggressive stance of 2018, where they raised interest rates four times and they were scheduled to raise them three to four more times in 2019. He said he would be patient. In late January, they said it again that they would be patient. They were in no hurry raising interest rates. That changed our forecast, because what they've done is they've injected more monetary methadone into the bull to keep it running. You can see what was happening when they were going to pull the needle out.

The bull was dying, it was OD’ing already, and now they just got it going once again. And you mentioned wildcard, and that's exactly why nobody could predict the future. There are too many wildcards, whether they're man made, or made by Mother Nature. Well, of course now I have to be proper and politically correct, whether women-made or made by father nature. What happened was they played the wildcard, and the fact is whether it was fear of a fed audit, or just pressure from Trump, we listed all the times he called the Fed loco and crazy, and how disgusted he was with them throughout 2018, beginning in July, until they did a backtrack. So, now what we're looking at, Mike, it's the presidential reality show’s already heating up and Trump is going to do everything he can to keep the economy pumping along, or I should say Trumping along.

Remember, the cat’s in the real estate business. To his son in law, the family, the Cushners. It's real estate. You mentioned about real estate prices going down. I mean what happened in December, we saw southern California home sales plunge 20% in December to the lowest pace in 11 years. So, when those interest rates got around 5% for a 30-year mortgage, you could see the big reversal. Not only do we see the Fed not raising interest rates in 2019, we could see them aggressively bringing them down, if the economy starts to slow down. They raised them nine times since 2015, they could lower them nine times.

Full podcast: https://goo.gl/6usfQV

February 19 2019

moneymetals

Gold & Silver Prices Firm Despite Dollar, Stock Market Strength

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 11 2019

moneymetals

February 07 2019

moneymetals

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

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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

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

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