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June 13 2018

moneymetals

Some Probing Questions from Customers Like You...

Client communications are a priority for us. If someone calls, we have live people answering the phone and ready to provide service. If you need support by email or by live chat, we respond promptly. This is, of course, good business as it makes for happy customers!

Q & a

However, it is great for another reason. A big part of what we do is provide timely and useful articles and podcasts you can use to stay current on developments which impact the metals markets and your investments. It helps us immensely to know what our clients are thinking about and what questions they have.

Here are a few good questions we’ve seen recently, along with our responses…

Question: What is the best buy currently – bars or sovereign coins?

Answer: Whether it is sovereign coins or bars that represent the “best buy” will depend on what is important to you. In terms of silver, bars (and 1-ounce silver rounds) offer the lowest overall cost per ounce. If “best buy” means “lowest price,” these are the way to go. You can’t go wrong buying the maximum number of ounces for the least amount of money, provided you are getting a quality product made by reputable mints and refiners.

2017 american silver eagle

Premiums on Silver Eagles
are very low by historical standards.
Shop here.

On the other hand, coin premiums are at cycle lows and there is a floor of sorts beneath them. Sovereign mints, unlike private mints and refiners, are not responding to weaker sales by reducing minting charges. Based on our experience, we do not expect them to change course. That likely means coin premiums aren’t headed much lower than they are right now.

People who prefer buying official, legal-tender coins for their recognizability and popularity should consider grabbing some now.

Customers who want to speculate on coin premiums, might also want to exploit today’s conditions.

In recent years, we’ve seen premiums on the silver American Eagle at more than twice the current level. Chances are that will happen again the next time demand spikes, giving returns on those items an extra boost.

Source: (
https://www.moneymetals.com/news/2018/06/13/gold-bars-or-sovereign-coins-001551
​)​

June 12 2018

moneymetals

The Dangers of Investing Based on Phony Government Statistics

President Donald Trump recently took to Twitter to boast, “The U.S. has an increased economic value of more than 7 Trillion Dollars since the Election. May be the best economy in the history of our country. Record Jobs numbers. Nice!”

“We ran out of words to describe how good the jobs numbers are,” reported Neil Irwin of the New York Times, amplified in a Trump retweet.

Increase

If you believe the headline numbers, joblessness is at a generational low with the economy booming.

Trillions in nominal value added to the stock market since Trump’s election. GDP up over 3% in the second quarter. 223,000 jobs added in May. Unemployment at an 18-year low of 3.8%.

On the surface, this all paints a beautiful picture for the economy and stock market. But dig a little deeper, and the numbers aren’t quite as bright they appear. All that glitters is not gold.

Headline Unemployment Number Is Fake News

Donald Trump himself put his finger on one of the main flaws with the unemployment number back when he was a private citizen.

“Unemployment rate only dropped because more people are out of labor force & have stopped looking for work. Not a real recovery, phony numbers,” he posted on September 7th, 2012.

The headline unemployment number isn’t any less phony in 2018. Though it has improved under Trump’s presidency – in large part because of his pro-growth tax cuts and deregulation – the statistic is still derived from a dubious formula.

Back in 2012, Trump rightly pointed to the large numbers of workers who had dropped out of the labor force but weren’t counted among the ranks of the unemployed.

You can find the article here:(https://www.moneymetals.com/news/2018/06/11/the-dangers-of-investing-based-on-phony-governments-statistics-001550)

June 11 2018

moneymetals

Why are Gold/Silver Premiums SO Darn Low Right Now?

The bullion markets have undergone a shift in recent months. Prices may be range-bound, but there has been a transition from a seller’s market to a buyer’s market. Our goal, as always, is to keep our readers and clients apprised of developments and answer your questions.

Question: Why don’t spot prices for gold and silver respond to bullish news events or fundamentals in the physical market?

Answer: Physical supply and demand don’t necessarily impact the “spot” prices for gold and silver set in the futures markets on a day-to-day basis.

Take a hypothetical situation where some geopolitical event has investors running for safety. Lots of people decide to buy gold. Unfortunately, many of these investors will foolishly turn to gold futures.

As demand spikes in the futures markets, the bullion banks stand ready to meet the new demand with freshly printed digital contracts. This new supply of gold derivatives is scooped up by eager buyers even though not a single physical bar is added to any inventory. Their digital receipt which purports to represent gold is, in fact, almost completely unbacked.

The geopolitical event may drive plenty of demand, but the impact on price will be muted, and perhaps eliminated entirely.

Question: I noticed that premiums have fallen significantly compared to two years ago. Why has this occurred?

Extremely low prices

Answer: When demand for coins, rounds, and bars outstrips the physical inventory held by dealers, premiums will start rising as dealers bid aggressively for inventory.

This dynamic drove premiums sharply higher a number of times between 2008 and 2016. This part is telling; the futures markets can, and often do, signal the exact opposite of what is happening in the bullion markets where supply and demand are actually balanced through price. Between 2011 and 2015, spot prices were in decline, but that was a period of unprecedented demand for physical coins, rounds, and bars.

Today, this dynamic is working in reverse. Retail bullion investors in the U.S. (but not worldwide) have been more inclined to sell.

They seem optimistic that President Donald Trump and his policies will solve many problems. Some are frustrated by the returns in the metals markets and seek better performance elsewhere. Dealers are buying lots more inventory from the retail public than they did a couple years back, and this glut in supply has caused premiums to fall as a result.

We view this period of relatively low spot prices AND extraordinarily low premiums on physical gold and silver items as the best sort of environment to buy, not sell. But for those wishing to sell, Money Metals also offers the best prices.

Article Source: 
(https://www.moneymetals.com/news/2018/06/11/why-are-gold-silver-premiums-so-low-001549)

June 07 2018

moneymetals

Precious Metals Represent Something True

You began investing in precious metals because they represent something honest.

Gold and silver are tangible, scarce, and beautiful. People have always recognized them as such. Societies naturally gravitated toward using them as a trusted medium of exchange – money – almost as soon as societies were formed.

Over time civilizations have come and gone. The world has seen constant social upheaval and change.

People from ancient Sumeria would not recognize modern society. But they would recognize a gold coin. In fact, some of the coins used in their time have survived to this day. Physical gold and silver have retained the trust and value placed in them thousands of years ago.

Gold and silver do not rely upon the stewardship of any government, thank goodness. They do not require legal tender laws to be deemed valuable in trade. The metals you hold inside your safe are worth something regardless of what happens outside.

Bullion coins, rounds, and bars are also completely off the grid and portable. This potent combination of attributes makes metals unique in the investment world.

Perhaps most importantly, gold and silver shine the light upon what politicians and bankers are doing to the fiat dollar. Relative to an ounce of gold, the dollar has lost some 97% of its value since 1913.

US federal reserve system

The Federal Reserve System was formed 105 years ago with a mandate to maintain stable prices when measured in dollars.

Instead, officials have worked tirelessly to devalue the currency, booted gold and silver out of the formal monetary system, and enabled massive growth in government along with perpetual deficits.

One only needs to look at the gold price to measure just how poorly the central planners have managed their beloved Federal Reserve Note.


June 05 2018

moneymetals

How Savvy Investors Do (and Don’t) Hedge against Inflation

Inflation is a corrosive force that gradually – and sometimes rapidly – eats away at the nominal value of savings and investments.

It is perhaps the biggest threat looming on the horizon for millions of retirees who have been steered into assets marketed as “conservative” – such as dollar-denominated money market accounts, bonds, and annuities.

Inflation silently robbing you of purchasing power since 1913

According to the Aegon Retirement Readiness Survey 2018, an alarmingly large proportion of the population doesn’t understand basic financial concepts such as inflation.

Consider this question from the survey: “Imagine that the interest rate on your savings account was 1 percent per year and inflation was 2 percent per year. After 1 year, how much would you be able to buy with the money in this account?”

The question is actually even easier to answer than it first appears. To get it right you only have to select among a list of possible choices that includes “less than today,” “more than today,” and “the same as today.”

Obviously, if inflation is running at 2% a year, then a 1% yield on your savings is neither growing nor preserving your purchasing power. The correct answer is “less than today.”

That may be obvious to you. But it’s not to everyone.

Among U.S. respondents, only 55% answered the inflation question correctly!

A score of “55” is equivalent to an “F” – as a nation, we are outright failing to grasp the basic concept of how inflation negatively affects savings.

Widespread public ignorance about inflation works, perversely, to the advantage of governments, central banks, commercial banks, and peddlers of fee-laden, inflation-lagging financial products such as fixed annuities.

Investors who are savvy about the inflation threat know that conventional annuities, bonds, and savings accounts are all vulnerable to losing value in real terms.

But those seeking protection from inflation can still run into trouble by venturing into flawed "inflation hedges."

Think twice before sinking money into the following assets…



May 31 2018

moneymetals

ALERT! Copper May Be the Metal for the Era of Trump – Up 50% since January 2016


  • The Metal for the Era of Trump – You Can’t Build Infrastructure Without Copper!
  • You Can Still Buy Copper at Near Absolute Melt Value – Almost ZERO Over Spot
  • PLUS Gleaming 1 oz. Copper Rounds – Any Design, a Buck Apiece
2018 - copper prices chart

(MoneyMetals.com) Did you know that copper is up 50 percent since January 2016?

Copper is essential in the modern economy. Electronics, automobiles, and utilities among other things can’t function without it. Optimism surrounding the President’s $1 trillion dollar infrastructure spending proposal and his efforts to support U.S. manufacturing is driving copper prices higher.

Donald Trump’s pro-business plans are very bullish for copper. This rally may just be getting started and savvy investors are taking notice.

  • The spot price of copper is up 50% since January 2016.
  • The copper contained $1,000 face value of pre-1983 U.S. Lincoln pennies is now worth about $2,200.
  • Yet you can still buy these appreciating 95% pure copper U.S. legal tender coins at – or very near – absolute melt value.

Bag of pennies

Pre-1983 pennies at just
2.85% over Copper Spot Price

Precious metals investors – and dealers – tend to overlook copper. We think that’s a mistake; Money Metals is actually stocking up on copper pennies and rounds to meet the demands of our savvy customers.

Copper in the form of 95% pure pre-1983 pennies is one of the few legal tender metals where the price you pay is nearly identical to the spot market price...

  • 34 pounds of pre-1983 pennies: today’s price from Money Metals, $101.66
  • Melt value: 34 pounds x .95 purity x $3.06 per pound spot price = $98.84
  • Percent over melt: 2.85% … virtually untouchable for legal tender metal!

It’s been 35 years since the federal government dealt the third and final blow to precious metals content in US coinage – an essential part of its long-term strategy to devalue the nation’s currency –

A stash of 95 percent copper pennies can come in handy in the event you need metals to barter and trade. Copper fills an important gap, being suitable for smaller transactions where gold and even silver may not be practical options.

Copper is the only metal that’s actually cheapest in coin form. The minting costs of pennies were paid off decades ago; unlike with gold and silver, there’s no premium to get official, trusted and legal tender coins. The coins are actually available at a huge discount relative to other forms of copper bullion!

Money Metals has pre-1983 95% copper pennies sold by weight in 34 pound bags (approx 4,925 pennies per bag). Stock up on these legal tender coins while we still have them at less than two percent above melt value. Order securely at MoneyMetals.com


Check out the full article (source

May 30 2018

moneymetals

A Tale of Two Crooked Companies

Are people still letting what might be viewed as a criminal enterprise manage their deposits and mortgages? Unfortunately, it is a rhetorical question. Millions of people are still clients of major Wall Street banks despite widespread financial malfeasance.

They are ignoring warning signs while misplacing their trust in regulators and authorities. They shouldn’t.

Too big to jail

If you deal with crooked people, you should expect to get screwed – sooner or later. Even if the crooks are people you never meet or interact with in a large multi-national bank.

Here is the story of two companies which illustrate why everyone must look after themselves by being selective about who they trust in business. And why nobody should trust regulators or government to protect them from the cheaters.

The first is Wells Fargo – a "Global Systemically Important Bank." The bank has Warren Buffet as a major stakeholder and lavishes Washington DC politicians and bureaucrats with political contributions and lucrative job opportunities. It is considered "too big to fail."

Wells Fargo clients who take comfort in that status are missing the more important "flip side" of the bank’s size and political connections. The bank’s executives may also be too big to jail. Wells Fargo, like other major banks, is being granted a sort of license to cheat based on its size and status.

As a result, the bank has built a rap sheet a mile long over the past 10 years. The bank has been caught opening phony accounts, adding services (and fees) clients didn’t request, rigging bond markets, abusing foreclosure rules, and a lot more. Millions of their clients appear to have been cheated and scammed.

All the while, we are not aware of any senior executive that has been prosecuted. The bank’s shareholders, not the executives directly responsible, pay the fines.


Continue reading (source

May 29 2018

moneymetals

David Smith: Debilitating Inflation Is Like an Army of Termites Eating Away Your House

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

David smith

Mike Gleason: It is my privilege now to welcome back David Smith, Senior Analyst at The Morgan Report, and regular contributor to MoneyMetals.com.

David, thanks for joining us again, how are you?

David Smith: You bet, Mike. It's great to speak with you again.

Mike Gleason: Well David, we published an article you wrote on inflation this week on our MoneyMetals.com website, and it's really great, by the way, and I hope everyone listening will take a few minutes to read it, because the subject matter, that being inflation, is very timely.

Right now, metals are suffering because of a rally in the U.S. dollar. There's lots of talk on Wall Street about how well the dollar's performing over the past few weeks, but traders, of course, are focusing exclusively on the dollar's exchange rate with other world currencies. You and I know that isn't really what matters. What counts is not how many euros or yen the dollar will purchase, it's how much gasoline, or housing, or food it will buy. And the reality is that it buys less of those things every year. We have inflation regardless of whether you define the term as an increase in the money supply, or as an increase in the price of goods and services.

However, precious metals have fallen in recent weeks simply because the dollar is stronger in foreign exchange markets. The fact that the dollar buys more yen is trumping the fact that the dollar buys less oil. It's as if we have deflation but the truth is, inflation is actually positive and starting to accelerate. So, what gives here, and how long do you think it will be before Wall Street figures out what is really happening to the dollar's value, David?

David Smith: Well, Mike, I think a lot of it has to do with Wall Street looking at the exchange rate because they're asking themselves what effect will it have on the profitability of companies that do business overseas or that import things and it has a significant effect on them if there's a change in the dollar's relation vis a vis to the currencies.

But the more immediate effect happens to the rest of us because we start paying more with inflation for things that we buy and sell on an everyday basis. So we're in a different universe from Wall Street in that regard. I don't know about you, but I've noticed the price of services going up substantially. Some prices have stayed the same for several years at the grocery store, beyond just the normal seasonal fluctuations of produce that you might expect to be more like avocados certain time of the year.

But a lot of other things, too, that normally have been pretty stable seem to have a built-in upward bias and all that does is to take more and more purchasing power out of our pockets, yours and mine, and the people listening to this, and place them someplace else. So, it's kind of a subterranean type of thing that's going on but it's not to the good for any of us.

Mike Gleason: Yeah certainly, well put and obviously the markets seem to be focusing very much on what it does relative to those other currencies and not really what it's buying, like you said right there. I mean everyone can attest to the fact that things are getting more expensive. There's no doubt about that.

As you have written, inflation is a destructive force for most of us. The powers that be have done a masterful job of painting a degree of inflation as somehow healthy for the economy, but you spend a lot of time traveling in South America, as you mentioned in this week's article. So you've seen firsthand what is happening in places like Argentina and I guess the government there has given up talking about how wonderful it is that money buys less every year. Obviously nobody there is going to be buying that line of bull anymore.

In Venezuela, people are starving, and violence is on the rise. Talk a bit if you would about what a rampant inflation looks like on the ground. You recently took another trip to South America. Tell us what it's like when confidence in the money begins to fail.


Read/Listen to the podcast here: (source
moneymetals

Inflation: The People's Enemy. The Government's Friend.

When you can lie about money, you can lie about anything. ~David Morgan

We can argue about the definition(s) of inflation until the cows come home - some economists spend a career trying to nail it down.

But for clarity's sake, we'll use the definition of the Austrian School (Mises.org) as an increase in the money supply. This is really the correct one, regardless of any bias of dogma, "schooling" or the mainstream media. Although most everyone defines inflation as an increase in the price of goods and services, this is actually a result.

Most of us have been taught that inflation is all right as long as it doesn't get out of control. In the short term, it can benefit those able to manage cash flow in business or with real estate for which they can service loan interest and taxes.

But over time, it's a safe bet that a period of rising prices will be detrimental to most of the population. Distortions in the economy increase to the point where it becomes almost impossible to determine the real price of anything.

How much demand is attributable to a desire for consumption, rather than a hedge against higher prices?

The truth of the matter is that inflation – at any level – is basically stealing! Things like an expanding money supply, increased "velocity," or rising prices due to demand-supply imbalance, add additional confusion.

Last year, well before the current destructive inflationary moon-shot in Venezuela caused literally hundreds of thousands of impoverished residents to flee into neighboring Brazil and Colombia, it was rumored that an ounce of silver could buy a several month's supply of food; an ounce of gold, a house. Imagine their purchasing power now!

Continue reading.. (source


May 21 2018

moneymetals

Federal Reserve Note Dances Upon Its Own Grave

Practically nobody enters the foreign exchange markets looking to buy and hold. Currency trading is generally a short-term game, and there isn’t much regard for analysis of the longer-term fundamentals.

That much is evident given the ongoing rally in the Federal Reserve Note dollar, despite its outlook being downright grim.

Depreciating dollar

Nobody should be fooled by recent outperformance relative to the currencies of other insolvent nations.

The greenback is in the worst shape of its life.

Sound money advocates are already well versed as to why the dollar has been losing purchasing power ever since the Federal Reserve took control of its fortunes more than a century ago. They understand the implications of perpetually rising federal deficits and debt.

The most recent decade, during which federal borrowing has begun growing exponentially, indicates we are much closer to the end of the cycle – insolvency and default – than we are to the beginning. But it isn’t the only indication that we are approaching the end-game.

The Federal Reserve Note’s hegemony in the global oil trade is starting to fall apart. Russia, China, and other BRIC nations are cutting deals to buy and sell oil using other currencies.

We can now add the EU to the list of potential defectors.

​Continue reading (source) ​
moneymetals

Why Gold Is The King Monetary Asset, Not Bitcoin


There seems to be a lot of misinformation being peddled on the internet about gold and bitcoin. One major misconception is the notion that bitcoin will replace gold as a monetary instrument. Some analysts, once stanch precious metals advocates now turned crypto aficionados, believe in such theories that there is too much gold in the world to be used as money or that it is now just a barbarous relic. Just a year or so ago, these same supposed analysts were criticizing the Mainstream media financial network talking heads for calling gold as a barbarous relic, but now have jumped on the bandwagon.

Well, in one small way, who can blame them. It has been frustrating holding onto gold and silver patiently waiting for their inevitable rise. So, when Bitcoin and the crypto prices moved up exponentially last year, promising investors vast riches in the future, it was easy for many to drop the precious metals and move into the crypto market. The mindset today is to make lots of money doing nothing. Thus, it’s not surprising to see many fall into this delusion and way of thinking.

A few of the crypto aficionados tell their followers that gold can’t be a monetary asset because there are millions of tons of gold hidden in secret vaults or that there are billions of ounces locked away in the Grand Canyon. While this may sound like quite an interesting conspiracy, there is no sound evidence to back it up. To believe in these fanciful conspiracies defies all logic. However, with logic being in short supply currently, I am not surprised that many believe in these fairy tales.

One of these ex-precious metals, now a highly qualified cryptoanalyst, suggested in a recent video that the “Gold is owned by the Bankers” so why would you want to own gold? Unfortunately, this is a false statement. While the Central banks own a lot of gold, it’s a lot less than what the private investors and jewelry owners hold. According to the World Gold Council, jewelry accounted for the largest stocks of above ground gold at 90,700 metric tons (mt), followed by 40,000 mt of private investment, 32,600 mt of Central bank holdings and 26,700 mt of Industrial usage and other:

Total world gold holdings 2017

Of the total 190,000 mt of the world above ground gold stocks, jewelry consists of 48%, private investment 21%, Central bank 17%, and Industrial and other at 14% (Source: World Gold Council – Total above-ground stocks 2017) So, if we realize that nearly half of all above-ground gold stocks are in the form of jewelry, and then another 21% is owned by private investors, Central banks DO NOT own most of the gold. Even if we compare private investment to Official holdings, private investors own more gold than Central banks.



Continue reading (source

May 17 2018

moneymetals

Turkish Gold Imports Triple As The Central Bank Diversifies Out Of Dollars

Turkish gold imports surged due to a sharp increase in investment demand as well as renewed Central bank purchases. While the Chinese and Russian governments have been adding gold to their official reserves over the past several years, Turkey added 86 metric tons to its official holdings in the last seven months of 2017.

According to the 2018 World Gold Survey, Turkish official gold holdings reached a new record high of 565 metric tons (mt) last year as the government decided to replace a significant amount of its Dollar reserves with gold. And, this continued even in the first quarter of 2018. Information from the World Gold Council’s Demand Trend reported that Turkey added another 30 mt of gold to its official reserves in Q1 2018.

If we look at the chart below, we can see just how much gold Turkey imported in 2017 versus 2016:

Turkish gold imports 2016 vs 2017

Turkish gold imports more than tripled from 106 mt in 2016 to 361 mt in 2017. Again, the large increase in Turkish gold imports was due to a 60% increase in investment demand and the 86 mt purchase by the Central bank. With the addition of the 30 mt of Central bank gold purchases in Q1 2018, official Turkish holdings are now nearly 600 mt.


Continue reading (here)

May 15 2018

moneymetals

The 3 Stage Housing Bubble Collapse

Most Americans don’t know, but the housing market is heading toward another epic bubble. However, the bubble forming today is much different than the subprime housing meltdown in 2007. Back in 2007, there was an oversupply of homes, whereas today there is a shortage. With more buyers than sellers bidding up prices, the U.S. median home price value hit a new record high of $338,000 at the end of 2017.

Unfortunately, wages have not kept up with rising home values. For example, the average hourly earnings have only increased 21% since 2009. However, the U.S. median home price $330,000 in Q1 2018 is 53% higher:

American's average hourly earnings: +21% since 2009

U.S. median home sales price: +53% since 2009

Now, to make up for the shortage of homes in the high-demand cities across the country, the new-home building boom is once again on the rise. The U.S. housing starts in March are up to 1.3 million from the low of 478,000 at the bottom of the 2009 recession. Now, even though current housing starts are more than double what they were at the lows in 2009, they are nearly 50% less than the peak of 2.3 million in 2006.



Continue reading here: (source

May 11 2018

moneymetals

Craig Hemke of TF Metals on Gloomy Scenarios for the Fed That Should Boost Metals

Mike Gleason: It is my privilege now to welcome in Craig Hemke of the TFMetalsReport.com. Craig runs one of the most highly respected and well-known websites in the entire industry and has been covering the precious metals for a decade now, and he puts out some of the best analysis on banking schemes, the flaws of Keynesian economics, and evidence of manipulation in the gold and silver markets.

Craig, it's been entirely too long. Thanks for joining us again, and how are you my friend?

Craig Hemke: Oh, Mike, it's always a pleasure. Thank you for having me back on. I'm a little more grayer, more wrinkles, all that kind of stuff in the last time since we've spoken, but that's what these markets will do to you, that's for sure.

Mike Gleason: Yeah, certainly do. Craig, we know that you've been covering this rally in the dollar closely over the past 3 weeks. I wanted to kind of start there. The problem is, in the short run, nobody in the markets really cares about the dollar's value relative to what it can actually buy. Traders simply care about how it's performing in foreign exchange, paired against some other national currencies, and the dollar has been strengthening against the euro and the yen. But, with that said, you definitely can't take a dollar and buy more stuff today than you could, say, 3 weeks ago. In fact, it takes more dollars to buy a barrel of crude oil than it did last month. People still figure the CPI basket of goods will cost 2 to 3% more a year from now. Some of us figure inflation has been, and will be, a lot higher than that.

In a minute, we'd like to get your take on whether the rally in the dollar is likely to persist a while longer. But before we get into where the dollar is headed, help us out here, because as we're seeing the dollar getting stronger against paper currencies, and that seems to be all anyone wants to talk about, but meanwhile, the dollar is getting weaker when you look at it compared to the stuff we actually need to buy, like crude oil, for instance, and there are other examples as well. So, explain this to us, if you can, because it appears to us that everyone is focusing on the wrong thing here, Craig.

Craig Hemke: Well, that's always the case it seems like, Mike. Actually, everybody's probably seen those charts going back to 1913, when we instituted the Federal Reserve and the value of the dollar has declined by 98%, or something like that. Really, the pain for the regular, average, everyday American began in 1971 when Nixon suspended, as they say, the convertibility of the dollar into gold. And that's when the U.S. government, the Treasury, the Fed, went off the rails, began printing currency in their effort to fund both guns and butter, if you will, in the traditional Keynesian sense. All the social programs, all the wars, everything else, all the accumulated debt, and it's at that point that, again, things began to get out of hand.

​And it is at that point, you can trace it back, to that's when the standard of living, for every American citizen, really began to decline. It's why my generation, your generation, Mike, everybody has such a much more difficult time making ends meet than, maybe, our parents had. Because not only is it food costs, it's taxes, it's education costs, it's everything that goes with it, and it's because of this incredible devaluation of the currency.

What do you mean by devaluation of the currency? Look, anybody understands, even if you didn't take Econ 101, you know supply and demand, right? And if you increase the supply of a certain item you're, by very definition, devaluing the existing supply of that item. It just makes it less valuable if there's more and more of it, by any, again, by any sense of the imagination. And so, therefore, all of this money printing, all of the trillions of dollars of TARP, and QE, and everything else, has just continued to destroy, really everybody outside of about the top 10% of income earners in the U.S., and sadly, that's a path that we continue to go down.

Mike Gleason: Yeah, certainly the wealth gap gets bigger and bigger, the more inflation we get, that's for sure.

Now, let's talk for a minute about what you're expecting from the dollar, just if we get back to how it's going to relate to other fiat currencies over the short run, and give us a guess on where the DXY index might be by years end. Has the trend lower that began a year and a half ago been broken?

​Read/Listen to the full podcast here: (source) ​

May 09 2018

moneymetals

1 Oz Rhodium Bars


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 and aggressive chemicals. Jewelers and silver smiths also rhodium in thin layers to prevent tarnish to the underlying metal.

Rhodium in bar form is nearly impossible to find, but far superior to the more commonly available sponge form. Sponge will often need to be melted and assayed when re-sold. But Baird & Company bars in their original tamper proof package are trusted by dealers everywhere. Baird manufactures bars to the highest quality standards and has been building their reputation since 1967.

moneymetals

May 08 2018

moneymetals

The Two Most Important Reasons To Invest In Gold & Silver

Gold/Silver & cashAs the markets and financial system continue to be propped up by an ever-increasing amount of debt and leverage, precious metals investors need to understand the two most important reasons to invest in gold and silver. While one of the reasons to own precious metals is understood by many in the alternative media community, the more important critical factor is not.

The motivation to write this article is due to the increasing amount of negative sentiment and comments in regards to precious metals analysis and investing. There’s a very interesting notion put forth by many commenters that the precious metals analysts and dealers are the frauds and charlatans, not Wall Street or the Central Banks. I imagine they believe this because gold and silver prices haven’t performed as forecasted or compared to the insanely inflated stock, real estate, and crypto markets.

Before I discuss the two important reasons to own precious metals, I would like to provide some information about the fraud and corruption taking place in the financial industry.

Now, it is true that a few precious metals dealers have defrauded investors, but this is true with all sectors and markets in the financial industry. However, investors frustrated with the precious metals tend to forget the massive amount of fraud and losses that took place as a result of the 2008 Housing and Investment Banking collapse.


Continue reading... (source


May 07 2018

moneymetals

Gold & Silver Eagle Sales Drop Sharply Due To Central Bank Intervention

Thanks to the Fed and Central bank intervention, sales of Gold and Silver Eagle sales declined sharply over the past year. Yes, it’s true… precious metals investors have lost interest in gold and silver as the stocks, real estate, and crypto markets reached new highs in 2017. So, who wants to continue purchasing gold and silver when many cryptocurrencies were experiencing 10% increases in a day.

Historians will look back at 2017 as the year that asset prices went utterly insane. Of course, the cryptomarket enjoyed the highest gains compared to most assets, but many stocks hit bubble territory last year as well.

Here is a small list of Big Gaining Assets in 2017:

  1. Dow Jones = +26%
  2. Nasdaq = +29%
  3. Netflix = +55%
  4. Amazon = +67%
  5. Caterpillar = +73%
  6. Bitcoin = +1,500%+

Now, let’s look at the gold and silver price increases in 2017:

  1. Silver = +6%
  2. Gold = +14%

While gold did go up more than double silver last year, many investors became frustrated with the metals and turned to making big gains in stocks and cryptos. Furthermore, the motivation to protect wealth by purchasing precious metals didn’t seem to matter anymore because the Dow Jones Index is supposedly going to 50,000 and Bitcoin, $100,000. So, with these sorts of gains in the future, why on earth would anyone want to buy precious metals?

Investors and the public today have become totally irrational. Also, no one wants to work anymore. Instead, we rather put $5,000 in Bitcoin or the other 1,500 cryptos so we can retire to Tahiti with our massive Blockchain profits. Furthermore, if we watch some of the videos by the crypto aficionados, that is precisely what they are doing… well, at least on a temporary vacation basis. Nothing like learning about cryptos from someone sitting on the beach drinking cocktails.

And, if an individual isn’t making $millions in cryptos, then the next best thing is the exponentially rising stock prices today to make money hand over fist. If an investor was smart enough and invested a mere $10,000 in Amazon at the low of $50 in 2009, they would be holding on to $300,000. Yes, I realize this isn’t like making $millions in the cryptos, but not everyone can be a millionaire.

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May 01 2018

moneymetals

Why Gold & Silver Won’t Crash Along With The Stock Markets


When it comes to what happens during the next major market correction-crash, we can count on that “this time will be different” for the gold and silver prices. While many precious metals investors believe that gold and silver will crash along with the broader markets, the charts and data suggest the opposite.

In my newest video, Why Gold & Silver Won’t Crash Along With The Stock Markets, I provide charts and updated information on the break-even analysis of the primary gold and silver mining industry. According to my research, the gold market price has not fallen below the production cost of the top gold miners in the past two decades.

Some analysts, such as Harry Dent, believe the gold price will fall to $700 this year. Dent reconfirmed his forecast in the following article, Why We Are Heading Toward $700 Gold In 2018:

Investors are fleeing to gold in a desperate attempt to weather the recent market volatility… but is this long time “safe-haven” actually poised to collapse wiping out trillions of dollars of wealth in the process?

While many economists will argue that gold is not in a bubble… and insist it will soar to $2,000, $5,000 and even $10,000, my research has said otherwise. I’ve never been more certain of anything in over 30 years of economic forecasting.

Market volatility, worries over the Europe Central Bank, negative interest rates, and China are among a laundry list of events that are driving panicked masses to buy the yellow metal. But this is only inflating the gold bubble that is poised to pop at any moment.

Mr. Dent states the due to the current market volatility, worries over Central banks, negative interest rates, and fears about China’s massive credit bubble are driving investors into gold. BUT, according to Dent, this gold bubble is about to POP.

I find Dent’s analysis that gold is in a bubble quite interesting because if something were in a bubble, then it would have to be at least 50-100% overvalued. If we look at the data on gold and silver, they are no were near BUBBLE TERRITORY.

Shame on you Harry for putting out bogus analysis.

Unfortunately, Harry Dent has no clue about Energy, the Falling EROI or the cost of production when he applies his forecasts. Dent, like most in his industry, produce superficial, incomplete and faulty analysis because they are forecasting in a vacuum. Now, when I state that they are forecasting in a vacuum, that means they are providing analysis by excluding the most crucial variable… ENERGY.

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April 30 2018

moneymetals

The Least Known (and Best Performing) Precious Metal

Gold and silver have risen substantially off the price bottom put in just 2-½ years ago, but the gains have yet to attract much notice. Gold has gained roughly 28% and silver is up 20%.

Meanwhile, another metal has more than doubled since bottoming. This performance should have been more than enough to catch the attention of metals investors, if only they were watching. The metal is palladium and, for those who haven’t paid much attention, it is time for a brief update.

Palladium is one of the platinum group metals (PGMs) and it has a lot in common with its higher profile brother.

Like platinum, palladium is a lustrous, silver-white metal. It has many of the same applications. The largest application is in automobile catalytic converters, but there are also uses in jewelry, dentistry, surgical instruments, and electronics.

Palladium also shares platinum’s troubled supply chain.

The top producers are Russia and South Africa. The latter nation has fallen deeper into turmoil in recent months.

Mines there have dealt with unreliable electricity and labor strife for years. Operators are now at great risk of the having mine properties seized by government officials.

PGMs represent a good way for bullion investors to diversify and gain exposure to different market fundamentals.

Diversification can reduce the volatility in any investment and can produce better results – particularly in weaker markets. Just consider the relative outperformance of palladium versus gold and silver over the past 30 months.

Investing in palladium makes sense for investors who anticipate rising demand for cars and trucks which produce lower emissions globally. If the economies of China and India continue to develop rapidly, demand for the metal should keep rising. It will not take a lot of additional demand to completely outstrip supplies.

One wild card is the adoption of electric vehicles, which do not have catalytic converters and require very little of the metal. For now, these types of vehicles are more costly and have severe limitations in terms of range and power

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