Faber : China will also join the club of Money Printers - ET Now: You have said that one should always bet on mega trends, bet on the big picture. So what are the three mega trends for this decade? Marc Faber : W...
Sunday, March 15, 2015
Gold - I mean it just does not add up. Mines are closing so less is being produced and yet demand is sky high plus the physical price is not becoming overly divorced from the paper price as most experts said it would have to. So what is going on? There is a new supplier in town, and he is very secretive.
Gold and silver typically rise together with economic improvements in emerging markets and Europe when the U.S. cannot cope with this pace.The euro has strong positive correlation to gold, they often move together. This third factor is the most important one, because it represents a “pre-indicator” for inflation, central bank intervention in times of crises, real interest rates/financial repression but also for the availability of easy money to push up commodity prices. The growth difference between investment-driven growth in Emerging Markets and often consumption-driven growth in the U.S may lead to a “fear factor” incorporated in such “global imbalances”.
The Fed fights this fear factor with easy money. Between 2009 and summer 2011 emerging markets continued their ascent but high oil prices and the weak housing market hampered the United States. A similar situation happened in the 1970s when Southern America and Europe showed far higher growth than the U.S. because US monetary policy was too easy.
The rise to 2011's record peak of $1,920 came as several of the Arab Spring revolutions descended into civil war, Greece was brought to a standstill by a general strike against the Eurozone's austerity demands, and England suffered its worst rioting of modern times.
Priced in sterling, gold's rise since 1968 has been 40pc greater than its rise against the dollar. Over the past 10 years gold has gained 273pc for British investors against 255pc for US buyers – and its strongest gains came when the dollar was also rising.
Sunday, January 18, 2015
The Swiss shocked the world by removing the Franc's peg to the Euro. It's an absolute game changer that may end the extreme downward manipulation of gold and silver prices, once and for all. Andy Hoffman from Miles Franklin joins me to dissect the worldwide monetary meltdown as we document the collapse for January, 2015.
Labels: Andy Hoffman
Tuesday, January 6, 2015
For a long time now I've been telling friends to buy gold and especially silver bullion. I haven't really had time to explain why but I think now I should make an effort. This is a massive story but I will try to be brief. I believe that gold and silver are seriously undervalued. I also believe that there is going to be a crisis in confidence in the money we currently use which will cause a sudden and serious loss of value (very high inflation). Ownership of gold and silver are an insurance against this happening. Once it does happen it will be too late to take out that insurance policy. Precious Metals to Paper Money Gold and silver have little relevance to most of us today. Apart from the occasional jewelry purchase very few of us have much to do with them in a day to day sense. This was not always the case. For much of human history they were used as everyday money. When Judas betrayed Jesus he did so for 40 pieces of silver. When the US Constitution was written, the dollar was defined as a set weight of silver. Gold and silver possess certain qualities which make them ideal for use as money. The ancient Egyptians and the Incas had no knowledge of each other yet each used gold and silver for money, as have most human civilizations. More recently, over many years (even centuries) people have been gradually persuaded to leave their gold and silver in vaults for safe keeping. In return, they received credit notes. In the UK, people could deposit a pound of sterling silver with the Bank of England and receive a note with the words "I promise to pay the bearer, on demand the sum of one pound" signed by the Governor of the Bank of England. These notes became known as "Pounds Sterling" and for many years have been used as money. A similar thing has happened all around the world until today, gold and silver are not commonly used as money anywhere. During this process, the custodians of gold and silver have gradually eroded the rights of people to redeem these credit notes for actual precious metals (PMs). In 1971 Richard Nixon severed the final link, ruling that the US dollar could no longer be redeemed for gold. As the Dollar is the world's reserve currency this had the effect of ending gold's role in all of the world's currencies. Since that time, gold has been mostly kept in central bank vaults and credit notes for this gold and silver (Dollars, Pounds, Yen, and Euros etc.) have been used as money, despite the fact that they could no longer be redeemed in PMs. They had in effect, been defaulted on.
My Blog List
Nuclear Deal with Iran closer despite Israel's opposition -- Mike Rivero - What Really Happened Radio Show: Michael Rivero Tuesday March 31 2015: (Commercial Free Video) -- Date: 03/31/2015 -- Michael Rivero is the webmaster of ht...
North Korea is probably a very safe country to keep your Assets - Geoff: So the question of confiscation always comes up with our experts, Jim. So the question... This is an excerpt only please visit http://WWW.JimRogersI...
How to Invest in Gold and Silver: A Complete Guide from an Investor's Viewpoint Don Durrett