Precious metals news

Returns may look decent at the moment, especially against the backdrop of negative rates from Europe to Japan, but with reward comes risk, & China has bucketloads of that

In the case of both gold and silver, all we see is prices having recovered some of their losses, and returned to 2013 price-levels, which were deemed outrageously low at […]

Right now, the negative yield on 10-year German bonds is actually a bet against the euro as players are betting that the euro will collapse & they will end up with Deutsche marks once again

Many political and social upheavals this year have contributed to gold’s continued bullish run. From the Fed’s quarterly passes on rate hikes to Britain’s exit from the EU, the year’s turmoil has helped keep the yellow metal at a 25% increase for 2016.

The upcoming presidential election may prove to be one of the biggest unknowns that keep gold prices headed north. DBS Group Holdings Ltd.’s foreign exchange strategist, Benjamin Wong stated:
The market has yet to deal with the political uncertainty going into the Nov. 8 presidential election … We remain bullish and gold carries an overweight rating.”
To their credit, DBS Group Holdings Ltd. called gold’s rally this year. Last October, the fund bet on gold gaining in 2016 based on its prediction the Fed would raise rates very slowly. Recently, it’s been actively advising investors to buy during any downturns in the price of gold.

The Japanese economy is a mess.
The Japanese are buying gold.
The Chinese economy is a mess.
The Chinese are buying gold.
And the United Kingdom has been thrown into a sea of uncertainty in the wake of the Brexit vote. So what are the British people doing?
Buying gold.
According to a Reuters report, gold dealers in the UK report an extraordinary interest in gold post-Brexit – much of it from first-time buyers. The Pure Gold Company CEO Joshua Saul said British customers are pouring large portions of their wealth into the precious metal:

Earlier this year, Peter Schiff picked up on something few reported on when a former Federal Reserve president admitted the central bank created a phony wealth effect by pumping up stocks and other asset markets through its monetary policy. Several months later, analysis proved this was true, showing that 93% of the entire stock market move since 2008 was caused by Federal Reserve policy.
Today, the Fed continues to focus on propping up asset markets. Even a former Federal Reserve governor admits this is the case. Kevin Warsh appeared CNBC's Squawk Box on Thursday and said the Fed isn’t really “data dependent” in the sense that it is looking at the overall economy. It is really market dependent.
They look to me asset price dependent more than they look data dependent. When the stock market falls like it did in the beginning of this year, they say, ‘Oh, we better not do anything.’ Stock markets are now at career highs. I suspect when they meet over the course of the next 10 d...

Many avenues have been tried since the 1913 Federal Reserve Act was passed that created the Federal Reserve System

In Japan, bad memories of helicopter money in the 1930s under Finance Minister Takahashi still loom large. Then, the episode ended with the assassination of Takahashi

Rental Nation USA continues but one has to wonder if everything is so awesome, why are builders slowing their starts year-over-year?

The objective of meeting the Fed's mandate in the context of maintaining financial stability may be unattainable using the interest rate tool

The national debt is nearly $19.4 trillion & is expected to grow, which means the U.S. will need foreigners to keep buying Treasury securities.

And the No. 1 gambler is playing with an infinite amount of chips. We're talking about central banks - who create money on demand.

The reason why? Simple. It is the banks, not the executive, not the legislative, that decides what happens in America, either directly or through the bank-owned Federal Reserve bank.

Always Follow the Money...

"When feeding your family becomes more important than your life, that's the point where revolution becomes possible…" - Mike Maloney

There is a massive move higher coming in the entire precious metals sectors between now & the end of the year.

Physical silver & physical gold is where's it at. The price is not as important as the physical possession as silver & gold are preservers of wealth, a hedge against inflation and insurance against changes in other currencies.

So where does this leave us? Based on the history so painstakingly assembled by Fischer, we can anticipate:

Investors pulled an estimated $21.7 billion from actively managed funds that buy U.S. stocks in June

The price of the yellow metal rose nearly 20 times. Stocks fell. In real terms, the stock market dropped as much as 65% from its mid-1960s high.