Making Sense Of A Crazy Week In Gold, Silver, Markets & Economy

From the trade deal/no trade deal drama to the nail-biting moves in the dollar, the stock market, and gold & silver, this week's been quite the rollercoaster ride! Still, it was very important for the markets and the economy, for many reasons...

- Source, Silver Doctors

The real gold price rally hasn’t even started yet, says analyst who called $1,500

As long as the monetary base keeps growing, gold prices will keep rising, says E.B. Tucker, director of Metalla Royalty & Streaming. 

“The [monetary base] is never going to go down,” he said. “Gold is not a way to speculate and make a big profit, it’s a way to protect your wealth. It’s wealth insurance.”

- Source, Kitco News

The Big Conversation: What Emerging Markets Are Saying About Growth

This week Real Vision uses Refinitiv's best-in-class data to let you in on the big conversation about the signals being given by emerging market currencies. 

The market chatter looks at the potential for the US to escalate trade tensions with Europe. And the whisper looks at what to expect from incoming ECB president Christine Lagarde.

- Source, Real Vision Finance

Catherine Austin Fitts: Deceleration of Dollar Integrity Significant and Serious

What adds to the uncertainty of the U.S. dollar is the “missing” $21 trillion that was discovered by Dr. Mark Skidmore and analyzed and recognized as a huge problem by Catherin Austin Fitts, publisher of the popular Solari Report. 

Also, analysis Fitts has done on the government making the “missing money” a “national security issue” with FASAB rule 56 (Federal Accounting Standards Advisory Board) makes the secret money a hidden horror the general public is totally unaware of. Fitts explains, “The dollar is under pressure because we have been talking about the ‘missing money’ and FASAB rule 56, and the dollar is not what it used to be. 

If you look at the integrity behind the dollar, it’s not there. If you read “The Real Game of Missing Money,” which we did this big article for investors to do due diligence, the arrangements behind the dollar and the Treasury market do not have integrity. The deceleration of the integrity of the dollar is very significant and serious.

You’ve got to be more resilient, and it’s not just finances, you’ve got to be more resilient in terms of safety. If we have this kind of breakdown with the rule of law with FASAB rule 56, it’s not going to take long before it breaks into your neighborhood.”

- Source, USA Watchdog

Preparing for the Coming Storm: Poland Repatriates 100 Tonnes of Gold from Bank of England

It was just last week that I highlighted how a new Central Bank, albeit much smaller than some of the current key players, has entered into the precious metals market, drastically increasing their gold reserves in the process.

This new player was Serbia, who stated that they are hoping to increase their gold reserves in the face of mounting geopolitical uncertainty, uncertainty that seems to only be getting worse, not better with each passing day.

In just one month, Serbia increased their gold reserves by 1/3rd, by adding 9 tonnes of gold in that short window of time. This may not seem like a lot compared to some of the largest gold players, but to Serbia, it was a massive acquirement and is likely only just the beginning.

Not to be outdone, one of the rising stars in the precious metals space, Poland has announced another move that has surprised many in the bullion markets, while others simply nod their heads, acknowledging the trend that is now solidifying within the physical bullion markets.

The Central Bank’s governor, Adam Glapinski, announced on Monday that Poland had repatriated 100 tonnes of its gold from the Bank of England, while stating the following;

"The gold symbolizes the strength of the country,”

Also, Glapinski stated that Poland could sell these gold reserves for "billions" in profit, but had no intentions of doing so, as they are looking to increase their position in the yellow metal, not decrease.

The Central Bank of Poland has also stated that they will be repatriated more gold, of which roughly half is still held by the Central Bank of England, as they deem needed.

Taking to twitter, Poland showcased their recently returned wealth in a photo op;

100 ton zlota z rezerw @nbppl wrocilo do Polski pic.twitter.com/Guv03hZhCq

— Pawel Czurylo (@czuryloPL) November 25, 2019

Prezes @nbppl Adam Glapiński i polskie złoto - 100 ton wrociło do Polski pic.twitter.com/5vTj5hLueY

— Pawel Czurylo (@czuryloPL) November 25, 2019

The previous mentioned statement, indicating that the gold they repatriated from the UK symbolizes the strength of the country, is one that bears great mention, as it is a lesson that many in the financial industry have sadly forgotten, as gold has been a bulwark in times of great unrest and geopolitical uncertainty, times such as those that we now find ourselves living in.

Poland, along with Russia, China, Hungary, India, Serbia and many others are not ignorant of this fact and it is exactly why so many of these Central Banks are gobbling up every ounce of gold bullion that they can get their hands on, while tossing away as many fiat US dollars as they can.

They know that in the end, when the "you know what" hits the fan, that it is gold bullion that will offer protection, not fiat money, as it has been since golds inception into mankinds financial history, a history that spans over 10,000 years.

Unfortunately, these risks do indeed appear to be growing once again, as the situation with the China / US trade wars once again took a turn for the worse, after this week's event saw the United States sign the "Hong Kong Democracy Bill", a move that has "infuriated" Chinese officials and one that they vow will cause retaliation, although they have not stated what that retaliation will be as of yet.

Additional, with President Trump completely bogged down with the Impeachment circus show, talks with North Korea have all but evaporated, as the administration is too focused on dealing with the battering ram at their door, rather than what is outside of their immediate line of sight.

This has caused North Korea to once again lash out as they feel like they are being ignored, firing numerous test missiles over the last few days, once again raising tensions with neighboring countries and the world at large.

With all of the current nonsense unfolding around the world, more Central Banks around the world, especially those in the West should be following the example being set forth by net gold positive Central Banks, such as those in Russia, China, Poland and others.

Gold is needed now, gold will be needed in the future. It is the ultimate insurance policy and individuals who act before it is needed will be protected from the coming storm, those who don't, risk being washed away. 

Prepare accordingly. Keep stacking.

- As first seen on the Sprott Money Blog

How to Hold Your IRA Outside of the System

You've worked hard and spent a big part of your life blood, sweat, and tears building up a retirement account. You may want to get some or all of your retirement saving out of the banks, out of Wall Street, out of stocks, out of bonds, and out of brokerage houses. 

But how can you protect your hard-earned nest egg from the whims of the stock and bond market bubbles, trade wars, and risk of banking collapse? 

You might be glad to learn that a decades-old tax law provides for ordinary people to protect their retirement savings outside the system, such as in gold & silver, cryptos, or real-estate, by following IRS guideline that you're not being told about! 

Will Lehr, managing partner of Perpetual Assets, returns to Reluctant Preppers to outline the proven path to protecting yourself by taking advantage of this little-known legal provision for holding & managing your own investments outside the banking or Wall Street system!

- Source, Reluctant Preppers

Ron Paul: Federal Reserve, the Enemy of Liberty and Prosperity

Ron Paul breaks down the extreme manipulation of the Federal Reserve in the open markets. He states that they are the enemy of the free people and prosperity.

Can the Federal Reserve solve the upcoming financial crisis, or are they simply the problem?

Ron Paul breaks down the current manipulation of the system and the ramifications that it is going to have in the future.

- Source, Ron Paul

Serbia Significantly Expands Gold Reserves Due to Increased Geopolitical Uncertainty

The Federal Reserve continues to pump liquidity into the markets, rapidly expanding their balance sheets and flooding the system with cheap money. 

This comes in spite of the fact they state the markets are currently "healthy" and that all is good for the time being.

Many may be lulled to sleep and put to ease by this double speak, however, there are many others around the globe that are not viewing the current state of affairs through rose colored glasses and are doing the smart thing, preparing for the inevitable crisis that is currently brewing, lying in wait just below the surface.

Easy money and quantitative easing has kept the markets artificially inflated for the last few years, leading to a booming economy for those who have had the luxury of taking advantage of this scenario, while others have been left behind in the dust, languishing and never fully recovering from the 2008 crisis, a crisis that has only been papered over.

Adding to this problem is the fact that we are currently living in a period of great geopolitical unrest, even if most people in the West are largely unaware of the incredibly volatile position the world now finds itself in.

Trade wars are commonplace, as the old norms of trade continue to break down. President Trump has taken a sledge hammer to past traditions, as he attempts to establish his "America First" policy, hoping that in the long run it will place the United States in a much stronger position.

Whether or not you believe this to be working largely depends on which side of the political spectrum you find yourself on, a spectrum that seemingly continues to grow further and further apart with each passing day, largely driven by the constant negative and incredibly biased coverage coming from the Mainstream Media.

While the West largely remains asleep at the wheel, happily plowing their hard earned fiat savings into a ballooning stock market, ignoring the vital protection of precious metals in these precarious times, others around the world are waking up and taking appropriate measures.

Countries such as Russia and China have been steadily and consistently accumulating precious metals while exciting their US dollar positions.

Collectively, already, both Russia and China combined have bought a staggering 251 tonnes of gold in 2019 alone! With the formers gold reserves now estimated to be at $109.5 billion, making them a true juggernaut in the precious metals arena.

Other countries, such as India, Poland, Hungary, Turkey and many others have also been accumulating the king of metals, steadily adding to their gold reserves, while exiting out of their USD reserve positions as well.

Now we can add one more name to that list, with Serbia recently announcing that they have been buying gold bullion, with their Central Bank being instructed to do so by their President, Aleksandar Vucic.

As reported by Russia Today;

"Central bank Governor Jorgovanka Tabakovic said the country paid about $434 million for the gold it bought last month, or $1,503 an ounce. Tabakovic said the acquisition is the latest in a series of moves to shore up financial stability by changing the structure of foreign debt and increasing the share of dinars and euros."

President Aleksandar Vucic gives his reasoning for entering into the precious metals space;

“I think we’ll continue doing that because of what we see in which direction the crisis in the world is moving,”

As indicated, he can see the incredible uncertainty that the world currently faces and is attempting to prepare his country financially, as best as he can, adding 9 tonnes of gold reserves last month.

This expands Serbias gold reserves by almost 1/3rd in just one month, bringing their total reported reserves to 30 tonnes of gold bullion.

Eventually, there is going to be a breaking point, in which the physical markets can no longer handle the demand from these countries hoping to expand their gold reserves and protect themselves. 

At this point the flood gates are going to be kicked open and the dam that has been artificially holding precious metals back is going to break, sending prices catapulting higher.

When this day will come is unknown, as the "powers to be" have already proven just how capable they are with keeping a lid on gold and silver prices, however, I have no doubt that the day will eventually come.

Until this day, enjoy the discounts and keep stacking knowing that eventually you will be handsomely rewarded.

- Source, As first seen on the Sprott Money Blog

Will the Chinese Yuan Replace the US Dollar as Reserve Currency?

Legendary emerging markets investor Mark Mobius, founder of Mobius Capital Partners, sits down with Roger Hirst to articulate his contrarian venture into active management while providing a unique perspective on recent developments in China and Hong Kong. 

Mobius illustrates how central banks have altered the global investment landscape, highlights risks with both the U.S. Dollar and the Chinese Renminbi, and reveals where he sees opportunity for growth. 

He also talks about the evolution of ESG investing, and explains how investing in firms based on healthy environmental, social and corporate governance actually produces better returns.

- Source, Real Vision Finance

Tallest Towers & Biggest Debt Deals Warn of Next Major Fall

Pride Comes Before The…? Tallest towers & biggest debt deals warn of next major fall. Walgreens Buyout - Does $70 billion seem high? Knowing when to leave - CEO departures hit all time high.

- Source, Golden Rule Radio

Bill Murphy: Gold Looks Different This Time

Bill Murphy, co-founder of the Gold Anti-Trust Action Committee (GATA) and a champion for legal and honest precious metals markets, returns to Finance and Liberty to update us on the fallout from the recent action by the DOJ against JP Morgan’s gold trading desk as a “criminal enterprise.”

- Source, Reluctant Preppers

The RISE Of Gold: Will We See Gold Skyrocket As People Flee The Dollar?

Josh Sigurdson talks with John Anderson of Triumph Gold Corp about the rise of gold and why gold and silver as well as mining companies are so lucrative going forward as people pile out of the economy in fear of a complete collapse. 

While recession woes continue, gold and silver have had a good year and it's no doubt that people are looking at history as a lesson when it comes to the historic support for precious metals. 

John Anderson breaks down why he thinks gold will do well in the future as well how companies such as his own (Triumph Gold Corp) will do in a time of great "triumph" for gold.

- Source, WAM

John Rubino: All Hell Breaks Loose When Everything Falls Apart

Financial writer and book author John Rubino points out, “Fear is the enemy in a fiat currency system. Everything is based on our assumption that the guys in charge know what they are doing and that the confidence in them is good. 

You take that away, and they let us see them sweat, and it’s over. There is no real bottom for the dollar, euro or the yen. Their intrinsic value is zero. 

When the economic players out there in the global financial system realize that the central banks of the world are out of ammo, and nothing these guys do is going to fix our problem, then all hell breaks loose.

What worries me about today’s world is that everything falls apart all at once, and there is no way to fix what went wrong.

We have a lot of examples of governments doing crazy things when everything falls apart.”

- Source, USA Watchdog

Pot Calls Kettle Black: Fed Lectures Congress Over Ballooning Deficits

Did I hear correctly, or have I truly gone mad? Did Jerome Powell, the head of the Federal Reserve actually lecture Congress over their ballooning debt levels and out of control spending?

After reconfirming and double checking, no, my sanity is still intact and yes, the Federal Reserve, who know nothing else, other than printing fiat funny money into oblivion, is actually lecturing Congress on the path that the United States is heading down, one which now sees the National Debt level at a stunning $24 Trillion and growing with each passing second.

The irony is just too sweet, as the Federal Reserve are the kings of debt and the facilitators of this out of control debt, highlighted by their recent actions in the overnight lending repo markets, of which they have been vigorous plugging holes, throwing ungodly amounts of money at the problem and ballooning their own balance sheets in the process.

Regardless of this "pot calling the kettle black" scenario, the Federal Reserve is not incorrect in their assessment, as government deficits have indeed been exploding higher as of lately, accelerating at an alarming pace.

In fact, the latest Treasury Department Report, which was just released on October 31st, highlights just how much the deficit has been growing, with last month's shortfall being 34% higher than the same time period in 2018, hitting $134.5 billion in just one month!

Projections for the 2020 deficit don't get any better, with estimates indicating that the deficit will surpass the $1 Trillion mark, a number that was only reached previously in the years following the 2008 crisis.

This is happening in the "good" times and this is exactly why Federal Reserve Chairman Powell is ringing the alarm bells over Congress's head, as he knows that the Fed will not be able to bail out the markets like they did during the 2008 crisis. 

Perhaps, as the Fed's very own words are indicating, they know that they are out of bullets this time around, with interest rates at already historically low levels.

Below are just a few of the alarming statements that Federal Reserve Chairman Powell told Congress during Wednesdays meeting;

“The federal budget is on an unsustainable path, with high and rising debt,”

“Over time, this outlook could restrain fiscal policy makers’ willingness or ability to support economic activity during a downturn.”

In addition to this "talk down", the Fed Chairman also reiterated his previous position, that the Fed has no intentions of lowering interest rates anytime soon, unless the economy takes a nose dive lower in the coming months.

The broader markets appear to believe this recent hawkish stance that the Fed has adopted, with the odds plummeting for a rate cut at the next Fed meeting.

As it stands today, the markets believe that there is a 96.3% chance that rates will not be changed at the next months Fed meeting.

This is likely to be the case and I would say that these odds are absolutely correct, as the damage to the Feds reputation would be severe indeed if they continued to lower rates after all this hawkish talk of lately and especially after they just wagged their fingers at Congress for their reckless spending.

Still, 2020 is an entirely different ball game and I expect continued intervention in the markets on behalf of the Federal Reserve, continued excessive spending and record deficits from Congress and extreme volatility as we head into the 2020 elections, the latter of which I believe are going to be incredibly violent and nasty, leading to even further division within the United States.

All of this is a recipe for higher gold and silver prices, who as of the start of November have been suffering under renewed attacks against their prices and are thus trading at a discount to what I believe to be much higher future prices.

Until then, keep stacking and ignore the noise.

- As first seen on the Sprott Money Blog

Harry Dent: What Does Wall Street See that These Charts Don’t?

Wall Street continues to be convinced that the economy is edging back up again after a stall following the tax cut boost and near 3% GDP figures in 2018.

I talked last Monday about how there were some key indicators like industrial production growth and construction spending that were not confirming such a resurgence… at least not yet. And such falling trends tend to be a leading indicator of falling profits.

This chart is more disturbing, as it comes from those very CEOs that got the direct benefits from the tax cuts at the beginning of 2018. Their confidence in the economy is not just slowing, it is plunging!

They clearly and haven’t been making significant investments in new capacity as they don’t need it. The publicly-traded ones are buying their own stocks to goose earnings per share instead.

But are they seeing signs of declining demand from their customers? Are they worried about Trump getting impeached and ending the corporate tax and deregulation gravy train? All, legitimate concerns, which could accelerate the pending financial crisis. Wall Street is clearly not reacting much to that threat yet.

The next chart also clearly shows that earnings per share are cratering as well. Part of that is to be expected as the surge from the tax cuts does not continue forward. But the actual 4% decline in the third quarter should be alarming.

This combination of indicators simply does not bode well for the stock market, yet it keeps edging up. How long can the markets continue to be divorced from Main Street and the real world?

So, what does Wall Street see that these charts don’t?

Good question…

I say it simply sees “more crack” from lower rates and more QE.

How much longer can that last?

- Source, Harry Dent via Economy and Markets