Saturday, May 26, 2018

With Elections Just Over the Horizon, Turkey Catapults Towards Crisis


Turkey is finding itself stuck between a rock and a hard place as investors flee, desperately trying to get their funds out of the country before the bottom falls out of the market.

Yesterday, the Lira suffered a monumental loss, dropping by the most we have seen in over a decade. This comes on the back of already significant losses, as momentum gains and the fiat currency takes hit after hit, seemingly unable to recover.

We have seen this before, and we will see it again, time after time, as long as countries continue to put their faith in fiat currencies, currencies that at the end of the day are intrinsically worth nothing.

Investors are waking up to this realization, at least in regards to the Lira, as they become increasingly skittish about Turkey's Central Bank and their unwillingness to act on this crisis. Unlike in the United States, the Central Bank of Turkey does not have the ability to freely print fiat currency out of thin air and not suffer massive repercussions, a privilege that the United States abuses on a regular basis, due to their reserve currency of the world status.

Compounding their troubles, or at least for the ruling party, an election looms just over the horizon, and one that the current President Erodgan hopes of winning.

Sadly for him, the timing of this meltdown couldn't of come at a worse time, as elections are set to take place on June 24th. Fortunately, for Western officials, the timing of this couldn't of been better, as hostilities between President Erodgan and Western leaders have been mounting for years, with many labeling him as a "dictator", or a "tyrant".

Regardless of your position on this, the timing of this meltdown is indeed questionable, as it now puts his reelection in doubt.

As stated in the opening of this article, Turkey is indeed stuck between a rock and a hard place, as their growing debt levels are beginning to cripple their economy, due to their weakening fiat currency.

Debt repayments for Turkish corporations continue to grow as their currency continues to decline. Over the next few months, they will need to pay roughly $600 million Lira more for foreign currency notes maturing due to this drop in the Lira.

As you can imagine, this will cause even more investors to flee the Turkish market and the sucking sound of funds leaving the market will continue to magnify, creating a self-fulling prophecy and ultimately an outright currency crash, such as that recently seen in Argentina, unless something can be done and done fast.

Undoubtedly, this ongoing crash played a huge contributing factor in Turkey's recent decision to repatriate of their gold reserves, as they scramble to shore up their defenses and get any form of real, hard money that they can get their hands on.

Unfortunately, we have watched this scenario play out time and time again, and will watch it many more times before the world finally comes to its senses and makes the only logical move that can be made to stop this madness, a return to a hardback form of money, a return to gold.

- Source, As First Seen on the Sprott Money Blog

Friday, May 25, 2018

North Korea Comes Crawling Back: Stresses "Desperate Need" For Summit "Whenever, However"

Update: As if the earlier begging was not enough, it appears Kim wants to make sure that President Trump is aware of his efforts and desire to meet.

Yonhap reports that North Korea's state media said Friday the demolition of its only known nuclear test site has demonstrated its "peace-loving" efforts and pursuit of a "total halt" to nuclear tests.

As we detailed yesterday, North Korea officially demolished the test-site overnight, inviting a number of reporters to witness the event.


And today, the Korean Central News Agency (KCNA) said in English.

"The dismantlement of the nuclear test ground is a vivid manifestation of the DPRK government's fixed peace-loving stand to join in the international aspiration and efforts for total halt to the nuclear test and make positive contribution to building a nuclear free world..."

- Source, Zero Hedge

Thursday, May 24, 2018

The Bond Market Is Losing Its Biggest Customer In World History


This week we talk about how the Bond Market is losing its biggest customer in world history, central banks. Liquidity doesn’t exist today without central bank printing and intervention. 

Gluskin Sheff economist David Rosenberg says to prepare for inflation and $3,000 - $5,000 gold. Inflation is an emotion, being caught off guard is the trigger.


Tuesday, May 22, 2018

Gold And The Us Dollar, Retail Sales Numbers, & Middle East Turmoil


This week we discuss the price drop of gold below $1300, the price movement of the US Dollar index, along side retail sales numbers. Are we poised for a rate hike later this year perhaps as early as this summer? 

We talk about growing geopolitical tensions as Kim Jun Un threatens to cancel the summit talks between the US and North Korea? Plus turmoil in the Middle East alongside a price spike in oil...


Monday, May 21, 2018

The FBI Spied on Donald Trump: Legacy Media Runs Massive Damage Control


The MSM is in full blown panic mode, as one of their key moles is being doxxed and uncovered. The curtain has been pulled back and the light is shining brightly on the traitors. What happens next? Will the hammer of justice finally find its nail?

- Video Source, Styxhexxenhammer

Sunday, May 20, 2018

Patriots: Trust The Plan, The Plan Is Not Going To Be Straightforward


A relative of the Skripals has been denied a visa by the UK, nobody knows where the Skripals are. Satellite images show NK is dismantling their nuke program, the White House says the talks are still on between NK and the US. Europe tries to keep the Iranian deal together, they are just not sure if they are going to pay Iran. 

Israel and Palestine make a deal, Palestine will take control of their electrical needs. Syrian army has full control over Homs, Russia says the US is hiding and protecting terrorists. The plan is not always straightforward, the plan is complex and many pieces need to be moved into place to make sure everything goes as planned.

- Source, X22 Report

Saturday, May 19, 2018

The Trend Away From the Dollar to Gold Continues, Turkey Significantly Increases Reserves


The trend of accumulation continues onward, with no signs of slowly down, despite a sluggish precious metals paper market, a market that at this point can be considered nothing more than a complete and utter farce.

In the West, our central bankers appear to be continuing on with their blissful ignorance, as the world continues to become increasingly more and more financially unstable. With nothing truly solved since the 2008 crisis, but only papered over, we head into the great unknown, just awaiting the next crisis.

Meanwhile, they continue to dis-hoard our vital gold reserves, moving our assets towards the East, who are ecstatic to purchase every ounce, every gram they can get their hands on.

As has been well documented on the Sprott Money blog, both Russia and China have been adding to their gold reserves, in a massive way, with no signs of slowing down. In fact, they have been increasing their purchases, perhaps sensing that the protection that only hard money can offer, will soon be needed.

Adding to this demand in the physical markets, has been the ongoing repatriation of gold reserves by various countries around the world, as they realize that their hard money is held by foreign entities that have become increasingly hostile towards them over the last few years.

This double whammy has created a sucking sound in the physical precious metals markets, which was already thin to begin with. Yet, the cartel have down a fantastic job at keeping the canary in the coal mine silent during this time, suppressing the spot price in the process.

One other country that has joined the fray over the years has been Turkey, who have proven to have a bad case of the yellow metal fever, buying gold hand over fist and repatriating whatever they can get their hands on.

Adding to their reserves, Turkey has continued on with their accumulation trend, tripling their gold imports from 106 mt in 2016, to 361 mt in 2017. A massive increase.

Still, this has not been enough for them, as they are reporting huge investor and central bank demand. This has resulted in a continued accumulation of precious metals, adding another 30 mt in the first quarter of 2018.

Sadly, this gold has to come from somewhere, and it is widely speculated by precious metals experts that this gold is coming directly from the vaults in the West, as they continue to rehypothecate their reserves.

Sooner or later, the jig will be up and the farce will be over. However, they have defied the markets for far longer than anyone would of ever guessed.

The question that many of us have been asking for years now, is how long? How long can they last and how much longer can this fiat dam hold? 

The answer to this is the same as it has always been, who knows, but one thing is certain, eventually the dam will break and one of the greatest bull markets this world has ever seen will unfold as precious metals are set loose and the free market asserts itself. 

Until then, keep taking advantage of these artificially reduced prices and as always, keep stacking.

- As first seen on the Sprott Money Blog

Thursday, May 17, 2018

Dave Janda: Global Criminal Syndicate Stripping us of our Freedoms and Money


Dave Janda, host of the popular radio show called “Operation Freedom,” says the coming economic reset that world leaders and global bankers have been talking about for years is coming and it is going to bad, then good. 

Janda explains, “I think what the reset is going to look like is a devaluation of the dollar to a significant degree.

The value of gold and silver is going to be reset to a much higher level. When you see governments acquiring gold and silver and . . . when you see the banksters acquiring huge amounts of gold and silver for their own vaults, it tells me it is going to happen sooner rather than later.” 

But do not fear because the best days for America are ahead. Janda predicts, “I believe the rule of law is going to be restored. I believe all of our lives will be much better. I believe we will have more opportunities than we can imagine. 

We are going to look back on these decades before, and we are going to say we were so oppressed and so persecuted by this criminal syndicate that was stripping us of our freedoms, liberties and our finances across the board, we are going to say how did we not do this sooner? 

How did we not overturn the system sooner? It was so bad then and it is so good now, but that doesn’t mean there are not going to be some tough times in the middle here.”

- Source, USA Watchdog

Wednesday, May 16, 2018

Gold Is “Radically Undervalued”


Compared to rising oil prices, gold is significantly undervalued and is presented with a good buying opportunity, said Leigh Goehring, managing partner at Goehring & Rozencwajg Associates. 

“Oil will continue to do well. If oil were to go to $100 a barrel and gold were to stay at these levels, we’re getting down to that undervalued area of 10 to 1, where an ounce of gold only buy 10 barrels of oil, at that point I believe gold will be radically undervalued and will take off,” Goehring told Kitco News on the sidelines of the Mines & Money New York conference.

Goehring noted that even in a rising rate environment, gold has opportunities to rally.

- Source, Kitco News

Monday, May 14, 2018

Michael Pento: Super Spike In Precious Metals Coming


Money manager Michael Pento says we will have “deflation” first and then “runaway inflation.” Pento says this means gold is the place to be for the foreseeable future. 

Pento contends, “There is going to be a run on gold like we have never seen before. There is going to be a super-spike in the precious metals.

These are unprecedented times coming, and you should take physical possession of your gold. I like gold and I like silver, and I like platinum. I most especially like gold though. 

This is happening now. The bond bubble is bursting.”

- Source, USA Watchdog

Sunday, May 13, 2018

Rory Hall: Gold Mining Supply IS Collapsing


Normally, I don’t step out and make such bold statements as gold mining supply IS collapsing, however, in this case it seems appropriate. We have reported on several occasions just in the past week, herehere and herehow some of the largest mining companies in the world are seeing massive reductions in gold production. While funding continues to flow into mining companies new discoveries, with few exceptions, are smaller and have much shorter production lifespans.
We recently interviewed (MUST LISTEN) the President/CEO of First Mining Gold, Jeff Swinoga, and his company is on the verge of bringing online one of the largest discoveries in some time. The Springpole project has an inferred 5 million ounces of gold in the ground. While 5 million ounces is a very impressive, and large, discovery the gold market needs about 10-15 more of these to keep pace with the current trend of gold acquisitions by central banks, the top government bullion mints and private bullion mints around the world. The gold discoveries are not manifesting.
While we have been saying capital inflows have been the problem, which we now can say we missed the mark, it has been the actual discoveries that have been the problem in more gold coming to market. Plenty of funding, serious lack of gold waiting to be found.
The demand for gold is increasing, yet new discoveries of the precious metal have not kept pace with the demand. Funds for exploration are historically high, $54.3 billion, up 60 percent over the past 18 years. 
The increased spending, however, has not produced the equivalent in new gold discoveries. During the past decade, 41 discoveries have resulted in a mere 215.5 million ounces of the precious metal. Even counting recently discovered but unexplored mines, which may hold as-yet major discoveries, the total available amount of gold in these discoveries are not expected to surpass 363 million ounces over the next ten years. 
Gold discoveries have followed a predictable pattern. 263 major gold discoveries have been made in the past 28 years, but half of those discoveries happened in the 1990s. This boom lasted until the turn of the century when the rate of discovery began to decline. Only 16 discoveries were reported from 2000 to 2002, which produced 108.3 ounces of gold. That amount was below the average finds of the 1990s. This decline has continued, with both new discoveries and the amount of gold mined decreasing steadily. By 2010, only 18.6 million ounces of gold was discovered, a severe drop from the 61.5 (million) ounces found in 2009. 
Old sectors are being depleted, while active exploration for new discoveries has been slow. The amount of available gold has not met expectation and remains far below the 2009 high. Gold Telegraph
With the vast majority of mines discovered in the 1990’s now either completely drained or on their last leg it is past time for them to be replaced. Mines have a finite “life span” The problem is, the gold in the ground may be too deep, too expensive or too small a deposit to replace these older mines. I feel confident most of the mines around the world still have gold, silver and other metals awaiting to be processed, the problem is return-on-investment.
Continued gold exploration has become critical. In 2018, Colorado-based Newmont Mining Corp., one of the world largest gold explorers, has allocated $1.3 billion to expand its current projects, an increase of $300 million from the previous year. 
Much of the available gold in Australia’s northern Goldfield has been depleted, and companies are drilling to unprecedented depths of 3 kilometers below the surface hoping for new discoveries as new finds are becoming rarer and more expensive to pursue. Gold Telegraph
This may be the best support for what we have been saying for the past year. Gold and silver are currently very inexpensive and in the coming handful of years this is going to change significantly. As we move into the 2020 decade those that possess precious metals today will be very happy to have made the commitment, while those sitting on the sidelines will be very disappointed. Get physical and get it now, 2020 will be here before you know what happened.

Saturday, May 12, 2018

We're Now Forbidden to Learn What Our Grandparents Knew


Are you aware of the shocking parallels between today and the Soviet Cold War era? Even further back, what skills and survival arts that our grandparents knew as normal life have now been deemed politically incorrect and censored by major social media platforms? Are we doomed to be forced into a generation of helplessness, or is there still a way out?

- Source, Reluctant Preppers

Friday, May 11, 2018

No Time Left, Time To Move Away From The Dollar


As interest rise the emerging markets are being demolished. The bonds that Argentina issued are worthless and they are looking to get a bailout from the IMF. 

Hedge fund investors are now shorting the market, plus they are saying many corporations are going down with the ship.

Putin pushes the agenda to move away from the dollar, time is closing in on the economy completely breaking down and it seems Russia and China are ready to breakaway and be independent.

- Source, X22 Report

Thursday, May 10, 2018

Craig Hemke: Gold is Going On Sale Again

Last week, we warned that a continued rally in the U.S. dollar had the potential to force the first COMEX gold Large Speculator wash, rinse and price flush.

Well, here we are.

Again, this is nothing unusual. As you can see below, the year 2017 saw three such occurrences. Each time, price fell $35-45 below the 200-day moving average before reversing.


Let's explain the chart above in greater detail so that you fully understand what is about to take place.

First of all, perhaps up to 90% of all COMEX gold volume is executed via computer programs and HFT. As an oversimplified explanation, think of these Spec machines buying COMEX gold exposure when the technical signals are positive and, conversely, selling their COMEX gold exposure when the technical signals turn negative.

In this case, the 200-day moving average is a KEY technical indicator, and once price breaks below that level, the Spec machines begin dumping COMEX gold almost indiscriminately.

This process "flushes" the accumulated Spec long positions, and it is into this Spec selling that the Commercials (Banks) buy back and cover some of their short positions. Once the market structure is "washed and rinsed", the entire process of Spec buying/Bank selling begins anew.

In the flush of May 2 – May 9 2017, price fell $45 below the 200-day, and the Large Speculator NET long position was reduced from 189,600 contracts to 150,006. With price below the 200-day, the Large Spec NET position continued to fall the next week to just 126,724 contracts for a total two-week decline of 33%. Price then rallied $80 in three weeks as the Large Spec NET position grew back to 204,500 contracts.

In the flush of June 27 - July 11, price fell $35 below the 200-day, and the Large Speculator NET long position was reduced from 131,600 contracts to 60,300 for a decline of 54%. Price then rallied $140 over the next two months as the Large Spec NET position grew back to 254,700 contracts.

And in the flush of Nov 29 - Dec 12, price fell $40 below the 200-day, and the Large Speculators NET long position was reduced from 224,400 contracts to 107,100 for a decline of 52%. Price then rallied $130 over the next seven weeks as the Large Spec NET position grew back to 214,700 contracts.

So, here we are again.

As I type on Tuesday, price has fallen $15 today, and it is currently about $10 below the 200-day for the front month, Jun18 contract. Thus it will very likely close below the 200-day today, and the next Spec flush should begin in earnest tomorrow or later this week.

Since nothing has changed fundamentally, there's no reason not to expect a repeat of the recent pattern. Price will very likely soon fall to $35-45 below the 200-day. As you can see below, this would imply something near $1275-1280.



If the pattern repeats, not only will price fall, but the Large Spec NET long position will decline, too.

The CoT report surveyed last Tuesday revealed a Large Spec NET long position that was already at just 136,700 contracts. By the survey of next Tuesday, May 8, expect that position to be trimmed by half to about 70,000 contracts and, from there, the stage will be set for the next rally.

What does this mean for the gold investor?

Simply put, gold is about to be "on sale".

I have a friend who is planning a purchase of about 20 ounces of gold. If he waits a week or so, he'll likely save himself almost $1000 dollars. With his "savings", he might be able to buy 21 ounces instead! And for the individual trader/speculator, it appears that an opportunity to take a long position will soon present itself.

In the end, if you understand the forces at work that move the COMEX price, you can benefit by timing your purchases.

And physical gold must continue to be purchased and stacked, for it is your only protection against the ongoing monetary madness.