, GOLD SILVER LIBERTY: August 2019

Saturday, August 31, 2019

The Gold to Silver Ratio is Indicating a Massive Move Higher for Silver

At the current time of writing, gold and silver are suffering under a renewed attack, with the former losing $16.54 (1.08%) throughout the trading day and the latter down by $0.20 (1.11%).

Yet, this is not a time to despair, as both gold and silver are showing incredible resilience, adapting and adjusting to these difficult times, with gold holding solidly above the $1500 mark and silver smashing through the $18.00 per ounce level.

This smash lower came just as silver was rocketing towards the $19.00 mark, after quickly passing through its previous resistance levels in prior trading sessions.


The reasoning for these metals moving higher are many fold and have been discussed at length on the Sprott Money blog and most, if not all of these contributing factors are still solidly in place.

The China / US trade war is giving no indication that it is going to come to a close anytime soon, despite President Trumps apparent softening in his approach over the past month, he has once again renewed his efforts and gone on the attack, stating that he regrets not raising tariffs higher on China.

The Fed's are clearly not the only masters of doublespeak.

Obviously, this is an attempt to keep the markets chugging along, while at the same time, trying to force the Fed's hand in lowering rates even further.

I believe that ultimately the Federal Reserve is going to do just that, as they know that the global economy is not healthy and is on the verge of a major recession.

Rates are going lower and that means that both gold and silver are going to adjust accordingly, moving higher in lockstep with lower rates and as investors seek the unique safety that only these metals can provide.

Despite believing that both gold and silver are ultimately going higher, I also believe that silver is destined to outshine gold in price gains, but why?

Good question.

The answer is simple, the gold to silver ratio and the fact that it is currently indicating by all historical standards that silver is very, very underpriced.

As it stands right now, the gold to silver ratio is approximately 85:1, meaning that it takes 85 ounces of silver to buy 1 ounce of gold.

To find the gold to silver ratio, all that you need to do is divide the current gold price by the current silver price.

Just for reference, here are some historical comparisons:
  • The ratio of gold to silver in the earth's crust is 17.5:1.
  • In ancient Roman times, the gold to silver ratio was set at 12:1.
  • In 1792 the gold to silver ratio in the United States was fixed at 15:1 by law.
  • In 1803, France set this ratio at 15.5:1.
Even if you disregard all of the above, and use much more recent numbers, the average gold to silver ratio over the past two decades still stands at 60:1, indicating that our current 85:1 ratio is horribly out of alignment and in need of a major adjustment.

This means that even if gold was to remain at its current price levels (something I don't believe is going to be the case), then silver would still have to move higher by roughly $7.00 per ounce, just to reach the more recent, modern day averages.

However, it is very likely given the fundamentals that gold is going to move higher, as David Rosenberg, Gluskin Sheff’s chief economist stated in a recent interview.

He believes that $3,000 gold is a very real possibility, which would mean that silver would need to move to roughly $35.00 per ounce, just to maintain todays current, historically out of whack ratio.

If silver out-paces gold, returning to a more healthy 60:1 gold to silver ratio, then this would put silver at $50.00 per ounce, nearing its all time high.

Either way, we are looking at incredibly impressive gains if gold and silver continue down the current path they are on, heading incrementally higher as the months and years progress.

The printing presses are not slowing down, the Fed is in all likelihood going to lower rates, just as the markets are demanding they do and the 2020 elections are just over the horizon, bringing with them massive turmoil and chaos.

Gold and silver are destined to move higher. Their time to shine is now.


- Source, as first seen on the Sprott Money Blog

Friday, August 30, 2019

Secret Revealed: Why Silver is Spiking


Why is silver going up? Good question, and the reason for the price spike in silver is surprisingly simple. 

Tune-in for discussion on what's going on in the economy & markets in general, and gold & silver specifically... especially silver!

- Source, Silver Doctors

Thursday, August 29, 2019

Frank Holmes on the State of the Gold & Silver Markets


Frank Holmes, the CEO and Chief Investment Officer of U.S. Global Funds, helps us look into the future with has strong understanding of gold and gold shares markets.

- Source, Jay Taylor Media

Wednesday, August 28, 2019

Ted Butler: JP Morgan Busted ONCE Again


Another strong week for monetary precious metal values. The silver spot price is trading late this week around 17.50 oz in fiat US Federal Reserve notes. 

The gold spot price is trading $1,530 fiat US dollars per troy ounce near the end of this week’s trading. 

The Gold-Silver Ratio has ticked 1 troy ounce lower this week. It now takes 87 derivative ounces of silver to acquire 1 derivative ounce of gold. About 9-months ago, we last spoke with this week’s Metals & Markets Wrap guest, regarding the first, long time JP Morgan precious metals derivative trader, admitted guilt to financial fraud and market crimes committed. 

This week, we welcome back long-time silver analyst, Ted Butler to the show. To discuss yet another guilty plea this week by another over decade long executive director from JP Morgan’s precious metals trading division for the financial market crime of spoofing. We hear Ted’s take on the US Justice Departments various indictments of precious metal market criminals over the past year’s time. 

As well, we also discuss a likely massive silver trade which has formed in the last 3 months, in three of the most major silver ETF derivatives. To the tune of a silver bullion hoard the size of both the former Hunt Brothers and Berkshire Hathaway’s Warren Buffett. 

We discuss who is possibly making a multibillion-dollar move into the physical silver investment market and what this kind of movement may portend for some of the precious metal derivative trading entities on the short side of silver moving ahead.

- Source, Silver Doctors

Tuesday, August 27, 2019

The Libra World Currency: A Cashless Society is Coming, Beware


In a stunning admission, one of the worlds top central bankers said the following to say about the dollar. 

“Mark Carney, titled "The Growing Challenges for Monetary Policy in the current International Monetary and Financial System", where he dedicated no less than 23 pages to a stunning - for a central banker - cause: to describe why the dollar's "destabilizing" reserve status role in the world economy has to end, and why central banks need to join together to create their own replacement reserve currency. 

One potentially tied to Facebook's new "stablecoin" Libra, although in reality any "Synthetic Hegemonic Currency" as Carney defined it would do.”" the short term central bankers must deal with the situation as it is. 

But he also warned that “blithe acceptance of the status quo is misguided,” and dramatic steps will ultimately be needed. It's what he said next that was stunning: In the longer term, we need to change the game," Carney said. 

"When change comes, it shouldn’t be to swap one currency hegemon for another."

- Source, WAM

Monday, August 26, 2019

USA Watchdog: Globalists May Try to Crash Economy


Journalist Alex Newman’s biggest fear is the New World Order tanking the global economy to try to tarnish Donald Trump before the 2020 Presidential Election. 

Newman says, “We may see the globalists try to crash the economy, whether that be pulling the rug out from under the stock market or whether that be trying to crash the value of the dollar. 

Then using that to demonize President Trump and all of his supporters and to basically say see what happens when you defy globalism. See what happens when you try to implement tariffs so the communist Chinese don’t rip you off. 

You end up blowing up your own economy. They are going to say this is all Trump’s fault and the fault of the people who voted for him. 

I think this is a very real possibility...

- Source, USA Watchdog

Friday, August 23, 2019

Strong Retail Numbers and a Divided Fed Send Markets Spinning


The annual Jackson Hole, Wyoming Federal Reserve symposium began today and markets, as expected, were a nervous wreck, gyrating and throwing their typical temper tantrums.

The reasoning for the chaos that was unleashed throughout Thursdays trading season were numerous, but the one above all others that sowed doubt in the market's collective mind, was the recently released July 30-31 Fed minutes, which showed that the members of the board were incredibly divided over the quarter point rate cut.

Some members believe the economy is healthy, while others believe that the ongoing trade wars, that seemingly have no end in sight, pose a significant threat to not only the United States economy, but the world as a whole.

The divide heading into todays and tomorrows meetings is likely now only going to get worse.

Recently released impressive retail results posted by companies such as Nordstrom, Lowe's and Target, all of which are trading higher due to better than expected results, paints a promising picture of the US economy as a whole.

Nordstrom in particular is up by 10% in today's extended trading session alone, due to better than expected quarterly results fueled by growing digital sales (up 4%) and reduced inventory (down 6.5%).

This is a massive gain and as some Fed members are likely to argue, shows the true strength of the  economy, while other board members are going to continue to point to the deepening concerns surrounding the trade wars.

The markets hate uncertainty, and that is unfortunately exactly what we currently have as everyone holds their breath, waiting for the highly anticipated speech by Fed Chairman Jerome Powell.

This uncertainty caused the S&P 500 and Nasdaq to nose dive early on in the trading season, only to slightly recover as the day's trading action unfolded.

Reacting to this negative trading season, President Trump once again went on the attack and engaged in his own form of double speak, both talking up the economy while also encouraging rate cuts, which seemed bizarre to many.

Hoping to spur the Fed into action, the President had the following to say via his Twitter account;

"The Economy is doing really well. The Federal Reserve can easily make it Record Setting! The question is being asked, why are we paying much more in interest than Germany and certain other countries? Be early (for a change), not late. Let America win big, rather than just win!"

Gold and silver bullion also traded slightly lower, as precious metals responded as the markets did, taking the strong earnings from the retail sector as a sign that rates may not be lowered next month, as many anticipated they would be.

However, I wouldn't rule out a rate cut just yet, as I personally believe that the threat to the global economy due to increasingly unstable geopolitics is a much greater threat than anything else currently ongoing.

The trade wars, and the powder keg of a situation in the Straight of Hormuz could upset the proverbial "apple cart" at any given time, sending the global markets crashing lower and precious metals catapulting higher.

I believe Fed Chairman Powell knows this, and despite the jawboning and double speak that you are going to hear from him tomorrow, he is ultimately going to move forward with this at the front of his mind.

Lower rates are ultimately coming, if not next month, then soon, very soon.

Easy money is here to stay and precious metals are destined to go higher.

Until then, enjoy the discount and keep stacking.

- As first seen on the Sprott Money Blog

Thursday, August 22, 2019

Wednesday, August 21, 2019

Jim Grant: Cycles Begin and End In Excess


Gold now pays better interest at 0 than $13 trillion in negative paying bonds! 

Socialized Risk: Big boys get winnings & tax payer takes all losses. 

Bagehot: Central Banks should lend at very high interest rates & only with collateral.

Tuesday, August 20, 2019

Tom Luongo: The Mother of All Safe Haven Trades Has Begun


As the sovereign Debt Crisis unfolds, we have now entered the SafeHaven trade with Gold. 

Tom Luongo says it's "the mother of all safe haven trades". Investors will also seek out safety in silver, but what about the dollar? 

Tune-in for the answer to that question and a whole lot more! Today we welcome first-time guest Tom Luongo to Silver Doctors. 

Looking for independent, free-market and alternative analysis with just the right blend of market, economic, political and geopolitical analysis? Then look no further!

- Source, Silver Doctors

Saturday, August 17, 2019

Scaramucci Talks Gold Price and Market Volatility; Weighs In on a Gold Standard 2.0


Gold is a near-term safe haven asset, said Anthony Scaramucci, but the hedge fund manager and former White House Communications Director sees potential in other assets on a longer-term basis. 

“It’s a near-term safe haven but long-term it really doesn’t solve people’s problems,” Scaramucci told Kitco News. “I would prefer to put the money or the capital into assets that I think are actually going to return something as opposed to be waiting for other people to think it’s more valuable to me in terms of where my entry point is.” 

Scaramucci noted Warren Buffett’s view on gold, which is that the yellow metal’s value is derived from its finite supply rather than contribution to productive economic growth.

- Source, Kitco News

Friday, August 16, 2019

Inflation Rising: Consumer Goods Prices Increase by Most in Seven Years

The trade wars are taking root and finally, finally the damage is starting to ripple through not only Wall St, but Main St as well, as inflation steadily ticks higher.

This comes on the heels of a rate cut last month, in which one of the reasons why the Federal Reserve acted, was because they believe inflation was too low.

This is laughable that this is even a reason to act and it just goes to show the complete disregard that the Fed has for the average person on the street, who works hard their entire lives, saves for retirement, just to see those saving slowly chipped away by an easy money policy.

The Federal Reserve has a 2% inflation target, a target that until recently they believed they would not reach.

That may however be about to change, as the Labor Department stated on Tuesday that its consumer price index increased by 0.3% last month,  surpassing some analysts expectations.

Meanwhile, CPI Goods are up 0.4% year over year, which is the highest level since November 2012.

Relatively speaking, these levels are minor and nothing major to worry about, but what is truly worrying is how the Federal Reserve openly admits that they would love to see inflation rise to higher levels.

Rest assured that this recent uptick in inflation is going to do nothing to change the Federal Reserves easy money policy that they have embraced, the printing presses are going to continue working in overdrive and the markets are still highly anticipating an additional rate cut at the next months Fed meeting.

Both Goldman Sachs and Morgan Stanley are amongst those who believe that more rate cuts are on the way, with Morgan Stanley even going as far to predict that rates are going to return to zero, which is pure madness.

These additional cuts are only going to fuel inflation to even higher levels.

Sadly, more pain is on the way as we have yet to see the full ramifications of the ongoing US - China trade wars, that continue to loom over the worlds head.

Next month, on Septemeber 1st, an additional 10% in US tariffs are set to be enacted on Chinese goods entering into the country. It is expected that this will affect roughly $300 billion worth of imports.

Once again, these tariffs are going to hit consumer goods the hardest, as that it predominately what is imported from China, meaning that new highs in the CPI goods are likely on the way.

This strategy to drive prices higher and force companies to move the production of their goods to other countries is working, as I have recently highlighted, however, it is undoubtedly going to cause some short to medium term pain for consumers as well.

President Trump once again inflamed the divide between the United States and China, taking to twitter to launch a renewed attack on Tuesday;

"Through massive devaluation of their currency and pumping vast sums of money into their system, the tens of billions of dollars that the U.S. is receiving is a gift from China. Prices not up, no inflation. Farmers getting more than China would be spending. Fake News won’t report!"

No one is going to come out unscathed from these trade wars.

Sadly, it appears that we are going to be entering into a new era of rising inflation, as the Fed continues to be beholden to the markets, maintaining an easy money policy and as consumer goods prices continue to rise due to the ongoing trade wars.

Fortunately, this is exactly where precious metals come into play and as we have witnessed recently, are doing exactly what they should do in their time of need.

Most notable has been gold, as it continues to maintain above the crucial $1500 level, despite suffering repeated attacks from those who would love nothing but to see it brought lower.

If these trade wars are not rapidly brought to a close, then I believe that gold is destined to go higher, much higher, possibly even testing than breaking through old highs, with silver rapidly following suit shortly after.

The trade wars continue on, the easy money policies continue on.

Keep stacking.

- Source, as seen on the Sprott Money Blog

Thursday, August 15, 2019

Steve Keen: Could A Debt Jubilee Really Work?


One way or another, we're going to have to address the $trillions of outstanding bad debts. 

Over the past decade, the world’s central banks have distorted the price of money by bringing interest rates to record lows. 

With credit so cheap, asset prices have risen dramatically as companies and governments have borrowed to the hilt. 

And now with the “Everything Bubble” threatening to burst (perhaps in mid-bursting already?), we’re suddenly realizing that the phantom asset price gains were ephemeral, while the debts are permanent. 

How will the economy cope with dangerously overleveraged nations, industries and households? Not well.

- Source, Peak Prosperity

Wednesday, August 14, 2019

Rob Kirby: Protect Your Money Before It's Too Late


You've been warned. You're enjoying the rising tide that's lifted your IRA, 401-K, and home valuation.​.. 

You know you're at risk... 

You know you're riding on a bubble... You've told yourself you'll take some steps to deal with it... Some day... Pretty soon... But you've gotten too busy... 

And on the news, and the president, and lots of people are saying everything's going to be okay... But you know in your gut everything's NOT okay. 

Rob Kirby, experienced credit and precious metals expert, proprietary analyst, and founder of KirbyAnalytics.com, returns to Reluctant Preppers to answer YOUR viewer questions, and to offer us his characteristically honest insight.

Tuesday, August 13, 2019

Wolf Report: Fuel for the Next Mortgage Bust?


Here we go again: Cash-out refi hype is back full-blast, and for the first time since early 2006, people are doing it.

- Source, The Wolf Report

Monday, August 12, 2019

Bill Murphy: Silver Cheapest Asset on the Planet


Bill Murphy, Chairman of the Gold Anti-Trust Action Committee (GATA) is most bullish on silver. 

Murphy says, “For anyone that wants to get involved in precious metals, silver is going to be a home run. It actually just started.

Gold goes first because the physical market is tight. Then, the industry and silver people are going to make sure they have secure supply, and all of a sudden it’s going to be like a panic.

Silver is the bargain of a lifetime. It’s certainly the cheapest asset on the planet.”

- Source, USA Watchdog

Sunday, August 11, 2019

Craig Hemke: Watch Gold Now, Gold Knows What is Happening


Trade wars, escalating tariffs, China is devaluing their currency while unloading US Debt and stockpiling gold, ​US Economy struggling, and looming recession... 

Which way will these mega-forces drive our economic lives? Craig Hemke, founder of TFSMetalsREport.com, returns to Reluctant Preppers to answer YOUR viewer questions and also share his perceptive and witty perspectives on the imminent breakthroughs in the gold market. 

Hemke tells us to watch gold closely at this time, since China's fiscal policy response and each week's closing gold price may ignite the next stage of the current gold rally...

Saturday, August 10, 2019

The Renewed Eruption of the Currency Wars Will Ensure Gold and Silver Move Higher

Gold is trading solidly above the $1500 mark at the time of writing and I believe we are only just getting started, the currency wars are back in full swing and they are going to be more intense than ever.

The United States government, ironically labelled China a currency manipulator for the first time since 1994, marking a severe uptick in their rhetoric against the Chinese government as the trade wars continue to spiral out of control, with seemingly no end in sight.

Many simply waved this move off as nothing more than what it initially appeared to be, jawboning with no true ramifications behind it, however others see it as a blatant threat by the US administration against China, as the last time this language was used 25 years ago, was when China was placed on a currency blacklist.

Some were surprised by this move, as they see it as an overreaction, fearing that we have now moved into another phase of the ongoing currency wars that have been bubbling behind the scenes for years, currency wars that are now in plain site for all to see.

Unfortunately, this should come as no surprise to anyone, as President Trump stated back in 2016 that he fully intended on labelling China a "currency manipulator", a statement that was laughed off, until now.

This move comes on the heels of a Fed interest rate cut, in which the Fed Chief Jerome Powell lowered rates by 0.25%, citing fears in a weakening global economy and ongoing trade wars.

Of course, China is far from the only currency manipulator in the world, as countries are constantly "racing to the bottom" in an attempt to lower the value of their currencies, increasing their competitiveness on the international markets, by artificially making the price of their goods lowers.

In addition to this, lowering the value of ones currency drastically cuts down on the true cost of the national debt, of which the United States now finds itself roughly $22.5 trillion dollars in the hole.

Savers be damned. Retirees be damned. The race to the bottom must and will continue on.

This race to the bottom is one of the many reasons why gold and silver are posting such impressive gains recently, as the markets are finally coming to the realization that many of us in the precious metals community reached years ago. The printing presses are not going to be slowed down, they are not going to be stopped.

This is not just limited to the United States, but is a global phenomenon, as no country can afford to be left behind in the currency wars. 

On Wednesday, three additional countries joined in on the action, following the United States lead. 

Central Banks in India, Thailand and New Zealand all lowered interest rates in a move that shocked and surprised the markets, signalling just how rapidly things are deteriorating.

This, in addition to the moves made by China on Monday, in which they allowed the Renminbi to fall through a key threshold level, earning them the "currency manipulator" title, sent markets spinning throughout the week, only just stabilizing on Thursday.

Expect rate cut after rate cut, by country after country.

Already the Fed has been under renewed attack by President Trump, who took to Twitter to state the following;

"As your President, one would think that I would be thrilled with our very strong dollar. I am not! The Fed’s high interest rate level, in comparison to other countries, is keeping the dollar high, making it more difficult for our great manufacturers like Caterpillar, Boeing, John Deere, our car companies, & others, to compete on a level playing field. 

With substantial Fed Cuts (there is no inflation) and no quantitative tightening, the dollar will make it possible for our companies to win against any competition. 

We have the greatest companies in the world, there is nobody even close, but unfortunately the same cannot be said about our Federal Reserve. They have called it wrong at every step of the way, and we are still winning. Can you imagine what would happen if they actually called it right?"

Sadly, if people think the "worst is over", then they are badly mistaken. We have entered into a whole new phase of the currency wars, in which country after country is going to be racing to see who can spin the quickest down the drain.

The markets and the President are going to continue to lean on the Federal Reserve, who is likely to cut rates multiple times more, even before the year is out.

Other countries are simply going to follow suit as the two economic powerhouses that are the United States and China continue to battle it out.

The currency wars are here, they are full blown and gold and silver are going higher in response to the madness that is erupting all around us. Much higher.


- As first seen on the Sprott Money Blog

Friday, August 9, 2019

John Williams: A Compelling Case for Dollar Destruction and Hyperinflation


Walter J. "John" Williams shares his educated opinion on how soon he sees a dollar decline leading to hyperinflation and what we should do to protect ourselves.

Is there a strong case for letting the dollar destroy itself? What will be the ultimate outcome if that is what happens?

Unfortunately, it appears that, that is the path we are headed down, no matter what we do now.

- Video Source, Jay Taylor Media

Wednesday, August 7, 2019

Ray Dalio: How The Economic Machine Truly Works


Economics 101 -- "How the Economic Machine Works." 

Created by Ray Dalio this simple but not simplistic and easy to follow 30 minute, animated video answers the question, "How does the economy really work?" 

Based on Dalio's practical template for understanding the economy, which he developed over the course of his career, the video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work and why economic cycles occur.

- Source, Ray Dalio

Tuesday, August 6, 2019

Dave Kranzler: Everything is Artificially Priced


Today's guest, Dave Kranzler, shares his thoughts on the artificial nature of the economy and financial markets.

- Source, Silver Doctors

Sunday, August 4, 2019

The Fall Of The US Dollar: Is The Return To A Gold Standard Inevitable?


Is the return to a gold standard inevitable? Grant Williams, Senior Advisor at Vulpes Investment Mgmt, breaks down the history of the gold standard and the impact it will have on the future of world currency. This is a must watch if you are reviewing your current investment portfolio.

- Source, Cambridge House

Saturday, August 3, 2019

Global Gold Demand Hits H1 Three Year High as Central Banks & ETFs Lead the Charge

The World Gold Council has just released their latest figures for global gold demand for the first half of the year (H1) and as predicted, it once again ticked higher, solidifying an already strengthening trend and proving that the flight towards safety, towards precious metals in here to stay.

As I have written about numerous times over the past year, countries are adjusting to the new geopolitical uncertainty that the world now finds itself in. 

Trade wars are raging all across the globe, with the current US administration leading the charge, as President Trump seeks to fulfill one of his key campaign promises of placing "America first", bull charging ahead and shattering the normality of trade that the world created over the last few decades.

No matter where you stand on this situation, whether it is in support, disgust, or indifference, it matters little (at least until the 2020 elections), as this appears to be the new reality we now find ourselves in and is unlikely to change in the short term.

 A number of Central Banks, with the most notable being China and Russia, are finding themselves directly in the center of this geopolitical storm and are thus actively making plans to protect themselves from financial ruin, including the rapid accumulation of gold bullion and the shedding of US dollars.

As the World Gold Council highlights, H1 gold demand reached a three year high, hitting 2,181.7 tons, with Central Banks and ETF inflows leading the charge. This is an 8% increase year over year, illustrating just how strong the trend towards gold bullion is.



Central Bank buying accounted for 374.1 tons, leaving the market in H1, while ETFs, the next largest collective institutional purchaser added 67.2 tons in Q2, bringing their combined gold holdings to 2,548 tons, a six year high.

In addition to Central Banks and ETFs being large purchasers of gold, another key player in the metals market fiercely increased its demand, the Indian consumer.

On the heels of a strong wedding and festival season, India’s jewelry market increased its demand for gold bullion by 12% in Q2, accounting for 168.8 tons.

In many parts of the world, gold bullion is given the honor it deserves and is looked at for what it is, no matter the form it takes, whether it be bar, coin, or jewelry, it is looked at as money and treated as such.

This positive news in total global demand for gold bullion confirms the recent strong action we have seen in the price of precious metals, with the yellow metal posting impressive gains, breaking through the $1400 mark and trading solidly above it, building a floor.

Now, in addition to the Central Banks continuing their trend into gold bullion, we have the Federal Reserve once again cutting interest rates, just as the markets widely predicted they would do.

This has caused gold to sharply move higher, as people are finally waking up to the fact that the easy money party is not only going to continue, but get even better.

In classic FED double speak, Chairman Powell is quoted stating the following during Wednesdays rate cuts;

“Let me be clear – it’s not the beginning of a long series of rate cuts,”

Only to follow later with;

“I didn’t say it’s just one rate cut.”

FED jawboning at its finest.

What we can expect throughout the remainder of 2019 is continued strength in global gold demand, with silver eventually waking up and playing catch up. I believe this is where the real, significant gains are going to be made.

Strong demand in all likelihood is going to remain in place as Central Banks continue their accumulation process and as the FED continues to act in a dovish manner, doing the bidding of Wall St as they attempt to keep this artificially inflated market chugging along, for as long as they can.

In the mean time, remember the following. The trend is your friend until the end and the trend towards higher gold bullion prices is now solidly in place. Keep stacking.

- As first seen on the Sprott Money Blog

Friday, August 2, 2019

Unfunded Pensions & Potential Retirement Crisis


Brian Reynolds, former chief market strategist at Rosenblatt Securities, sits down with Real Vision’s Tyler Neville to discuss how unfunded pension liabilities are the real engine for the US credit boom and how this financial engineering has produced one of the greatest bull markets in history. 

A legal mandate requires these funds to generate 7.5% returns, and when they fail to do so, taxpayers foot the bill. As a larger percentage of these pensions are moved onto corporate balance sheets in the form of debt, the tightrope these pension funds walk gets more and more precarious. Filmed on March 25, 2019 in Goffstown, New Hampshire.

Thursday, August 1, 2019

Gold, Silver, Or Bitcoin? Which One to Choose? Which One is the Safest?

Gold, silver or bitcoin?

That question is likely coming into focus for investors and traders as they seek safety or protection with the stock market at record highs.

But, for some, there are clear winners in the group.

“Since last November — so, for about eight months or so — when the Fed started to move towards dovish, people flocked to gold and to bitcoin and they ran them both up,” Jim Iuorio, a veteran futures and options trader, said Tuesday on CNBC’s “Futures Now.” 


“They forgot silver, but... silver sometimes lags gold and then catches up all at once. We’ve seen that in the last couple weeks.”

Now, trust in the trio is being tested. Gold is up almost 11% this year, with most of that run occurring in the last three months; silver is up over 9% in the last three months and is on track for its third straight week of gains; and the Wild West that is bitcoin is up over 150% this year and has seen huge swings in both directions in the last several weeks.

“Bitcoin, all of a sudden, has shown some drastic volatility over the last two weeks, including a $3,000 drop in about a minute two weeks ago,” said Iuorio, who is managing director of TJM Institutional Services.

“So, to me, bitcoin’s out,” he said. “Silver’s rallied hard recently. That leaves gold. Yes, the dollar’s rallying. Gold and the dollar have rallied together at the same time before. I like gold the best.”

On Tuesday, Iuorio — who said that he was long gold and planned on growing his long position — put on a gold trade by buying $1,428 contracts with an upside target of $1,448 and a downside stop at $1,417. U.S. gold futures were trading around $1,419 on Friday.

Scott Nations, president of NationsShares, was less inclined to go for gold because of what he called its “horrible technical setup.”

“It had a key reversal,” he said in the same “Futures Now” segment. “I’m not the biggest technician in the world, but I pay attention to key reversals. What does that mean? It means that the contract made a new high and finished lower on the day, and that’s horrible. And, since then, gold has been terrible.”

Instead, the longtime options trader settled for the second-most-popular precious metal: silver.

“I would much rather own silver. ... I would be a buyer of the September contracts [at] $16.45,” Nations said. “Silver’s actually remained strong. My target to the upside would be $17.50 and my stop to the downside would be $15.75. A couple of reasons: [The] dollar’s been really strong, and that’s going to impact silver less than gold.”

Silver will be slightly more protected that gold amid dollar strength because of its variety of “industrial uses” and fewer ties to interest rates, Nations explained.

And, if the precious metal can indeed hold up and head higher, Iuorio wasn’t opposed to trading it, either.

“I think if silver shows a little more strength, I like silver, too. I mean, just for the fun of it, I’ll say Scott’s wrong and gold’s way better, but I don’t hate his trade,” he said.

- Source, CNBC