Dollar Will Lose Value Over Time – Guaranteed.

The British Pound Sterling lost its status as the primary basis of global trade in 1944. Why? Because the Treasury of the United States held title to about 4/5ths of the world’s officially-held gold reserves [more than 20,000 tons after WWII]. The dollar became the world’s “reserve currency” because U.S. government creditors could convert their dollars to U.S. gold [from 1792 until Aug. 15, 1971].

Since gold convertibility was suspended in 1971, the U.S. dollar has retained its “reserve-currency” status because of the dollar’s forty-year monopoly in settling OPEC oil trades [the “Petro-Dollar” system]. 

After the 2007 credit-collapse, China began to implement a strategy to slowly ‘de-peg from the petro-dollar and aggressively* add gold to its foreign exchange reserves.

Continue Reading →

Platinum Markets-Brace for Uncertainty, Keep Door Open for Opportunity

by Aran Murphy

The market-makers wondered aloud at the end of 2016: Which way will our economy turn with new policy makers in Washington? Will our national debt become difficult to service with higher interest rates? Will our unfunded pension liabilities force broad-scale local bankruptcies? Or will we pull the government back, liberate our taxpayers and traders, and allow our entrepreneurial base to do what it does best?

A consensus emerged in December that our days of forestalling hard debt and demographic-driven choices are limited. Many worry that it is too late, or that the incoming President is too politically inexperienced to put our national finances back on track. Others think – with the recently elected – we may see tremendous opportunity to re-establish growth and loose our economic fetters. From bonds to stocks to more pure measures of market volatility, President-elect Trump continues to bring opposing views out after long years of – what many will consider stagnating – policy consensus.

After the US elections, stock market indices took off. The bond markets tumbled. The Federal Reserve Bank raising rates didn’t help bonds, of course. Gold, silver and platinum prices eased as the world creeps out from under the Sword of Damocles that has long been the official policy of zero interest rates(One can’t have functioning capital markets when central banks are pricing capital at zero). The markets overall seem tentative about what direction, economically, the US should expect. Will the US experience crisis, or will it find the real growth in incomes and economic opportunity that has eluded us for the past 12 years? Continue Reading →

Beware Of The Dollar: The U.S. Ponzi Economy Is Malfunctioning.

Gold is the true “safe-haven” currency. The U.S. dollar is “strong” only when compared to more toxic currencies. Since the 2007 crash, the dollar has fallen about 100% against gold. 

Dramatic Spike In Fund Flows Into The Gold ETF GLD And A Major Warning On The U.S. Dollar

On the day markets FROZE worldwide [Aug. 9, 2007], the price of gold was $662.60/oz [London p.m. fix]. It now takes twice as many dollars to buy the same Troy ounce of PHYSICAL gold. The rising price of gold is signaling declining confidence in the dollar-reserve system.

THE DAY LIQUIDITY EVAPORATED

It is generally acknowledged the current crisis in financial markets began with a liquidity freeze on August 9, 2007. France’s largest bank, Banque BNP Paribas, cited that date as “the day liquidity completely evaporated from certain segments of the U.S. securitisation market.”* Continue Reading →

A Silver Short Squeeze (a RUN on Silver) Is On The Way

Everything has gotten bigger since the last major silver short squeeze (2011). Debt is bigger, leverage is bigger, and the number of major players taking delivery of physical silver is bigger.

The concentrated short positions in silver held by a small number of “bullion banks” DWARF the Hunt brothers’ 1980 long position of only 100 million oz.


Based on supplies of actual, available bullion and the last six months of demand, we expect to see a short squeeze (RUN) on silver [and gold] in 2017. Odds are: SILVER COINS will be the trade of the year. Continue Reading →

Gold Price Manipulation Will End.

We are living in an age of manipulated financial markets – interest rates are artificially low, and the stock market is artificially high. Demand for physical gold is at historic highs, supplies are strained, yet the price is relatively low. When will manipulation of the price of gold come to an end? 2016.

First, it is important to understand why the Federal Reserve is pulling out all the stops to repress the price of gold. A high gold price makes the dollar look bad. No one would want dollars if the price of gold were allowed to rise according to actual demand and actual supply of PHYSICAL bullion.

Over many decades until 2007, the Federal Reserve kept the price of gold artificially low by selling tons of bullion. However, coordinated gold sales by central banks stopped after the 2008 crash. Continue Reading →

The HYPER-CREDIT BOOM – BUST

Global financial markets are integrated and inter-dependent. The markets look ahead and trade on anticipation. It is now extremely bullish for gold!

Zero% Interest Rate Policy (ZIRP)

Since 2008 (for the first time in the history of the world), 90% of the developed countries have had 0% interest rates and a steady flow of “Quantitative Easing” (QE). A small number of “too-big-to-fail banks” [domestic and foreign] have been able to borrow from the Federal Reserve at or just above 0%. (For seven years, overnight/inter-bank lending was 0% to .25%. On Dec. 16, 2015, the nominal rate was raised to .25%; the maximum rate is now .50%).  Continue Reading →

Very Little Available Gold is Left in the West.

The last time gold and silver moved like a freight train was in the 2011. One country triggered the RUN on gold and silver. Overnight, supplies of gold and silver dried up; and mints worldwide ran out of deliverable bullion.


In less than nine months, gold and silver made new highs. Gold rose $600; silver climbed 160%. Silver was just as scarce as gold. (Silver was $9 Sept. 2005; $50 April 2011.) 

A LITTLE GOLD HISTORY FOR THE BIG PICTURE

When the leading currencies were backed by gold, the United States exported more than 40% of all manufactured products used by the world. While today the U.S. is the greatest debtor nation, fifty years ago, America was the greatest creditor nation. Back then, other countries needed sufficient gold to buy made-in-America products.
Continue Reading →

Is It The Right Time To Buy Gold?

Question: “Do you think that gold is currently a good investment?”

Alan Greenspan: “Yes. Remember what we’re looking at. Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it.” Alan Greenspan address to the Council on Foreign Relations, November 2014 CFR meeting; from Gillian Tett, The Financial Times.

Continue Reading →

IS THIS A GOOD TIME TO BUY PLATINUM?

At current prices, there is blood in the streets in the platinum market. The largest South African mining companies (80% of global supply) are operating at a loss, and are selling off assets.

J. Pierpont Morgan said, “Buy when there is blood in the streets.” The notorious financier took his own advice. He became fabulously wealthy by buying assets when others were selling.*

 

What is JPMorgan looking to buy during this “platinum fire sale?” PLATINUM MINES. (mission accomplished Sept. 2015)* JPMorgan Cazenove’s long-term forecasts have not altered from previous forecasts.

The Rustenburg assets employ 16 000 workers in three shafts and supporting infrastructure, which include concentrating plants and a chrome recovery plant.

Sept. 9, 2015: Sibanye Gold Ltd. purchased the Rustenburg platinum shafts from Anglo American Platinum (sale price: 4.5 billion rand plus shares).
Continue Reading →