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.

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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 →

Dominoes From the Oil Crash Are Falling

  

We are witnessing a worldwide debt-crisis; and the collateral damage will affect U.S. markets.

 


We recently published “Weimar: First DEFLATION Then INFLATION.” That is exactly what is underway — in slow motion and on a much bigger scale. The Japanese yen has plummeted and the Russian ruble lost almost 1/2 its value. Dominoes from the crash in oil are falling. Based on the volatility in the USA index, we believe we are in the middle of some sort of derivatives meltdown. The Euro has crashed to a level not seen since 2006.


While their currencies lost value, the Europeans, Russians and Japanese who held their savings in actual gold coins and bars lost NOTHING. In fact, the price of gold has gone up in those currencies.  That is why prudent investors have always kept 5% to 10% of their wealth in physical precious metals.

QE4 / ZIRP
Zero% Interest Rate Policy

The dollar is backed by nothing but confidence and debt.  The dollar seems strong because the yen and the Euro are weakening FASTER; but the true value of the dollar is declining.  Do not wait for the high-flying dollar to hit an “air pocket” when the Federal Reserve finds an excuse to announce QE4.  Fear can replace confidence when people realize artificially low interest rates are here to stay.

 

On Jan. 6, 2015, multi-billion dollar fund manager Bill Gross said:  “When the year is done, there will be minus signs in front of returns for many asset classes. The good times are over.”

Mr. Gross is now telling investors to batten down the hatches and protect their capital.

To us that means converting some of your “paper investments” to physical coins – for liquidity with no third-party risk. Gold has been the safest safe-haven for 6,000 years. During the coming economic upheaval, gold and silver will perform as “monetary metals” and the world’s only real money.

 By Denise Rhyne

Round Two Of The Financial Crisis Has Begun

October 2014. Global economies are contracting.  Prepare for giant swings in the stock market, trading halts in the bond market, and unprecedented money-printing.

Despite the endless propaganda, the economy of the United States is not recovering.  Leading economic indicators are turning down. That is why the Federal Reserve is continuing to suppress interest rates by printing money.


Markets are on fire. Trading halts and “flash-crashes” are coming with increasing regularity.  The stock and bond markets are trying to tell us something. Liquidity is becoming a problem.

Look at these out-takes from recent headlines:

Everything was Sold.
Oil is in a Virtual Free-Fall.
Low Liquidity Alert.
Spreads Blowing Out.
Algos Gone Wild!
Market Contagion.
Systemic Risk.
Market Depth Abysmal.
Markets Getting Scared.
Distressed Debt.
Prepare for Runs.
Examine all Risk Exposures.


GOLD IS A SAFE-HAVEN FROM THIRD-PARTY RISK.

Overnight, gold and silver prices will surprise everyone.

What is the #1 reason?  China is the new sheriff in town.  In 1980, China was a small player.  Today, China is the biggest gold buyer in the world.

 

Get silver.  Stay with silver.

Silver has become accepted as a reserve-asset and monetary reserve in Asia. China is now responsible for about one fifth of global silver demand.  In 2014, demand for silver in India was record-breaking (November gold demand was up 38%).

The affluence of buyers throughout Asia is now a significant market factor.  Since the beginning of 2014, the transfer of silver and gold bars from the West → to the East (primarily to China, Russia and India) has been unprecedented.

Preserve your nest-egg with 1 oz American
Eagles.  Real money means real liquidity.  

By Denise Rhyne

WEIMAR: First DEFLATION Then INFLATION During the coming economic upheaval, gold and silver will perform as “monetary metals” and the world’s only real money.

Platinum & Palladium Shortages Will Drive Prices.

The West has very little platinum or palladium — only 5% of the global supply is produced in North America. South Africa is the largest producer of platinum in the world, with 73%-80% of known platinum reserves.

Russia produces 40-50% of the world’s palladium supply (Johnson Matthey).

  • Production in South African mines is declining.
  • South African labor disputes  continue to affect supply.
  • China’s supplies of Platinum Group Metals are depleted.
  • China will increase imports from Russia.
  • Russian stock-piles are depleted.
  • Large deficits of platinum and palladium are forecast.
  • Analysts are projecting a possible ten-year supply deficit. Continue Reading →

Why Do I Have to Pay More than the Spot Price?

Since 1970, when I first bought gold coins, we have seen the U. S. Dollar deteriorate so much, the price of gold has gone from $35 per ounce to $1,355 today.  Before 1975, the ONLY legal way for Americans to buy gold was to buy coins, because the U. S. government barred its citizens from owning bullion (bars).  Back then, we relied on the London AM and PM gold price fixings (set by five huge bullion companies), which provided benchmark values to calculate the value of coins and bars. Continue Reading →

Drastic Changes in Sentiment: Gold & Silver

Big changes are coming to financial markets.

 

The “economic recovery” painted by the news media is an illusion. At the Davos World Economic Forum, banking executive Axel Weber warned the world debt crisis is far worse now than in 2008:

“Things feel better than they are. The recovery too weak to generate jobs. It’s not about whether things are improving: the levels of growth, jobs, and GDP are way worse than before the crisis.”  (Weber was formerly with Bündesbank, the German central bank; from ZeroHedge Jan. 22, 2014)

The Dow Jones has been gyrating all over the place. Since October 2014, trading halts have become more and more regular. In August 2015, we saw signs of systemic liquidity distress. This is not normal… Dow futures moved over 4,500 points intraday today!!!

Deterioration in the global economy is accelerating. When the tipping-point is reached for global debt, fundamentals will take over all markets. Gold is firmly re-established among financial elites and nation-states as the safest, most liquid asset. Overnight, gold and silver coins will be extremely hard to find.

Buy PHYSICAL gold coins — (ETFs have counter-party risk, unlike actual coins and bars in your possession.) It is prudent to have 10% – 20% of your net worth in physical gold, silver and platinum. Diversification is critical.

By Denise Rhyne

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Capital controls can limit sales of securities, restrict what you can invest in: CAPITAL CONTROLS

Gold and silver are in short supply. I have not seen precious metals shortages like this in forty-four years. I shop dealers all over the country for bars and coins. All the dealers are experiencing the same thing… supplies of gold and silver are drying up. PORTFOLIO INSURANCE IN YOUR CONTROL

Ten Compelling Reasons to Buy Silver Now! And I mean now!

When silver moves, silver moves like a freight train. The last time silver took off extraordinarily (2011), it climbed 160% in 9 months, supplies dried up overnight, and world mints had no silver to deliver for months.  


Global financial markets are tied together. Investors look ahead and trade on anticipation. It is now extremely bullish for silver! Silver will make new, all-time highs. Just be sure to buy PHYSICAL silver.

 

SILVER IS IDEAL MONEY — It is very easy to trade, portable, divisible, easy to recognize, and rare.   


(1)  PHYSICAL SILVER IS IDEAL FOR BARTERING, and it is PORTFOLIO INSURANCE. Actual silver will give you liquidity and tradability, no matter what happens. Throughout history –in times of inflation or deflation– silver has always functioned as a store of value. And when the dollar declines precipitously, you will want small silver coins (or small bars or rounds) to barter for necessities, such as food and water. Example:  You would want some old silver dimes or quarters to barter for a loaf of bread; a gold coin would be overkill for such a small transaction. 
Continue Reading →

Economic Bubbles Cannot Go On Forever.

It is now six years since the 2007/2008 financial crisis. Today, many nations are bankrupt, many municipalities are broke, and millions of people are under water. However, that is just the tip of the iceberg. In order to paper over the fragile world banking system, central bank credit has created/ enabled/or financed more than one thousand trillion dollars of derivatives debt.


Few of us understand derivatives trading or how the highly leveraged market works. But we do know speculation in derivatives brought down the United States housing market.

According to the National Association of Securities Dealers: “Derivative is a generic term applied to a wide variety of financial instruments that derive their cash flows, and therefore their value, by reference to an underlying asset…”

Derivatives debt for the planet is estimated to be more than $1 quadrillion — $1,000,000,000,000,000.

The combined GDPs of the world are called the Gross World Product (GWP). In 2011, the total GWP was U.S. $70.16 trillion ($70,160,000,000,000).

There are 3 more zeros of derivatives debt than the combined value of all goods and services produced on earth.

Derivatives are financial instruments that derive their value “by reference to an underlying asset.”  What underlying assets could possibly give value to $1 quadrillion of debt?  

One trillion is one million million.
One trillion is 10 to the 12th power.

One quadrillion is one thousand million million.
One quadrillion is 10 to the 15th power

Picture three more zeros.

Picture a man who can earn $100,000 per year ($100 thousand). He makes $100,000, but he owes $100,000,000 ($100 million). No matter if the man lives in painful austerity, he will never be able to pay off the debt.

A few things are obvious when you look at the size of global derivatives debt:
1) We already have hyper-credit creation;
2) There is relatively very little real collateral underlying the debt;
3) The only way the debt can be repaid is by more hyper-credit creation;
4) Eventually, the highly leveraged debt will take down the entire global economy.

Can central banks inflate the quadrillion dollar bubble forever?
No. According to Stein’s Law (Herbert Stein)hyper-credit creation will stop: 

“If something cannot go on forever, it will stop.”

The climactic end of the dollar bubble is certain.  The derivatives debt of America’s too-big-to-fail financial institutions can never be repaid (without hyper-money-printing). Across the globe, there are more Lehmans, AIGs, MFGlobals, and Bear-Stearns now than there were in 2008. Just one collapse could ignite the fire of contagion. Banks’ exposure to derivatives debt will be crippling during subsequent market gyrations.    

By Denise Rhyne

The Invisible Tax

2011 estimates of derivatives exposure:  JPMorgan $70 Trillion; Bank of America $50 Trillion; Citibank $50 Trillion; Goldman Sachs $40 Trillion; HSBC $4 Trillion; Wells Fargo $3 Trillion; Bank of New York Mellon $1 Trillion; Morgan Stanley $1 Trillion; State Street Financial $1 Trillion.

WEIMAR: First DEFLATION Then INFLATION

IRAs/ Pension Funds: Fear is Driving People to Cash Out.

A few days ago, I heard from an old customer. As with so many others who have called, her pension fund had taken a huge hit since the crash.

In 2008, her IRA account was worth more than $1 million. Last week, the trustee said it was worth $550,000.


She bit the bullet and cashed out her IRA.

She told me she has been watching what is happening all over the world – capital controls; ‘soak-the-rich’ taxes; seizures of bank accounts (bail-ins); and forced conversions of private retirement funds into government bonds. She believes our own government is going to do the same as more than a dozen industrialized nations have already done.

KWN Embry I 1:7:2016

After taking out $77,000 for the taxes and penalties,
she put the remaining $346,000 into gold and silver coins.

A gutsy move and also a very smart move. Her decision to convert paper assets into gold and silver coins is prudent considering the rapid devaluation of the U.S. dollar.

The dollar is in the process of losing its status as the reserve currency of the world. My customer is no longer willing to be lulled into hoping everything will turn out O.K. during the ugly transition to a new global monetary unit. Continue Reading →