Latest Gold & Silver Price News

Gold, Gold Stocks, and the End Game

Gold, Gold Stocks, and the End Game

We have seen the bottom in the gold market and gold stocks. Evidence: 1. Examine the 30+ year chart of the monthly XAU (gold stock Index) to Gold ratio. You can see that the downtrend in the ratio has lasted about 20 years – since 1996. The ratio is now at all-time lows in the form of a contracting triangle. The triangle appears broken to the upside. 2. In the last 20 years gold has moved upward from under $300 to $1,100 per ounce yet the XAU index has not kept pace, as shown by the ratio dropping from about 0.35 down to 0.03. 3. Gold hit a multi-year low […]

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The Dethroning of Cash: Discouraged, Penalized, Even Banned?

| February 4, 2016 | Articles: Experts Talk
The Dethroning of Cash: Discouraged, Penalized, Even Banned?

Stock market gyrations and deteriorating global economic conditions in the early goings of 2016 sent investors fleeing for safety. Or at least what is commonly thought to be safety. Many in the financial media are now trotting out the bromide that “cash is king.” A sampling of recent headlines illustrates how pervasive the thinking is: “Cash Is King as China Sparks Market Turmoil” (MarketWatch, January 20, 2016) “Cash Is King in Times Like These” (Toronto Star, January 15, 2016) “Cash Is King as Europe Adapts to Negative Interest Rates” (Bloomberg, January 26, 2016) “Cash Is King as Disunity Reigns Within G20” (Barron’s, February 1, 2016) But how can cash be […]

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Bizarre Gold & Silver Movements Occurring Behind-the-Scenes…

| February 4, 2016 | Articles: Experts Talk
Bizarre Gold & Silver Movements Occurring Behind-the-Scenes…

Keeping an Eye on Bullion Supply and Demand A lot is riding on the demand side of the equation when it comes to metals’ price performance this year. Demand is the bigger wildcard with signals thus far being mixed in gold and silver bullion markets. The outlook for supply is more certain, and it isn’t pretty. Endeavor Silver, one of the largest primary silver mining companies, announced last week that it expects to reduce production of the white metal by roughly 30%. The company’s El Cubo mine is not profitable despite efforts to reduce costs. Endeavor plans to halt development and exploration at the mine and process accessible ore only. […]

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WMD – Weapons of Mass Destruction

WMD – Weapons of Mass Destruction

“WMD” also is “Wasteful Monetary Devastation.” WASTEFUL: We all know that governments spend money in wasteful ways and compensate with higher taxes, deficits, huge debt, “printed currencies” and inflation. “Bridges to nowhere,” various wars, and “giveaways” benefit a few at the expense of many. MONETARY: Printing and digitally creating many trillions of dollars, euros, yen, or pounds may temporarily bail out banks and governments but in the big picture they destroy capital and weaken the economies of the nations which are deluding themselves. DEVASTATION: Overwhelm governments, corporations, and individuals with debt, cut interest rates, devastate pension returns, punish savers, trash economies, blow more unsustainable bubbles, drink another bottle of delusion, […]

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Steve Forbes Speaks Out on the Presidential Race, Fed Recklessness, and Gold

| January 29, 2016 | Articles: Experts Talk
Steve Forbes Speaks Out on the Presidential Race, Fed Recklessness, and Gold

Forbes Pulls No Punches in Exclusive Interview with Money Metals Exchange Mike Gleason, Director, Money Metals Exchange: It is my great privilege to welcome Steve Forbes, Editor-in-Chief of Forbes Magazine, CEO of Forbes, Inc. to our Money Metals Exchange podcast. Steve is also author of many fabulous books, including Flat Tax Revolution, How Capitalism Will Save Us, and his latest work, Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming the Fed Will Restore Hope and Prosperity. He’s also a two-time Presidential candidate, having run in the Republican primaries in both 1996 and 2000. It’s a tremendous honor to have him with us today. Mr. Forbes, thank you […]

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Crude Oil Bottoms and Blues

Crude Oil Bottoms and Blues

Crude oil prices have dropped from about $106 in June of 2014 to briefly under $30 in January of 2016 – down about 74% peak to trough. This appears to be an on-going disaster for oil companies, the banks who loaned money to frackers, oil exporting countries, global stock markets and others. Conventional wisdom suggests that crude oil prices will stay low for a long time because of low demand (global recession), huge supply (Iran, fracking, etc.), decline in commodity prices globally, and at least ten more reasons. Maybe! But crude oil prices have crashed before and then rallied. Examine the following chart and the 4 step sequences shown. Note […]

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There’s Something Worse than Having a “Losing Position”

| January 27, 2016 | Articles: Experts Talk
There’s Something Worse than Having a “Losing Position”

There’s something worse than giving up at the bottom… There’s something worse than watching prices fall as you continue to add on the way down… It’s giving up “three feet from gold,” when if you had just stuck it out a bit longer, things might have turned your way. This tendency is part and parcel of human nature, and its effect is not to be underestimated. Way back in 1938, Napoleon Hill wrote about it in the classic book, Think and Grow Rich. Consider what his research uncovered. Said he: More than five hundred of the most successful men the country has ever known, told the author (Napoleon Hill) that […]

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Gold Could Lose Safe-Haven Bid as Equities Rebound

| January 26, 2016 | Articles: Experts Talk
Gold Could Lose Safe-Haven Bid as Equities Rebound

Gold and Silver have held up well during the recent selloff in equities. From December 28 through Wednesday the broad NYSE lost 10.4% while the S&P 500 lost 9.6%. Precious Metals gained strength during that period. Gold advanced 3.0% while Silver gained 1.7%. Gold relative to the NYSE broke its downtrend and touched an 11-month high. Gold relative to global equities (excluding the US market) reached a 2-year high. Precious metals have clearly benefitted from the equity selloff but therefore figure to lose strength as the equity market begins a relief rally. Equities have become very oversold and are forming a bullish reversal. The weekly candle chart of the S&P […]

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Central Bank Created Silver Rally

Central Bank Created Silver Rally

Central banks have created a mess, unless you enjoy unemployment, crashing economies, a wave of bankruptcies, and half of the world’s assets owned by only a few people. From Chris Martinson: The Deflation Monster Has Arrived “Most of the bad decisions that will haunt our future were made by the Federal Reserve in its ridiculous attempts to sustain the unsustainable.” “… looking at the next few years, we will experience this as a time of unprecedented financial market turmoil, political upheaval and social unrest. The losses will be staggering. Markets are going to crash, wealth will be transferred from the unwary to the well-connected, and life for most people will […]

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Peak Gold and Silver May Have Come and Gone

| January 25, 2016 | Articles: Experts Talk
Peak Gold and Silver May Have Come and Gone

Have we reached peak precious metals? Many analysts think so. Just to be clear, however, the idea of peak gold and peak silver doesn’t refer to a peak prices. The precious metals put in a cyclical price high in 2011. But annual mining production levels may have peaked in 2014-2015. This is what is meant by “peak precious metals.” There is good reason to believe that newly mined supplies of gold and silver will decline in 2016 and beyond. The main culprit is low prices. In 2015, gold and silver prices spent most of the year trading below miners’ all-in production costs (which average $17/oz for silver and $1,150/oz for […]

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Gold Deficits, Fort Knox, and a Reset

Gold Deficits, Fort Knox, and a Reset

Everyone knows that government expenses and deficits are out of control. Think U.S., Europe, the U.K., Japan, and others. So what? Borrowing today supposedly brings spending forward from the future, so future spending should be curtailed. It hasn’t happened so far. But no government will reduce spending so they must either borrow more or devalue their currency via “money printing,” various forms of QE – bond monetization, or increasing taxes. Not sustainable! Global debt exceeds $200 Trillion – a number so large it is essentially incomprehensible. U.S. official debt is about $19 Trillion with unfunded liabilities in the $100 – $200 Trillion range. Again – incomprehensible. All of the above […]

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Central Planners Freaking Out about Discussion of Gold’s Role

| January 20, 2016 | Articles: Experts Talk
Central Planners Freaking Out about Discussion of Gold’s Role

Growing Support for Sound Money Rankles Fed Apologists Sound money issues make for good politics these days. The leading Republican candidates have all suggested reforms to our monetary system. The topic is popping up in debates as well as interviews. Predictably, Fed worshippers and proponents of central planning everywhere are snickering and trotting out the usual responses. Michael Hiltzik, with the Los Angeles Times, recently published a column titled “The Worst Idea in the Presidential Debate: a Return to the Gold Standard.” He thinks “a return to the gold-standard would be so not right that it’s not even wrong.” It’s another way of saying the idea is so bad it […]

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A Short History of Paper Money

A Short History of Paper Money

It fails! $ $ $ Suppose you had a printing press in your basement along with a supply of perfect paper. You could slip down to your basement and print a batch of perfect $100 notes or 500 euro notes, but only in an emergency. I predict that you would find many emergencies. Suppose the government or central bank had access to that printing press (they do) and suppose they printed (and borrowed) ONLY in circumstances of economic need, political promises, war, necessary deficits, Presidential junkets, Wall Street bailouts, economic stimulus, vote buying, “emergencies,” and “special circumstances.” Sound familiar? What could go wrong? And that is the problem with central […]

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Silver & Gold Stocks Dangerously Close to Breakdown

| January 15, 2016 | Articles: Experts Talk
Silver & Gold Stocks Dangerously Close to Breakdown

Jordan Roy-Byrne, CMT The fledgling rebound in the precious metals complex suddenly reversed course. Since the intraday peak last Thursday, gold stocks (GDX and GDXJ) declined about 13% while Gold lost $1100/oz and today (Thursday) $1080/oz. Silver, which did not mount much of a rebound to begin with remains mired below $13/oz. Gold is showing increasing relative strength (as we noted last week) and that is a good thing. However, the poor performance from Silver and sudden sharp reversal in the gold miners signals that the sector is on the cusp of making new lows. Let me start with Silver, a market I have not covered in recent missives. The […]

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