Author Archive: GoldSilverWorlds

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Federal Reserve’s New QE Transfers Wealth to Its Owner Banks

Federal Reserve’s New QE Transfers Wealth to Its Owner Banks

Metals investors are positioning themselves for rapidly developing political and geopolitical events, as well as a rapidly expanding Federal Reserve balance sheet. What started out as a limited intervention to provide temporary liquidity to overnight lending markets has morphed into a massive $60-billion-per-month Treasury-buying campaign. By some measures, it’s even bigger than the last Quantitative Easing program. The Fed has yet to fully explain why this is all necessary given the lack of an immediate crisis in the real economy. Last week, Fed chair Jerome Powell took great pains to insist that their expanded repo market operations are “not QE” – only to announce a massive new Treasury bill buying […]

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“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools

“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools

Jerome Powell has something in common with Bagdad Bob, Saddam Hussein’s infamous press secretary. They’re both liars, suggests Money Metals podcast guest Craig Hemke of the TF Metals Report. Telling obvious lies with a straight face is part of Powell’s job description. He hopes to maintain order even though anyone who is paying attention knows something extraordinary is going on. When the Fed stepped into the “repo” markets at the end of September with hundreds of billions in short term loans for its owner banks, Powell stood out front telling everyone there is nothing to worry about. The Fed’s repo market lending was initially sold as a very temporary measure to […]

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David Smith: Consider Precious Metals for Insurance First, Profit Second…

| October 11, 2019 | Category: Investing
David Smith: Consider Precious Metals for Insurance First, Profit Second…

Mike Gleason: It is my privilege now to welcome back David Smith, senior analyst at The Morgan Report and regular contributor to MoneyMetals.com. David, good to talk to you and thanks for the time. How are you? David Smith: Same here, Mike. I’m just fine. It’s good to speak with you again. Interesting times indeed. Mike Gleason: They always are it seems. Well, you recently wrote a piece for the MoneyMetals.com site last week in which you termed this most recent correction in precious metals as “the last train out” for bulls. Gold and silver had been trading range bound for years now. We saw a false breakout in 2016 when silver ran do about $1 an ounce […]

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Monetary Madness Puts U.S. Dollars Holders in Jeopardy

Monetary Madness Puts U.S. Dollars Holders in Jeopardy

We’re in uncharted territory. Never before have U.S. fiscal and monetary policy been leveraged so heavily to boost an economy that wasn’t even in recession. Something will break – and it could be the value of U.S. currency. The Federal Reserve Note now faces devaluation pressures on multiple fronts. With the federal government running a trillion-dollar budget deficit and an election year approaching, fiscal restraint is a dead letter in Washington, D.C. Politicians are fighting over who can promise to borrow and spend the most. Meanwhile, President Donald Trump is trying to talk the dollar down versus the currencies of China and other trading partners. Even as Trump vents frustration […]

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Learning to protect your trading capital

| August 29, 2019 | Articles: Insights

If you cannot take care of the trading money, it will get away from you easily. Trading in the most volatile marketplace in the world, it is obvious to lose the trades. And when you will lose the trades, it will take the capital away from your account. As the initial investment is the main support of your trading business, it is needed to be reserved. You can use the trading money to invest in the trades but it cannot be too aggressive. The concept is to invest your money into the business with the most control. This article will discuss the idea of protecting the trading money to the […]

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Be Smart When You Buy Gold Or Silver

Sо аrе уоu lооkіng tо buу gоld аnd silver? Thіѕ іѕ a ѕmаrt сhоісе mаnу реорlе аrе mаkіng tоdау gіvеn thе есоnоmіс unсеrtаіntу thаt global markets fасе. And іt dоеѕn’t lооk lіkе thіngѕ wіll gеt bеttеr аnуtіmе soon. Wіth thе United Stаtеѕ lоѕіng іtѕ AAA сrеdіt rating fоr thе fіrѕt tіmе іn hіѕtоrу аnd thе huge аmоunt оf dеbt іt іѕ іn, 15 trіllіоn аnd counting, thе US dollar іѕ сеrtаіnlу dооmеd tо disaster. Debt іѕ ѕо оut оf соntrоl thаt thе US саnnоt еvеn рау іntеrеѕt оn іt! I bеlіеvе wе wіll ѕооn ѕее thе US dollar bеіng rерlасеd аѕ thе world’s reserve currency. Tо mаkе mаttеrѕ worse, аll […]

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Frank Holmes: Negative Real Interest Rates to Send Gold Soaring

Frank Holmes: Negative Real Interest Rates to Send Gold Soaring

Mike Gleason: It is my privilege now to welcome in Frank Holmes, CEO and chief investment officer at US Global Investors. Mr. Holmes has received various honors over the years, including being named America’s Best Fund Manager by the Mining Journal. He’s also the co-author of the book The Goldwatcher: Demystifying Gold Investing, and is a regular guest on CNBC, Bloomberg, Fox Business, and also right here on the Money Metals podcast. Frank, welcome back and thanks for joining us again today. How are you? Frank Holmes: I’m great. And it’s wonderful to be back and see the gold markets have a new life and vibrancy to it. Mike Gleason: Yeah, certainly a lot […]

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The Case for Gold Keeps Getting Stronger As Negative Interest Rates Spread

The Case for Gold Keeps Getting Stronger As Negative Interest Rates Spread

The world has truly entered uncharted waters with negative interest rates spreading so far and wide. Frank Holmes, CEO of US Global Investors, recently noted that a whopping 25% of all bonds sold globally now carry a negative yield. “Investors” are even buying some “junk” rated bonds which will repay the bearer less than purchase price upon maturity. Now European banks, who have been absorbing the European Central Bank’s 0.4% charge to hold deposits, are throwing in the towel and getting ready to pass those charges on to clients. Wealthy depositors at the Swiss bank UBS will soon start paying the bank 3/4 percent to hold cash balances above 2 […]

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Gordon Chang: Gold to Benefit as Chinese Economy Hits the Wall

| August 17, 2019 | Category: Economy
Gordon Chang: Gold to Benefit as Chinese Economy Hits the Wall

“No China Trade Deal Until 2020, Maybe 2021… Maybe Never”     Mike Gleason: It is my privilege now to welcome back Gordon Chang, author, television pundit and columnist. Gordon is a frequent guest on Fox News, CNBC and CNN among others, and is one of the foremost experts on Asian economics and geopolitics, having written books on the subject, and it’s great to have them back on with us. Gordon, it’s a real honor to have you on again and thanks so much for the time today. I know you’re a man in high demand these days given your expertise on Asia and China in particular and I really […]

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It’s Time to Get Serious about Silver

It’s Time to Get Serious about Silver

The World Silver Survey 2019 Review, the institute’s annual World Silver Survey said that global silver demand hit a three-year high in 2018, surpassing more than one billion ounces, an increase of 4% from 2017. At the same time, global silver mine production fell for the third straight year, dropping 2% in 2018 to 855.7 million ounces. The top 10 silver producing countries are: Peru, Bolivia, Australia, Argentina, Mexico, Chile, Poland, China, Russia and Guatemala. And get this… in every one of these countries, silver production has been falling for the last 4 consecutive years! Supply from scrap sources is at a 20-year low. Silver fabrication (manufacturing) demand is just below record levels. Silver […]

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Fool’s Silver: Why Most “Silver Miners” Don’t Live Up to Their Name

Fool’s Silver: Why Most “Silver Miners” Don’t Live Up to Their Name

If you buy shares in a silver mining company, you will have to assume additional market risks compared to ownership of silver bullion. You may wish to do so in order to potentially gain leveraged exposure to silver prices. What you may not realize, however, is that most of the publicly traded “silver” stocks out there are primarily in the business of mining other metals – sometimes gold, often copper, zinc, lead, and other base metals. Consider Pan American Silver (NYSE:PAAS), a $3.6 billion company that makes up the largest weighting (13.5%) in the Global X Silver Miners ETF (NYSE:SIL). While Pan American is indeed a producer of silver, its […]

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David Morgan: “This is the real move in gold and silver… it’s going to be multiyear.”

David Morgan: “This is the real move in gold and silver… it’s going to be multiyear.”

Mike Gleason: It is my privilege now to welcome back our good friend David Morgan of The Morgan Report. David, it’s always good to have you on and appreciate you joining us today. How are you, sir? David Morgan: Mike, I’m doing all right and it’s good to be with you. Mike Gleason: Well, David, I know we don’t have a whole lot of time today, but I’m really glad we’re able to speak to you this week because we’re finally seeing some real fireworks here in the metals lately. And I wanted to get your comments. I should mention that we’re talking here on Thursday morning and we’ve got […]

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Precious Metals Soar on Falling Yields, Currency Turmoil

Precious Metals Soar on Falling Yields, Currency Turmoil

What a wild week it’s been for investors. The threat of global trade wars and currency wars sparked big swings across all major asset classes.  Bond yields dove toward historic lows.  Stocks plunged earlier in the week before rebounding sharply by Thursday.  And precious metals rode a huge safe-haven wave higher. Gold prices eclipsed the $1,500 level on Wednesday for the first time in over six years. Meanwhile, silver pushed above $17 an ounce to record a one-year high. Both metals are up over 4% for the week. The money metals are becoming increasingly attractive as President Donald Trump ramps up his battles against China abroad and the Federal Reserve […]

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Keep Your Wealth from Falling into the Negative Interest Rate Vortex

Keep Your Wealth from Falling into the Negative Interest Rate Vortex

The world is in the midst of one of the strangest asset bubbles of all time. Instead of being fueled by the hope of bigger and bigger gains, it is being driven by a resignation to incurring lower and lower… and ultimately negative, yields on capital. This summer, the global inventory of bonds yielding less than zero reached a record $13 trillion. Negative yielding instruments are concentrated mainly in Europe and Japan, where they have spread from sovereign to corporate issuances. Now even some “junk”-rated bonds are teetering around 0%. While negative nominal interest rates have yet to make their way to the United States, the Federal Reserve has toyed […]

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