RSSCategory: Articles: Insights

Silver Manipulation: a once-in-a-lifetime opportunity to increase your wealth

Michael McDonald and Christopher Whitestone published a book about the silver manipulation and what the physical metal means for people globally. In an audio interview conducted by SGTReport, co-author Michael McDonald provides some key idea that are explained in his book ” The Silver Bomb: Beyond the Return of Metal as Money “. Click on the link to go the book’s website  for a free preview and for details on where to buy it. The book is a quick and easy read to let people know what is happening in our world, how we got there and which solutions we have to go through the coming crisis. For who is this book important? It’s for the good & […]

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Where was the gold?

| July 1, 2012 | Articles: Insights
Where was the gold?

I am an avid reader of monetary history. Of late I have been focusing on the monetary events of the 1920s and 1930s. By learning from the maelstrom that riled the global financial scene during those two tumultuous decades, I aim to better understand present circumstances because there are many similarities between then and now. I’ve just finished a fascinating book published in 1955 entitled Confessions of The Old Wizard. It is the autobiography of Hjalmar Horace Greeley Schacht, whose improbable name reflects his North Schleswig ancestry and his father’s admiration of an American newspaper editor. For those not familiar with him, Schacht is generally given credit for ending in 1923 […]

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Gold & the Worsening Deflation

| July 1, 2012 | Articles: Insights
Gold & the Worsening Deflation

The decaying state of confidence is assisting in the deflationary process that is slowly, inexorably, moving forward, writes Julian Phillips of the GoldForecaster. Action from central bankers is increasingly limited, and there is in fact very little action at all from politicians. Christine Lagarde of the IMF has stressed the need for value and measures of value to keep the monetary system under control. But the loss of money velocity, plus deflation, is doing serious damage to the solvency of banks and nations. Most recently, the process has moved forward with 28 Spanish banks downgraded by the Moody’s ratings agency, while the Spanish government has formally asked for financial assistance from the European […]

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Gold and silver: you ain’t seen nothing yet

| June 28, 2012 | Articles: Insights
Gold and silver: you ain’t seen nothing yet

More so-so price action in precious metals over the last two days, with gold and silver still struggling for near-term direction in the face of continuing European political uncertainty. Trading volume in Comex gold futures continues to decline, as often happens during the summer months. On top of this – though it will come soon – the US Federal Reserve is still sitting on its hands with regards further monetary stimulus. In combination, all of these factors are causing the continuing consolidation in precious metals. How long such consolidation will last is the million-dollar question – and if this author could answer it, he’d be sitting on his yacht in […]

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This currency war is like a giant game of money chess

| June 26, 2012 | Articles: Insights
This currency war is like a giant game of money chess

Regardless of how bad things get this week, just be thankful you’re not the Greek finance minister, writes Dan Denning for the Daily Reckoning Australia. Vassilios Rapanos resigned his post four days after being appointed. He’d been in the hospital after collapsing on Friday, probably after getting his first look at the real state of Greek finances. Greece will be one of the items on the agenda at this week’s European Union summit. The coalition led by new Greek prime minister Antonis Samaras pledged to renegotiate the terms of the previous bailout deal between Greece and the EU. That was the $163 billion deal. As if that wasn’t enough uncertainty for the […]

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The monetary base as one of the key drivers for the gold price

The monetary base as one of the key drivers for the gold price

We have written regularly about the drivers of the gold price. Those drivers tend to behave in an adverse way in the short run. Up until recently, our assumption was that institutional investors aimed to misdirect the market with counterintuitive moves. More recently however, we find more evidence that the digitization of trading provides an explanation for the difference between fundamental drivers and their short term behaviour. In a nutshell, the key drivers for the gold price are a depressed economic environment characterized by low real growth combined with low real rates (either low interest rates, high inflation or both), currency debasements or low trust in financial (paper) assets. Most […]

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How Does Gold Fare During Hyperinflationary Periods?

How Does Gold Fare During Hyperinflationary Periods?

By Jeff Clark, Casey Research Inflation is a natural consequence of loose government monetary policy. If those policies get too loose, hyperinflation can occur. As gold investors, we’d like to know if the precious metals would keep pace in this extreme scenario. Hyperinflation is an extremely rapid period of inflation, but when does inflation (which can be manageable) cross the line and become out-of-control hyperinflation? Philip Cagan, one of the very first researchers of this phenomenon, defines hyperinflation as “an inflation rate of 50% or more in a single month,” something largely inconceivable to the average investor. While there can be multiple reasons for inflation, hyperinflation historically has one root […]

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Fear Index update: June 2012

| June 23, 2012 | Articles: Insights
Fear Index update: June 2012

The constant talk about gold’s lack of yield, which in many analysts’ opinion disqualifies it as a desirable asset, ignores the very important and extremely valuable function that gold performs as an independent and reliable store of value. Savings and liquidity have value, especially in times of uncertainty, and so does insurance. Gold is money and it is also insurance against the failure of fiat currency. How much is it worth to protect your hard earned wealth from the arbitrary decisions and regime uncertainty that permeates the world of monetary policy? The simple fact is that people around the world – particularly in Asia – are willing, as many have […]

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How to Save Your Money And Your Life

By Doug Casey, Casey Research I think there are really only two good reasons for having a significant amount of money: To maintain a high standard of living and to ensure your personal freedom. There are other, lesser reasons, of course, including: to prove you can do it, to compensate for failings in other things, to impress others, to leave a legacy, to help perpetuate your genes, or maybe because you just can’t think of something better to do with your time. But I’ll put aside those lesser motives, which I tend to view as psychological foibles. Basically, money gives you the freedom to do what you’d like – and […]

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Theodore Butler: A Few Questions about Manipulation, One Answer

Please read this article carefully because I’m disclosing for the first time that the U.S. government has given JPMorgan the green light to manipulate the silver market.This fact explains the shenanigans in the silver market. It answers all the questions and exposes this tawdry affair for all to see. The scandal recently became more outrageous. The June Bank Participation Report, as of Tuesday, June 5, along with the COT confirmed that JPMorgan’s silver short position has increased by at least 5,000 contracts in the past two reporting weeks. That is the equivalent of 25 million ounces of silver, truly an enormous amount in a two week period and about equal to […]

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The Rise of the Gold Price machines

| June 13, 2012 | Articles: Insights
The Rise of the Gold Price machines

Europe might be facing deflation, and Greece might go on firesale after this weekend’s vote. But €1.1 trillion doesn’t buy what it used to, writes Adrian Ash at BullionVault. Last winter, the European Central Bank poured money onto the currency union’s commercial lenders, lending them cash to lend in turn to their domestic governments by buying government bonds. Now Spain’s 10-year bond yields are at a fresh Euro-era high of 6.73%. Italy’s borrowing costs are back where they were before the second chunk of El Tro in February. The cheapest 3-year money in history – lent for just 1% per year – has proven itself worthless in short, and faster than even we expected here at BullionVault. Any wonder […]

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Are You Brave Enough to Buy Low?

Are You Brave Enough to Buy Low?

By Louis James, Casey Research This time last week, I was at the Cambridge House World Resource Investment Conference in Vancouver, BC. Usually the show is quite hopping, but this time, while there was the usual mob and there was standing room only at several of the events Doug, the Casey crew, and I participated in, the mood was decidedly low-key. But here’s the interesting part: it was low-key, but not depressed. In fact, with metals and related stocks having just had a particularly vicious few months in the markets, I was half-expecting an angry confrontation with a soon to be ex-subscriber… maybe more. But that didn’t happen. People were […]

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Only buy from trustworthy bullion dealers

| June 9, 2012 | Articles: Insights
Only buy from trustworthy bullion dealers

Another precious metals scam has been uncovered in America. Sterling Precious Metals of Boca Raton, Florida, is being investigated by the feds and stands accused of bilking clients out of approximately $10 million. According to a lawsuit filed by the Federal Trade Commission (FTC), the company placed special emphasis on targeting senior citizens, who had to pay disproportionate commissions and storage fees. In an effort to recover part of customers’ investments, next week the FTC will request a federal judge freezes Sterling Precious Metals’ bank accounts and have an escrow holder take care of the company. This is not an isolated case. There are unfortunately an increasing number of unscrupulous gold […]

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Strong-Dollar Fallacy

Strong-Dollar Fallacy

After a shocking upset in Greece’s parliamentary elections, the US dollar surged dramatically. Soaring 5.4% in May alone, the world’s reserve currency won legions of fans among traders. “King Dollar” was universally lauded, with everyone jumping on the strong-dollar bandwagon. But this dazzling strength was merely a short-term phenomenon. Zoom out a little, and today’s “strong dollar” is a fallacy. Perspective is everything in the markets. Attaining it is challenging and takes a lot of effort, but the fruits are well worth the toil. We humans naturally tend to extrapolate the present and very recent past out into infinity, expecting short-term situations to continue indefinitely. So when prices surge rapidly […]

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