Based on cyclical analysis, technical analysis, fundamental analysis, and portfolio analysis, Petrov says the bottom for gold could be in already, but most likely will be behind us within one to seven months. That’s early to mid-2014, now rapidly approaching.
Tag: monetary policy
With a global competition in currency debasements, with limitless monetary stimulus, with decreasing effects of monetary expansion, with a conscious infringement of the monetary rules, it should be clear that there is hardly a way back for our leaders. Given this outlook, we believe it is a matter of “when,” not “if” the next collapse occurs.
One of the consequences of Japan’s currency debasement is now starting to show its ugly head: the cheaper Yen may be intended to stimulate exports but it simultaneously makes imports more expensive.
The deflationary threats still remain. Ask yourself, can the average consumer handle rising interest rates? Can bank balance sheets handle a further drop in housing values? You get my point– it seems to me that a lot of people are making light of real challenges out there in the real economy. Yes, commodities may continue their trend lower – and so might silver and gold for the next months or year. But always remember what sets the precious metals apart.
This is an interview with Jim Rogers, conducted by Birch Gold Group. The topics that are covered range from monetary policy, the stock market frenzy, currency wars and precious metals.
This is an excellent interview with Jim Rickards. He explains that we are in a depression currently. The answers to that problem from the US government and central bank will likely force them to impose monetary discipline through the return to a gold standard. The longer the dollar based monetary system is suppressed, the more likely that market forces will induce a dollar collapse. This piece provides deep insights in a complex matter, brought in an easy to understand way.
In a speech given earlier this week in Mexico, the General Manager of the BIS talked about the increasing pressure from the market on central banks. Even the mother of central banks is aware that the limitations of monetary policy are increasingly being questioned. The question is being asked if indeed those policies have been a “success” or rather a “failure.”
Apart from the fact that Mr. Faber did expect a formal confirmation of tapering, he said he was not surprised because “we are in QE unlimited.” He points out that the Fed is run by academics who never worked a single day of their life in a business. They don’t understand that if you print money, it benefits basically a handful of people maybe 3% or 5% of the population.
I think the political realities of the situation make the most likely scenario one in which there will be some kind of real financial collapse and disorder that will require a total reconstruction of the system. It’s impossible to say how that will be done, and this may be the chance to go back to a gold standard or to a very sharply circumscribed remit for central banks.
Gold and silver will not only continue to serve in their timeless role as a store of wealth while fiat currencies flail and ultimately fail—right now, market conditions are ripe for a once-in-a-lifetime profit opportunity to take shape. The current gloom in the mining-stock sector has stock prices at astounding lows… but those who know which companies are best positioned to ride out this temporary collapse and have the fortitude to invest in them now can make a fortune. This isn’t exaggeration—this scenario has played out before in the US.
The only limits on this process of money creation are the banker’s instinctive fear of making a bad loan that will lead to a loss, and the fraction of deposits held as liquidity against the possibility that depositors suddenly want their money back – hence the term “fractional reserve banking”. It is at this stage of the credit cycle that the process of money creation goes violently into reverse.
Argentina is a prime example of currency depreciation and capital controls. Casey Research reported this week how Argentines are doing everything they can to circumvent a new dollar clamp which is imposed by the Uruguayan government. They take risks traveling to Uruguay to extract US dollars from their peso-based Argentine credit cards.
The primary conclusion for any prudent investor should be to not be lulled in by the soothing talks of Ben, Mario and Shinzo. Granted, they may be doing their best, and doing so in good faith. Only you should not rely on their being able to succeed. Ultimately, the interest rates and inflation expectations of financial markets are fickle. They can turn on a dime. And, irrespective of all their good intentions, the good men at the central banks will not be able to control the loss of confidence in the markets.
This piece seeks to make the economic case for savers to allocate wealth to physical gold (in proper form) and for investors to allocate capital to precious metal miners. Our argument orients readers with our economic and market predispositions, seeks to explain current macroeconomic events within that context and outlines gold’s fundamental valuation framework.
The Bank of Japan is committed to win the battle against deflation. In an attempt to stimulate their economy and to guarantee inflation, Japan announced they would pump $ 1.4 trillion in their economy in the next 24 months. As a result of that, the monetary base in Japan would double.