Tag: monetary policy

Are Rising Rates A Threat To The Price Of Gold?

| August 22, 2014 | Category: Economy
Are Rising Rates A Threat To The Price Of Gold?

Contrary to popular belief, rising rates are no threat to gold. This metal soared in the 1970s during the last secular rising-rate environment as stocks and bonds got hit. Gold powered higher again in the 2000s with both short and long rates far higher than today’s levels. And gold surged during the only major modern rate-hike cycle seen a decade ago, when the Fed more than quintupled short rates.

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John Hathaway Recommends Buying Gold Like It’s 1999 Again

| August 4, 2014 | Category: Investing
John Hathaway Recommends Buying Gold Like It’s 1999 Again

Investors should consider gold and gold exposure as an alternative asset class and as part of an overall portfolio. I would recommend that investors average their investment over time instead of buying all at once. The gold price is volatile and it’s very difficult to get the low points. Averaging over time when the price dips can help financially and mentally even out the ups and downs. Consider gold as a very long-term investment, not just a two- or three-year investment.

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Marc Faber: Expect A Deflationary Bust In Asset Markets

Marc Faber: Expect A Deflationary Bust In Asset Markets

Eventually we’ll have a collapse or deflationary bust in asset markets. That’s inevitable. Printing money can postpone such a collapse but eventually the bust will occur. Every inflation, whether consumer price inflation or asset inflation, eventually comes to an end. I hold physical gold for the reason that one day I may not be able to remit money from one country to another. I don’t know when this final systemic collapse that I am foreseeing will occur but all I can say is that in monetary, inflationary times, when inflation is measured properly, in real terms: stocks usually don’t do particularly well but gold does.

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A Monetary Low Point, By All Standards

A Monetary Low Point, By All Standards

In the end, this is really simple. The Bank of Japan wants investors and economic agents to believe that it is “doing something” that has the power to alter the country’s economic and financial course. That has never been the case, and it certainly is not now with a measure of “stimulus” in a manner already fully saturated with prior “stimulus.” And it doesn’t take any monetary expertise or specialized training to see this. Simple common sense will do. There is no Greenspan put, only an irrational fear of the Greenspan put. If the Federal Reserve or the Bank of Japan had any real power, we wouldn’t need to argue about whether there is a real recovery or not.

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6 Signs That 2014 Will Be The Year Of The Super Crash

| January 30, 2014 | Category: Economy
6 Signs That 2014 Will Be The Year Of The Super Crash

As we have finally arrived in the magic year 2014, in which almost every economic and business cycle is trending down, it seems that things are perfectly lining up for a melt down. If it would have been true that the debt crisis was contained (like our political leaders try to make us believe), then there is a huge divergence with recent trends. This article looks at six different trends which are lining up for an historic sell off in the markets. As readers observe, we stay as factual as possible.

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People Bank Of China Promotes Participation In Gold Market

People Bank Of China Promotes Participation In Gold Market

The Chinese central bank People Bank Of China concludes their latest monetary policy report with several actions, one of which being: “The diversity of participants on the gold market will be promoted,

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A Fed Policy Change That Will Increase the Gold Price

| December 18, 2013 | Category: Price
A Fed Policy Change That Will Increase the Gold Price

The Fed can’t give free lunches to banks forever—here’s what will happen when it stops.

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The Most Misunderstood Threat Of Economic Implosion

The Most Misunderstood Threat Of Economic Implosion

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.

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Currency Suicide: Japan Experiencing The Ugly Effects Of Its Own Policy

| December 1, 2013 | Category: Money & Currency
Currency Suicide: Japan Experiencing The Ugly Effects Of Its Own Policy

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.

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Examining Silver and Deflation

| November 21, 2013 | Category: Investing
Examining Silver and Deflation

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.

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Jim Rogers Expects A Buying Opportunity In Gold And Silver

| November 20, 2013 | Category: Investing
Jim Rogers Expects A Buying Opportunity In Gold And Silver

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.

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The Ongoing Depression Could Force A Return To The Gold Standard

| October 19, 2013 | Category: Economy
The Ongoing Depression Could Force A Return To The Gold Standard

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.

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The Mother of Central Banks Warns Markets To Respect Independence

The Mother of Central Banks Warns Markets To Respect Independence

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.”

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Marc Faber About Fed’s Money Printing: It Benefits A Handful Of People

Marc Faber About Fed’s Money Printing: It Benefits A Handful Of People

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.

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