Buy Gold As Fed Shows Uncertainty And Concern Over Financial ‘Imbalances’

– FOMC minutes show uncertainty and concern about markets are affecting officials’ decision-making
– Officials were cautious when evaluating market conditions and the ‘damaging effects on the economy’
– Worry about ‘potential buildup of financial imbalances’ and a sharp reversal in asset prices’
– Members seem oblivious to impact of inflation on households and savings
– Physical gold and silver remain the only assets for real diversification and safety
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After nearly a decade of pumping up the US and global markets, Janet Yellen and team are now starting to show some concern for financial market prices. The FOMC is concerned that they are getting out of hand and are a danger to the US economy.

This post was published at Gold Core on November 24, 2017.


The Digital Revolution Has Empowered Central Banks

We won’t know till the end of this cycle how much mal-investment has occurred under the great monetary inflation which started in 2010. We may already suspect, though, that much of this will be in ‘big tech’ and related fields. Any final reckoning should also include wider political and socio-economic damage not included in a narrow economic calculus.
Scott Galloway describes skilfully and colourfully the power of the big tech narrative in his just published and highly readable book ‘The Four: the hidden DNA of Amazon, Apple, Facebook and Google’. The general critic would take issue with his repeated use of a four-letter expletive. The monetary critic can point to a bigger problem with the book – a lack of any analysis linking the amazing spread of the big tech narrative to the prevailing monetary disorder.
If central banks had not created a famine of interest income, the big four would surely not have enthralled investor audiences to anything like the actual extent. Hunger for yield means that investors become willing to take on bad bets (actuarial value highly negative but some possibility of a big pay-off) rather than suffer certain loss on monetary assets. This is an example of ‘loss aversion’ as diagnosed in the pioneering work on mental flaws of investors by Daniel Kahneman and now prominent in behavioural finance theory.

This post was published at Ludwig von Mises Institute on Nov 23, 2017.


11,000 KG GOLD FOR A PAINTING – WILL COST 110 KG IN 2025

What is absolutely certain is that global wealth will be totally decimated in the next 4-8 years. It doesn’t matter if you are very rich or ‘just own a house’ with some equity left. Most of it will come down in value by 75-95% in the next few years as the debt and asset bubbles implode.
But what very few people realise or plan for, is the confiscation of wealth that will take place in coming years. There will be confiscation on many levels.
With times deteriorating, governments will be thrown out as ordinary people become dissatisfied with their rapidly declining ability to survive. Many people will lose their jobs and governments’ ability to help the poor and hungry will decline rapidly due to falling tax revenues. During that process, opposition parties will promise the earth. Thus we will see a society in upheaval due to political turbulence, social unrest, dire economic circumstances as well as anarchy.
TAXES WILL BE PUNITIVE
Many countries in the West have turned socialist in latter years, and this trend will continue as the climate deteriorates. With the ruling party desperately fighting for its own survival, their task becomes increasingly impossible as there is no money left in the coffer and printed money no longer has any value.
Opposition parties will promise solutions to all the problems and will have no difficulty becoming elected. But as they get into power they will also fail desperately. In most Western countries there will be left wing parties ruling but we might also see far right leaders emerging due to the anarchic situation.

This post was published at GoldSwitzerland on November 23, 2017.


28 Reasons to Buy Physical Gold

Throughout human history, gold has constantly emerged as an unparalleled form of savings, investment and wealth preservation. Due to its unique characteristics and features, gold has inherent value and cannot be debased. When holding physical gold, there is no counterparty risk or default risk. Wealth in the form of gold can also be held and stored anonymously.
From its ability to retain its purchasing power over time, to its safe haven status in times of financial turmoil and uncertainty, to gold’s ability to diversify investment risk, there are many and varied reasons to own physical gold in the form of investment grade gold bars and gold coins.
1. Tangible with Inherent Value Physical gold is real and tangible. It is indestructible, impossible to create artificially, and difficult to counterfeit. Mining physical gold is arduous and costly. Physical gold therefore has inherent value and worth. In contrast, paper money doesn’t have any inherent value.
2. No Counterparty Risk Physical gold has no counterparty risk. When you hold and own gold bars and gold coins outright, there is no counterparty. In contrast, paper gold (gold futures, gold certificates, gold-backed ETFs) all involve counterparty risk.

This post was published at Bullion Star on 23 Nov 2017.


Rate hikes and what it means for gold

For the first time since the onset of the credit crisis, we believe the market is beginning to price in a higher probability that the Fed is finally in the position to raise rates both continually and more frequently. The prevailing view is that central bank rate hikes are the natural enemy for gold prices. Analyzing rate cycles and the gold price from 1971, we find that gold tends to do better in hiking-cycles than cutting-cycles. We find that the positive performance during hiking-cycles can be explained with the three drivers identified in our gold price framework. Given the outlook for these three drivers, gold will likely do well over the coming quarters even as the Fed keeps raising rates.
View the Entire Research Piece as a PDF here.
In recent years, the Fed has persistently indicated that it was going to hike rates several times per year over the next few years until rates are ‘normalized’. So far, the Fed has fallen short on delivery, having hiked only once in 2015, once in 2016 and so far twice in 2017. While that doesn’t sound like a lot, compared to its peers, the Fed is a hawk.

This post was published at GoldMoney on November 21, 2017.


Does The CoT Structure Prohibit A Rally?

Can the Comex metals rally from here given that the CoT structure is not yet fully “washed out”? Of course they can! While it’s sometimes easy and obvious to assume that rallies are imminent by the CoT structure, history shows us that a fully-washed CoT isn’t imperative for a bottom and rally.
Let’s start with an example of a full wash, rinse and spin in Comex gold. Note the all-time lows of December 2015. That’s as clean and washed as you’re likely ever going to see.
DATE PRICE COMMERCIAL NET SHORT 12/1/15 $1060 2,911 (ALLTIME LOW) 5/3/16 $1290 294,901 5/31/16 $1210 214,038 7/5/16 $1375 340,207 (ALLTIME HIGH) So, in this example, if you were waiting for a full CoT washout in May of 2016, you missed a $165 move in June.

This post was published at GoldSeek on Wednesday, 22 November 2017.


NOV 22/GOLD RISES $10.40 TO $1292.40 AND SILVER RISES 13 CENTS/SILVER SEES COMEX SILVER OI RISE BY 1919 CONTRACTS AND ON TOP OF THAT ANOTHER 1231 EXCHANGE FOR PHYSICAL CONTRACTS MOVE FOR A LONDON…

GOLD: $1292.40 UP $10.40
Silver: $17.13 UP 13 cents
Closing access prices:
Gold $1292.60
silver: $17.15
SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
SHANGHAI FIRST GOLD FIX: $1290.11 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: $1279.65
PREMIUM FIRST FIX: $10.46
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SECOND SHANGHAI GOLD FIX: $1291.12
NY GOLD PRICE AT THE EXACT SAME TIME: $1282.65
Premium of Shanghai 2nd fix/NY:$8.47
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LONDON FIRST GOLD FIX: 5:30 am est $1283.95
NY PRICING AT THE EXACT SAME TIME: $1282.85
LONDON SECOND GOLD FIX 10 AM: $1286.95
NY PRICING AT THE EXACT SAME TIME. 1288.00
For comex gold:
NOVEMBER/
NUMBER OF NOTICES FILED TODAY FOR NOVEMBER CONTRACT: 0 NOTICE(S) FOR NIL OZ.
TOTAL NOTICES SO FAR: 1053 FOR 105,300 OZ (3.375 TONNES)
For silver:
NOVEMBER
1 NOTICE(S) FILED TODAY FOR
5000 OZ/
Total number of notices filed so far this month: 885 for 4,425,000 oz
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Bitcoin: BID $8260 OFFER /$8287 up $173.00 (MORNING)
BITCOIN : BID $8175 OFFER: $8199 // UP $81 (CLOSING)

This post was published at Harvey Organ Blog on November 22, 2017.


Stocks and Precious Metals Charts – Thankfulness

“At times our own light goes out and is rekindled by a spark from another person.
Each of us has cause to think with deep gratitude of those who have relighted the flame within us.”
Albert Schweitzer
The Fed minutes noted that inflation remains persistently subdued.
No surprise there, since top down stimulus to my knowledge has never worked, and is certainly not doing anything now except distorting the economy with asset bubbles and straining the social fabric.
So let’s pass a massive tax cut that favors, to a remarkable degree, the already wealthy.
Peak hubris.
Today was a very productive day, despite the cold and wind interspersed with fluffy clouds and sun. It was almost a type of what life is like, with the good mixed with the not so good.

This post was published at Jesses Crossroads Cafe on 22 NOVEMBER 2017.


Asian Metals Market Update: November-22-2017

It will be a technical trade today and till Monday. Moves will be big and two way. Investors will not be able to sleep on their investments. It should be a day trader’s paradise till Monday. Copper, industrial metals and crude oil are looking bullish at the moment. Gold and silver are in anything can happen zone. Short term hot money is still into bitcoin and crypto currencies.
I read a lot of media concerns over the continued rise in bitcoin and crypto currencies. Asia is not a major contributor to the current rally in crypto’s.

This post was published at GoldSeek on 22 November 2017.


Next Time You Talk to a Gold Bear, Show Them These Charts

If you look at gold’s performance over the last few months, or even quarters, it would be hard to feel much excitement.
Stocks are near all-time highs, oil is roaring back, and Bitcoin has blasted off.
Meanwhile, gold sentiment is negative.
Getting almost anyone excited about gold seems like a monumental task; it appears to be stuck in a trading range that’s going nowhere fast.
Unless you’re looking at what I’m looking at right here…
From Around the World, the View Couldn’t Be Better
Traders and investors obsessing and, inevitably, fretting, over gold’s performance at yearly or quarterly timescales, like in the chart below, simply aren’t looking in the right place.

This post was published at Wall Street Examiner on November 22, 2017.