SWOT Analysis: Gold Bounced Back After Attempts to Knock Down Price

Strengths
The best performing precious metal for the week was silver, up 2.53 percent. It has lagged behind the other precious metals this year and speculators have raised their net long position this week. Gold bounced back positively after several attempts to knock down the price. Last Friday, over 4 million ounces of gold changed hands within minutes. Then, this past Tuesday, more than 2 million ounces changed hands, spurring a price drop. Bullish investors responded two hours later with a surge in buying to help boost prices. Lawrie Williams writes that the attempt to lower gold prices mentioned above reflects positively for those who consider gold to still be in a bull market. Ray Dalio of Bridgewater went on a gold-buying spree to increase his holdings by 575 percent and enter the gold ETF space. Perhaps buyers following Dalio’s lead are using these sell-offs to pick their entry spots. Weaknesses
The worst performing precious metal for the week was palladium, up just 0.05 percent for the week. ‘Palladium prices could plunge 90 percent by 2040 as cars become electric,’ reported ABN Amro. According to Reuters India, gold prices flipped to discount as wedding demand for the yellow metal were lower than expected. Additionally, the Federal funds futures show a possible rate increase in December at 92 percent.

This post was published at GoldSeek on 20 November 2017.


“None Of The Problems Are Solved” Despite Global ‘Plunge Protection’ Overnight

When many American traders went to bed last night, China was tumbling, the euro was in trouble, and US equity futures were notching lower. Then, as former fund manager Richard Breslow scoffs, it appears the world “reconsidered” and everything rallied to erase any sign of discontent or uncertainty by the time everyone woke up…
Apparently, the word of the day is ‘reconsider.’
Across a whole host of assets, we got somewhat violent moves early in the 24-hour trading cycle that managed to unwind themselves over the course of the day.
I kept being told that the euro, Chinese equities, U. S. equity futures, gold, bond yields, Eurostoxx 50, and so on, all reversed their opening, sometimes gap, moves after the market reconsidered what it all meant.
Of course, that’s being a bit too kind. It would be more accurate to say things turned around when traders actually considered things for the first time. But this all matters more than just a collection of knee-jerk reactions that have come to naught as another trading region came in.

This post was published at Zero Hedge on Nov 20, 2017.


Off-Topic Sunday: Bio-Weapons And Super Robots

For some people, obsessing about The Coming Financial Crisis might actually therapeutic because it’s both understandable and easily survivable (just buy gold and silver!). So time spent researching the subject on Zero Hedge or pricing Silver Eagles online could actually be a useful distraction from the other, potentially much scarier stuff that’s going on out there.
Last week, for instance, Wired Magazine noted two developments that until, well, last week, were safely in the realm of science fiction. First, there’s a new gene manipulation technology that can apparently insert a time bomb into entire species – including us:
This gene-editing tech might be too dangerous to unleash
TO GET TO work in the morning, Omar Akbari has to pass through a minimum of six sealed doors, including an air-locked vestibule. The UC Riverside entomologist studies the world’s deadliest creature: the Aedes aegypti mosquito, whose bite transmits diseases that kill millions each year. But that’s not the reason for all the extra security. Akbari isn’t just studying mosquitoes – he’s re-engineering them with self-destruct switches. And that’s not something you want accidentally escaping into the world.
The technology Akbari is designing is something called a gene drive. Think of it as a way to supercharge evolution, forcing a genetic modification to spread through an entire population in just a few generations. Scientists see it as a powerful tool that could finally vanquish diseases like malaria, dengue, and Zika. But US defense agencies see something else: a national security issue.

This post was published at DollarCollapse on NOVEMBER 19, 2017.


On The West’s Demise To The Sidelines Of History…

The world is changing, but the west is clinging on to a unipolar vision of the world that has passed. It’s attempts to discard this changing reality in exchange for a western worldview expressed in their politics and media are so ungrounded, it’s comical as it is dangerous. This western bubble of reality laid down before the wests general public seems to hold up for now, although fragile and less and less by the day. Really, Russia again? Outside this western bubble however, credibility is lost daily as the west places itself on the sidelines of history.
The fundamental building blocs in western hard power and soft power are not under attack as the mediapolitical landscape could make us feel they are, it is more that they are revealed for what they are without the sugarcoating. As the multipolar world creates the political and economic power to pursuit alternatives and show new perspectives and interpretations, they now have the power to reflect the actions of the west mirrored back upon themselves as apposed to ‘just the way things are’ in the world.
Suddenly we are presented with another version of reality that also begs for a different version of history for the past decades. Our economic system seems to benefit the few as those few have a well managed grip on politics. Local business and craftsmanship, the real economy, have given way to the privileged multinationals and the financial world, the world of tax breaks and tax havens.
Whilst the real economy is breaking down, the central banks were printing money like never before to keep the banks and the familiar names afloat -so long as the Apple’s and Facebook’s and other household names keep the indices up, all is good. At the root of this infinite printing of money lies of course the petrodollar. The 1973 deal with Saudi-Arabia where the US would support the house of Saud so long as OPEC would sell all oil in US dollars only and buy US bonds, creating an immense need for dollars in the world and preventing inflation as the Federal Reserves printing presses make way for the economic, political and military US might since. Since, the whole international trade system has been dollar based. If Bolivia wants to sell logs to Venezuela, it will still use dollars. And by US law, every dollar has to be cleared by the bank of New York, thus making this transaction subject to US law. And don’t you dare circumvent it. Blocking Iran from the dollar-trade for not selling oil in dollars, and thus blocking it from the swift-system, and thus from world trade, was therefore the nuclear bomb in economics. Their currency devalued 50%. The earlier threats to the petrodollar -Libia selling oil for gold, Iraq for euro’s- have been met with heavy resistance. Now, in Syria, it seems the world has changed. The predominantly Saudi-US creation of ISIS to destabilize the nations of Iraq and Syria into chaos has now failed. Could we again see Syria, Iraq and Iran work together to create the Friendship Pipeline (a.k.a. the Islamic Pipeline in the west), exporting oil from Iran to Europe? Or will it be more of the same political-economic-monetary-military export of the west, with freedom, democracy and human rights as it’s sugarcoating?

This post was published at Zero Hedge on Nov 20, 2017.


Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape

Sound money advocates who love the concept of cryptocurrencies but don’t want to abandon precious metals have been trying to clarify their thoughts of late. Risk Hedge just helped, with a comprehensive statement of the pro-gold position. The following is an excerpt. Read the full article here.
All the Reasons Cryptocurrencies Will Never Replace Gold as Your Financial Hedge Despite what the crypto-evangelists will tell you, digital tokens will never and can never replace gold as your financial hedge. Here are six reasons why.
#1: Cryptocurrencies Are More Similar to a Fiat Money System Than You Think.
The definition of ‘fiat money’ is a currency that is legal tender but not backed by a physical commodity.
It’s clear that cryptocurrencies partially fit the definition of fiat money. They may not be legal tender yet, but they’re also not backed by any sort of physical commodity. And while total supply is artificially constrained, that constraint is just… well, artificial.

This post was published at DollarCollapse on NOVEMBER 19, 2017.


Money and Markets Infographic Shows Silver Most Undervalued Asset

Money and Markets Infographic Shows Silver Most Undervalued Asset
– Silver remains severely under owned and under valued asset
– Entire silver market worth tiny $100 billion shown in one tiny square
– ‘All of the World’s Money and Markets in One Visualization’
– Must see ‘Money and Markets’ infographic shows relative size of key markets: silver bullion, gold bullion, cryptocurrencies/ bitcoin, largest companies, 50 richest people, Fed balance sheet, currency, stocks, property, cash, debt & derivatives
– Small allocation by investors and world’s richest will see silver surge like bitcoin
***
by Visual Capitalist
Millions, billions, and trillions…
When we talk about the giant size of Apple, the fortune of Warren Buffett, or the massive amount of global debt accumulated – all of these things sound large, but they are actually extremely different in magnitude.
That’s why visualizing things spatially can give us a better perspective on money and markets.

This post was published at Gold Core on November 20, 2017.


Asian Metals Market Update: November-20-2017

I have seen very big moves in global financial markets in ‘Thanksgiving week’. I will be cautious this week. Silver gets the best week to rise and zoom. I expect short covering with every rise in gold prices. Speculation that some hedge funds are exiting crude oil long positions is preventing the rise. A strong US economy implies more guzzle for fuel during holidays.
Crude oil is not falling due to the crisis in Saudi Arabia. There is media speculation that developments in Saudi Arabia can result in crude oil prices doubling over a period of time. Further chances of US dollar dumping by Opec is also catching investors. Bitcoin and crypto currencies are now the future means exchange. Paper currencies are now the past. Americans will control the crypto currencies in the near future but their grip will not be the same as that of the US dollar. Gold will be the only key means of exchange between central bankers and large investors.
The political crisis in Germany should also be bullish for gold. The German chancellor declaring its failure to form a government can put the Eurozone into further crisis. Currency markets will be very volatile and will be dependent (too a large extent) on the political scene in Germany.

This post was published at GoldSeek on November 20, 2017.


Gresham’s Law

This year’s Nobel prize in economics was awarded to Richard Thaler, a pioneer of behavioral economics. But there is a tale told by a lesser known Nobel laureate, Kenneth Arrow. As a World War II weather officer, he was tasked with analyzing the reliability of the army’s long-range weather forecasts. His conclusion: statistically speaking, the forecasts weren’t worth the paper they were printed on. Captain Arrow sent along his report only to be told, ‘Yes, the General is well-aware the forecasts are completely unreliable. But, he needs them for planning his military operations.’
Okay, maybe you don’t actually need a Nobel prize to know that rationality in the decision-making department is often lacking. Case in point: the capital markets. While subtle and ingenious in construction, the capital markets are, nonetheless, driven by the mass action of millions. They are a reflection of ourselves and necessarily express both the summit of our knowledge as well as the pit of our fears, and everything else in-between. And, this brings us to the subject at hand: Gresham’s Law. Sir Thomas Gresham was a financier in the time of King Henry VIII and his name is, of course, attached to the principle that ‘bad money drives out good money.’ Coin collectors of a certain age are familiar with the near immediate disappearance from circulation of all silver American coins once Congress had mandated the use of base metals beginning with the 1965 vintage. While all coins – silver and copper alike – carried identical legal tender value, it was the silver coins that vanished. Perhaps you are wondering what this has to do with bond investing? Everything!
Consider the state of financial markets as witnessed by metrics of implied volatility:

This post was published at Zero Hedge on Nov 19, 2017.


Perspective on the Gold/Oil Ratio, Macro Fundamentals and a Gold Sector Bottom

With all due caveats about the non-stellar gold CoT data (we’ll update in #474) I wanted to note a constructive situation in gold vs. oil, which is a key sector fundamental consideration. Now, there is still a constructive situation in play for nominal crude oil, so take this post for perspective more than anything.
Pardon the massive charts (click to expand) but I am going to start using these personally so that I can fully take into account the historical market aspects that go further back on a daily chart. They just don’t present as well at the website, unless clicked. So I’ll mostly use the smaller, clearer charts for public consumption.
Au/WTI bottomed in December of 2016 as the sector bottomed that same month. The first positive signal was a rise above the daily EMA 10. That is what Au/WTI did this week (until today, as it pulls back below the EMA 10, in-day). Pullbacks will happen even if this is a successful bottoming process. The relative downside volume into an oversold RSI (14) and even higher upside relative volume out of the oversold reading is interesting.

This post was published at GoldSeek on 19 November 2017.