STAFF NEWS & ANALYSIS
Time to Consider More Gold and Silver Following the Latest Fiat Crash?
By Daily Bell Staff - September 10, 2016

Those figuring that the Fed still might hike rates in September are getting one more bite at the apple. As the week drew to a close and the Fed’s “quiet period” before meetings was about to settle in, investors recoiled over news that the central bank’s most dovish official, Governor Lael Brainard, will be delivering a previously unannounced speech Monday at The Chicago Council on Global Affairs. -CNBC

The Federal Reserve’s ongoing policy failures once again wrecked markets on Friday.

Just a hint that the Fed might raise at its next formal meeting caused reverberations around the world and dropped averages in numerous markets.

More:

The S&P 500 was down more than 1 percent Friday afternoon, on track to close with its biggest percentage move since July 8.

Indeed, the guessing game over whether the Fed might enact its first rate rise since December and only its second tightening in more than a decade has set off a fever pitch of horse trading.  At one point Friday morning, markets put the chance of a hike later this month as high as 30 percent before backing off.

Bad enough that speculation over the moves of a tiny group of pampered economic bureaucrats can cause such havoc. Even worse is that the Federal Reserve cannot justify any sort hike.

Rate hikes are supposed to be appropriate when economies are “overheating” but the US economy is actually collapsing. A terrible  services reading, a manufacturing contraction  and a weak nonfarm payrolls report all add up to an implosion of economic activity, not an explosion.

But nonetheless, Yellen’s Fed persists in creating expectations of a hike. Supposedly, this will provide the Fed to move rates back down as necessary.

In fact, what the Fed intends to do only makes sense if one remembers that central banks are at this point nothing more than a tool of global governance.

Elites are determined to consolidate government at a global level and it will likely take various forms of catastrophe – war and economic ruin especially – to generate the necessary impetus to create and impose what’s necessary.

Over time, central banks must invariably destroy the economies that they purport to guide and shape. Price fixing simply doesn’t work … ever. And while a patina of success can be presented by mainstream media regarding the current system, the reality of failure will inevitably surge to the fore.

Many markets around the world are far higher than they should be by any rational measure. And precious metals are likely far lower against the dollar. Additionally, the current stock cycle is extraordinarily elongated and doesn’t make any sense, anyway, given sputtering and diminishing economies worldwide.

We understand that in the best of times, central banking is merely setting up further, destabilizing economic failures. And it would seem for reasons mentioned above, that volatility and further equity crashes are certain to take place, probably sooner rather than later.

We predicted months ago that markets would continue to rise but now as we approach fall, end-of-year investment adjustment will take their toll. Marry this to continued central bank struggles to supposedly improve economies and you have a recipe for continued markets events such as the one we saw on Friday.

Of course, many brokers and other investment professionals are advising investors to “stay the course” much as they did in 2000 and 2o0o8. Yet given the age of the bull market and the inevitability of its inevitable collapse, one wonders at continued equity participation generally. Yellen’s apparent determination to raise rates is just one more reason why the near-term market outlet must be seen as perilous.

Meanwhile, as we’ve pointed out before, precious metals remain in a bull market despite manipulations. Anyone observing market movements over the past 50 years or so would likely conclude that the upside for metals is distinctly better than for mainstream fiat/paper products including equity.

The only exception to this may be in the area of metals mining stocks. In fact, it’s recently been revealed that central banks in both Switzerland and Norway have begun purchasing miners – and this should be a significant warning to those who remain heavily invested in mainstream stocks and bonds.

Conclusion: The cycle is turning and physical precious metals as well as precious metals miners are likely to generate profits that will outstrip mainstream equity and fixed-income positions. Certainly, as always, the timing is in doubt but surely not the eventual occurrence.

Here are DB, we’ve been presenting information on a silver mining opportunity via our first-ever sponsor Golden Arrow and its subsidiary Chinchillas Silver. For more information please contact Shawn Perger:

Golden Arrow Resources: CAN:GRG.v, US;GARWF
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Cell 778-686-0135

Golden Arrow has recently reported phase VI drill results that confirm Chinchillas south mineralization. You can see more information here. Please consult DB’s disclaimer before making investment decisions.

 

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  • georgesilver

    The Fed says it’s going to raise rates as though they have a switch that does this. In fact the Fed has to withdraw liquidity to make rates rise. The trouble is rates are beginning to rise without the Fed because it looks as though the bond market bubble is popping.
    As for Gold and Silver I got out of all forms of paper investment a long time ago and am now “all in” with Gold and Silver. Only one person I know is ‘into’ precious metals. If you ask anyone in the street about the price of Gold they haven’t a clue. Once the masses wake up I will be ready with my Golden surf board and ride the big-one.
    As for miners there is a leverage play but for me it’s too dangerous. Once the spotlight is on Gold I have a sneaking suspicion governments will nationalise the Gold mines.

    • Or maybe they will nationalize the physical? Anyway, congrats on your foresight.

      • Marcopolo

        Was guaranteed when we used it as money in 1933, so FDR had to pull it. Today, very highly unlikely, but never underestimate a statist. You can avoid a lot of the issue based on where you keep it. Not in a bank or safety deposit box, nor on shore. Need a safe place, insured, the PM has to be allocated and you have the serial #’s of your bars (they do it down to the gram level!), and the location can’t be under DC’s influence. Switzerland is out, but there are other places that are “friendly” to DC, but in these matters, say “F-Off.” And not too much at home unless you have a right to carry; got to worry about the zombies!!

        • Bruce C.

          Too few “regular folks” will ever(?) own enough PMs to make any kind of confiscation worth the trouble, in my opinion. Besides, they don’t want to shoot their own feet.

          • Marcopolo

            Likely true enough.
            But, there’s that old saw, “you can’t fix stupid.”

      • Don Juan

        No, after the ‘reset’ they will need physical gold to be widely owned (silver merely a commodity now as it is used by industry too much to reclaim it’s past monetary role) Desperate governments will either nationalize mines or institute massive ‘windfall’ taxes on them. For the deepest expose on gold I’ve come across, look up FOFOA blog. For cheapest physical gold purchase info see; http://thebitgoldrevolution.blogspot.ca/

        • Marcopolo

          Don, you are a bit misinformed about silver. It’s about 50-50 industrial vs. Money. Percentage wise silver is likely a better upside return than gold. Gold may double, but silver is likely to easily rise 150% or more.
          While a lot more silver is mined than gold, the industrial use takes volume off the market.
          From a mining perspective, it costs more to get an ounce of gold than silver which actually is a byproduct of copper mining.
          When a currency goes in the toilet, you aren’t going to the grocery store or black market with an ounce or a tenth of an ounce of gold to buy something. You’ll use silver coins, bars, or rounds.
          The coinage act defines a dollar in terms of grains of silver, and gold as a ratio to the silver; used to be 20 to 1 silver to gold.
          What was true then will be true in the near future; gold for larger valued exchanges, silver for day to day more common exchanges.
          That’s why even after FDR’s 1933 exec order on owning gold, silver coins remained until the early 1960’s. They just slowly reduced the silver content from 90% to 60, to 40, to zero.
          Now the entire planet is all fiat all the time:-)

    • Marcopolo

      Since I don’t know you, now you know 2:-)
      Started in early 2000, when gold was ~400 and silver was ~4. Never sold, even when 1900 and near 50 respectively. I just keep buying, dollar averaging in, accumulating more.
      Now doing some miners. Leverage is 3 to 1 or higher. It’s only a dangerous play if you don’t understand the players; big ones, juniors, exploration co’s, streamers, etc.
      Miners are always a wild ride. Like the metals, you have to know you may experience a 20-50% retracement before they move higher. Just like gold from 1900 to 1100; still held on.
      Looking at the macro view, 1900 was still way to cheap.
      I stay away from numismatics (rip off- and very illiquid market), and coins in general although I have a slug of Buffalo’s because they’re a beautiful coin-but then I was only paying 400-800 per.
      I’ve studied the market for more than a decade and a half, buying metal while I studied the market.
      When the masses wake up, there won’t be any to buy. I’ve no idea of the price to clear the market; 2500, 3000, 5000, 10000, etc.?
      Have to ask yourself what are going to buy if you decide to sell at whatever your price point? Dead Presidents? Equities? Bonds?
      When they wake up all of the above will be way, way down and counterparty risk comes with them. $10K gold=$10/gal for gas.
      I don’t give investment advice, but would offer a point of view if you leave the PM’s you have to consider a different hard asset that will hold value/purchasing power.

      • Bruce C.

        I basically agree with your analysis. However, I do think bullion coins are a good way to go too. For one thing they don’t need to be assayed so they’re easier to sell – more liquid. Secondly, they represent lower fiat value so one can convert in smaller increments. As it is any transaction over $10 k must be reported by the dealers so they provide a way to avoid that. Selling even just a 10 ounce bar is hard to hide and cash may become scarce too despite price inflation, as ironic as that sounds.

        • Marcopolo

          PM’s are traded by weight. A one ounce bullion coin is going to trade for 1 ounce of whatever number of dead presidents equals the spot or slightly lower (commission).
          I don’t care what form you choose, but they’re going to be assayed on an exchange….always. One can counterfeit coins, bars, spheres, whatever form. Your coin and my bar at 1 troy oz have EXACTLY the same value.
          Gold is minted in coins and bars in all weights up to a Troy ounce; silver up to 5 Troy ounces. Gold is coined only down to about 1/10 a troy ounce-the practical limit of a coin size. After that (below 1/10, and above 5) it’s all bars, and it’s not in ounces, it’s in grams and kilos.
          So a one kilo bar is about 32 Troy ounces. At 1300/oz your transacting an ~ $41,600 buy or sell.
          When we were king of the hill, the standard was a 400 oz 3 9’s good for delivery bar. Today, it’s a 1 kilo bar at 4 9’s, set by the Chinese.
          All those 400 oz bars are being refined down to 4 9’s, and 1 kilo in size.
          P.S. The reason for the 400 oz bar standard was so no one could carry their gold around once FDR said ” no gold for the peons.”
          You can purchase a 1 gram bar today for about $42 and change. There is no 1 gram coin.
          BTW the reporting is at $4K. You get on the list. At $10K you get a visit.
          I buy right under $4K in weight (bars/cubes), 4 -9’s serial numbered and mint marked about once every few weeks or longer based on my cash position and moving out of non miner equities..
          The big deal is your buy price. You pay spot plus anywhere from 12-30% over spot for bullion, so gold has to rise to that level to offset that premium to make you even. Bars, rounds, etc. generally go for 2-3% of spot. So breakeven is a heck of lot lower.
          Even the US Mint direct, is 27% over spot. Just you and the Mint, no middle man. Some large reputable dealers like APMEX you can get for less than that as they buy a lot. Still your premium is going to be north of 10%.
          The only thing not traded on weight is numismatics which is a very illiquid market. Buying numismatics can be 50+% over spot. I’ve been studying this market as I said over over 15 years, and I won’t go near numismatics.
          If you’re keeping it at home, you can “hide” a lot be in coins or bars.
          If you have a lot, you don’t keep it at home. You find a reputable depository (not a bank), usually managed by Brinks, outside the US, where you get the serial numbers and your name is posted to that bar, and it’s an insured facility. You get a photo and listing of all your allocated bars every year (or quarter if you like).The one I use I have a copy of the Lloyd’s policy that backstops them up to $1B, and yes, I checked the validity of its issuance.
          It’s a great game to play and you have to be on your toes. Those statists are a shrewd bunch:-)

          • Bruce C.

            The only “premium” is the dealer’s markup. To say that gold and silver bullion coins have a higher premium than bars is confusing to some. Most of the “markup” over the spot price is because of fabrication costs, followed by a combination of subjective demand value and the dealer’s markup. It costs a lot more to mint coins than to make a bar. Basically, what you pay for that “manufacturing cost” you will get back when you sell, so in a way it’s a non-issue. Only the dealer’s markup is the buy/sell spread (AKA “bid” and “ask” spread) that needs to be made up through fiat price appreciation.

            Also, although a buyer (or recipient) MAY choose to assay a an official minted coin they often don’t unless they have reason to suspect fraud. Bars on the other hand are much easier to fake and “short-change” so most will assay them.

            We’re kind of splitting hairs here but I just wanted to point out why minted PM coins are a legitimate way to own PMs, for the reasons stated. BTW, where do you live that imposes reporting at $4k. Not that it matters because at under $10 k ID is not required so you can say your name is Elmer Fudd and you live in a tree for all the dealers care.

            One last point for others who may read this. Keep your intentions to yourself even with dealers. If you tell them your trying to get around the reporting requirements then that’s called “structuring” and is illegal and puts them in a morally difficult position. Just buy PMs in under-$10k increments and maybe from several different sources.

          • Marcopolo

            Bruce C.
            The premium is as you note the “manufacturing” costs, and the Mint itself charges a “premium” to buy the coins above their manufacturing costs, be it direct or through a dealer.
            Go to the Mint’s site and see the price for a 1 oz. Buffalo. Very high premium, but likely not what a primary dealer pays.
            Then the dealer adds their premium.
            Then you have the added cost of how you buy.
            Cash, Personal check, MO, Wire doesn’t change the price, but paypal, credit card, etc. adds another 3-4%.
            Also, depends on how you define “assay.” You walk into a dealer with a handful of liberties or buffalo’s, loose, they’ll get weighed and examined against mint BU relief. With a bar, they’ll weigh and might drill if it’s a lose bar, but most bars are sealed with mint holograms, serial numbered and mint marked also.

            It’s not where I live, it’s where one banks. Any withdrawal of cash at $4K you get on a list, and they photo your DL; at or over $10K, they do all that, and you get on a list sent to the Treasury/IRS. BTW, these data points are based on 2-4 days. 2 grand a day, every day for week and you’re going to get on the banks list, and it will get reported…it’s $10K.

            My point was NOT what a dealer reports, which they could care less, but what the banks report when you withdraw money to buy PM’s.
            The bank doesn’t care what you’re buying, just how much you’re withdrawing. My assumption was that one would pay cash for local transaction.
            On a MO/Wire for a on line order from a reputable dealer, I don’t believe the bank reports anything except those over $10K and you’re not a business.
            If one buys local, they’ll have higher premiums than large shops like APMEX. Also, they should have been in business and have a rep, and as always, caveat emptor.
            As for several different sources, one has to vet each source.
            The interesting point about gold purchases with coins is that the best pricing is “mint tubes” (20 coins) or “monster boxes” (500 coins). Both put you well over to way over the 10K limit.
            Final point what you buy, what you pay, why you’re buying, where you store, how much you’ve accumulated is no ones business, including the dealer. Coins and bars are both legitimate ways to own any PM.

            If you ever get out of them, it’s going to be based on weight and purity of the PM, not if it’s got a design stamped on it. The only time a coin can delta over the spot is based on the numismatic value.
            My point of view after working this market for quite some time, is one better study numismatics heavily before entering into that rarified market; it’s not too liquid.

          • Bruce C.

            IMO you’re making this all way too complicated, and you’re not differentiating between large and small buyers.

          • Marcopolo

            Appreciate your point of view. Many conversation I’ve had with people of all walks of life and those large and small buyers has shown that purchasing PM’s involves a lot factors regardless of the size of one’s buy and most are ignorant of price.
            All I’ve tried to do here on this board is to “educate” those who are novices at buying, regardless of amount they wish to purchase.
            As in many places there are many who take advantage of those ignorant of how these metals are priced and the factors that affect them. I’m not a dealer.
            The best buyer is an educated one.
            My intent wasn’t to complicate; PM’s and their price consist of many factors including greed of the seller.
            Forewarned is forearmed.
            You appear to be an informed buyer. Good for you. Maybe true for all who visit this topic. OTOH, whether you buy a single coin, bar, or a truckload if one is not familiar, they can overpay 5-100% for their purchase and my posting was meant to prevent one from overpaying.
            I’ve been to my local dealers/coin shops, and all but one tried to throw a hard and fast one past me.
            As soon as they know you know, either the conversation ends, or you get down to serious negotiation.
            Sorry to all who feel I’ve made the conversation too complicated, and good luck to all of you who decide to diversify their savings by going into PM’s.

          • Bruce C.

            Here’s a little anecdote that you might like that sort of illustrates your point.

            When my sister passed away I inherited of some of her things, and some jewelry in particular. One was a 14 k gold necklace. I was curious what it was worth and took it to several jewelers for an appraisal. Most of them determined its purity and weighed it and offered basically its “melt value”, which was about $1,000 at the time. However, one jeweler (who happened to be a woman) looked at the necklace and said she didn’t think it wasn’t very pretty so offered me a $100. I said, ‘but the gold itself is worth more than that.’ She just shrugged and said, ‘maybe so but nobody would ever pay that much for it.’ To this day I still don’t know what she was really thinking, but it’s very possible that she just hoped as a guy I would think of the necklace as “ugly jewelry” and sell it to her for $100 – better than nothing. I thought that was fascinating.

          • Marcopolo

            Thanks for sharing!! She made some erroneous assumptions and perceived you were a “sucker.” Generally what is accurate that unless a rare antique, any jewelry’s value is just melt.
            To follow on your excellent storyline, I got in the mail today a stuffed envelope with ad material and a letter letting me know someone found a stash of 125 year old Morgan silver dollars, and were willing to part with such rare and historic coins for $199.99..as an investment! Not rare mintages, or slabbed and graded, just old silver dollars.

            Morgans were like dog sh!t, they were all over, and they were minted in the millions. I have a bunch I got from an estate sale 15 years ago for $8 a piece only because I thought the people selling their grandparents estate were nice people. Likely could have got them for $6. Spot then was $4. Spot now is ~$20.
            I wonder how many people will take them up on the offer? Must be a lucrative business to do these mass mailings.
            There’s a lot more of those “lady jewelers” in various genders, shapes and sizes.
            There’s that old saw that if you look around the card table in a game, if you can’t pick out the sucker after one hand…well, the sucker is you:-)

          • Col. Edward H. R. Green

            I buy from PM brokers who fill their orders with bullion coins from A-MARK or APMEX. If I were to buy large enough quantities, I would buy from their sources directly.

            What do you consider to be a reasonable premium to pay for government-issued 1oz. gold and silver bullion coins (e.g. US Eagles, Canada Maple Leafs) ?

          • Marcopolo

            Single coins about 7-8% above spot paying with MO, check or cash (in person-not via mail). I won’t buy from the Mint directly as it’s close to 20% above spot. I also don’t buy Mint issues with the wooden box, etc., that’s just glitz to make you pay more.
            That’s ungraded and unslabbed. Grading a gold 1 oz coin is about $50 ea, less if you’re doing more than one which includes shipping to/from PCGS or NGC or authorized/approved grading services. Your mileage may vary. You can go to their sites and see if there’s one close to you.
            In the past I bought a fair sum of gold, but 1oz in bar form. I can get from this same dealer (they’re international) 1 oz Buffalo/eagle BU, any year for 3.75% point lower for Maples. I can do this because I was a large buyer (in their “special” group of top customers), so I get this for life.

            As I noted in earlier posts, I like Buffalo’s for purely artistic reasons. All the coins you mention are still 1 oz of 4 9’s gold.
            Maple leaf’s are good, but personally I stay away from their 5 9’s gimmick. The premiums don’t justify the 5th 9 purity and getting there is more costly vs. the standard 4 9’s. You aren’t going to get a better sell price should you need to part with it. Maple’s generally run 1% lower in spot than US gold coins.
            Silver, I look to pay about $1.29 above spot to $1.79 per coin. You can generally find APMEX runs “sales” on Silver, especially when the metal is below $20 spot. I usually then buy Mint sealed tubes (20 coins) for the best price usually about 99 cents above spot/~5+%.
            If silver ever sees 16/17 again, I will make a sealed mint tube or two purchase likely from APMEX at a sale they nearly always run at .49 above. Naturally, the premium in this case doesn’t drop based on quantity.
            If you want gold, but not coins, the best place I found is GoldMoney which used to be BitGold. There you pay 1% above spot to buy; 1% to sell. They’re real, reputable, and use 10 gram gold cubes, with serial numbers, mint marks and sealed. You can let them hold and get a no cost mastercard debit card against your account.
            You start with zero dollars (they do all major currencies) and you can sell and the equivalent spot minus 1% is put as a balance on your card. Works just like any debit card.
            You can also take possession anytime of the physical, Then pay the 1% plus a few bucks for shipping.
            There’s a number of YouTube video’s and through personal experience, you get the real thing back at 2% round trip. More than 1 oz and they’ll send you bars.
            Where are you going to find a “checking/saving account” that based on price of gold you have more in dead president value than you put in?
            I started out testing the process near 1200. I’ve not only covered the 1%, but at today’s price, I have gotten all the price appreciation so I’m way ahead.
            I don’t expect to sell; I might take delivery at some point. But since I don’t know what uncle sugar is going to do, I like the idea I have a debit card backed by the value of deposited gold, and I chose the amount to sell.
            This gets around the issue of when things go FUBAR, I have coins, bars, rounds, and a debit card all outside of the banking and dollar system.
            My PM’s, in all forms, are not “investments.” They are insurance against what likely is to happen in the very near future regardless of who takes the Nov POTUS.
            I don’t like to keep a lot in country or at home as I have no idea of how the “zombies” are going to react.
            But, as former military I have my CCW and my “position” is secure. The army taught me a skill…out to 1000yds that I work at maintaining since I left the service a while ago….jungle, not sand.
            Hope all this helped.

          • Col. Edward H. R. Green

            “My point of view after working this market for quite some time, is one better study numismatics heavily before entering into that rarified market; it’s not too liquid.”

            I do not buy numismatic coins for the reasons you mention (I prefer PM coins, like Canada Maple Leafs); however, the slabbed and graded ones are quite liquid. If I owned any, I could liquidate for cash within 24 hours.

            An important caveat is that the Chinese have figured out how to produce fake US gold and silver coins, both classic and modern issues, and fake slab holders for them, including the holograms thereon. Yet another reason for me to shun numismatic coins !

  • Pismo

    I am sorry to point out that if the mkt crashes from rising interest rates, it will take gold down right with it. Just like the last time(s)

    • Marcopolo

      Ah, you need to go back and look at the graphs/charts from Jan of this year after the Fed “hike” – if you can call 25 basis points a “hike.” The market went south and gold went north. Then the market went north and gold kept going north.
      PM’s are a very volatile and manipulated market. That said PM’s have no counterparty risk. Compare that to your dead presidents (and their value) and a market that has PE’s in the stratosphere.
      There really isn’t any “new normal.” The price of an equity participation (share) in a firm is measured in relation to its earnings. One can distort that mean..(about 10-14), but then it will be a long painful trip to the reversion to it.
      Just like when they overshoot the mean, equities in great companies, with strong earnings will become way undervalued.
      As has been said, you buy when there’s blood in the streets. That shouldn’t be blood from one’s nose from stratospheric PE valuations.
      PM’s aren’t investment products. They’re insurance products in the face of out of control central govt and bankers. PM’s are also money, not currency. They hold value, and are accepted everywhere as a medium of exchange.
      If you want leverage in PM’s, you buy miners. Then you have 3 to 1 or higher. But like any leverage play, they leverage down not just up.

      • nv_pogonip

        i’m learning, what is PM?

        • Marcopolo

          Precious metals- gold, silver. Some also look at platinum and palladium. Palladium is more of an industrial metal used in catalytic converters. So as auto production ramps down, so does its price.
          Silver is as much an industrial metal as well as money; palladium not at all. So, PM’S are usually only referred to as gold and silver and platinum. Platinum is a recent entry. Gold has been money for about 5,000 years; silver about 3,000. Due to scarcity platinum usually commands a higher currency price than gold, but not as well known, very hard metal to work, so not as universal as money as gold and silver.
          Studying PM’s is gold and silver markets and miners.
          They are also commodities, so they trade as such, but are in fact money, and at times, like now, trade as money.
          What’s in your wallet is currency, not Money. It has all the attributes of money but one…a store of value. An ounce of gold can purchase about the same value of goods from 1700’s to today, like a fine men’s suit.
          Your $1.00 from 1913, the start of the Fed, used to buy you goods valued for a dollar; today it buys you about 4 cents in goods.
          Gold is not an investment. It’s insurance to protect you and your wealth from the psychotics in government and the central banks that erode your wealth through inflation.
          The “value ” of PM’S is always a cross trade with a currency. In US DOLLAR terms, it’s about $1330. But, if you were in Russia, Venezuela, Canada and most other countries that have had a drop in the value of their currency, you would have retained 100% of your purchasing power of your savings or wealth from before the decrease.
          Like I said, insurance against the zombies:-)

        • Precious metals.

    • Sydney

      Please note rising interest rates destroys the value of bonds and derivatives. There is a lot of currency in the bond market, much more (times 100 or more) than the stock market and much more in the derivatives market than the bond market (times a 1000 or more). When interest rates rise currency will be destroyed in both the derivatives market and bond market and stock market. Currency will be destroyed OR flee to other markets such as gold (and silver). This is BOTH theoretically true and historically true. Gold prices spiked in the 70’s will interest rates where rising NOT falling! Yes Volker “tamed” inflation but not alone. His jacking of interest rates suddenly required belief, confidence and near complete control of the way people think which is not in effect to the extent it was then. MORE significantly DEBT was extremely low by todays standards so jacking interest rates did not destroy they amount of faux wealth then as it would today. I say faux because that’s all it is ! Decimals and paper are NOT true wealth or value unless of course you choose slavery to those who run the decimal and paper system. How has that been working for ya?

      Yes timing is difficulty if not impossible. Outcome may be a more sure bet. But in the end who are you anyway? I slave? Content to enslave yourself AND your children? It causes me pain to say, but perhaps it must be said, you get what you deserve.

      The real value of this post is the opportunity to express my appreciation for great content at a great website! Questions have the power of freedom! In the end we all know the answers. After a while we all can connect the dots. It is just the fear we have to over come and in the end there is nothing to fear but the slavery that can only be imposed if we choose it!

      Keep the faith.
      Best Wishes in Human Action.

      • Pismo

        Agreed, but all this faux wealth is what will cause all to sell everything, including gold, when the shit hits the fan. Liquidate it all to cover debt expenses, as in 2008/9.

    • James

      What the dull and stupid miss is the fact that while the prices of gold and silver go up and down, it is an undeniable fact that after every episode of volatility, their prices never go back down to where they were previously. Silver used to be $1.21/oz, then it went to $50, now it’s $20. Gold was $20/oz, it went up to $1900, now it’s at $1300 or so. And unlike a stock or a bond, gold and silver will not go to zero and stay at zero.

  • 92216

    As the old saying goes: “If you aren’t physically holding it, you don’t own it”

    The dollar dominated currency systems in place on this planet are all VIRTUAL currencies. As are all the scam replacement virtual currencies, such as Bitcoin and other cryptos, tptb are rolling out, promoting (and pumping) for consumption of the unaware sheeples. None of those are MONEY folks, none have any physical value whatsoever. All are simply short and medium-term pump and dump schemes that enable tptb to march the populations of sheep from centralized pasture to greater-centralized pasture.

    If you have nothing tangible and physically in your possession to trade away to others for life sustaining goods, you have nothing of value to offer (or add) to universe. And YOU are the only responsible party for engineering and making certain your own demise.

    The dollar based currencies are all under continued demolition pressures and will not be reversed by tptb. Their engineered “fed mistake” is still in the script folks! Dump the silly virtual paper and digits from your life and get real, else remain the victims of your useless belief systems. And sole bagholder.

    September is a very important (possibly critical) month for them. What say we all begin to abandon our “humans are stupid” roles provided for us and take this personal opportunity to wake up!!!

    Folks, there are many that still care about you on this planet. Somehow, many still hold hope that one day humans may not be as functionally stupid. Somehow, humanity have got to become responsible. Why don’t you spend this next month learning about the dialectic trickery you are being exposed to? Start here: http://redefininggod.com

    It will take each of you a few weeks to read, study and fully understand the comprehensive material resources on Ken’s excellent site. Show me you are not going to tolerate tptb nonsense any longer.

    Please.

  • Rog cook

    I also read that Swiss and Norwegian central banks are buying miners, approx $1billion each!
    Also somebody asked Deutsche Bank to redeem their physical gold that they held in an etf. Deutsche refused for “business reasons”, even though the etf promises redemption. This implies that they do NOT HAVE THE GOLD.
    THIS IS THE BEGINNING OF THE END!
    Like the DB says buy gold ( and silver) miners. They won’t double, they could shoot the moon when the cras comes.

  • Asami

    Relevance of Blue Sky Uranium?

    • Part of his contact info. He’s mentioned it before.

  • Asami

    All good things. All in the recent pp.

  • the1776

    Do you all have an editor? I am curious because all the errors really take away from your message. e.g. “… justify any sort hike.” “Supposedly, this will provide the Fed to move rates back down as necessary.”

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