Monthly Archives: August 2017

Stability concerns focus at Fed ahead of Yellen speech

Reuters/Howard Schneider/08-18-17

The stock market’s steady rise, still low long-term bond yields and a sagging dollar are girding the Fed’s intent to raise interest rates again this year despite concerns about weak inflation, according to comments this week from Fed officials and analysts anticipating remarks next week by Chair Janet Yellen.

Minutes of the July Federal Open Market Committee meeting released this week flagged a division among policymakers focused on weak inflation as a reason to stall further rate increases and those who feel still loose financial conditions pose a risk the Fed needs to counter.

…”I would not be surprised to see Chair Yellen outline a similar argument at Jackson Hole — namely, that financial conditions are a piece of the puzzle that currently support maintaining a gradual pace of tightening,” analysts from NatWest Markets Strategy wrote in a morning note.

Posted in Central Banks, Monetary Policy |

The Daily Market Report: Gold Retreats From Above $1300

USAGOLD/Peter Grant/08-18-17

Gold probed briefly above $1300 in early New York trading, establishing new highs for the year, but these gains could not be sustained. The yellow metal is presently trading modestly lower on the day.

The retreat may have been simple profit taking ahead of the weekend, but the media is reporting a relief rally in risk assets on the apparent ousting of White House chief strategist Steve Bannon. While Bannon was perhaps one of the more divisive members of President Trump’s inner circle, I don’t quite understand why this is a risk-on event.

Nonetheless, stocks have rebounded and bonds and the yen have retreated along with gold. I suspect however that the departure of Mr. Bannon will do little to mitigate the ongoing drama in Washington; just as the ousting of Flynn, Spicer, Priebus, Scaramucci et al only amplified the political uncertainty.

That rising political uncertainty has been a driving force behind gold in recent months, which also magnifies to some degree the geopolitical uncertainty. Constant turnover within the President’s inner circle does nothing to clarify, nor improve the likelihood that his domestic agenda, trade and foreign policy will be advanced. That reality would seem to mark this dip in gold as yet another buying opportunity.

Earlier today, as gold was setting new highs, Zerohedge tweeted the following:

This is no surprise to our reader, nor those of the Zerohedge blog. However, I suspect it would come as a shock to many that only get their financial news from CNBC for example. Those investors that are still heavily allocated to shares, despite the frothiness of that market, are playing with fire. They could have diversified their portfolio with some gold this year and not paid any price in terms of performance to have that insurance.

Portfolios with a gold component tend to perform better over time anyway. It’s never too late to start building a hedge.

Posted in all posts, Daily Market Report, Gold News, Gold Views |

Trump Has Decided to Remove Bannon, New York Times Reports

Bloomberg/Justin Sink/08-18-17

President Donald Trump has decided to remove Stephen Bannon from his role as White House chief strategist, though the timing of his departure is unclear, the New York Times reported.

The departure of Bannon, the chief executive of Trump’s presidential campaign and an architect of his election victory, removes a champion of conservative populism from the White House. The former chairman of Breitbart News, Bannon served as a link to the so-called “alt-right” movement attuned to the attitudes and opinions of the president’s base.

Trump is still debating the time and manner of Bannon’s exit and may still change his mind, the Times reported, citing two administration officials.

PG View: Why this is a risk-on event is lost on me.

Posted in Politics |

Gold retreats from above $1300 as rumors of another impending firing within President’s inner-circle sparks a rebound in risk appetite (according to reports). Or it could just be profit taking ahead of the weekend.

Posted in Gold News, Gold Views |

Gold breaks $1,300 for first time since November

FT/Paul McClean/08-18-17

The price of gold has hit $1,300 per ounce for the first time since November, as jolt of market nerves and a dovish Federal Reserve comments lure investors to the precious metal.

…Analysts said its rally came amid a jittery tone to markets, with equity benchmarks sliding on further turmoil in the White House, coupled with yesterday’s terror attacks in Barcelona.

“The general sentiment from the Fed crew was on the dovish side, setting both the dollar and equity markets on a risk-off tone,” said Amaryllis Gryllaki at TD Securities. “The VIX ticked up as the terrorist attacks in Spain and Trump’s latest headlines weighed down the market. Gold has been tacitly taking advantage of all this uncertainty.”

George Gero at RBC Capital Markets said the precious metal could rally further in the coming days as traders “continue to worry about North Korea, Russia (a supplier of Platinum and palladium), Venezuela, and the Eurozone – especially after the Barcelona tragedy.”

Posted in Gold News, Gold Views |

Gold Spikes Above $1300, Overtakes Dow Year-To-Date

ZeroHedge/Tyler Durden/08-18-17

For the first time since early June, Gold has just broken back above $1300, continuing to mirror the ebbs and flows of USDJPY (which just snapped below 109.00).

Is 3rd time the charm?

Gold is now outperforming The Dow year-to-date…

PG View: What?! Gold is outperforming the DJIA year-to-date? Why do I think this will come as a shock to anyone that does not read this page or ZeroHedge?

Posted in Gold News, Gold Views |

University of Michigan sentiment (prelim) jumped to 97.6 in Aug, above expectations of 94.0, vs 93.4 in Jul.

Posted in Economic Data |

Spot gold high for the day and year 1300.83.

Posted in Gold News, Gold Views |

Gold retakes $1,300 level for first time in 9 months

MarketWatch/Mark DeCambre/08-18-17

Gold futures on Friday were trading above $1,300 for the first time in 2017 and were on track for their third straight daily gain, as precious metals drew haven demand, sparked by a selloff in a global equities, a terrorist attack in Barcelona and concerns about President Donald Trump’s pro-business agenda.

…A flight to assets perceived as safe has been underpinned by Thursday’s selloff in equities, highlighted by the worst downdraft for the Dow Jones Industrial Average and S&P 500 index since May 17.

…Markets were roiled Wednesday by unfounded rumors that presidential economic adviser Gary Cohn, a former Goldman Sachs executive, was set to resign his post as White House economic adviser in response to the president’s reaction to a white-supremacist rally that left one woman, Heather Heyer, dead. Trump’s response to the rally has caused a furor among business leaders.

That political turmoil has thrown into question Trump’s ability to follow through on campaign promises, including pledges on deregulation, tax cuts and a boost to infrastructure spending that had helped propel risk assets higher and gold lower.

However, mounting headwinds in the stock market have provided a path for gold and Treasury notes to climb higher.

Posted in Gold News, Gold Views |

Morning Snapshot: Gold rallies to new highs for the year

USAGOLD/Peter Grant/08-18-17

Gold extended to the upside driven by risk aversion. Yesterday’s terror attack in Spain further sapped risk appetite that has been weighed recently by heightened geopolitical, political and economic risks.

The yellow metal eked out new highs for the year above 1296.06. A convincing push above $1300 would shift focus to last summer’s peak at 1375.15.

The dollar has eased as well, offering additional support for gold. The corrective uptick in the greenback over the past two-weeks never amounted to much. Critical support defined by the 91.92 low from May of 2016 is considered vulnerable.

Canada continues to struggle with low inflation as well. July CPI was unchanged. While annualized inflation ticked up to 1.2%, this is well below the BoC target.

The U.S. calendar is light with just preliminary Michigan consumer sentiment for August. We’ll also hear FedSpeak from Dallas Fed President Robert Kaplan.

Posted in Gold News, Gold Views, Snapshot |

Gold higher at 1296.00 (+6.98). Silver 17.20 (+0.146). Dollar lower. Euro higher. Stocks called higher. U.S. 10-year 2.18% (unch).

Posted in Markets |

Gold moving higher in Asia

Looks to be motivated by weaker Asian stock markets and dollar strength particularly against the Indian rupee and Japanese yen.

We will be tracking throughout the day.

At this posting:

Gold trading moderately higher at $1293, up $4.75 overnight.

Silver trading steady at $17.13, up  7¢.

Encouraging gold turnaround from lows during today’s U.S. trading session.

Posted in all posts |

Donald Trump isn’t the only factor behind 2017 gold rally

MarketWatch/Myra P. Saefong/08-17-17

Gold’s getting ready for a breakout above $1,300 an ounce and it’s not just because of investor jitters tied to President Donald Trump.

“The Trump presidency is one element contributing to the generally nervous atmosphere as far as geopolitics are concerned—an important element, but not the whole picture,” said George Milling-Stanley, head of gold investment strategy at State Street Global Advisors.

…“Other important elements include Russian President “Vladimir Putin’s territorial ambitions, the increasing belligerence of North Korea, the deteriorating relationship with Iran, significant differences of opinion with many traditional allies of the U.S., the fact that American troops are at risk in Afghanistan and Iraq, the intractable problems of the Middle East—including but not limited to ISIS and al Qaeda, Syria, and the worsening situation between Israelis and Palestinians,” he said.

Posted in all posts, Gold News, Gold Views |

Is Gold A Long-Term Buy As U.S. Recession Fears Grow?

KitcoNews/Neils Christensen Nels/08-17-17

While gold could continue to suffer in the near-term, any significant drop in prices could be seen as a buying opportunity as calls for the U.S. to slip into a Recession increases.

Adding to the choir of recession talk is the U.K.-based research firm that said in a recent report that the U.S. economy could see a contraction in growth within the next few years due to higher interest rates. Michael Pearce, U.S. economist for the firm said that he expects the U.S. growth to falter by the start of 2019.

…“If a recession hit before the Fed had a chance to rebuild its policy arsenal, there’s a significant risk that policy would end up stuck at the effective lower bound again,” he said. “That raises the spectre of a long period of (even) weaker growth and inflation, along with an increased risk of asset price bubbles.”

Posted in Gold News, Gold Views |

Donald Trump puts the great ‘Cohn trade’ in doubt

FT/Gillian Tett/08-17-17

When Donald Trump won the race for the White House last year, markets rallied. The so-called “Trump trade” rested on the hope that the US president would deliver business friendly reforms that would boost growth. This was a bit of a misnomer: what executives and investors have really been betting on for most of this year is a “Cohn trade”.

…The question that investors and executives are asking is whether that “Cohn trade” still works. It certainly looks like a higher risk bet. Never mind the fact that Mr Cohn and John Kelly, the president’s chief of staff, failed to stop Mr Trump from making his inflammatory comments this week about the Charlottesville protests. What is most telling is that this disaster happened at the very moment that Mr Cohn’s star was supposed to shine.

…This does not necessarily mean that all the investor optimism around the Cohn trade has disappeared. Stock markets are still flushed with oodles of central bank liquidity and boosted by moderate economic growth. And one important detail about the Cohn-cum-Trump trade that is often forgotten is that markets did not merely rally because business hoped reforms would get done. Executives were also excited about what might not occur under Mr Trump — Barack Obama-style regulatory creep.

Posted in Economy, Politics |

Historical inevitability and gold and silver ownership

In the end, it’s the times that need to be hedged.

by Michael J. Kosares, USAGOLD

The Wall Street Journal’s editorial writer, Daniel Henninger, registers some very important observations in the wake of the troubling events in Charlottesville. Charlottesville, he attempts to point out, is symptomatic of something much deeper ingrained in the American psyche. “Some may say,” writes Henninger, “the Charlottesville riot was the lunatic fringe of the right and left, with no particular relevance to what falls in between. But I think Charlottesville may be a prototype of a politics that is drifting away from traditional norms of behavior and purpose.”  Aptly, the editorial is titled, “The Politics of Pointlessness.”

Any thoughtful individual who has witnessed the chaos in Washington would say that something has gone fundamentally wrong with our system of governance and it began way before Donald Trump entered the White House.  Through all of this I keep coming back to the seminal book published in 1997 by William Strauss and Neil Howe titled The Fourth Turning.  In that book the authors predicted much of what has happened in America over the past twenty years.

Fourth turnings are a time of crisis that can last 20-23 years

The fourth turning is a time of crisis – an overturning of the existing social and economic order. The start date of the current fourth turning, according to Neil Howe, is 2008.  Since turnings typically last 20-23 years, it will end sometime between 2028 and 2031.  So a lot of water will run under the bridge before it’s all over.

I listened to a compelling, recent interview of Neil Howe at the MacroVoices website – a thorough review of the ideas in the book and a lengthy look at what might be next. (The full interview transcript is linked below.)  To elaborate on my short description immediately above, here is Mr. Howe’s own description  of a fourth turning along with a few other important quotes from that interview:

 –– “The fourth turning is the final season of history, if you will, the final generation. And that is the period of crisis. That is the period when we tear down institutions that we’ve built, everything that’s dysfunctional. And we sort of rebuild things from scratch again. And it usually follows a period where—it’s bound up in a period where there’s complete disgust, complete distrust with what we have.”

–– “And I would say these are strong parallels that we see between the decade we’ve been living through and the 1930s. Because it isn’t just what happens to/in the economy. I mean, you consider so many ways in which this last decade has recapitulated the 1930s, starting off with a financial crisis, worries about deflation, worries about declining fertility rates, and currency wars, and beggar thy neighbor policies, and radical attempts by monetary and ultimately fiscal policy to remedy the situation.”

–– “I think we can be too mesmerized by the fact that the last fourth turning we had started with the Great Depression and ended with World War II. I think there are more possibilities. We could be defeated on a fourth turning. We could completely unravel on a fourth turning, giving the amazing popularity of these dystopian or alternative history drama shows on HBO and Netflix today really spelling out those scenarios.”

–– “And then the crisis, when all of these problems begin to coalesce into one huge problem. It’s when the Great Recession met all of these—the rise of fascism both in Asia and in Europe, and everything came together, currency wars, everything became part of a huge problem. Which, by the resolution, you see—and this is what happens at every fourth turning. All the little problems come together into a giant problem. And the giant problem gets completely solved.”

–– “So in politics we see volatility is incredibly high. If there were a political index—there is a political index, there’s a political uncertainty index which actually you can go on FRED and look at it, which is amazingly high levels compared to where it was for the last 20 or 30 years. There is a political index, but it’s very high right now as opposed to the market index which is very low. So, if you’re doing valuation divided by some measure of volatility, which is kind of your basic complacency index, that’s at record high levels now in markets. But you’d have to say complacency is at record low levels in our political and civic life. We’re totally nervous. We even, I think, to some extent, fear that we’ve lost any kind of public square, the ability to even have a public discourse on every issue. I think that that is a real problem.

[End quotes]

Historical inevitability and portfolio preparation: Gold and silver ownership

There is a certain amount of inevitability in Howe’s analysis that a good many will have a hard time accepting, but I am among the group that believes that we are carried on great waves of history whether we like or not.  That is why cycle theory has always appealed to me since my early days in the investment business.  I chose to become a gold and silver broker (back in 1973) because I have always believed that there are good and bad times economically, and when the bad times roll around, that is when you want to be sure that you have made preparation, and most advisedly well ahead of the trouble. Markets cycle.  Politics cycles.  Economies cycle.  Nature, by the way, cycles.  And when you really put on your thinking cap, that tells you why everything else cycles.

Gold and silver, unequivocally, remain the best choice to preserve capital during the secular downslopes – in times like these.  Whenever you watch what’s going on out there and you can’t seem to figure out why people are behaving the way they are, just remember that we are in the grips of a fourth turning and this is the way it is going to go and, as Howe points, it could get considerably worse.

If you have an abiding interest in the kind of analysis you are now reading, you might appreciate our monthly newsletter compiled and written by Michael J. Kosares, the author of the popular investor guideline,  The ABCs of Gold Investing: How to Protect and Build Your Wealth with Gold (Third Edition).  You can sign-up for it here.  Always timely.  Written for gold and silver owners or for those thinking about it.  Your interest is welcome.

My concern is getting across the bridge between the great crisis that may still be ahead of us and the resolution that comes at the end of fourth turning.  That is why I own gold personally and why I think every thinking, well-established individual financially should own it as well.  The name of the game is to protect wealth and not leave your life work on the table when the crisis hits with full force.  A diversification of about 10%-30%, in my view, will get the job done. How high you go within that range depends upon on how strongly you feel about what is going on.

Why I put so much stock in the book, The Fourth Turning

You may wonder why I put so much stock in Strauss and Howe’s The Fourth Turning.  Besides making a great deal of sense as a view of how we as human beings move through history from one generation to the next, the authors presciently predicted the 2008 financial crisis eleven years before it happened.

From The Fourth Turning:

“The next Fourth Turning is due to begin shortly after the new millennium, midway through the Oh-Oh decade. Around the year 2005, a sudden spark will catalyze a Crisis mood. Remnants of the old social order will disintegrate. Political and economic trust will implode. Real hardship will beset the land, with severe distress that could involve questions of class, race, nation, and empire.”

Talk about hitting the nail on the head.  The last two sentences tell it all as we now live through the experience.  I have always said that the gold and silver owner can afford to sit back and watch the show with a certain amount of detachment and comfort knowing you have done your best to protect your assets.  Gold certainly worked for its owners during the first stage of the fourth turning when gold went from roughly $700 per ounce to nearly $2000 at its peak before working back to current price levels. Silver did equally well going from roughly $16.50 to over $50 at its peak.

They are likely to work in the next stage of the cycle as well.  As we watch the social, economic and political implosion unfolding around us, you begin to wonder whether or not it has come time for the great middle of America to kick back a bit and take a more detached approach to the problems, and that is what Daniel Henninger is driving at in his editorial.

Neil Howe in his interview mentions a “political uncertainty” chart available at FRED in the quote section above.  I think he may have been talking about this chart, but even if it isn’t, it tells the same story.  As you can see, economic uncertainty has been running at a high level since the year 2000 and in direct correlation to gold’s secular bull market. Since 2008, for good reasons, the uncertainty has been running at consistently high levels and on a hair trigger. The current lull might simply be the calm before the next storm which, in my opinion, is already visible on the horizon.

I will end by returning to Daniel Henninger’s thoughtful editorial this morning and recommend that you read it in full along with Neil Howe’s interview.  Howe’s interview transcript and Henninger’s editorial are both linked immediately below.  Unfortunately, Henninger’s full article is not published in the clear, but Fox posted the beginning with a link to the full article.  Here is the thought with which he ends the piece.  It’s a good one.

“Amid the torrent, an odd paradox emerges:  People are consuming more content and detail about politics than ever, and more people than ever are saying, ‘I have no idea what is going on.’ Someone is at fault here, and it is not the absorbers of the information.  Charlottesville is being pounded into the national psyche this week as paroxysm of white nationalism.  On current course, the flight from politics is going to look like rational behavior.”

Neil Howe interview (Courtesy of MacroVoices/Audio version can be accessed at the MV link.)
Daniel Henninger editorial (Wall Street Journal, 8/17/17)
Posted in all posts |

The Daily Market Report: Gold Firms as Fed and ECB Lean Dovish

USAGOLD/Peter Grant/08-17-17

Gold remains generally well bid after once again nearing the high for the year at 1296.06 in earlier trade. Last week’s high at 1292.05 provides an intervening barrier.

The yellow metal rebounded strongly after the FOMC minutes from the July meeting revealed heightened concern over dimming inflation prospects. Former Fed insider Danielle DiMartino-Booth categorizes the minutes as “very dovish,” which further erodes the prospects for another rate hike this year. Ms. DiMartino-Booth added that the Fed has pulled back from recent hawkishness and “the bond market should sit-up and pay attention.” So too should gold.

The more dovish than expected Fed, put the dollar back under pressure yesterday, but the retreat was short-lived as today the ECB minutes revealed their own concern about euro strength (or should we say dollar weakness). If the ECB adopts a more dovish tone as well, it might be considered an escalation of the long-simmering currency war.

If yields turn lower and the dollar resumes its downtrend — ultimately negating the 91.92 support level in the dollar index from May of 2016 — it may well prove the impetus to finally push gold definitively back above $1300. With little in the way of support below 91.92 in the dollar index, gold could really run if that level gives way.

We’ve noted the headlines in recent weeks proclaiming that household debt had exceeded the previous record high set in 2008. We also are keenly aware of the impending debt ceiling debate that will rage once Congress returns from August recess. Debt is an anchor around the neck of the economy that is unquestionably a contributing factor to the weakest recovery since the 1930s.

A Bloomberg article warns that we shouldn’t be shocked if consumers run out of spending money:

We should certainly be concerned, as 70% of U.S. GDP is derived from consumption. For all too many U.S. families, the “money” runs out shortly after the paycheck arrives. Hence they are saving less and borrowing more. The death knell for the U.S. economy will ring when they run out of credit . . . or interest rates rise and they can no longer service the existing balances.

Posted in Daily Market Report, Gold News, Gold Views |

Gold rises on Fed caution, palladium hits 16-year peak

Reuters, via Nasdaq/Peter Hobson/08-17-17

Gold rose for a second day on Thursday after Federal Reserve officials hinted that U.S. interest rates could rise more slowly than expected, while palladium was lifted to a 16-year high by strong industrial metals markets.

…Commerzbank analyst Carsten Fritsch said U.S. President Donald Trump’s decision to disband two high-profile business advisory councils also helped gold because it shook confidence in Trump’s ability to enact economic stimulus, lowering expectations of rate rises.

Demand for gold as a safe haven also resurfaced after South Korea warned North Korea against “crossing a red line” and the United States said it would go ahead with joint military drills despite pressure from China, Fritsch said.

…Palladium surged 1.5 percent to $927.75 an ounce after touching $929.50, the highest since February 2001.

The metal, used in the auto industry for emissions-controlling catalytic converters, was being carried higher by a strong rally in industrial metals such as copper and aluminium this week, said Dominic Schnider at UBS Wealth Management in Hong Kong.

Posted in Gold News, Gold Views |

A Gary Cohn resignation would ‘crash the markets,’ management guru Jeffrey Sonnenfeld says

CNBC/Berkeley Lovelace Jr./08-17-17

The markets would crash if top White House economic adviser Gary Cohn resigns, Yale School of Management’s Jeffrey Sonnenfeld told CNBC on Thursday.

“I don’t want to be an alarmist, but there is a lot of faith that he is going to help carry through the tax reform that people are looking for,” Sonnenfeld said on “Squawk Box.”

“I think if he steps away, it would crash the markets,” he said.

PG View: Risk appetite has been diminished on yet another layer of political uncertainty, which is weighing on stocks and providing a tailwind for gold.

Posted in Markets, Politics |

U.S. leading indicators +0.3% in Jul, near in line with expectations, vs +0.6% in Jun.

Posted in Economic Data |

U.S. industrial production +0.2% in Jul, below expectations of +0.3%, vs +0.4% in Jun; cap use steady at 76.7%.

Posted in Economic Data |

Gold marches higher as haven demand persists after Trump dissolves councils

MarketWatch/Sara Sjolin/08-17-17

Gold prices continued higher on Thursday, boosted by haven demand after U.S. President Donald Trump disbanded two business councils and minutes from the Federal Reserve’s meeting last month pointed to concerns over sluggish inflation.

…Analysts at Commerzbank said the metal was sent higher in late trade on Wednesday as the dollar suffered after Trump said he’d dissolve two advisory councils following mounting pressure from high-profile CEOs. Trump has faced heavy criticism after he repeatedly blamed “both sides” for violence last weekend at a white supremacist rally in Charlottesville, Va.

“This quashes the initially big hopes that Trump could pursue a business-friendly policy. Ultimately, this could even prove damaging to the US economy,” they said.

…Gold also benefited from dovish minutes from the Fed’s July meeting.

Posted in Gold News, Gold Views |

Gold Gains on Divided Fed

FoxBusiness/Marina Force/08-17-17

Gold prices rose Thursday after minutes from the U.S. Federal Reserve’s July meeting showed disagreement over the timing of further interest-rate increases.

…Investors’ appetite for gold returned after the Fed minutes damped rate increase prospects and darkened the dollar outlook, said Eugen Weinberg, Head of Commodity Research at Commerzbank AG.

In addition to revealing a split on the timing of a future rate increase, the minutes noted lower-than-expected inflation numbers. The prospect of a longer period without a rate increase is supportive of gold, as higher rates boost the dollar and make gold less competitive against yield-bearing assets like Treasurys.

Posted in Gold News, Gold Views |

Morning Snapshot: Gold remains firm on dovish Fed

USAGOLD/Peter Grant/08-17-17

Gold remains well bid in the wake of yesterday’s more dovish than expected FOMC minutes, even as the dollar has recovered. Last week’s high at 1292.05 was pressured, but has capped the upside thus far.

Heightened concern about the lack of inflation evident in the FOMC minutes was interpreted as being dovish. However, changes in Fed funds futures have been limited thus far. A September rate hike remains off the table, while December is still a toss-up.

Initial jobless claims fell 12k last week to 232k. The Philly Fed Index fell to 18.9, which was better than expectations of 18.0. Later this morning, we’ll get July industrial production, which is expected to rise 0.3%.

Posted in Gold News, Gold Views, Snapshot |

Philly Fed index fell to 18.9 in Aug, above expectations of 18.0, vs 19.5 in Jul.

Posted in Economic Data |

U.S. initial jobless claims -12k to 232k in the week ended 12-Aug, below expectations of 240k.

Posted in Economic Data |

Gold better at 1285.57 (+2.40). Silver 17.08 (-0.044). Dollar higher. Euro lower. Stocks called lower. U.S. 10-year 2.24% (+2 bps).

Posted in Markets |

One Of Main Reasons To Own Gold — Cyber Attacks: Marc Faber

KitcoNews/Anna Golubova/08-16-17

Cyber attacks are currently one of the biggest threats facing our society today, which is why it is critical for all investors to have exposure to gold, said Marc Faber, editor and publisher of the Gloom, Boom & Doom Report.

Faber doesn’t think any country is “foolish” enough to invade the U.S., noting that the biggest vulnerability that remains is a possible disruption of services such as the Internet or electricity in a big city like New York.

…It is critical times like that which make gold’s value undeniable, he explained. “In these times, you want to have access to something physical that is a recognized medium of exchange.”

Posted in Gold News, Gold Views |

Gold Was Chemically Destined To Be Money All Along

Forbes/Frank Holmes/08-16-17

I think most of you reading this right now are aware that gold is unlike any other metal, certainly any other element. It doesn’t play by the same rules as iron or tin or aluminum, and its value has nothing to do with its utility—or lack thereof. People valued the yellow metal for its beauty and malleability eons before they knew of its usefulness in conducting electricity or its chemical inertness.
U.S. Global Investors

That gold is so chemically “boring,” though, is one of the main reasons why it’s so highly valued, even today.

This is the conclusion of Andrea Sella, distinguished professor of chemistry at University College London. In 2013, Sella spoke with Justin Rowlatt of the BBC World Service, walking him through all 118 elements of the periodic table.

Gold, according to Sella, is the best possible candidate for a currency of any value.

“I view gold as the primary global currency. It is the only currency, along with silver, that does not require a counterparty signature. Gold, however, has always been far more valuable per ounce than silver. No one refuses gold as payment to discharge an obligation. Credit instruments and fiat currency depend on the credit worthiness of a counterparty. Gold, along with silver, is one of the only currencies that has an intrinsic value. It has always been that way. No one questions its value, and it has always been a valuable commodity, first coined in Asia Minor in 600 BC.” — Alan Greenspan
Posted in Gold News, Gold Views |

Gold Pushes To Session Highs Following Dovish Fed Minutes

Kitco News/Neils Christensen/08-16-17

Mixed opinions among members of the Federal Open Market Committee on inflation and future interest rate hikes is keeping gold prices bid Wednesday afternoon.

Minutes from the Federal Reserve’s July monetary policy meeting show a strong debate on inflation with some members seeing inflation staying below 2% “longer than expected.”

“Some participants expressed concern about the recent decline in inflation, which had occurred even as resource utilization had tightened, and noted their increased uncertainty about the outlook for inflation,” the minutes said. “They observed that the Committee could afford to be patient under current circumstances in deciding when to increase the federal funds rate further and argued against additional adjustments until incoming information confirmed that the recent low readings on inflation were not likely to persist and that inflation was more clearly on a path toward the Committee’s symmetric 2 percent objective over the medium term.”

Posted in Gold News, Gold Views |