Monthly Archives: January 2018

Gold pops post Fed

Double bubble. Double trouble. (See Quote of the Day)

LATE REPORT

Gold finished up $6.37 today at 1344.76 surging in price after the release of the Fed Open Market Committee’s statement on the past two days’ proceedings.  Silver finished up 20¢ at $17.31.  Both metals essentially picked up where they left off last week as the trend in place before the Fed meeting reasserted itself. Having traded as low $1334, gold jumped nearly $13 after the statement was released.

Things have settled down in Asian trading with the Japanese yen currently running sideways against the U.S. dollar. Mitsubishi, the Japanese bank, is telling its clients to hold gold as a defensive play for 2018 citing a weakening dollar, rising inflation and rising bond yields as the prime incentives.

Quote of the Day
“There are two bubbles: We have a stock market bubble, and we have a bond market bubble.  At the end of the day, the bond market bubble will eventually be the critical issue, but for the short term it’s not too bad. . . What’s behind the bubble? Well the fact, that, essentially, we’re beginning to run an ever-larger government deficit . . Debt has been rising very significantly and we’re just not paying enough attention to that.” – Alan Greenspan, on Bloomberg television today.


The National Debt and Gold

Double bubble.  Double trouble. Mr. Greenspan speaks briefly about the problem but the time constraints of a television interview keep him  from telling how and why the national debt translates to major market risks.  In The National Debt and Gold, one article in our six-part investor introductory information packet, we pick up where Alan Greenspan leaves off. If you enjoy a good historical tale with important implications in the here and now,  we invite you to sign-up for our introductory packet.

Free of charge for both our prospective and regular clientele

As an additional bonus, you will automatically receive
a free subscription our monthly client letter.
(The February issue is scheduled for next week.)

Sign up here for immediate access

Share
Posted in Today's top gold news and opinion |

Gold jumps on Fed Statement

CNBC/Jeff Cox/1-31-2018

“The Federal Open Market Committee says current conditions indicate that the overnight funds rate should remain anchored at 1.25 to 1.5 percent. ‘Inflation on a 12-month basis is expected to move up this year and to stabilize around the Committee’s 2 percent objective over the medium term,’ the Fed statement says.”

MK note:  Gold jumped higher – up $13.50 from today’s low, up $8.50 on day.  Stocks reverse course – 200 point swing from high. 10-year went over 2.75%.  Influences in place before Fed meeting reassert themselves.

 

Share
Posted in Today's top gold news and opinion |

The next maestro

Real Investment Advice/Michael Liebowitz/1-31-2018

“The following article emphasizes that the perceived economic prosperity of recent decades is largely the result of political expediency. Those in charge of monetary policy have repetitively failed to act in the best interests of the public in an effort to either avoid criticism or preserve their individual status. While often ignored, this dynamic is crucial to understand to form longer term expectations for asset prices.”

MK note:  Particularly appropriate today with the Fed center stage and in lieu of the upcoming changing of the guard, Powell relieves Yellen. . . .

Share
Posted in Today's top gold news and opinion |

Mildly surprising, gold up in early trading

EARLY REPORT

Mildly surprising, that gold is up almost $5 in early trading today at $1344 in advance of the Fed statement this afternoon.  Silver is up 15¢ today at $17.30 and outpacing gold’s advance by a wide margin.

Some have postulated that Janet Yellen would ratchet up the hawkish rhetoric as she walks out the door, but we would be surprised if that were the case. Such a departure would be out of character.  We do not expect any waves with a new Fed chairman about to step in, but perhaps a ripple or two could be sent out across the pond.  The financial press and Wall Street’s pundits, though, could easily up grade those ripples to wave status. In the past, the change of a single word in the customary follow-up Fed statement has been known to create terminal anxiety in some traders (and algorithms), even a state of panic.

Chart of the Day

Chart note:  Silver has not done as well as gold thus far this year, leading some to believe that it has some catching up to do.  At USAGOLD, silver sales are running strong as has been the case for some time now.  Many investors view silver at current prices as the under-priced alternative to gold in the safe haven space. We do not recommend it as a replacement to gold, but as diversification within a diversification in prudent measure.

 

Share
Posted in Today's top gold news and opinion |

Federal Reserve expeced to leave rates unchanged

CNBC/Binjamin Applebaum/1-31-2018

“The Federal Reserve will release a monetary policy statement at 2 p.m. on Wednesday, after a two-day meeting of its Federal Open Market Committee, which sets monetary policy. Investors expect the Fed to leave its benchmark interest rate unchanged, in a range between 1.25 percent and 1.5 percent. The Fed’s economic assessment may be upgraded to reflect the strength of recent data. That would strengthen investor expectations that the Fed will increase the benchmark rate at its next meeting, in late March. This is the final meeting for the Fed’s chairwoman, Janet L. Yellen. She will be replaced this weekend by Jerome H. Powell, a member of the Fed’s board.”

Share
Posted in Today's top gold news and opinion |

Would you accept Bitcoin in payment for your gold or silver?

BloombergOpinion/Noah Smith/1-31-2018

“I hate to say I told you so, but … well, I told you so. Bitcoin, while still a popular financial asset, is looking less and less like a currency. Online payments company Stripe is ending Bitcoin support. It cites several reasons for doing so: ‘[Bitcoin] transaction confirmation times have risen substantially; this, in turn, has led to an increase in the failure rate of transactions. … By the time the transaction is confirmed, fluctuations in Bitcoin price mean that it’s for the ‘wrong’ amount. … Furthermore, fees have risen a great deal … making Bitcoin transactions about as expensive as bank wires.’ A steady trickle of companies is no longer accepting Bitcoin as payment for goods and services. Such transactions never became very widespread in the first place. Even a Bitcoin conference in Miami refused to accept Bitcoin for its attendance fees!”

MK note:  I have a simple question for those who think that Bitcoin is a substitute for gold:  Would you accept it in payment for your gold or silver? We have wondered how some online coin shops can accept Bitcoin in payment for gold, or why they would want to.  The fluctuations in value could turn an ordinary transaction into a complete disaster in a heartbeat.

For some reason, Bloomberg’s headline for this article does not match the content underneath. The author ends with the conclusion that bitcoin is not gold – the opposite of the headline.  “[P]eople simply believe in gold,” writes Smith.  “In the end, the price of an asset is what people believe it’s worth. Many people believe that fiat currencies will eventually collapse, and that gold will reemerge as the global currency. That narrative has survived over many decades, and the rise of Bitcoin as an alternative hasn’t killed it yet.”

Nor will it. . . . .

 

Share
Posted in Today's top gold news and opinion |

TD Securities: Gold likely to consolidate in near term before moving higher

Scrap Register/1-31-2018

“Gold is likely to consolidate in the near term even though the metal may be headed toward $1,400 an ounce yet this year, said TD Securities. For one thing, forex and gold traders want to see what Federal Reserve policymakers say at their meeting this week before becoming too aggressive. ‘It is likely that with the Fed signaling a March hike, there will be many market participants choosing to take profits should the Fed turn more hawkish than expected,’ TDS added.”

USAGOLD note:  Not sure that this will be the case, but if it is and you are of the ‘buy-the-dip’ mentality, the next day or two might present an opportunity.

Share
Posted in Today's top gold news and opinion |

Gold spends day tracking sideways despite big stock market drop

LATE REPORT

Gold spent the day tracking sideways despite the big stock market drop and the bond yields pushing higher. At the end of the trading day, it was down $2 on the day at $1338.40.  Silver also spent the day tracking sideways and finished at $17.13.

The most interesting comment today may have come from DoubleLine Capital’s Jeffrey Gundlach, the famed bond market expert.  “The gold chart looks a lot like the commodity chart, like it’s pacing out, about to break higher. And with the dollar getting weaker, I think you stay with that systematic positioning. I’ve been recommending gold for a couple of years.”

Gundlach went on to say that “dollar cycles are persistent and fairly predictable . . . We had a big down year in 2017, which was against all consensus forecast. And in 2018, the dollar is off to a bad start. And usually when you have a bad year, it is followed by one or two more bad years.”

Quote of the Day
“There is no means of avoiding the final collapse of a boom brought about by [circulation] credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” – Ludwig von Mises


USAGOLD’s
Online Order Desk

If you haven’t visited our new Online Order Desk as yet, we invite you to take a test drive. If you have ordered from us in the past, you automatically qualify for online ordering privileges.  We have been pleasantly surprised by its instantaneous popularity and the number of clients who have already placed their first order.

One of its most useful features is that you can order anytime day or night and on weekends. The state of the art system updates prices continuously, and we have a good selection of items available typical of most safe-haven precious portfolios. We invite your visit and participation.

Great prices. Quick delivery.  All the time.
Modern gold and silver bullion coins and bars
Historic fractional gold coins (bullion-related)
Historic U.S. gold coins

You’re going to like it!

Share
Posted in Today's top gold news and opinion |

Dow plunges 400 points, on track for biggest points drop since June 2016

CNBC/Fred Imbert and Alexandra Gibbs/1-30-2018

Also. . .
Bloomberg/Sarah Ponczek/1-30-2018

“Equities took a series of body blows, starting with rising anxiety that the latest gains had gone too far too quickly. News that Amazon.com, JPMorgan Chase and Berkshire Hathaway plan a joint unit that may disrupt the health-care industry jolted that sector to the steepest drop in more than a year. Apple Inc., the world’s largest company by market value, sank to a three-month low as concern mounts that its latest iPhone isn’t selling briskly. Energy producers slumped with the price of crude. European equities capped the worst day since November after Asian shares dropped.

 

Share
Posted in Today's top gold news and opinion |

Bullish signals for gold

TECHNICAL ANALYSIS

Streetwise Reports/Clive Maund/1-3-2018

“The key message of this update is that gold is getting closer and closer to breaking out of a giant Head-and-Shoulders base pattern that started to form back in the middle of 2013 and to point out that it won’t be stopped from doing so by any minor short-term reaction, especially as the dollar has just broken down from a giant top pattern and looks set to plummet, notwithstanding any near-term rally to alleviate its oversold condition.”

MK note:  “[T]he first target for gold,” says Maund, “is the quite strong resistance in the $1520–$1560 area.” Maund’s number is in line with my own prediction for 2018 (January issue of News & Views):

“Investment capital is forever rummaging around for an opportunity and smart money will always find what is undervalued. That in a nutshell is what gold has going for it as we enter the new year. In 2017, we saw the first signs of a sentiment-driven, smart-money migration to gold – a vanguard led by professional investors who govern institutional trading desks and manage multi-billion dollar hedge funds. In 2018, cash-flush private investors, absent the past year, will join with professional money in the pursuit of gold both in physical and paper forms. That should be enough, in my view, to generate a 20% improvement from December’s closing number and put the price in the $1550-$1560 range.”
Share
Posted in Today's top gold news and opinion |

People are bragging about becoming 401(k) millionaires — and posting their balances to social media

MarketWatch/Sally French/1-3-2018

“How are Americans’ 401(k)s doing? Just check Twitter. In what many will see as the latest sign of investor euphoria — and of our society’s oversharing epidemic — sharing your 401(k) balance on social media seems to have become a thing. Meet a Reddit user going by the name ‘Subject—Beef.’ He wrote that he has contributed $308,000 to his 401(k) since 1995, and posted a detailed rundown on his yearly contributions and resulting balance of $1,007,375.50.”

MK post:  A few “old world” maxims need be taken to heart by these 401k millionaires.  The first has to do with discretion and tooting one’s horn too loudly.  The second has to do with the nature of paper profits, as in: They are not real until you take them, until that is, you sell.  The third has to do with the tenuous nature of manic stock markets, as in:  They have been known to crash unexpectedly. . . .and wickedly. How is it that all the wisdom garnered over so many years of market experience and passed from generation to generation been so helplessly lost?  Oh well. . .not my really my concern.  I just watch like you do with mild interest.

 

Share
Posted in Today's top gold news and opinion |

Gold up marginally this morning, waiting on Fed

EARLY REPORT

Gold is up marginally at $1343.50 in early trading as the market goes on hold while the Fed meets.  Silver is up 4¢ at $17.13.  Meanwhile, the stock market is taking a it – down 250 points as this written – its biggest fall in two months.  Simultaneously bond yields are inching higher.

As reported yesterday there are two opposing forces pulling on the gold market.  The first is the Fed meeting.  Gold almost always trades sideways to down while the FOMC is in session.  The second is the plight of the dollar and the market for U.S. Treasuries. Both of are under insistent pressure for a variety of reasons discussed regularly on these pages. (Please scroll below.)  The first influence is likely to go away over the next few days, but the second is likely to remain.

This combination of bond and stock market weakness has led some commentators to lament that there is no place to run, no place to hide.  That might be a bit myopic. There is one place to go – one still undervalued, historically proven and universally understood for its value. It has the atomic number of 79.  It’s yellow, shiny, and you can store enough of it in a small safety deposit box to weather any uncertainties that might lie ahead . . . even the most challenging.

Chart of the Day

Chart note:  This chart shows the one-year performance of the US dollar against a basket of currencies.
Share
Posted in Today's top gold news and opinion |

CFTC, DoJ, FBI crackdown on spoof precious metals trading

CFTC/Press Release/1-29-2018

“Division of Enforcement Director James McDonald said, ‘Spoofing is a particularly pernicious example of bad actors seeking to manipulate the market through the abuse of technology. The technological developments that enabled electronic and algorithmic trading have created new opportunities in our markets. At the CFTC, we are committed to facilitating these market-enhancing developments. But at the same time, we recognize that these new developments also present new opportunities for bad actors. We are equally committed to identifying and punishing these bad actors. The CFTC’s enforcement program is built around the twin goals of holding wrongdoers accountable and deterring future misconduct. We believe these goals are best achieved when we hold accountable not just companies, but also the individuals involved. . .”

Share
Posted in Today's top gold news and opinion |

Asian, Europe stocks trade down, U.S. futures off

Japan -1.4%
Hong Kong – 1.1%
Shanghai -1%
London (mid-day) – .6%
Frankfurt – .6%
U.S. futures (DJIA) – .8% (-215)

FOMC meeting today.  Asia, Europe stocks follow U.S. lead yesterday.  Also, 10-year yield kicks higher, now 2.714%.

 

Share
Posted in Today's top gold news and opinion |

Gold retreats in advance of Fed meeting, stocks and bonds take a tumble

LATE REPORT

Gold retreated today finishing the day down $9.40 at $1340.10.  Silver ended the day down 19¢ at $17.14.  As reported this morning, the upcoming Fed meeting and continuing concerns about the brewing trade and currency wars remain the key market influences.

Probably the most important development during the course of the day was the erosion in the bond market.  Stocks also took a tumble.  We will see what kind of follow-through we get tonight and tomorrow.  As noted earlier, the potential for destabilizing trade and currency wars on multiple fronts continues to dominate investor thinking, and could, before the week is out, regain the upper hand.

Quick update:  The downtrend has carried over to Asian trading this evening with gold down an additional $5 as this is written.

Quote of the Day
“There’s been a lot of thunder and now the storm is coming.  Maybe the world economy can absorb all of this, but these actions on trade and currency have ripple effects around the world and I don’t take them lightly.” – Matthew Goodman, Center for Strategic & International Studies, as reported in Financial Times


Better Business Bureau Client Review

“I have been a client of George Cooper and USAGOLD since 1998, about 20 years. I am very impressed with George’s knowledge, professionalism and integrity. As for trading metals and coins, George and USAGOLD have been very fair in dealing with me. By trading on lower margins on transactions than what the industry typically takes on trades, I have had nothing but positive experiences with USAGOLD. The company’s website, timely advice and information resources, such as the book, The ABCs of Gold, have provided additional knowledge enabling me to make the best buying/selling decisions. USAGOLD has also made special arrangements for the delivery of precious metals which I’ve purchased over the years. 5 Stars!” – Manning M.

If you are new to the gold market and looking for a place to land, we invite you to give us a call and discover first-hand why thousands have chosen USAGOLD as their precious metals firm.

Share
Posted in Today's top gold news and opinion |

10,000 hours with Claude Shannon: How a genius thinks, works, and lives

Human Interest

Jimmy Soni/The Mission/7-20-2017

“Within engineering and mathematics circles, Shannon is a revered figure. Claude Shannon’s work in the 1930s and 1940s earned him the title of ‘father of the information age.’ At the age of 21, he published what’s been called the most important master’s thesis of all time, explaining how binary switches could do logic. It laid the foundation for all future digital computers.”

 MK note: Every once in a while, especially on slow days, I will post a human interest piece like this. . .Something that catches my fancy, completely off-subject and, perhaps, a little off-beat as well.  This piece offers some life-style and career approaches worth contemplating, especially for the younger set.  Enjoy. . . . . .

Pictured:  Shannon holding a maze-solving mouse, an early illustration of artificial intelligence.

 

Share
Posted in Today's top gold news and opinion |

Rates are shooting higher on inflation fears, 10-year yield its highest in nearly 4 years

CNBC/Alexandra Gibbs and Thomas Franck/1-29-2018

“The yield on the benchmark 10-year Treasury note surged to 2.727 percent on Monday, its highest since April 2014, as investors bet on an accelerating economy and inflation.  A falling dollar this month has also helped drive yields higher as traders worry it may reduce the appetite for Treasurys, while boosting inflation. The 10-year yield ended December at 2.43 percent.”

MK note:  Stocks were down 150 earlier, down 117 now.   The market is taking rates higher, i.e., bond liquidations pushing up rates.  Mortgage rates jumped today to the highest level in four years, but that shouldn’t be a surprise given the Fed’s intentions to push rates higher.

Related:  Welcome to the new reality of leaping U.S. Treasury debt sales/Bloomberg,  posted earlier today (scroll or click).
Share
Posted in Today's top gold news and opinion |

Gold’s report card shows strong start to the year, solid trends

EARLY REPORT

Gold is trading to the downside this morning ahead of tomorrow’s Fed Open Market Committee meeting, down $5.50 at $$1344.   Silver is following suit, down 17¢ at $$17.23. The dollar, due for a respite, is trading a tad higher this morning and pushing gold and silver prices in the opposite direction.

The consensus opinion is that the Fed is unlikely to do anything even mildly beyond the scope it has already outlined given the fact that a new Fed chairman will be stepping-in next month. Then again, no matter what is done or said – how carefully the committee’s position is couched – it is difficult to predict how the markets will react. In juxtaposition, the potential for destabilizing trade and currency wars on multiple fronts continues to dominate investor thinking, and could, before the week is out, regain the upper hand.

As we start the new week, our report card shows gold up 3.6% in 2018, up 8.7% from the 12/11/17 low, up 13.6% year-over-year (2017-2018) and up 20.6% two year -over-two year (2016-2018).  The start dates for each time period are annotated in today’s Chart of the Day with colored dots and calculated from Friday’s close of $1350.00.

Chart of the Day

Share
Posted in Today's top gold news and opinion |

Gold, silver likely to be bought on price dips

Scrap Register/1-29-2018

“Gold and silver are likely to draw buying on any pullbacks, said Sean Lusk, director of commercial hedging with Walsh Trading. The metals are in fact lower on profit-taking Friday. Previously, they ran up sharply this week on U.S. dollar weakness. I think the uptrend continues into month end, he noted. He later added that, these dips are going to provide a buying opportunity as long as weekly trendline support holds.”

Share
Posted in Today's top gold news and opinion |

China’s silver imports surge in 2017

Scrap Register/1-29-2018

“China’s gold imports fell during last year, but silver imports rose, said Commerzbank in a snippet. According to customs authorities, silver imports soared by 28% year-on-year to nearly 4,300 tons, achieving a seven-year high. Last year saw solar-cell production stepped up considerably for the second consecutive year in China, with over 50% more solar panels installed. This resulted in high demand for silver, Commerzbank added.”

Share
Posted in Today's top gold news and opinion |

Welcome to the new reality of leaping U.S. Treasury debt sales

Bloomberg/Liz McCormick and Saleha Mohsin/1-23-2018

“The world’s biggest bond market is about to get a taste of the future, with the U.S. Treasury expected to unveil bigger note sales for the first time since 2009 to fund budget deficits that are likely to deteriorate for years to come. . .Dealers forecast an onslaught of debt supply that will lead issuance to at least double this year to more than $1 trillion, the most since 2010, starting with sales of short- to medium-term maturities.”

MK note: This comes at a time when the Federal Reserve will no longer be a buyer (at least that is its plan) and when China (the top holder of U.S. debt) and Japan (the second largest holder of U.S. debt) have withdrawn from the market, at least for now – all of which puts the onus on US domestic buyers for the lion’s share of the federal government’s upcoming bond issue. Keep in mind the $1 trillion figure is an estimate.

Related:  CNBC/Stephanie Landsman/1-28-2018 A fire sale by the Treasury could send shock waves through the bond market, strategist warns / “They [people] are worried about Treasury issuance going up, up, up. You could see an increase in 2018 of 50 percent — maybe more versus last year. That’s got a lot of people very concerned, myself included.” – Michael Schumacher, Wells Fargo head of interest rate strategy
Share
Posted in Today's top gold news and opinion |

“Economic upswing shows the devil’s footprints” – Degussa chief economist, Thorsten Polleit

Mises Institute/Thorsten Polleit/1-26-2018

“We are thus left with two scenarios. First: The central banks will succeed in keeping the boom going – which is the case if and when they keep their interest rates at artificially suppressed levels. This, however, will come at the high price of growing malinvestment, speculative bubbles, and – due to a relentlessly increasing quantity of money – an ongoing loss of purchasing power of money. Second: Central banks will, by raising interest rates ‘too much’, put an end to the boom and turn it into bust.”

MK note:  The financial markets are on a high wire. Some think the central banks have a safety net underneath.  Polleit, in “polite” terms, says it’s really a keg of dynamite.

Share
Posted in Today's top gold news and opinion |

The dollar’s terrible week is a warning of what could come if Trump’s team missteps on trade

CNBC/Patti Dom/1-27-2018

“But the concern has been that dollar assets could lose their appeal if the dollar becomes too weak, if the Trump administration really does want to talk down the green back. McCormick said there was some speculation that the Trump administration weak dollar comments were a response to the reports earlier this month that China was considering cutting back on Treasury purchases because they are no longer as attractive and because of Trump trade policies. China is the largest holder of Treasurys, but it’s not expected to back out of the Treasury markets in a significant way.”

MK note:  Noteworthy speculation on what might have been behind Trump administration comments early-on at Davos.  Was China’s gambit, later denied, the first shot fired in the trade and currency wars? It’s plausible. . . .Asian markets are lower this morning on a Beijing Daily editorial written by a senior economic planner who warned of “Black Swan and “Grey Rhino” events in China’s economy during 2018.

Share
Posted in Today's top gold news and opinion |

Trump hints at retaliation at ‘very unfair’ EU trade policies

Reuters/Staff/1-28-2018

“We cannot get our product in. It’s very, very tough. And yet they send their product to us – no taxes, very little taxes. It’s very unfair. They’re not the only one, by the way. I could name many countries and places that do. But the European Union has been very, very unfair to the United States. And I think it will turn out to be very much to their detriment.”

MK note:  Back from Davos.  Here we go. . . . . . Please be aware that we do not post this sort of thing because we have suddenly gotten overtly political. Our main concern remains the impact of policy on the financial markets, currencies and gold and what we feel is important to pass along to you as a precious metals owner.

Share
Posted in Today's top gold news and opinion |

Breakingviews – Mario Draghi is ill-equipped for currency wars

Reuters/Swaha Pattanaik/1-28-2018

“It’s never good to bring a knife to a gunfight. European Central Bank President Mario Draghi on Thursday took a potshot at the United States for flouting an international agreement to avoid currency manipulation. But he has limited scope to resist a stronger euro. And European politicians who take up cudgels may escalate a brawl they will lose.”

MK note:  If such becomes the dominant market perception, it will play as gold positive.

Share
Posted in Today's top gold news and opinion |

Don’t get used to this melt-up: Stocks could reverse at any time

Seeking Alpha/Victor Dergunov/1-28/2018

“What is far less advertised and often dismissed in the media are the troubling economic developments surrounding stocks. Despite the market’s perpetual climb, rising inflation, a tightening FED, a simultaneous dollar and bond market selloff, small cap underperformance, a VIX divergence, extreme overbought conditions, amongst other elements, are all screaming that something is wrong. Optimism appears to be too high, and no one wants to pay any attention to these clear warning signals.”

Share
Posted in Today's top gold news and opinion |

Dollar talk adds to fears of trade war

“Just as the American president was arriving in the Swiss mountains for the World Economic Forum on Thursday, Mario Draghi issued an extraordinary rebuke to the US. The European Central Bank president suggested that comments the previous day by Steven Mnuchin, Mr Trump’s treasury secretary, welcoming a weaker US dollar were a breach of agreements designed to prevent currency wars. Mr Trump did his best to quell the controversy, insisting the US was still committed to a strong dollar. But the confusion increased the anxiety among other major economies about the bellicose and unpredictable direction of the US’s international economic policy.”

MK note: Financial Times in this lengthy analysis pretty much takes the same tack we did in Friday’s LATE REPORT (please see below) and as quoted in a MarketWatch article at the end of last week.  The confusion not only increased anxiety amongst competitive economies, it also cast an aura of doubt and apprehension over financial markets – all of which could make for an interesting upcoming week.

Share
Posted in Today's top gold news and opinion |

Gold, silver rebound nicely from options expiration, Trump dollar comments

LATE REPORT

Gold closed up $3.17 today at $1350.11, a nice round number on which to end the day and the week. It has finished higher the last eight days in a row.  Silver closed at $17.43, up 6¢ on the day. For the week, gold was up almost $18 and silver 33¢.  Gold and silver rebounded smartly today from options expiration and the Trump dollar comments.

This past week will be remembered for the cracks it revealed in the global monetary and trade edifice.  At the Davos conference, the rhetoric became unusually strident and purposeful with accusations and threats flying in all directions. The one thing the brewing currency and trade wars are likely to inspire among the local populace is strong gold and silver demand in both its physical and paper forms.  Speculators will be looking to capitalize on currency and market instability while private and institutional investors are likely to step up their hedging strategies.

For the details of the past week’s gold market action, we invite you to scroll below for a wealth of information, news and opinion.

Quote of the Day
“Yet gold has special properties that no other currency, with the possible exception of silver, can claim. For more than two millennia, gold has had virtually unquestioned acceptance as payment. It has never required the credit guarantee of a third party. No questions are raised when gold or direct claims to gold are offered in payment of an obligation; it was the only form of payment, for example, that exporters to Germany would accept as World War II was drawing to a close. Today, the acceptance of fiat money — currency not backed by an asset of intrinsic value — rests on the credit guarantee of sovereign nations endowed with effective taxing power, a guarantee that in crisis conditions has not always matched the universal acceptability of gold.” – Alan Greenspan, former Fed chairman


TheSAFEHAVENINVESTOR
Our in-depth investor introductory information packet

INCLUDES

Why Gold Why Now
An in-depth, auto-updating chart study & rationale for gold ownership
What’s in store for gold in 2018?
An Investment for All Seasons
How gold performs under various breakdown scenarios
Physical Gold Versus the ETFs
Which is the better option?
The National Debt and Gold
Why the two have risen in tandem since the 1970s
Hedging Potential Restrictions on Gold Ownership
An important ‘how-to’ client memorandum
Plus immediate access to the January edition of News & Views (our client letter)
featuring The Gold Owner’s Guide to 2018

Click here to register for the packet
Free immediate access

Share
Posted in Today's top gold news and opinion |

Winter is one of the darkest ever for parts of Europe

The Guardian/Jon Henley/1-19-2018

“Sunshine is in short supply across a swathe of north-west Europe, shrouded in heavy cloud from a seemingly never-ending series of low pressure systems since late November and suffering one of its darkest winters since records began. If you live in Brussels, 10 hours and 31 minutes was your lot for the entire month of December. The all but benighted inhabitants of Lille in France got just two hours, 42 minutes through the first half of January. “Sound the alarm and announce the disappearance,” read a despairing headline in photon-deprived northern France’s regional paper, La Voix du Nord. “A star has been kidnapped. We still have no sign of life from the sun.”

Share
Posted in Today's top gold news and opinion |

Weekend reading: What could possibly go wrong?

Real Investment Advice/Lance Roberts/1-26-2018

“What goes up, eventually comes down. That is just reality. The bull market that began in 2009, has now entered the final stage of “capitulation” as investors throw caution to the wind and charge headlong into the markets with reckless regard for the consequences.”

MK note:  Highly-recommended short trek through recent stock market history in chart form – a reminder that everything is fine until it isn’t.

Share
Posted in Today's top gold news and opinion |