Category: Today’s top gold news and opinion

Greenspan sees signs of stagflation, threats to U.S. economy

Bloomberg/Video Interview with David Rubenstein/11-14-2018

“Former Federal Reserve Chairman Alan Greenspan tells David Rubenstein that rising deficits and debt are already showing signs of eroding U.S. growth and that he sees indications of stagflation — a stagnant economy saddled with rising inflation.”

USAGOLD note:  The Maestro weighs-in on the current state of economic affairs in the United States. . . . .Gold proved to be an excellent hedge against the last stagflationary episode in the 1970s early 1980s.

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Warren Buffett would buy precious metals again, if he could

Investing.com/Jesse Felder/11-14-2018

“‘But it’s also important to look at his later thesis for buying silver: ‘In recent years, bullion inventories have fallen materially, and last summer Charlie and I concluded that a higher price would be needed to establish equilibrium between supply and demand.’ Currently, we have a very similar situation in gold.”

USAGOLD note:  In this interesting retrospective, Jesse Felder applies Munger-Buffet logic from two decades ago  to the present situation and concludes its a good time to buy gold. . . .

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Surge in U.S. corporate debt a key vulnerability: JPMorgan

Forbes/Pedro Nicolaci da Costa/11-14-2018

“U.S. corporate debt levels have again surpassed their pre-crisis peaks of $6 trillion, raising widespread concern that, as the Federal Reserve raises interest rates, some firms could run into financial trouble.”

USAGOLD note:  According to this Forbes article, JPM is not worried that corporate exposure will end up in the same trash bin with the housing paper a decade ago.  Others are not so sanguine. . . . . . .”Zombification” with reference to over-leveraged, over-indebted big corporations is a frequently-used word in the Wall Street lexicon these days.

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Short and Sweet

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Stuck in a fiat dollar world
for some time to come

“For all its problems, the current dollar-based non-system has been far more resilient than the Bretton Woods gold-exchange standard, which never operated as White intended. And the real alternatives — a classical gold standard, in which interest rates are driven by cross-border gold flows; or a supranational currency, like Keynes advocated at Bretton Woods — are likely to remain too radical politically. We are, therefore, almost surely stuck in a fiat dollar world for some time to come.” – Benn Steil, Council on Foreign Relations

Those of you who frequent this page will recall previous references to Benn Steil’s gold advocacy.  Steil, who is the director of international economics at the Council on Foreign Relations, sees central banks’ utilizing gold as a reserve asset to the offset the risks of holding national currencies as opposed to direct backing for the dollar.  In this respect, his thinking is closely aligned with that of Nobel Prize winner, Robert Mundell, who also proposed the use of gold for the same purpose to the European Union at the inception of the euro.

In the essay linked below Steil provides a brief but revealing history of the transition from the late-1960s, early-1970s gold-based system to the dollar-based system under which the global economy functions today. He includes a number of interesting stories about the countries and people involved.  Few people know, for example, that France dispatched a battleship in the early 1970s to New York harbor to pick up its gold deposited at the New York Federal Reserve.

In the absence of a gold standard, the best recourse for the average investor is to put one’s portfolio on the gold standard through a diversification in physical coins and bullion.  We agree with Steil: “We are almost surely stuck in a fiat money world for some time to come” with all its attendant risks.

Adopt a gold-backed dollar? This is what happened the last time we tried
Marketwatch/Benn Steil/8-11-2016

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U.S. budget deficit jumps to $100 billion at start of fiscal year

Bloomberg/Sarah McGregor/11-13-2018

“The U.S. recorded a $100.5 billion budget deficit in October, an increase of about 60 percent from a year earlier, as spending grew twice as fast as revenue.”

USAGOLD note: And that is the political deficit. . .The real addition to the national debt for the month of October was right at $184 billion!  As posted by the Treasury Department (Treasury Direct):

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DMR–Gold on the fence as global tangle dominates trading

DAILY MARKET REPORT

Gold continues to ping-pong on either side of the $1200 mark unable to make a convincing move up or down.  It, in fact, is right at $1200 as we write this report and down $3.50 on the day.  Silver similarly is stuck in and around the $14 mark and down marginally on the day.

The precious metals are experiencing headwinds from weakness in both the yuan and euro in recent days.  The situation in Europe – most notably having to do with Brexit and the budget situation in Italy – does not lend itself to quick or easy resolution.  With respect to China, there have been rumblings of lower interest rates and a weakening economy.  That prognosis is balanced in the United States against the prospect of rising inflationary expectations and concerns about stability in financial markets.

In an odd break with standard operating procedure, ex-Fed chair Janet Yellen voiced her concerns about the dollar being too strong – a prospect she feels could widen the U.S. trade gap.  It seems that much is up in the air at the moment on the global stage and gold is content to remain on the fence as a result – at least for now. That, as always though, is subject to change without notice. . . . . . . .

Quote of the Day
“[T]he object of speculation may vary widely from one mania or bubble to the next. It may involve primary products, especially those imported from afar (where the exact conditions of supply and demand are not known in detail), or goods manufactured for export to distant markets, domestic and foreign securities of various kinds, contracts to buy or sell goods or securities, land in the country or city, houses, office buildings, shopping centers, condominiums, foreign exchange. At a late stage, speculation tends to detach itself from really valuable objects and turn to delusive ones. A larger and larger group of people seeks to become rich without a real understanding of the processes involved. Not surprisingly, swindlers and catchpenny schemes flourish.” – Robert Z. Aliber and Charles P. Kindleberger, Manias, Panics and Crashes – Anatomy of a Typical Financial Crisis (2001)

Chart of the Day

Chart note: As the chart above illustrates, gold does not always react to the start of a crisis as anticipated. As the credit crisis gained momentum in 2008, gold declined as the dollar rose – acting in much the same way it is reacting now to the emerging markets crisis and U.S.-China trade war. It was not until late 2008, when the full extent of the crisis became all too apparent, that it began to move higher. Thereafter, from 2009 to September 2011, it rose to its all-time high of $1895 – a 215% gain in three years.

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Italy defies EU request to present revised budget

TheGuardian/Angela Giuffreda/11-14-2018

“Luigi Di Maio, the deputy prime minister and leader of the anti-establishment Five Star Movement, which is ruling in coalition with the far-right League, said the government was committed to maintaining its deficit target of 2.4% but it would move forward with plans to cut taxes, introduce a universal basic income and lower the retirement age.”

USAGOLD note:  Looks like Italy and Brussels are hurtling toward a head-on crash. . .

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Ray Dalio’s faith in gold is unshaken

Bloomberg/Luzi Ann Javier/11-13-2018

“Not even gold’s second quarterly straight decline was enough to shake billionaire hedge-fund manager Ray Dalio’s confidence in gold. Dalio’s Bridgewater Associates maintained its holdings in SPDR Gold Shares, the largest bullion-backed ETF, at 3.9 million shares, and its stake in iShares Gold Trust, the second-largest, at 11.3 million shares in the third quarter, according to a regulatory filing Tuesday.”

USAGOLD note:  The latest on Dalio’s gold positions. . . .

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Janet Yellen says the US trade deficit is likely to get even bigger.

Quartz/Gwynn Guilford/11-13-2018

“Speaking at a conference in Beijing, Janet Yellen said that the steady rise in US interest rates is pushing up the value of the dollar, which will likely cause the US trade gap to widen further, according to Bloomberg (paywall).”

USAGOLD note:  Janet Yellen thinks the dollar is too strong?

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Gold is cheap. Inflation is coming. You do the math.

Barron’s/Andrew Bary

“Compared with stocks and other financial assets, gold looks inexpensive. More important, inflation is starting to pick up in the U.S. and in much of the world as central banks shrink their enormous balance sheets. And gold has represented a good defense against inflation eroding the value of a stock or bond portfolio.”

USAGOLD note:  A lengthy, well-written excursion into the benefits of owning gold. Recommended reading from Barron’s. . . . .


Repost from late September but worth the reprise. . . . . .

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Technically speaking: Major markets are all flashing warning signs

Real Investment Advice/Lance Roberts/11-13-2018

“The ongoing deterioration in the markets continues to confirm, as I wrote back in April, the bull market that started in 2009 has ended. However, we will likely not know for certain until we get into 2019, but therein lies the biggest problem. Waiting for verification requires a greater destruction of capital than we are willing to endure.”

USAGOLD note:   Lance Roberts is waving the warning flag on the current stock market . . .His emphasis on the potential for capital destruction is well-taken.

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Sardines, Old Maid and Musical Chairs

“There is the old story about the market craze in sardine trading when the sardines disappeared from their traditional waters in Monterey, California. The commodity traders bid them up and the price of a can of sardines soared. One day a buyer decided to treat himself to an expensive meal and actually opened a can and started eating. He immediately became ill and told the seller the sardines were no good. The seller said, ‘You don’t understand. These are not eating sardines, they are trading sardines.’ . . .

There is great allure to treating stocks as pieces of paper that you trade. Viewing stocks this way requires neither rigorous analysis nor knowledge of the underlying businesses. Moreover, trading in and of itself can be exciting and, as long as the market is rising, lucrative. But essentially it is speculating, not investing. You may find a buyer at a higher price—a greater fool—or you may not, in which case you yourself are the greater fool.” – Excerpt from “Margin of Safety” by Seth Klarman

USAGOLD note:  This Seth Klarman anecdote reminds us of the quote from Maynard Keynes on the Old Maid and Musical Chairs:

“For it is, so to speak, a game of Snap, of Old Maid, of Musical Chairs — a pastime in which he is victor who says Snap neither too soon nor too late, who passed the Old Maid to his neighbour before the game is over, who secures a chair for himself when the music stops. These games can be played with zest and enjoyment, though all the players know that it is the Old Maid which is circulating, or that when the music stops some of the players will find themselves unseated.” – John Maynard Keynes


Repost from March, 2018

Full Article:  Value Walk/The Acquirer’s Multiple/3-2-2018

 

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DMR–Gold consolidating at $1200 looking to regain footing

DAILY MARKET REPORT

Gold looks to be consolidating around the $1200 mark in early trading with the combined effects of last week’s Fed meeting and election now behind us. The stock market’s initial reaction to last week’s events was euphoric. Now with yesterday’s more than 600 point drop/reality check, and a weak open this morning, it looks to be having second thoughts.  Gold plummeted initially.  Now though it is attempting to regain its footing and muster support at the $1200 level.

China’s yuan keeps getting in the way of those aspirations – down sharply again today after a price rally failed in overnight trading. Financial markets are jittery about China with an economic slowdown and potentially lower interest rates worrying investors. Reuters reports Hong Kong bargain-hunters returning to the gold market the past few days.

As it stands, gold and silver are both level on the day at $1202 and $14.04 respectively.

Quote of the Day.
“The world hasn’t seen inflation in a decade now. But it’s coming. And while the Fed is raising rates to combat inflation, there’s zero chance it hits the perfect mix to keep markets chugging along. Remember, we’ve already seen the stock market and real estate panic crash in response to a small interest rate hike. And I think there’s more pain ahead as inflation really starts to work its way into the economy. With inflation looming, I’d want to own some gold.” – Simon Black, Sovereign Man

Chart of the Day

Chart courtesy of TradingEconomics.com

Chart note:Producer prices for final demand in the US,” says TradingEconomics, “rose by 0.6 percent in October 2018, following a 0.2 percent advance in September and easily beating market expectations of 0.2 percent. It was the biggest monthly gain in producer prices since September 2012 mainly boosted by a jump in costs for energy (2.7 percent vs -0.8 percent in September) and trade services (1.6 percent vs 0.1 percent). Prices also rose for foods (1 percent vs -0.6 percent) and transportation and warehousing services (0.6 percent vs 1.8 percent).”

 

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There’s something behind this market sell-off that no one is talking about: The strong dollar

CNBC/Patti Domm/11-12-2018

“Stocks investors are spooked about a lot of things, and the strong dollar biting into earnings growth is now one of them. The dollar index, which measures the greenback versus a basket of other currencies, jumped 0.7 percent on Monday to 97.58, a 17-month high. As the dollar rose, the Dow Jones Industrial Average lost 602 points to 25,387, and the S&P 500 was down nearly 2 percent to 2,726.”

USAGOLD note:  So gold isn’t the only market reeling from the strong dollar . . . As Credit Bulletin’s Doug Noland consistently reminds us – the problems at the periphery are making their way to the core.

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Silver 2019 recovery seen on strong tech, beta to gold

BullionVault/Adrian Ash/11-8-2018

“Instead, he now expects ‘explosive growth’ to come from auto-sector demand for silver as the world shifts away from internal combustion engines. Electric vehicles and hyrid-electric vehicles will account for more than half of global automotive silver demand by 2040 said Thomson Reuters GFMS (now re-named Refinitiv) in its World Silver Survey 2018, produced for the Silver Institute of miners, refiners, dealers and fabricators.”

USAGOLD note:  Silver still has its roots in industrial demand. A such the burgeoning of uses in the electric automobile industry is of great interest. The 84-1 ratio is also raising a few eyebrows.

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Bank of France partners with JPMorgan to boost gold bullion services

Reuters/Peter Hobson/11-12-2018

“The French central bank’s second deputy governor Sylvie Goulard wrote in the Alchemist, the magazine of the London Bullion Market Association (LBMA), that it had partnered with “a large commercial bank” to offer swaps, leases and gold deposits from Paris. Sources said the bank was JPMorgan, one of the world’s largest bullion trading banks and a member of a group that settles trades in London’s $25 billion a day gold market.”

USAGOLD note:  We alluded to the French interest in competing with London for gold bullion banking business last week, i.e., the same Alchemist article referenced above. This article solves the mystery as to the identity of the “large commercial bank” mentioned in the Alchemist article as its trading partner. As the UK moves towards Brexit, France moves to replace the Bank of England for official sector bullion business in the European Union.

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The USAGOLD Website – A guiding light for current and would-be clientele since 1997

Welcome newcomers!  We invite you to kick back, stay awhile, do some interest-driven browsing

When the USAGOLD website was established in 1997, there was no Google, no Facebook, no I-Tunes, no Amazon. Instead there was just a handful of scattered websites trying to figure what this new technology was all about and how it could be used to some advantage.  We were among that group.  Our idea of innovation in those early days was two spinning globes on either side of the USAGOLD logo.  We marveled at it; considered it state of the art.  If you would like to witness that piece of technology in action, you can see it here at the WaybackMachine.  (Don’t laugh.)

But being among the first on the internet to have spinning globes was not our only achievement. We were also among the first to sponsor a Daily Market Report (1996), a Discussion Group (1997), Live Prices and Charts (2007) and a Mobile Website (2011) – to mention just a few of our ground-breaking internet ventures.  We await the next wave of innovation so that we can offer even more value to our regular visitors.

Through our 22-year presence on the world wide web, the philosophy underlying our website has always been a simple one – to act as a guiding light for our current and prospective clientele by providing a state of the art information portal coupled with a reliable and competitive brokerage service.  We had and still have no aspirations beyond that, and that pinpoint focus has paid dividends beyond anything we would have imagined in 1996.

From a humble beginning (When you visit the WayBackMachine, take special note of the number of visitors registered on our counter!) we have grown to over 600,000 visitors per month currently and there have been times when that count has been significantly higher. USAGOLD today remains one of the most highly referenced and visited web portals in the gold business. We once had a client tell us of visiting the Gold Souk in Dubai and being surprised that so many merchant stalls had USAGOLD on their computer screens. 

If you would like to gain a better understanding of what USAGOLD has to offer to you as a current or prospective client, the menu at the top of the page is good place to start.  For a full site outline including links and page descriptions. . . . . .

We invite you to visit our
Table of Contents

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DMR-Gold continues push in southerly direction

DAILY MARKET REPORT

Gold continued to push in a southerly direction early today in a continuation of last week’s Fed-related downside. It is off $4.50 this morning at $1205.  Silver is 8¢ lower at $14.07.  Most of gold’s downside came during Asian trading hours in response to China’s yuan.  The weakness carried over to the New York open and gained momentum as the dollar index opened at 18-month highs.  With little in the way of news, today’s trading looks technically oriented at this juncture. Thus far, it has been a slow day for economic and market news.  We will update if anything of interest surfaces here at our Online Daily Newsletter.

Quote of the Day
“[James] Grant makes the point that the debt has been increased and decreased on a regular basis but never until today was there a view that the deficit didn’t matter and could be increased indefinitely. He points out that it took the United States 193 years to accumulate its first trillion dollars of federal debt. And amazingly, that it will add that much in the current fiscal year alone.” – James Rickards, Daily Reckoning

Chart of the Day

Chart note:  In the article linked above, James Rickards goes on to quantify the established danger zone for the debt to GDP ratio, which according to economists Ken Rogoff and Carmen Rinehart begins at 90%.  The current debt to GDP ratio for the United States is 106%.


Subscription recommendation: James Grant’s Interest Rate Observer

 

 

 

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Gold speculators advanced their bullish bets higher this week

Investing.com/Zachary Storella/11-11-2018

“Large precious metals speculators increased their bullish net positions in the gold futures markets this week . . .The speculative gold position has improved for three out of the past four weeks. The current standing is now in its fourth straight week of being in bullish territory after spending the previous nine weeks in a bearish position.”

USAGOLD note:  For the actual numbers see the COT tables further down the page or visit the link posted above.

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Higher gold price vindicates Indian Central Bank’s investment plan

ScrapRegister/11-12-2018

“Gold purchase plan of Reserve Bank of India seems to be paying off as the monthly valuation gains have touched an eight month high with investor demand for a safe haven rallying the yellow metal.”

USAGOLD note: This report from RBI offers justification for the burgeoning trend among global central banks to increase their gold holdings in these unsettled times.


Metropolitan Museum of Art [CC0], via Wikimedia Commons [Edited]

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In bullish shift, investors start buying gold ETFs

Barron’s/Myra Saefong/11-9-2018

“’These numbers are very encouraging,’says George Milling-Stanley, head of gold strategy at State Street Global Advisors, who worked on the 2004 launch of the largest gold-backed ETF, the SPDR Gold Shares (ticker: GLD). The numbers ‘confirm our view that investors are once again turning to gold as a defensive asset, offering some protection against the unexpected, whether these tail risks are macroeconomic or geopolitical in nature.’”

USAGOLD note:  Funds and institutions are the principal users of gold and silver ETFs.

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Saudi Arabia to cut oil exports amid signs of new surplus

Bloomberg/Grant Smith, Elena Mazneva, Mahmoud Habboush and Mohammed Sergie/11-11-2018

“Saudi Arabia signaled it will reduce oil exports by as much as half a million barrels a day in December, the first tangible sign that OPEC is starting to trim output as it faces an oversupplied market in 2019.”

USAGOLD note:  Let’s not forget that Saudi Arabia increased output to replace sanctioned Iranian production.  Those sanctions went into effect just last week. It will interesting to see how the market reads Saudi Arabia’s change of heart.  Saudi compliance on oil production, as shown in the chart below, has been an important factor in oil’s decline in recent weeks.

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The next financial crisis

Mises Institute/Daniel Lacalle/11-10-2018

“When the biggest bubble is sovereign debt the crisis we face is not one of the massive financial market losses and real economy contagion, but a slow fall in asset prices, as we are seeing, and global stagnation. The next crisis is not likely to be another Lehman, but another Japan, a widespread zombification of global economies to avoid the pain of a large re-pricing of sovereign bonds, that leads to massive tax hikes to pay the rising interests, economic recession and unemployment.”

USAGOLD note: In the interest of equal time, Daniel Lacalle says disinflation, not inflation, will be the culprit in the next financial breakdown. Gold, to the surprise of its critics, did very well in the during the disinflationary crisis that began in 2007-2008 reaching its all-time high in mid-2011 at over $1800 per ounce.  Disinflation, though, is only one of the maladies against which gold serves as a shelter.  History has shown it to protect its owners against economic stormy weather of all descriptions – inflation, deflation, disinflation, stagflation and hyperinflation.

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Get the jump on inflation with an investment in graded, historic U.S. $20 gold pieces

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“Historically rare coins as a grouping have enjoyed a well-earned reputation as an inflation hedge. USAGOLD has had direct experience in that regard as we recommended this investment area during the 1970s’ inflation and the accompanying coin market boom – a strategy we suggested then as “a diversification within a diversification.” For investors looking to get a jump on a possible resurgence of inflation, we are again recommending this area of investment. This time, however, we suggest acquisitions in a narrower frame of reference. . . . .”

CLIENT ALERT
by Michael J. Kosares
Founder – USAGOLD
Author – The ABCs of Gold Investing–How To Protect and Build Your Wealth With Gold

_________________________________________________

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Gold-Silver COT reports – Friday release

GoldSeek/11-9-2018

[Last week’s report]

[This week’s full report]

USAGOLD note: Given the strong interest in the record COT short positions in gold and silver, we plan to make these GoldSeek reports a regular Friday feature. So please check back on Friday afternoons for the latest reports. We will make a comment or two when warranted.

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Gold prices fall amid inflation concerns [huh?]

Investing.com/11-9-2018

USAGOLD note:  Above is the actual headline to the article.  Sorry.  Had to laugh. We added the “huh?” As we have noted before: In this whacky, upside down, Alice in Wonderland financial environment – wherein good news for gold is bad news and bad news is still bad news – the day-to-day headlines might seem nearly irrelevant in determining the price direction.  Along the way, though, we suspect that the clock will stop running backward – rising inflation will come to actually mean rising inflation, and not something else, and rising inflation will come to mean higher gold prices.

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When in Rome. . .

“The coins’ excellent condition indicated that the owner systematically stashed them away shortly after they were made, the archaeologists said. For some reason that person had buried them shortly after 294 and never retrieved them. Some of the coins, made mainly of bronze but with a 5% silver content were buried in small leather pouches. The archaeologists said it was impossible to determine the original value of the money due to rampant inflation at the time, but said they would have been worth at least a year or two of wages.” –  The Guardian (11-19-2015) on a find of 4000 Roman coins buried in a Swiss orchard

“Salvian tells us, and I don’t think he’s exaggerating, that one of the reasons why the Roman state collapsed in the 5th century was that the Roman people, the mass of the population, had but one wish after being captured by the barbarians: to never again fall under the rule of the Roman bureaucracy. In other words, the Roman state was the enemy; the barbarians were the liberators. And this undoubtedly was due to the inflation of the 3rd century.” – Joseph Peden, Inflation and the Fall of the Roman Empire

“Now one interesting thing with all this inflation should be a great comfort to us: historians of prices in the Roman Empire have come to the conclusion that despite all of this inflation — or perhaps we should say, because of all of this inflation — the price of gold, in terms of its purchasing power, remained stable from the first through the fourth century. In other words, gold remained, in terms of its purchasing power, a stable value whereas all this other coinage just became increasingly worthless.” – Joseph Peden, Inflation and the Fall of the Roman Empire

Dr. MoneyWise says. . . .”In the wealth game, emphasize defense when you need to and offense when it makes sense.  At all times, though, no matter how tempting the prospects for speculative gain, remain fully and judiciously diversified.

Chart image courtesy of Nicolas Perrault III [CC0], from Wikimedia Commons

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DMR-Gold suffering after-effects of Fed announcement

DAILY MARKET REPORT

Gold is suffering the after-effects of yesterday’s Fed announcement – one in which the central bank essentially pledged to stay the course on interest rates for the foreseeable future.  Gold is down $12.00 on the day at $1211.  Silver is down 22¢ at $14.24.  A weaker yuan is also a factor in gold’s pricing this morning.  Most of the damage was done during European trading hours where the weak euro/strong dollar sentiment continues to weigh on financial markets.  Meanwhile, back in the United States, core producer prices registered a .6% gain, or 7.2% annualized – the largest increase since 2012 and something of a vindication for the Fed’s interest rate stance.

Quote of the Day
“I think we’re getting to the point now where the breakout is going to be on the inflation upside. The only question is when.” – Alan Greenspan, February 2018

Chart of the Day


(Interactive chart)

Chart note:  This interactive chart compares price appreciation for gold and the dollar index.  Gold has consistently outperformed the dollar in twelve of the last eighteen years – a formidable record.  Even if one were to add in average yields on dollar-based investments, gold still comes out the clear winner in those twelve years. Gold is having an off-year thus far in 2018 – down 4.6% while the dollar is up almost 6%.  Given the performance record, though,  contrarian investors might see the present disparity as a buying opportunity.

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South African gold ouput plunges most since 2015 in September

Bloomberg/Rene Vollgraff/11-8-2018

“Producers in South Africa, which operate some of the world’s deepest and most labor intensive mines, have been forced to reduce output and cut thousands of jobs as they struggle to contain operating costs. The continent’s most-industrialized economy fell into its first recession in almost a decade in the second quarter.”

USAGOLD note:  One would think that containing operating costs is not a peculiarity to South Africa alone.  With prices at current lows, mines are being pressed on the revenue side of the equation as well.

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Investors start to fret about ballooning US public debt

Financial Times/Gillian Tett/11-8-2018

“Last month, as the US midterm elections approached, Deutsche Bank analysts released a calculation that should have made American voters wince. It shows that the US government currently pays $1.43bn each day (yes, day) to service its public debt — 10 times more than any other G7 country (Italy is a distant second in this grim league).”

USAGOLD note:  FT’s Gillian Tett points out that interest on the national debt will “triple in size to nearly $1 trillion by 2028.” The impact of that convergence (rising rates and ballooning public debt), however, will hit the economy and financial markets long before 2028. Two days ago, we published a Chart of the Day on the long-term relationship between the price of gold and growth in the national debt.  That relationship is not accidental . . . .

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