Monthly Archives: December 2019

Wishing all a happy, healthy
and prosperous New Year!

Cartoon image of Mr. Spot celebrating the New Year 2020

Posted in Today's top gold news and opinion |

Gold, silver post strong finish to 2019

(USAGOLD AFTERNOON UPDATE – 12/31/2019) – Gold and silver finished strong for 2019 posting the best year for both metals since 2010 and adding to the New Year’s Eve cheer for precious metals owners. Gold ended the year at $1521 – up 18.5%.  Silver ended the year at $17.89  – up 15.9%. The Dow Jones Industrial Average, by way of comparison, was up 22% on the year.

Posted in Today's top gold news and opinion |

‘Watch gold’ — Blackstone’s Byron Wien teases 2020 market surprises

CNBC/Kevin Stankiewicz

cartoon image of snorting gold bull“He said he didn’t include the bonus gold prediction in his 2020 list because he included something ‘similar’ in 2019 and, ‘I don’t do it two years in a row.'”

USAGOLD note:  He was right for 2019 as gold turned in a pretty good year.  Will he be right for 2020?  A number of analysts agree with him that 2020 could be another good year for the yellow metal.


Repost from 12-24-2019

Posted in Gold and Silver Price Predictions from Prominent Players, Today's top gold news and opinion |

Year in a word: Decoupling

Financial Times/Rana Foroohar

Graphic of image of letters 'TW1" - Trade War One between China and the United States“The disintegration of US-China relations may be the most important economic event of our times. . .”

USAGOLD note:  Over the course of the past year, we brought Rana Foroohar’s work to your attention, particularly a mention or two of gold including one notable column in which she registered her expectation that gold’s bull market was likely to continue. Here she offers her take on the “decoupling” between the United States and China that she sees as developing into a technological cold war.

Related: US-China decoupling would spell the end of globalisation and China’s growth story


Repost from 12-23-2019

Posted in Today's top gold news and opinion |

Short and Sweet

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The Exter Inverted Pyramid of Global Liquidity

Exter's inverted debt pyramid with derivatives at top and gold on the bottom

“[Exter’s Inverted] Pyramid stands upon its apex of gold, which has no counter-party risk nor credit risk and is very liquid.  As you work higher into the pyramid, the assets get progressively less creditworthy and less liquid. . .[In a financial crisis] this bloated structure pancakes back down upon itself in a flight to safety.  The riskier, upper parts of the inverted pyramid become less liquid (harder to sell), and – if they can be sold at all – change hands at markedly lower prices as the once continuous flow of credit that had levitated those prices dries up.” – Lewis Johnson, Capital Wealth Advisor’s Lewis Johnson

In short, what Lewis Johnson outlines is the bottom-line rationale for diversifying one’s portfolio with gold. For a more detailed analysis of Exter’s Inverted Pyramid, we invite you to visit the May edition of News & Views, our monthly newsletter.


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Posted in Short and Sweet, Today's top gold news and opinion | Tagged |

Stock market sentiment has only been this bullish twice before over the past two decades

The Felder Report/Jesse Felder

graphic image showing cycles of the moon with question "Why diversify"
“Warren Buffett’s most famous quote has to be: ‘Be fearful when others are greedy and greedy when others are fearful.’ But how do we know when others are fearful or greedy?”

USAGOLD note:  Felder makes a couple of very interesting charts available at the link above. . . .


Repost from 12-23-2019

Posted in Today's top gold news and opinion |

Reiterating bull market

Atlas Pulse Gold Report/Charlie Morris/December 2019

graphic image of gold chess pieces, knight and pawn“Unlike the gold bugs, I’m not a broken record. And unlike the barbarous relic brigade, I recognise gold’s importance in the modern world. Atlas Pulse analyses the gold price and outlines the bull/bear regime with the reasons why. It is an evidence-based approach with an enviable track record. I tell it how I see it and find the air-punching narratives tedious. You won’t find one here.”

USAGOLD note:  We referenced this report in yesterday’s DMR and call attention to it again here for those who may have missed it.  Morris comes to some interesting conclusions as to where gold is headed in the years to come. . . .all presented with a clear rationale at the link above.


Repost from 12-17-2019

Posted in Gold and Silver Price Predictions from Prominent Players, Today's top gold news and opinion |

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The Power of Gold Diversification
“Although it is needed in good times, it can be vital when times are difficult.”

photo of Sir Peter Tapsell speaking before Parliament

This short article begins with reference to a speech by Sir Peter Tapsell on the merits of gold ownership before the House of Commons in 1999. The occasion was Britain’s proposed sale of over half of its gold reserves at under $300 per ounce. It ends by comparing the performance of two investment portfolios from the time of that speech to present. One portfolio – the more successful of the two – included a diversification with gold; the other did not. Sir Tapsell, who passed away in 2018, lived to see his defense of gold vindicated. Though his argument before the House of Commons failed to stop the sales, it goes down as one of the most eloquent appeals ever made on the merits of gold ownership for nation-states and individuals alike.

[LINK]


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Important! – Gold’s Century: While stocks dominated headlines, gold quietly performed

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Posted in Announcements, Today's top gold news and opinion | Tagged |

The next decade looks promising but still hold 30% in gold – Dennis Gartman

KitcoNews/Neils Christenson interview of Dennis Gartman

graphic image red sticker with the word "inflation"“The big trend shall be a return to the commodity markets as inflationary pressures finally return, given the expansionary policies presently being followed by the leading and the second-tier central banks.”

USAGOLD note:  Gartman says he is retiring from the newsletter-writing business, but not before recommending gold play a prominent role in the portfolio for the next decade. He joins a number of analysts warning of inflation’s return as the new decade unfolds.


Repost from 12-24-2019

Posted in Gold and Silver Price Predictions from Prominent Players, Today's top gold news and opinion |

The gold party has only just begun

Incrementum/Ronald Stoferle

photo of pile of Swiss 20 franc gold coins

“Gold is positioned to remain an indispensable component of the portfolio in the future, as it lets the investor navigate stressful passages in the market with relative ease.”

USAGOLD note:  Stoferle reviews the factors that accrued as positive for gold in 2019 – the very same factors, he says, that will “remain in 2020”.


Repost from 12-24-2019

Posted in Gold and Silver Price Predictions from Prominent Players, Today's top gold news and opinion |

Bullish Mark Mobius: Gold price to double in ten years

NewsMax/Staff

Graphic image of bull, black and white“‘I am bullish on gold. I am not saying that gold is not going to go down because it is going to fluctuate, but people should have at least 10 percent of their portfolio in physical gold,’ he said.”

USAGOLD note:  Mobius sticks with his 10% recommendation and his bullish call on the yellow metal.


Repost from 11-26-2019

Posted in Gold and Silver Price Predictions from Prominent Players, Today's top gold news and opinion |

More than half of the world’s richest investors see a big market drop in 2020, says UBS survey

CNBC/Yun Li

graphic image of stacks of hundred dollar bills“Fifty-five percent of more than 3,400 high net worth investors surveyed by UBS expect a significant drop in the markets at some point in 2020. Amid intensifying geopolitical risks, the super rich have increased their cash holding to 25% of their average assets, the survey showed.

USAGOLD note:  We have alluded a few times to reports of significant capital movement into money market funds over the past few weeks and the latest issue of News & Views we show the correlation between MZM money supply growth and the price of gold with a comment. In the post immediately below Mark Mobius raises the issue as well.


Repost from 11-13-2019

Posted in Today's top gold news and opinion |

Expecting a market downturn? Follow the ‘Noah Rule’

Artist rendering of Noah's ark on Mount Ararat, painting on wood, 1570

Seeking Alpha/Frank Holmes

“Predicting a major economic or financial event – whether that’s a recession, market downturn or even your own retirement – requires that you also take action. Otherwise your prediction was meaningless.”

USAGOLD note: The “Noah Rule” says one must build an ark to weather the flood. Make sure you bring along your stash of gold and silver coins.


Repost from 12-19-2019

Posted in Today's top gold news and opinion |

Sentiment Speaks: Setting up a U.S. dollar crash and metals rise

Seeking Alpha/Avi Gilbert

“[W]e think that the US Dollar has begun a major decline phase, which will likely take us into the 2021 time-frame. Moreover, with the metals currently setting up for what can be a multi-year rally as well (as I discussed in my prior metals articles), this is one commonly held correlation belief that seems to be supported by the underlying charts we track.”

USAGOLD note:  Avi Gilbert bases his analysis on Elliot Wave Theory and now thinks the cycle is turning in gold’s favor and against the dollar.  For the full analysis, we recommend a visit to the link.


Repost from 12-24-2019

Posted in Gold and Silver Price Predictions from Prominent Players, Today's top gold news and opinion |

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The gift of gold
Past, present
and future

Dr. Moneywise says:  Gold has a past. I suspect it has a future. We live in a time when currencies and financial markets have become political enterprises – creations of the world’s governments and central banks. Since we have never seen times like these, when so much depends on the monetary largesse of the policy-makers, no one really knows where the future might lead us. Uncertainty reigns and, when that is the case, history teaches us that gold demand rises proportionally and at times impressively so.

Cartoon image of Dr. Moneywise character at lectern“Why is it,” asks Nathan Lewis in a Forbes magazine article, “that the collective intelligence (let’s be generous) of today’s central bankers, and indeed all the central bankers since 1971, cannot outperform a yellow rock? This probably strikes some as bizarre, but it has always been thus. Way back in 1928, in a book called The Intelligent Woman’s Guide to Socialism and Capitalism, George Bernard Shaw declared: “You have to choose … between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold.”

Whether or not gold is the best basis for money may be a moot point.  On the other hand, whether or not private investors should own it because the money is not gold-backed remains a vital question. The gift of gold – the one passed from generation to generation from ancient times to present – is the protection it offers against profligate government, an unpredictable economy, unstable financial markets and a myriad of additional threats to private wealth. The gift of gold, in short, is peace of mind.

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Posted in Dr. Moneywise, Today's top gold news and opinion | Tagged |

Luongo: Gold plays while the Feds are away

Money and Markets/Tom Luongo/12-27-2019

graphic image of green flag flapping in a breeze“Inside bars in gold tend to be leading indicators of trend changes, so even if gold doesn’t best November’s high, that it didn’t violate November’s low is a positive sign. It indicates that the recent lows are likely to hold, and traders are getting comfortable taking gold higher after more consolidation.”

USAGOLD note:  Beyond speculation on what might be going at year end in the gold market, Luongo offers a detailed opinion on where the yellow metal might be headed in the first part of 2020.

Posted in Today's top gold news and opinion |

Gold’s Santa Claus rally

BloombergTV/Video Interview/12-27-2019

Graphic image of QE4 with a question markUSAGOLD note:  In this video interview, Alphabook’s chief economic advisor Martin Malone ties gold’s year-end push above $1500 to central bank creation of liquidity and balance sheet growth.

Posted in Today's top gold news and opinion |

Heritage Capital: Gold price to hit $3,000 in next decade

NewsMaxFinance-Yahoo/Staff/12-23-2019

graphic image of '$3000 gold' in gold and grey“Schatz thinks Goldman’s forecast is too low [for 2020]. ‘I think Goldman is way off here,’ he said. ‘$1,600 is going to be a footnote.’”

USAGOLD note:  This article reviews forecasts from a number of analysts including Heritage Capital’s Paul Schatz.  Needless to say, our clientele would be greatly pleased with a decade that included a $3000 gold price.

Posted in Gold and Silver Price Predictions from Prominent Players, Today's top gold news and opinion |

Strategist says markets have ‘nothing to do with fundamentals anymore’

CNBC/SquawkBoxEurope

“So we will just keep pumping and we will just keep pumping and we will just keep pumping . . . there is no logic to any of this except to chase the gilded lily.” – Peter Toogood, the Embark Group

USAGOLD note:  At some point, one would think, reason and common sense will prevail, not necessarily at the Fed (although that too could happen), but where it really matters – in the financial markets. Toogood is very convincing in this too-short video.

Chart showing the cycle of market emotions from optimism to euphoria to despondency to optimism again


Repost from 12-18-2019

Posted in Today's top gold news and opinion |

Millionaires with a poverty level income

321Gold/Stewart Thompson

graphic image of piggy bank in gun sight“Elderly savers are also victims of global government and corporate debt worship. Their savings account income has been wiped out by government and central bank obsession with QE and negative rates. They get to wave The government is makin’ me great!’ flags in the air, but when all the flag-waving is done, they have no income to put food on their table.”

USAGOLD note:  This is one of the great tragedies of our times.  An individual who worked hard and built-up a healthy nest egg for retirement – even a seven-figure nest egg – in many cases cannot draw from it even a poverty-level income (based on an average one-year CD rate of around 2%).


Repost from 12-19-2019

Posted in Today's top gold news and opinion |