Gold Reset To $10,000/oz Coming "By January 1, 2018" - Rickards

Published here: http://www.zerohedge.com/news/2017-08-30/gold-reset-10000oz-coming-january-1-2018-rickards-0

Gold Reset To $10,000/oz Coming "By January 1, 2018" - Rickards

- Trump could be planning a radical “reboot” of the U.S. dollar
- Currency reboot will see leading nations devalue their currencies against gold
- New gold price would be nearly 8 times higher at $10,000/oz
- Price based on mass exit of foreign governments and investors from the US Dollar
- US total debt now over $80 Trillion - $20T national debt and $60T consumer debt
- Monetary reboot or currency devaluation seen frequently - even modern history
- Buy gold eagles, silver eagles including monster boxes and gold bars 
- Have a 10% allocation to gold, smaller allocation to silver

Editor: Mark O'Byrne

Source: Agora Financial

A new monetary standard which will see the dollar "reboot" and gold be revalued to $10,000/oz according to best-selling author and Pentagon insider Jim Rickards.

A monetary 'reboot' is not unprecedented

Articles about an imminent return to the gold standard are not exactly infrequent in the gold world and it can be easy to become immune to them and dismiss them without considering the facts and case being made.

Many of the articles are not just based one ever-wishful daydreams. Much of it comes from information that is true about today and is then applied to situations that we have seen in the past.

Rickards makes this point himself. A monetary reset is not unheard of. Since the Genoa Accord in 1922 there have been a further eight reboots. The most recent was in 2016 in what Rickards refers to as the Shanghai Accord which purportedly saw deals done that would allow China to ease without leading to a sharp correction in the US stock market.

Rickards isn't the only one who is speculating that there could be some big monetary changes on the horizon. In March intelligence service Stratfor wrote:

Trump may consider unilateral or, failing that, multilateral currency interventions to bring it back down...Negotiating a new coordinated monetary intervention

Stratfor's analysis was considering the threat of a strong dollar on Trump's plans to reduce the trade deficit. We have recently discussed the danger of political deadlock and uncertainty on the US Dollar and how this will benefit gold.

Rickards' comments come from a similar viewpoint in that there is decreasing faith in the US dollar. This lack of trust is mainly driven by the more than $100 trillion debt ($20 trillion national debt and another $100 trillion in off 'balance sheet' liabilities) in the country and the ongoing dedollarisation by major economies.

Should Trump continue to stumble, disappoint and provoke then we will no doubt see this issue snowball even faster.

No longer banking on debt

The Federal Reserve — America’s central bank — has lowered interest rates and printed nearly 4 trillion new dollars out of thin air since the economic crisis in 2008.

That’s equivalent to nearly one quarter the size of the entire U.S. economy.

The number one consequence of all of this money printing so far hasn’t been inflation at all…

It’s been debt.

Total U.S. debt — across all private sectors — has risen to nearly $60 TRILLION…

That’s over three times as big as the entire U.S. economy.

If you add the federal debt to that number, you get $80 trillion! That’s more than four times the size of the U.S. economy.

Source: Jim Rickards via Agora

In fact, the Government Accountability Office just reported this year that the U.S. is at risk of “fiscal failure.”

And Harvard Economics Professor Kenneth Rogoff says, “There’s no question that the most significant vulnerability… is the soaring government debt. It’s very likely that will trigger the next crisis as governments have been stretched so wide.”

And Investor’s Business Daily reports that: “Current total debt, at roughly 105% of GDP, is already in the danger zone — and based on historical economic studies, this is where nasty things can happen.”

All of this is the result of too much debt… too many Obama policies… and too much meddling by the Federal Reserve.

But what happens when there is too much debt? The dollar is still relatively strong so does it matter? Yes, says Rickards, 'many countries are relentlessly abandoning the dollar.' 

Too much debt to make America Great Again

Countries aren’t sticking around to figure out whether the U.S. can really pay back its debt or wait to see if their dollar reserves are going to keep losing their value…

Like billionaire investor Warren Buffett said

“People are right to fear paper money… it’s only going to be worth less and less over time…”

And he’s right. The U.S. dollar has lost 96% of its value since the Federal Reserve was created in 1913. Meanwhile the national debt has skyrocketed!

The dollar and debt are two sides of the same coin:

Source: Jim Rickards via Agora

That’s why many countries are relentlessly abandoning the dollar.

Typically most foreign governments invest their surplus or savings in U.S. financial assets.

Global trade is typically conducted in U.S. dollars, too.

The dollar is what’s called the “world’s reserve currency.”

As one Forbes columnist put it, “ There is a global currency. It’s called the ‘U.S. dollar.’”

But all of that is about to change if the dollar is not rebooted.

The dollar is getting dumped around the globe because of our debt, spending and money printing.

The total amount of “de-dollarization” is at least: $1.14 TRILLION…

But it’s not just the “de-dollarization” of the world that’s making this so urgent. You see, countries have not only stopped buying U.S. Treasuries… but they're selling them at a record clip.

Bloomberg reports, “ America’s Biggest Creditors Dump Treasuries in Warning to Trump .”

The Economist says, “As America’s economic supremacy fades, the primacy of the dollar looks unsustainable.”

Trump to call global summit and take control

Rickards believes that the situation of dedollarization will get so bad that the US President will be forced to call a summit of world leaders and monetary authorities.

Using his stature as leader of the free world, he’ll bring the financial leaders of the globe together.

This would include delegates from the U.S., China, Japan, Germany, Italy, France, the UK and the International Monetary Fund.

Then, they’ll agree to simultaneously revalue all of their currencies against gold until the price reached $10,000 per ounce.

Will Trump really call a global summit? Who knows. His own team probably won't know until he tweets about it.

But you should consider one element that Rickards mentions. Aside from a new monetary order, Trump is about to become the most powerful US president when it comes to looking after the US Dollar.

You see, there are seven total seats on the Board of Governors of the Federal Reserve. That’s the group that makes our central bank’s decisions.

The president appoints each governor.

That means Trump could be able to appoint five governors in the coming months, including a chair and two vice chairs.

Trump will have six out of seven board seats in Republican hands.

In effect, Trump will own the Fed!

The Republicans will also have the White House…

And a majority in the House of Representatives and Senate…

Conservatives will soon be a majority on the Supreme Court, too.

And there are more Republican state legislatures and governors in the state mansions than at any time since Civil War reconstruction.

This means President Trump could have zero resistance to changing the debt-dollar system we have.

Whether Trump 'owning' the Fed means he would seek to upend the international monetary order is one thing. But, even if he doesn't do that, investors would be wise to consider what impact a Trump-controlled Federal Reserve would have on the world.

Why $10,000 per ounce?

It’s the gold price Donald Trump will need to use to “reboot” the U.S. dollar and the world’s international monetary system.

This isn’t a far-fetched concept, by the way…

Since the world financial crisis in 2008, many of the world’s governments have been buying physical gold in record amounts.

In fact, according to a recent report by the Official Monetary and Financial Institutions Forum (OMFIF), world central banks have been buying gold at a rate of 385 tons per year since the 2008 crisis.

Those are levels last seen when the world was on the gold standard pre-1971.

Why are they buying so much gold?

Because they know gold is going to be money again…

And the more gold they own, the more leverage they'll have when Trump calls the world’s financial powers together to reform the monetary system at his Mar-a-Lago resort.

As with chat surrounding soon-to-be gold standard, calls for $10,000/oz gold (or more) are also not uncommon in precious metal spheres. Since I began in the gold industry I have been reading about the imminent rise of the gold price to $30,000 even $40,000.

In truth, I believe such outlandish predictions are damaging for the long-term reputation of the gold and silver investment community. Regardless of where you think the gold price and gold standard could head to, it is all relative to your own situation, your own portfolio and the currencies you buy it in.

At the same time, while gold at $10,000 per ounce seems outlandish now, it is not impossible and indeed the scale of the levels of debt in the U.S. and internationally make it quite possible. When gold was trading at $250/oz in 2002, a rise of more than seven times and gold at $1,900 seemed outlandish to most.

Whether or not you believe Trump will ever achieve a new gold standard in a currency reset, it is vital to consider the point that central banks have been net buyers of gold for some time. A lesson for all investors.

And the most important nugget to takeaway from pieces such as this is that governments are in a completely unsustainable, debt-laden position. The current state of the global economy is unprecedented. We are also in unknown times when it comes to technology, cyber threats and nuclear sabre rattling. Governments buying gold is sensible portfolio diversification.

Buying gold coins and bars a prudent way to hedge coming currency devaluations

Rickards, Stratfor and even us here at GoldCore cannot predict what will happen in terms of the gold price. What we do know is that gold has played a very important role throughout history - especially as a hedge against currency devaluation.

Currency devaluations are coming and currencies are set to fall in value against gold as they have done throughout history. The only question is how much fiat currencies will fall versus gold and silver.

History has taught us that governments rarely know what they are doing when it comes to financial and monetary planning. It has also taught us that when times are tough countries turn on one another and war becomes common. Trade wars lead to currency wars lead to real wars. We are seeing that today.

Investors and savers are wise to think small. They should consider their own form of gold standard and how they can protect themselves. Buying gold bars, gold eagles and silver eagles including monster boxes is a prudent way to hedge the real risk of global currency debasement today.

The extracts are taken from an article which originally appeared on Agora Financial.

Gold eagles can currently be acquired from GoldCore at record low premiums of 3%.
Please call to secure coins as this is a phone call offer only and not available online.

Gold and Silver Bullion - News and Commentary

Gold slips on stronger dollar; geopolitical risks support (Reuters.com)

Asian markets rebound, shrugging off North Korea tensions (Marketwatch.com)

Crude slips, gasoline jumps as storm shuts a fifth of U.S. fuel output (Reuters.com)

ICE to take over London silver benchmark on Sept. 25 (Reuters.com)

Wall Street insiders sell bank shares as Trump rally reverses (Irish Times)

Source: GoldCore

Gold to surge to $1,400 by early 2018 as rates stay low - BoA (Gulf News)

The Battle for India's $45 Billion Gold Industry Has Begun (Bloomberg)

Stevenson-Yang Warns "China Is About To Hit A Wall" (Zerohedge)

U.S. may revalue gold if debt ceiling isn't raised - Rickards  (Daily Reckoning)

Gold may assume traditional role as "risk mitigator" ... Cryptocurrencies "vulnerable" - El-Erian (Bloomberg)

Gold Prices (LBMA AM)

30 Aug: USD 1,310.60, GBP 1,014.93 & EUR 1,096.71 per ounce
29 Aug: USD 1,323.40, GBP 1,020.34 & EUR 1,097.36 per ounce
25 Aug: USD 1,287.05, GBP 1,003.90 & EUR 1,090.90 per ounce
24 Aug: USD 1,285.90, GBP 1,003.26 & EUR 1,090.44 per ounce
23 Aug: USD 1,286.45, GBP 1,004.33 & EUR 1,091.68 per ounce
22 Aug: USD 1,285.10, GBP 1,000.71 & EUR 1,091.95 per ounce
21 Aug: USD 1,287.60, GBP 999.82 & EUR 1,096.52 per ounce

Silver Prices (LBMA)

30 Aug: USD 17.44, GBP 13.49 & EUR 14.60 per ounce
29 Aug: USD 17.60, GBP 13.59 & EUR 14.62 per ounce
25 Aug: USD 17.02, GBP 13.26 & EUR 14.40 per ounce
24 Aug: USD 16.93, GBP 13.20 & EUR 14.36 per ounce
23 Aug: USD 17.06, GBP 13.32 & EUR 14.48 per ounce
22 Aug: USD 17.02, GBP 13.27 & EUR 14.48 per ounce
21 Aug: USD 17.02, GBP 13.20 & EUR 14.48 per ounce

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Important Guides

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Alert: Gold Breaks Out to New 2017 High

Published here: http://goldsilverworlds.com/gold-silver-price-news/alert-gold-breaks-new-2017-high/

Gold’s naysayers and doubters came out in full force earlier this summer as sentiment reached its nadir. The mid-year pullback in prices did, too.

There can be no doubt about it now – gold has broken out of its summer doldrums. On Monday, the yellow metal finally broke through the longstanding $1,300/oz resistance zone to make a new high for the year at $1,316.

Assuming the breakout holds, the next upside target is $1,375/oz, the high point for 2016.

There are plenty of bullish factors behind gold’s recent upside momentum to continue pushing prices higher in the days and weeks ahead. The gold mining stocks are starting to show relative strength again. And the U.S. Dollar Index appears to have begun another new down leg this week, falling Monday to a two-and-a-half-year low.

Another bullish factor is geopolitics. Gold gained a few more dollars in early trading Tuesday morning in Asia after North Korea launched a missile over Japan. Japanese Prime Minister Shinzo Abe said, “Their outrageous act of firing a missile over our country is an unprecedented, serious and grave threat and greatly damages regional peace and security.”

On any ordinary news day, this dangerous provocation from North Korea would be the top story on all the cable news channels. Hawks would be calling on the U.S. to retaliate, and doves would be warning of the potential for millions of deaths in the event war breaks out in the densely populated region.

For now, though, the unprecedented flooding caused by Hurricane Harvey is the Trump administration’s top priority. Early estimates are that the storm has caused $40 billion in damage. Water levels are still rising in Houston, and surrounding areas extending to Louisiana, so the scale of the catastrophic losses stemming from 11 trillion gallons of water will continue to grow in the days ahead.

Several major oil refineries have been shut down by the storm. However, crude oil production is little affected. Oil inventories are expected to build even as gasoline prices rise (gasoline futures jumped 3% on Monday).

The disaster is bringing Americans from disparate backgrounds and worldviews together, united in a common purpose to help provide relief to those in need. Perhaps Congress will set aside some of its partisan acrimony when it goes back into session next week. Unfortunately for taxpayers, though, outbreaks of bipartisanship are usually associated with emergencies that cause both sides to agree on even more spending.

The political pressure to make sure federal agencies are equipped to handle Harvey relief efforts (which will be ongoing for months) figures to be overwhelming. Conservatives who had aimed to force concessions in an upcoming budget fight may conclude that they now have no leverage to do so.

President Donald Trump so far hasn’t backed off his vow to pursue border wall funding even if Congress refuses and a government shutdown occurs. But a government shutdown in the aftermath of a major natural disaster could be a political disaster for whoever gets blamed for it.

With so many risks hitting investors this week, it’s no surprise that the gold market is benefiting from safe-haven inflows.

Silver is benefiting as well. Although the silver market has not yet hit a new high for the year, prices advanced nearly 2.5% Monday to close above the 200-day moving average.

If silver can now start showing leadership, that would be bullish for the entire precious metals complex. The gold:silver ratio currently stands at about 75:1. Gold is still trading at a high price historically relative to silver.

The ratio can move rapidly to the downside when silver prices are surging. That was the case from late 2010 to early 2011, when the ratio dropped from the high 60s to the low 30s. An even bigger move could be in store for those who buy silver now, while the gold:silver ratio is still in the 70s.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

The post Alert: Gold Breaks Out to New 2017 High appeared first on Gold Silver Worlds.

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China’s Get the Gold Plan: Part II

Published here: http://goldsilverworlds.com/physical-market/chinas-get-gold-plan-part-ii/

Money Metals readers may remember my November 2014 report in which I discussed how gold flowed into China in “tributary fashion” like small streams flowing into a giant one. In this case, the gold has been streaming into China’s increasingly massive thousands-of-tons gold hoard.

In January, 2015, I penned an essay titled “China’s Global Gold Supply “Game of Stones” outlining China’s long-range goal to dominate the world’s physical gold market.

Well, events have moved massively forward since then. I want to update you as to just how much things have changed – and how close we may be to experiencing a “defining moment” in the gold market.

I’m talking about a game-changing event that could, with little warning, propel the price of gold upward by hundreds – even thousands – of dollars per ounce in the space of a few weeks… conceivably overnight! (And since silver’s price movements are highly correlated with that of gold, we could expect an upside explosion in silver as well.)

China’s 4-pronged gold accumulation strategy:

First: Buy physical gold in world markets, re-fabricate it when necessary (into .9999 fine bars in Switzerland), and ship to the mainland.

Second: Hoard all domestically-produced gold… which is now being done, even when produced from operations with foreign-partners. This is also true with silver production, e.g. Silvercorp Metals – a Canadian silver/lead producer with operations on the Chinese mainland.

Third: Partner with (e.g. Pretivm Resources; Barrick Gold-Pascua Lama) or buy outright, gold explorer-producers located on foreign soil.

Fourth: Purchase for cash, gold production “off the books” from ‘informa’ miners in S.E. Asia, Africa, and South America. China’s intent is to supplant the U.S. as the largest holder of physical gold (claimed to be around 8,000 metric tons) on the planet. (Disclosure: I, David Smith, have held for several years, positions in Silvercorp and Pretivm, purchased in the open market.)

Right now, China is vastly understating what it actually holds as well as how much is being imported.

This deception is easier than ever because a significant amount is no longer routed (and thus reportable) through Hong Kong, but rather through other mainland entry ports. What the authorities admitted holding as of last summer was almost unbelievably small compared to what even the official figures streaming through Hong Kong alone, plus domestic production add to the total, and China is now the number one global gold producer.

As reported by Steve St. Angelo China has, during Q1, 2017, imported a record 57.4 metric tons of gold to the mainland, from Australia.

Notice the Australian/U.S. multi-year pattern of gold mine exports vs. production

In Addition: A parallel determinant is China’s effort to lessen its holdings of U.S. dollar reserves, by signing infrastructure agreements (denominated in yuan) with countries participating in its massive, long-term New Silk Road project. It’s been reported that China has even approached Saudi Arabia about yuan-based oil sales – a direct threat to the decades-long monopoly of the U.S. petrodollar.

And then there’s this:

The Perth Mint sold $11 billion worth of bullion to China last year alone, and demand continues to climb. Demand is so strong that Perth Mint brings in gold from mines in other countries like Papua New Guinea and New Zealand, and jewelry from South-East Asia that is refined down to the Mint’s signature 99.99 percent gold bullion. (ABC News)

and:

Steve St. Angelo reports that so far in 2017, scrap gold recovery is down sharply, even though the price of gold has risen – an unusual historic occurrence.

His projection for the year? “…as the price of gold has increased in 2017, global gold scrap supply will fall by almost a third, or 32% versus 2010… this major gold market indicator trend shift suggests that individuals are now holding onto their gold rather than sell it for a higher FIAT MONETARY PRICE.”

A Surprising Shock-Rise?

Precious metals prices have been in a cyclical decline since mid-2011 – not unlike the last secular bull market in the 1970’s – before gold’s eight-fold rise less than two years later.

It’s understandable that you might meet this latest suggestion of an unexpected, massive rise in the price of gold and silver with skepticism. A rise that could take place so quickly that those who hesitate could not react before prices had climbed far above prevailing levels. Before the supply cupboard had been swept clean. But the truth is – it’s not a pipe dream, not blowing smoke, not wishful thinking. This is not just possible, but increasingly probable.

Everything in life involves playing the odds. If something is “unlikely” but possible, and if that something taking place had the potential of being a “game-changer,” would you not seek to prepare for it in some measure?

A vertical up-move in gold would place you in a tidy profit position, even if you held a relatively small amount (e.g. the oft-touted 5% of your investable assets). So, it’s not necessary to mortgage the house or go into debt in order to “participate.”

I believe it’s almost “a given” that precious metals will resume their secular bull run, which could continue for the next three to five years. If you agree, does it not make sense to begin (or continue) a conservative metals’ acquisition plan? With little worry as to the price where you began?

It’s not that difficult. Either buy metals when you have some surplus investible funds, and/or do so on a regular, dollar-cost-average basis. If the “China card” never gets played, you’ll still do well as metals’ prices advance over the coming years. You’ll have been purchasing “paid-up insurance” for the rest of your holdings, hedging more as time goes on.

And one more thing. Don’t think of it as “spending money” on buying gold and silver. You’re simply exchanging continually-depreciating “paper promises” – the enduring term coined by David Morgan at TheMorganReport.com – for “honest money” which has stood the test for millennia and will likely continue for as far as the eye can see.

Remember, if you don’t hold it in your hand, you can’t be sure you really own it. John Hathaway, Tocqueville Asset Management covers this precisely, saying,

When the market reverses, the diminished physical anchor to paper claims, concerns over title and encumbrances on central bank bullion, and worries over the drift of public policy will drive liquid capital into gold. However, this time around, it seems to us that the major recipient of flows will be the physical metal itself. Holders of paper claims to gold will receive polite and apologetic letters from intermediaries offering to settle in cash at prices well below the physical market. To those who wish to hold their wealth exclusively in paper assets, implicitly trusting the policy elites to resurrect normally functioning capital markets and economic conditions, we say good luck. For those who harbor doubts on such an outcome, we say get physical.

David Smith is Senior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com. For the past 15 years, he has investigated precious metals’ mines and exploration sites in Argentina, Chile, Mexico, Bolivia, China, Canada, and the U.S. He shares his resource sector findings with readers, the media, and North American investment conference attendees.

The post China’s Get the Gold Plan: Part II appeared first on Gold Silver Worlds.

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Gold Surges 2.6% After Jackson Hole and N. Korean Missile

Published here: http://www.zerohedge.com/news/2017-08-29/gold-surges-26-after-jackson-hole-and-n-korean-missile

Gold Surges 2.6% After Jackson Hole and N. Korean Missile

- Gold surges as N. Korea fires ballistic missile over Japan
- Safe haven buying sees gold break out to 10-month high after Jackson Hole and rising North Korea risk of attack on Guam
- South Korea's air force dropped eight MK 84 bombs near Seoul;  simulating the destruction of North Korea's leadership
- Gold rises from $1,291 to $1,325; Silver surges 3.2% from $17.05 to $17.60
- Volatility as seen in VIX surges as stocks fall; FTSE -1.1%
- Yen rises in short term but no safe haven in long term with gold haven risen 9.8% per annum in JPY (see chart)
- Gold was moving higher after Jackson Hole and had broken through crucial $1,300/oz level
- Asian geopolitical risk allied to U.S. political instability increasing safe haven bid
- $20 trillion U.S. debt ceiling storm looms

Editor: Mark O'Byrne

This morning the price of gold has rallied to its highest point since the Trump's election. North Korea's firing of a missile over Northern Japan which landed in waters off Hokkaido in the Pacific, has sharply escalated tensions in the Korean peninsula and in Asia.

This latest move by Kim Jong Un was intended to show that an attack on Guam is possible at any time, according to North Korea's Mun-hwan.

Source: Yonhap via ZeroHedge

There had previously been concern that the war of words between Trump and Kim Jon-Un would result in others getting caught in the crossfire. This was confirmed this morning when Japan was made a clear target.

“North Korea’s reckless action is an unprecedented, serious and a grave threat to our nation”
- Japanese Prime Minister Shinzo Abe

Immediately after the missile launch was detected the Japanese government’s J-Alert system interrupted radio and TV to warn citizens of the possible missile and urged them to take refuge in solid buildings or underground shelters. Bullet train services were temporarily halted and warnings went out over loudspeakers in towns in Hokkaido.

South Korea's air force has staged a live-fire drill simulating the destruction of North Korea's leadership. Earlier this morning four South Korean fighter jets bombed a military firing range north of Seoul after President Moon Jae-in asked the military to demonstrate capabilities in a show of strength to North Korea.

North Korea refers to these missile launches as 'tests'. But they are more than tests of the equipment, they are also tests on the patience, nerves and self-control of those who feel threatened by Kim Jong-Un. Observers and surrounding countries believe this saber-rattling is growing ever more serious and dangerous by the day.

As Yonhap notes, "the North's provocation is another slap in the face to Moon and U.S. President Donald Trump as they have sought to resume dialogue, and could bring tensions on the peninsula to a new high."

Trump is also left red in the face after his comments that Kim Jong Un "is starting to respect us." Yet another idiotic comment from the current incumbent of the White House.

Safe havens rise as risk assets fall from record highs

Fear in the markets has been expressed by the climb in price of gold and the ongoing support for the Japanese Yen, Swiss Franc and US Dollar.

While the yen has risen in the short term, the notion that it is a 'safe haven' in the real sense of that term - as a medium and long term hedge for investors - is inaccurate. This is clearly seen in the table above and the chart below which show that the yen has fallen nearly 10% per year versus gold in the last 15 years.

Gold rose in yen prior to the crisis from 2002 to 2007 and again during the height of the crisis from 2009 to 2012.

Seeing as Japan is at risk of a nuclear attack and being sucked into a war - wars are expensive things - the yen is actually vulnerable and will likely fall in the coming months.

Gold in JPY - 15 Years - Goldprice.org

The rise in the price of both gold and silver is expected given the events of last night, however they do not come without support elsewhere.

The outcome of Jackson Hole and growing concern over the looming US debt ceiling have been providing growing support for the climb in gold and silver.

Where does it end?

Currently there are two major drivers for the price of gold, both of them related to President Donald Trump himself.

These are: US political instability and tensions in Asia including with North Korea.

Following Trump's election markets had expected Trump's plans for fiscal stimulus to do great things for the economy. A planned $500 billion infrastructure spending program was expected to lead to strong US economic expansion, higher interest rates and a more robust dollar.

However, nothing has materialised and Trump now has the problem of a potential government standoff as the $20 trillion debt ceiling issue looms in September.

Many might argue that Trump inherited these huge economic challenges that will likely lead to political instability. But, one problem he has definitely made worse and arguably added to (in the short-term) is that of North Korea.

A major difference with the North Korea problem is that for the first time in modern history the US has a president who is happy to be confrontational and threatening. He does not appear to want to be conciliatory and work to find a multi-lateral solution. With this in mind it is near impossible for investors to know how this will end.

At the time of writing there has been no official response from the White House or tweets from President Trump. How the situation with North Korea will unfold relies heavily on what happens in Washington. No doubt, If Trump decides to tweet and escalate the matter the situation will become even messier prompting a sharp sell off in risk assets.

Uncertainty drives the gold price

Once again the short-term support for gold is being solidified by uncertainty. This combined with the long-term support that is driven by the irrevocable damage governments have done to our markets and currencues, means that we are left with a strong basis for an ongoing climb in the gold price.

Investors are turning to gold today because one of the world's most advanced economies is under threat by one of the last closed-dictator regimes.

The situation will be helped or hindered by others in the western world who are also concerned for their own country's safety. We are very much on the brink of something which could affect lives for generations to come, much like the last two major wars that dragged every corner of the globe into them.

In previous scenarios when countries' safety and sovereignty have been under threat, gold has acted as a safe haven for those who are concerned about the safety of their assets, currencies and wealth. They have invested in gold, safe in the knowledge that it cannot be deleted by a cyber attack or told it cannot be used when they cross borders. They know that it is the ultimate safe haven.

The market reaction to events overnight shows again that diversification is key. Gold should be treated as a currency and added to a balanced, diversified portfolio to ensure financial insurance in the coming months and years.

News and Commentary

Gold climbs to 9-1/2 month high on rising North Korea tensions (Reuters.com)

Gold Jumps on Haven Demand as N. Korea Lobs Missile Across Japan (Bloomberg.com)

Asian markets jolted by North Korean missile test over Japan (Marketwatch.com)

North Korea fires missile over Japan, sharply escalating tensions (Reuters.com)

Stocks Drop, Yen Jumps After Korea Missile Launch (Bloomberg.com)

Source: Marketwatch

Gold rise is "trend we’ll continue to see until data or politics changes" - Stepek (MoneyWeek.com)

Finland's Largest Pension Funds Dumps US Stocks Because "There Is No President In The US" (Bloomberg.com)

Unloading Dollar Assets Would Be Most Effective - Chinese State Media Unveils Trade War 'Countermeasures' (ZeroHedge.com)

Are You Prepared for These Potentially Disruptive Economic Storms? (GoldSeek.com)

One look at this chart and even the haters might be tempted to buy some gold (MarketWatch.com)

Gold Prices (LBMA AM)

29 Aug: USD 1,323.40, GBP 1,020.34 & EUR 1,097.36 per ounce
28 Aug: No LBMA prices today as UK holiday
25 Aug: USD 1,287.05, GBP 1,003.90 & EUR 1,090.90 per ounce
24 Aug: USD 1,285.90, GBP 1,003.26 & EUR 1,090.44 per ounce
23 Aug: USD 1,286.45, GBP 1,004.33 & EUR 1,091.68 per ounce
22 Aug: USD 1,285.10, GBP 1,000.71 & EUR 1,091.95 per ounce
21 Aug: USD 1,287.60, GBP 999.82 & EUR 1,096.52 per ounce

Silver Prices (LBMA)

29 Aug: USD 17.60, GBP 13.59 & EUR 14.62 per ounce
28 Aug: No LBMA prices today as UK holiday
25 Aug: USD 17.02, GBP 13.26 & EUR 14.40 per ounce
24 Aug: USD 16.93, GBP 13.20 & EUR 14.36 per ounce
23 Aug: USD 17.06, GBP 13.32 & EUR 14.48 per ounce
22 Aug: USD 17.02, GBP 13.27 & EUR 14.48 per ounce
21 Aug: USD 17.02, GBP 13.20 & EUR 14.48 per ounce

Recent Market Updates

- Diversify Into Gold On U.S. “Political Instability” Advise Blackrock
- Trump Presidency Is Over – Bannon Is Right
- The Truth About Bundesbank Repatriation of Gold From U.S.
- Cyberwar Risk – Was U.S. Navy Victim Of Hacking?
- Global Financial Crisis 10 Years On: Gold Rises 100% from $650 to $1,300
- Mnuchin: I Assume Fort Knox Gold Is Still There
- Buffett Sees Market Crash Coming? His Cash Speaks Louder Than Words
- Gold, Silver Consolidate On Last Weeks Gains, Palladium Surges 36% YTD To 16 Year High
- Must See Charts – Gold Hedges USD Devaluation, Rise in Oil, Food and Cost of Living Since Nixon Ended Gold Standard
- World’s Largest Hedge Fund Bridgewater Buys $68 Million of Gold ETF In Q2
- Diversify Into Gold Urges Dalio on Linkedin – “Militaristic Leaders Playing Chicken Risks Hellacious War”
- Gold Has Yet Another Purpose – Help Fight Cancer
- Gold Up 2%, Silver 5% In Week – Gundlach, Gartman and Dalio Positive On Gold

Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

Please share our research with family, friends and colleagues who you think would benefit from being informed by it.

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Published here: http://www.zerohedge.com/news/2017-08-28/trump%E2%80%99s-big-decision-why-not-danielle-dimartino-booth-fed-post

 

Trump’s Big Decision: Why Not Danielle DiMartino Booth For A Fed Post?

Written by Peter Diekmeyer, Sprott Money News

 

Lead photo by Rose Baca of the Dallas Morning News.

 

US President Donald Trump’s decision about who will replace Janet Yellen when her Federal Reserve chairmanship expires in February will be the biggest of his Presidency.

The importance of the US central bank, which few Americans know about and to which a series of Presidents and Congresses have gradually ceded leadership of the economy, cannot be overstated.

During the past three decades, the faceless bureaucrats who lead the Fed have become the nation’s biggest predatory lenders. Its near-zero real interest rate policies have coerced American governments, businesses and consumers to take on catastrophic levels of debt.

Worse, it is increasingly clear is that these “unconventional monetary policies” haven’t worked. Instead of the sustained economic growth that the Fed promised, America has inherited a colossal stock market and real estate bubble, bankrupt pensions and vast cohorts of debt slaves, many of them Millennials, struggling to pay off student debts.

An unprecedented opportunity

Trump, who during the US Presidential election campaign provided clear signs that he understood the nature of the monetary policy challenges that America faces, now has a chance to change course.

During the coming year, Trump will get to fill no fewer than six of the seven seats on the Fed board. This is the first time since Woodrow Wilson appointed the original Federal Reserve Board of Governors in 1913 that a US President has had that much flexibility.

The trouble is that the Federal Reserve's disastrous support of near unlimited government spending, borrowing and, most recently, money printing (which we jokingly call the Krugman Con) was cheered on by most of the ivy league economists, who would normally be ideal candidates for the vacant posts.

One obvious way to signal a shift in course, would be to appoint a new Fed chair from outside the system. Ideally candidates would be untainted by previous Fed decisions and unconstrained by the need to conform to an old econometric PhD thesis which they wrote decades ago and have since staked their careers upon.

A US economy in detox

Richard Fisher, the former president of the Dallas Fed, an early Fed critic who provided clear warnings about the risks prior the 2008 financial crisis comes to mind.

That said, Fisher’s plain-spokenness about the disastrous and risky course Yellen’s predecessor Ben Bernanke took may have made him politically unpalatable. "We injected cocaine and heroin into the system," to enable a “wealth effect” in the economy, Fisher told a journalist last year, “Now we are maintaining it with Ritalin."

Furthermore, Trump’s enthusiasm for reform has cooled since taking office. In recent months, he has gradually reverted to lauding Yellen’s policies. “I like low interest rates,” he recently said. The upshot is that Trump will almost certainly pick a loose money proponent as Fed chairman, and hope that the system will continue to stay afloat during his watch.

Could a “Fed Up” DiMartino Booth be lured back?

Trump could also inject creativity into the Fed in a more nuanced way, as it shepherds the US economy through much-needed detoxification following its past excesses, through his choices to fill those vacant governor posts.

One obvious name that comes to mind is Danielle DiMartino Booth, a former Dallas Fed insider and Fisher staffer, who helped to keep its mercurial president on message, during the latter years of his mandate.

DiMartino Booth, a former financial executive-turned journalist (whom Fisher lured to the Dallas Fed, after he read some of her warnings prior the 2008 financial crisis) describes her experiences beautifully in “Fed Up,” a book released earlier this year.

DiMartino Booth’s anecdotes regarding groupthink among Fed officials are particularly revealing. For example, she notes that US central bank employs a stunning 1,000 economists and researchers, many of them Ivy League PhDs (Note: none of whom who were ever able to accurately predict a recession one year in advance).

A more disciplined monetary policy?

DiMartino Booth does not believe in the gold standard, so she is not perfect. But she does advocate a more disciplined monetary policy, which includes an end to the Fed’s dual mandate of balancing inflation and unemployment. The Fed should restrict its role to price stability, DiMartino Booth writes.

DiMartino Booth also advocates that the Fed gets out of the business of manipulating markets, through its low interest rate and asset purchase policies.

While DiMartino Booth probably could not do much on her own, she’d provide a strong voice at the Fed, to oppose inevitable institutional momentum there to expand its role by buying corporate bonds and stocks (which the European Central Bank and the Bank of Japan respectively are engaged in). She would also be strong advocate of slashing the Fed’s bloated research department and the number of PhDs in its top leadership.

DiMartino Booth also brings to the table attractive personal characteristics which make her a good fit. For one, as a mother of four, she has “skin in the game,” and will get a chance to watch the long-term effects of the policies she backed play out in the real world, long after she left office.

She is also relatively young, and would almost certainly add energy and vigour to an increasingly senile Fed board, whose members are all, except one, well into their sixties and even seventies.

Whether a DiMartino Booth appointment would change much is unclear. But at least - if the system does implode again - we’d stand a good chance of getting a good book about what happened.

 

Questions or comments about this article? Leave your thoughts HERE.

 

 

Trump’s Big Decision: Why Not Danielle DiMartino Booth For A Fed Post?

Written by Peter Diekmeyer, Sprott Money News

 

Editor's note to ZH readers: we have heard your feedback about too much clickbait and advertising to our site on ZH. While we are a gold and silver site, we do appreciate that responsible journalism is important and we consider ourselves a reputable news source. Therefore, we have only included links at the top and bottom of the article. Thank you for your feedback on this and we appreciate your readership and shares.

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Gold/Dollar- Monster breakout test in play!

Published here: http://www.zerohedge.com/news/2017-08-28/golddollar-monster-breakout-test-play

The Gold/Dollar chart below reflects that Gold was much stronger than the U.S. Dollar (US$) from 2001 until 2011. Since 2011, the US$ has been stronger than Gold, as the ratio has declined for 6-years. Is it time for the worm to turn (Gold stronger than US$)? The ratio below reflects a big test is in play, that could answer this very important question.

 

CLICK ON CHART TO ENLARGE

The Gold/US$ ratio hit rising support line (1) at (2) earlier this year, which held and a rally then followed, as the US$ hit a high and Gold has rallied. This pattern could be part of a bullish ascending triangle that is forming. The top of this potential pattern is being tested this month at (3).

If the ratio breaks out at (3), Gold, Silver and miners could do very well!

Over the past 100-days, Premium and Metals members have liked the looks of Copper and Freeport Mcmoran. FCX which was purchased and it has been much stronger than Copper, Gold, Silver and the S&P 500. If the ratio does breakout above, it would send a positive message for the metals space that it has not seen in a couple of years!

 

CLICK ON CHART TO ENLARGE

Should the ratio breakout at (3) in the top chart, Gold, Silver and Miners could attract buyers and push them much higher!

If you would like to receive daily and weekly updates on Gold, Silver, Copper and Miners, we would be honored if you were a Premium or Metals member.

 

from Kimble Charting Solutions.  We strive to produce concise, timely and actionable chart pattern analysis to save people time, improve your decision-making and results

Send us an email if you would like to see sample reports or a trial period to test drive our Premium or Weekly Research

 

Website: KIMBLECHARTINGSOLUTIONS.COM

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Questions: Email services@kimblechartingsolutions.com or call us toll free 877-721-7217 international 714-941-9381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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