Love. Fear. Inflation. A Precious Metals’ Trifecta

Published here: http://goldsilverworlds.com/physical-market/love-fear-inflation-a-precious-metals-trifecta/

By David Smith, Money Metals Exchange

Going forward, there are – and will continue to be – three primary drivers of global physical gold (and silver) demand.

During certain times in the past only one or two of these elements provided most of the momentum.

However, as we move into 2019, and for possibly the next 5-10 years, all three will be in play. They will operate synergistically to consistently motivate increased precious metals’ buying around the globe. This will happen, even as meeting that demand with sufficient new supply becomes problematic.

The term “synergistic” is used here on purpose. By definition, it relates to “the interaction or cooperation of two or more organizations, substances or other agents to produce a combined effect greater than the sum of their separate effects.”

The Three Demand Drivers for Precious Metals

Fear: Not just about social and economic unrest, but also – as prices begin to move up and away – fear of missing out!

People buy gold (and silver) as insurance, as an easily saleable for cash when needed option, and as a last ditch “get out of Dodge” ticket when the local currency has been “burned” due to government mismanagement and corruption.

Ask Vietnamese in the 1970’s or Zimbabweans, now in their second currency-destroying hyperinflation in recent memory. Ask Argentines facing their 9th currency-extinction event in modern history, or Venezuelans today.

Fear manifests itself today in the current roller-coaster ride of the larger stock markets (DOW/S&P, etc.), the student debt trigger (at almost $1.5t, much of which is in arrears), liquidity draining by the Federal Reserve, and record levels of overall U.S. debt.

Love: The Chinese New Year celebrations are coming into view… Gold demand from China and India (Chindia) has been consistently higher for the last decade – with no signs of tapering.

This is taking place because history and custom pretty much ordain it. With incomes rising in both countries, this solidly entrenched demand trend is set to continue for the foreseeable future.

Chindia – the 800 Pound Demand Gorilla

Inflation: For a number of years, an inflation vs. deflation debate has raged. Deflationary analysts believe that the coming massive debt repudiation, at some point inevitably taking place as the misguided, unpaid-for-spending is unwound, will take asset prices – including precious metals – down with it.

But this perspective fails to consider that central banks – foremost among them the Federal Reserve (simply a central bank by another name) will absolutely do everything in their power to avoid an asset crash.

Fed policymakers will print, literally and digitally, “as much as it takes” to keep this from happening.

They want and need inflation to keep their game going as long as possible. Not to mention that the government’s massive deficits get paid off in worth-less money. Politicians can continue spending paper promises, get re-elected, and reward their political allies.

Stewart Thomson of Graceland Updates identifies the critical distinction which practically guarantees that inflation will become the desired outcome, for as long as humanly possible. He states:

When a financial crisis is related to the private sector, it generally takes a deflationary form. When it relates to the government, it generally takes an inflationary form. The next super-crisis in the West is vastly more likely to be a government crisis, not a private sector crisis, and the place that crisis is most likely to take place in is… America.

The Gold Demand Engine Is Heading Toward a Supply Wall

The trend, if going against you, becomes your enemy. In spite of increased exploratory spending, new large gold discoveries are becoming less common, more costly to find, and taking increasingly longer to develop to production stage when they are located.

The discovery trend for large gold deposits is decidedly down. (Courtesy Katusa Research, sources listed.)

Silver production, marching to its own supply drummer, is not looking all that robust either. At current mining rates, only about 9 ounces of silver are being mined for every mined ounce of gold. Yet the silver gold ratio is running around 85:1. Is something seriously out of whack?

Seven years after a major, but most likely not the major top in gold prices at around $1,900 the ounce, gold still shines brightly in the protect your assets department. Liquid, easily storable, fungible, easily divisible, and historically reliable.

Over 20 years, Gold has outpaced stocks… and inflation.

In 2001, at the tail end of a 20-year silver bear market, Doug Casey said: At the top, people don’t look at fundamentals because they think they’re no longer relevant… At the bottom, they’re not looking because they just don’t care.

Sound familiar today?

What have the global ‘financial wizards’ learned since 2008?

In 2008, global debt totals were in the area of $170 trillion, to the tune of 275% of the world’s gross domestic product (GDP). Today those figures are above $250 trillion and well over 300% of GDP. Look at how little the world’s financial wizards seemed to have learned from the crises which literally came within hours of taking the entire global financial system down with it.

So if you haven’t taken this opportunity into declining prices to either establish a position in physical gold and silver, or have yet to “top off” your holdings, consider answering the question Dirty Harry often posed to his opponents, “Do you feel lucky today?”

 

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.

Read More

UUUU Stock Is One to Watch as New Bull Market Is Now in Development

Published here: https://www.profitconfidential.com/stock/energy-fuels-stock/uuuu-stock-to-watch-as-bull-market-in-development/

UUUU Stock: There Is Always a Bull Market Somewhere
In recent weeks, I have been pointing out my concerns that the market is likely in the process of forging a significant top, suggesting that a bear market might be brewing on the horizon. This is obviously not good news that I have been sharing.

So I am going to switch gears and focus on a silver lining in this market. For one, now that October is behind us, we have entered a seasonal strong period for stocks that will likely stretch into 2019. And of course, we must never ever forget that even if the major market indices are poised to correct, there is always a bull market somewhere.

For instance, uranium and uranium.

The post UUUU Stock Is One to Watch as New Bull Market Is Now in Development appeared first on Profit Confidential.

Read More

Why is Gold so Important?

Published here: http://goldsilverworlds.com/gold-silver-general/why-is-gold-so-important/

Why is gold so important? It’s a hard question, right? You must have asked that question to yourself too…why in all those precious metals is gold the most important?  Before answering that question let’s learn first about gold and its uses to tackle that problem.

Gold has been used for thousands of years and by ancient civilizations.  We surely don’t know who first discovered gold, but we’re happy they did. Gold’s history can be traced as far back as 40,000 BC!  Pretty old for a precious metal, right?

Ancient Egyptians

You might wonder what early uses did they have for gold when they first discovered it.  Unfortunately, we don’t know either.  But since 3,000 BC gold played an important role with the Egyptians.  It was used to decorate their temples, weapons, ornaments, and jewelry. To the ancient Egyptians, gold was so important to them that even the capstones in the great pyramid of Giza were made out of gold.

Gold was also used by the Egyptians as their currency.  As a matter of fact, Egyptians are known to  have the first currency exchange in history. One gold unit was equivalent to two and a half pieces of silver.  Not just that, Egyptians also created gold maps to point where gold mines and different deposits of gold were located in the entire Egyptian kingdom.

Ancient Greeks

Gold was used as a symbol and to honor the gods and demigods by the ancient Greeks. In ancient Greek gold is a symbol of wealth and richness, and was also formed as a currency. The ancient  Greeks mined gold throughout the Mediterranean and Middle East since 550 B.C.

Gold mentioned in the Bible

According to the Bible, Genesis 2:10-12 says that the land of Havilah (near Eden) is a place where good qualities of gold can be found. The Aztecs and many other civilizations used gold abundantly in the early history, gold was also used in their religious ceremonies and in their architectural designs.

Gold signifies power and wealth in the earliest civilization.  Those who hold gold also bear a great power including emperors and priests.

Gold has been very important since the early civilizations.  Its uses have been valued throughout  history. The question that struck my mind is why is it so important?  Gold is considered at the present time as a very precious metal due to its characteristics.  Gold is dense, soft, shiny, malleable and a very ductile metal.

We cannot deny the importance of gold in our lives, even in our daily lives we use gold. In fact, an ounce of gold can be pressed and stretched into 50 miles of wire at a one-tenth diameter of a human hair. Some of our precious jewelry is also made out of gold.  It has many uses in a host of industrial applications including wiring in electronics, an anti-glare film lining in the astronauts’ visors, and gold can be used in health and dentistry.

Gold has so many possible uses in our industry, economy and in our lives. The answer to the question of why gold is very important is because of its uses and value in our lives.

Read More

Is Silver On The Rise? Could It Be The New Gold?

Published here: http://goldsilverworlds.com/gold-silver-general/is-silver-on-the-rise-could-it-be-the-new-gold/

Investors are talking about gold mainly for its value and price.  In the past ten years, the price of gold has increased from less than $300 to $1,500 per ounce…quite interesting for gold investors.

However, silver has performed better than gold for the past ten years.  Its price has ranged from less than $5 to $40 an ounce. So if you invested  $10,000 in gold in June 2001 its value today would be $50,000, but if you invested $10,000 in silver on the same date you would now have around $80,000.

Now may be the time to start thinking of silver as the new gold.  As a matter of fact, there are several pieces of evidence that silver could soon replace gold as the precious metal of choice for some investors. An example of that is some analysts project that the price of silver will rise to $90 per ounce by the end of 2021, while the price of gold remains at $1,500 over the same time frame.

Silver rises for many of the same reasons as gold.  One of the biggest common factors is the state of the economy today. Economic uncertainty can be observed at any given time, and when there is a high risk of inflation, precious metals become more desirable due to a recognized safety and reputation.

One of the biggest advantages of silver is it’s not widely considered a main source of value like gold is. Silver also has many uses in industry, medicine, and dentistry, thanks to its usefulness, unique properties such as a good electrical and thermal conductors and usefulness in making metal alloys.

Silver can be very useful to mankind.  There are many reasons why you should invest in silver too. One reason is silver is cheap, its industrial use is growing, world demand is growing and in the gold and silver ratio silver is more favorable.

Silver is cheap

You could buy a hard asset of silver at roughly the price of 1/70th the price of gold, much more affordable and easier to acquire for the smaller investors. If you cannot afford to buy a full ounce of gold, silver can be a substitute to own a precious metal.

The growth of Silvers Industrial Use

Silver is very useful.  Even in our daily lives, we use it.  From electronics to medical applications, and from batteries to solar panels, silver is used in many major industries. Silver is the most electrically and thermally conductive and reflective metal that exists. Due to its unique characteristics, its industrial application has risen. As the matter of fact, today’s industry makes up more than the half of silver demand.

World Demand is growing

Like its industrial use, silvers global demand also grows. Basically, all leading government mints have already seen the record levels of silvers sales. China and India are one of the countries whose silver growing demand can be seen. The behemoth markets of the two countries have a long history of cultural affection towards precious metals. As well as their population growth the astounding desire for precious metals will also rise.

Gold and Silver Ratio, Supports Silver

The gold/silver ratio can give clues to investors as to which metal might be good to buy at any given time.  Gold-to-Silver ratio average is 47:1 during the 20th century, its ratio climbed to 61:1 in the 21st century. Which makes silver a good investment related to gold.

It is very hard to find an asset with a greater use between price and basis. If you think gold is quite expensive, silver is the precious metal for you. Silvers uses in industry and the economy are growing.

Read More

When to Sell and When to Buy

Published here: http://goldsilverworlds.com/physical-market/when-to-sell-and-when-to-buy/

Gold is always a sought-after asset. Not only does it diversify your investment portfolio, but it also helps you gain ground in creating your very own hedge against an economic crisis that might occur while owning the asset. For newcomers, gold has always been hard to understand. The market fluctuates in such a way that sometimes it can become unpredictable. And so many other factors affect it as well. Some of these could be the political standing of the country, the economy, the oil markets, the scarcity of gold itself, the demand for the product and so much more.

But fret not.  We have compiled a list of things you need to consider before buying gold, or if you already own gold, these are the aspects you need to consider on when to buy and when to sell.

Having the right mindset and knowing the proper time to purchase and sell the product is very crucial in buying and selling gold. For example, buying at the wrong time could lead to purchasing very expensive gold per ounce, and selling at the wrong time could also be a great loss of the asset considering the prices of the product itself might considerably increase. So, these are the few factors one needs to consider before you make a financial decision regarding Gold and other precious metals

The price of gold fluctuates, so when buying gold and other precious metal products timing is everything. Before jumping in and buying gold, look for the historical data to see the best time of the year to buy gold.

There are some cycles we can see to the price of gold according to the historical record of gold and silver prices.  Gold and silver tend to be low on price in the months of January, March, April and late June, which is a good time to buy gold.

If you are going to buy gold, buy it this year. You will get a better price this year than next year.

Maybe you are not interested in buying gold and you are interested in selling it.  Before you start thinking when to sell your gold, know first the value and purity of your gold.  If you’re thinking about selling your gold, you need to be more aware of the gold spot price. The gold spot price is the current price of which gold could be bought and sold.

The spot price of gold can fluctuate greatly from day to day or even hour to hour, due to the factors like supply and demand. Some factors can make it hard to predict the price of gold in the future! If it were easy, you’d be rich!

When is the best time to sell your gold? Typically, sellers of precious metals do so because they are in need of liquid funds.  Timing your transaction will require watching price trends and avoiding those months when precious metals prices trend downward.  Lastly, due to precious metals always having intrinsic value, you will always be able to sell you metals unlike paper assets.  You’re guaranteed to always be able to sell your gold for SOMETHING, even in a major disaster or crisis.

Read More

Gold and Silver Facts

Published here: http://goldsilverworlds.com/gold-silver-general/gold-and-silver-facts/

Gold and Silver have been useful to mankind since ancient civilization. Even today, we use gold and silver in our everyday lives. But most of the people nowadays don’t know the purpose and the importance of both metals.  Let’s talk further about two of the most important metals ever discovered by mankind.  Here are some amazing facts about Gold and Silver.

Gold characteristics

• Color                           golden yellow
• Atomic Weight         9665
• Normal State            solid
• Melting Point           18 deg C, 1337.33 K
• Boiling Point            2850 deg C, 3123 K
• Electrons                  79
• Protons                     79

Gold is one of the oldest metals continually used since ancient civilizations. Its bright yellow color has been valued for thousands of years. The oldest gold treasure ever found was in a burial site in Varna, Bulgaria from around 4000 BC ( from the ancient Thracian civilization).

By 3100 BC man has evidence of gold and silver used by the Early Dynastic  Period of ancient Egypt. Egyptians used gold plates to decorate shrines, ornaments, weapons, ceramics, statues, glassware and jewelry. Gold has also been used as a standard for currencies all over the world.

The world’s largest gold bar was manufactured by the Mitsubishi Materials Corporation, a subsidiary of Mitsubishi. The gold bar stands at 250 kg (551 lb), measuring at the base   45.5 cm x 22.5 cm and 17 cm high with a 5-degree draft angle (equal to 15,730  cm³, or 17.9 in × 8.9 in × 6.7 in ≈ 1062.04 in³).

Gold is found on every continent on Earth, except for Antartica. The largest amount of gold can be found in the oceans.

Gold is edible, pure gold is chemically inert and passes through the human digestive system without being absorbed into the body. Since 24-karat gold is very soft and fragile, most edible gold – whether leaf, flakes or dust – also contains a little bit of silver which is also inert ( so it means we can eat a whole 24-karat gold without falling ill).

Earthquakes can turn water into gold (sounds like a shake rattle and gold!). During an earthquake, the fault jog suddenly opens wider. It’s like pulling the lid off a pressure cooker. The water inside the void vaporizes instantly, flashing to steam and forcing silica, which forms the mineral quartz and gold out of the fluids and onto nearby surfaces.

There’s gold in Eucalyptus trees ( sounds fun to plant eucalyptus trees ). Australian researchers have found that microscopic gold particles from underground ore deposits are present in the leaves of this tree!.

 

Silver characteristics

• Color                         Silver
• Atomic Weight       868
• Normal State           solid
• Melting Point          95 deg C, 1235.1 K
• Boiling Point           2155 deg C, 2428 K
• Electrons                 47
• Protons                    47

Silver has been used since prehistoric times. We do not know who discovered it, although the discovery would almost have been native silver. Silver objects dating from around 4000 BC have been found in Greece and in Anatolia (in modern Turkey).

For thousands of years, silver has been used as a medicine and anti-bacterial agent by ancient civilization throughout the world. Its medical purpose can be tracked since the ancient Greek and Roman Empires. The word silver comes from the Greek word “Argos”, meaning shiny or white.

Silver is the best electric conductor of all the elements. It is used as the standard by which other conductors are measured. On a scale of 0-100, silver ranks 100 in terms of electrical conductivity, followed by copper that ranks in 97 and gold ranks in 76.

Silver metal is not toxic to humans. In fact, like gold, it can be used as a food decoration. However, most silver salts are toxic to humans.  Silver is considered as germicidal meaning it kills bacteria and other lower organisms. Silver compounds can be absorbed into the circulatory system and reduced silver can be deposited into various bodily tissues.

Silver is so shiny that when polished it can reflect 95% of the light, taking a photograph also requires using a silver nitrate compound to make celluloid film sensitive to light. Around 30% of industrial silver consumption in the US is used for this.

The most common form of silver is sterling silver. This is actually a 92.5% pure silver, with the other 7.5% made up of other precious metal including copper. Britannia silver is an alloy of 95.8% silver and 4.2% copper, also used for jewelry and silverware. Fine silver is at least 99.9% pure and commercially available, but too soft for general use

The primary source of silver today is the New World. Mexico is the leading producer, followed by Peru. The United States, Canada, Russia, and Australia also produce silver. Around two-thirds of the silver obtained today is a byproduct of copper, lead, and zinc mining.

Read More

Gold and Economic Freedom

Published here: http://goldsilverworlds.com/gold-silver-general/gold-and-economic-freedom/

Gold has had a significant impact on the U.S economy. Since the beginning of World War I, gold has been the sole international standard of exchange. Golds impact on the economy waxes and wanes, depending on how safe other investments are. Gold has been considered a luxury good since it is durable, homogeneous, divisible, portable and has significant advantages over all other media of exchange.

Before gold was used as a coin, its value was recognized even in the first Egyptian Dynasty. Its beauty, luster and malleability made it perfect for many uses. it has been used in the early times as a standard of exchange together with silver and copper. But not all goods can be paid by gold, it would be difficult to execute and would limit the extent of the society’s division of labor and specialization. Thus, it is a logical reason to create banknotes and deposits that can act as a substitute but convertible to gold.

The gold standard is a system where a country’s currency value is directly linked into gold. With this system, a country agrees to convert the currency of their money into a fixed amount of gold. But this system is not currently used by any government, Britain stopped using this system in 1931 followed by the U.S government in 1933 due to the percent of unemployment and deflation in the early 1930’s.

  Gold Standard Antagonism

A hysterical rival against the gold standard is an issue that unites statists of all persuasions.  There are two kinds of gold standard antagonism: the Not Arbitrary, and the More Free than Controlled.

In a gold standard (Not Arbitrary), its rare case is when depositors wanted to withdraw all their gold at the same time, the bank only keeps a certain percentage of the depositor’s total balance as reserves. Thus, the bank can loan out more than the number of gold deposits. But the amount of loans which a depositor can afford is not arbitrary.

However the More Free than Controlled system is a fully free system and is consistent with gold. It is a system where bank notes are made to convert the country’s currency of paper money and is directly linked to gold. The government remains in a gold standard which means gold is still used as a bank reserve and individuals are still free to own gold.

Read More

My Goodness, What Is Happening to Platinum?

Published here: http://goldsilverworlds.com/gold-silver-insights/my-goodness-what-is-happening-to-platinum/

By Clint Siegner, Money Metals Exchange

You may have noticed the platinum price has fallen well below gold’s price and it continues to underperform the other precious metals. What is happening in the platinum market?

We see a handful of factors driving the recent declines in platinum. For starters, it is facing the same challenges we find in the gold and silver markets.

Platinum is used in auto catalysts, coins, and jewelry.

The dollar has been getting stronger, interest rates are rising, and traders on Wall Street have rarely been more carefree. Mainstream investors are positioning for economic strength, not looking for safety.

Platinum is trading like the other precious metals, which is to say performing poorly. As of this writing, platinum is down 16% for the year.

Compare that to silver’s decline of 17% and the price action looks pretty much in-line.

There are some other fundamentals behind platinum’s underperformance in the past few years though. Demand from automobile manufacturers is weakening significantly – forecast to be down 6% this year.

The prognosis for diesel cars is even worse, and that has hurt platinum demand more than the other metals. Diesel vehicles demand primarily platinum for their catalytic converters, while gasoline exhaust systems use mostly palladium.

The 2015 scandal involving Volkswagen revealed that diesel is not nearly as clean as thought previously. The car maker had been gaming the emissions testing system, and platinum-based catalytic converters were less efficient at scrubbing out unspent fuel from diesel engine exhaust.

Those revelations have had a serious impact on platinum demand – particularly in Europe where diesel had widespread adoption based on the false assumption that it was dramatically more “green” than gasoline.

Platinum is currently in surplus. Experts anticipate supply will outstrip demand by nearly 300,000 ounces this year.

The foreign exchange markets may also be contributing to platinum’s lower price. Recently the South African Rand has fallen significantly. Miners, who are typically paid in dollars or euros, are realizing much higher prices when those funds are converted to Rand.

For bullion investors looking to speculate as well as diversify their holdings, platinum looks interesting at these levels.

The political environment in South Africa has long been a challenge for miners. It may be about to get far worse. That may mean even more weakness in the Rand, but it can also mean a serious disruption to supply.

We also question how much longer the platinum price will remain at a significant discount to palladium. The two metals are largely interchangeable in automotive catalytic converters. If car makers see a good opportunity to save by switching to platinum, look for them to do it.

 

Clint Siegner is a Director at 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 Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

Read More

Gerald Celente: Fed May Bring Down the Economy, Crash Markets

Read More

Axel Merk Exclusive: Can You Sleep at Night When the Market Goes Against You?

Read More

Are Silver and Gold ‘at the Flood’?

Published here: http://goldsilverworlds.com/gold-silver-price-news/are-silver-and-gold-at-the-flood/

By David Smith, Money Metals Exchange

There is a tide in the affairs of men…

Thus, begins one of the most famous quotes ever uttered, taken from Shakespeare’s play, Julius Caesar. Brutus, talking to Cassius, says, “There is a tide in the affairs of men. Which taken at the flood, leads on to fortune…”

A flood tide takes place at the very crest in the water’s height. Once the “tide turns,” there is no stopping its ebb until, much later, it reaches an extended, even a minus low.

If you’re ashore in parts of Alaska, where a tide can run 20 feet, not embarking “at the flood” and waiting until it’s made an obvious turn can have important implications, leaving you and your craft high and dry.

The same applies in many areas in life, not least financial.

Shakespeare’s quote serves as a metaphor – a touchstone for deciding when, how, and even if to act on some particular circumstance in our lives.

It’s difficult, because though we may be certain we see a transformative event (or a series) in the process of taking place, there’s no way to know ahead of time how long or to what degree it may take.

In the case of the tightly-stretched “variance from the mean” in the market’s current opinion of where the precious metals are headed over the near to intermediate term, divining the outcome correctly in a timely manner could have decisive bottom-line consequences for those who decide to act… and for those who do not.

Even more important than trying to “score a quick profit,” if prices are making a major sustainable upside turn, those who have not established at least a core holding are likely to find themselves watching, waiting, and ultimately not participating at all as today’s levels recede in the rear-view mirror.

By the same token, waiting to buy until “it’s obvious” will lead to frustration if prices then move back into the large sideways action we’ve witnessed several times over the last few years.

By almost any measure, the precious metals’ sector is “stretched.”

Hedge fund silver shorts (betting on lower prices) – often a contrary indicator – are at all-time highs, as indicated by this chart:

Gold Commercial shorts – also a contrary indicator – are near all-time lows:

Physical gold and silver buying by China, India and Russia (gold) remain strong:

Palladium, often a “lead indicator” for the rest of the complex, has recently spiked $120 above its recent lows…

And platinum, which generally costs up to $300 an ounce more than gold, is trading at some of the largest ever recorded values below gold.

Trying to find an exact low in the price of any market is a losing proposition. But establishing holdings into a level which gives solid evidence of representing strong long-term value – well that’s an entirely different matter!

Brutus concludes his exchange with Cassius, remarking,

“Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat. And we must take the current when it serves or lose our ventures.”

We’ll only know in the fullness of time, how closely the premise of this essay, the charts used to support it and the approach of tying it to Shakespeare’s quote, turn out to align with what Mr. Market has in store for us.

But it’s a sure bet that millions of market participants and those considering getting involved themselves will intently watch precious metals’ prices unfold in the coming days, weeks and months.

What a Bolivar buys – August 2018

There’s a lot to be said for reflecting deeply on the wisdom Brutus’ comments may portend. Do the directional arrows implied seem like a ‘fit’ for your belief about the state of things in today’s world, financially and politically? To your expectations, goals and resources? To your views on the metals’ supply-demand metrics?

Do you “have enough” metal right now to ’round out’ your position if this argument turns out in significant measure, to be correct?

Or are you still locked into “thinking mode” – hobbled by the opinions of the majority of market players currently crowded onto the same side of the proverbial investment boat, betting on still lower gold and silver prices?

Have you worked through the OODA Loop we discussed in earlier essays (see last month’s column For Sterling (Silver) Results, Repetition of the Basics is Worth its Weight in Gold).

Have you Observed, Oriented and Decided… but not Acted?

From this perspective, the precious metals’ “tide” looks to be very near a flood. Sensibly adjusting your current holdings or Acting to create and hold onto a new position might one day help keep you from being – unlike literally millions of Venezuelans who did not – “bound in shallows and in miseries.”

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.

Read More

The Bullion Market

Published here: http://goldsilverworlds.com/physical-market/the-bullion-market/

Bullion is any precious metal that is in the form of bars or ingots. It is usually used for trade in a market and comes from the original French word “bouillon” which means boiling. This was the term used to describe the activity of a melting metal.

Each Bullion varies when it comes to its value depending on its precious metal content which is determined by its purity and mass. To find out the purity of each gold bullion, they use the century-old method known as fire assay along with modern spectroscopic instrumentation to accurately determine its quality to ensure the owner receives fair market value for it. It is also weighed extremely accurately.

Understanding the bullion market

The bullion market is the avenue by which buyers and sellers can trade in gold or other precious metals. The London Bullion Market is known as the primary global bullion market trading platform for gold and silver.

The bullion market is where you can buy and sell your gold bullion or other precious metal ingots.  There are many bullion markets throughout the globe. These bullion markets are typically characterized as over the counter markets. Bullion markets exist in New York, Zurich, and Tokyo with London serving as the location for the largest global bullion market.

Bullion trade is considered to have a high turnover rate with transactions conducted over the phone or electronically, and its primary market is considered to be gold and silver. Gold and silver traded in the bullion market can sometimes be used as a safe-haven investment or hedge against inflation which may also affect its trading value.

The bullion market is one of several ways to invest in gold and precious metals. Other options like exchange-traded funds or mutual funds can also be good ways of investing in gold and precious metals.

Investment

The specifications of bullion prices are often regulated by legislation or market bodies. In the European Union, the minimum purity for gold bullion, which is treated as investment gold with regards to taxation, is 99.5% for gold bullion bars and 90% for bullion coins. You can choose to buy gold for many different investment reasons.

Most investors consider and use actual gold for a few reasons, one of which is that gold has proven to be a hedge against currency crisis, inflation risks, geopolitical risks, or to add diversification to an investment portfolio.

Conclusion

The Gold bullion market is the market by which buyers and sellers of gold and other precious metals trade and from which they gain profit.  Gold bullion has been considered a hedge against currency crisis, inflation risks, geopolitical risks, or to add diversification to an investment portfolio. Whatever the case, gold bullion has proven to be a worthy investment and has a high turnover rate, which is something investors also consider most when it comes to finding profit and returns. Like any other economic investment, the investor must always consider all the factors and the consequences of each of his decisions and hope that it will lead to good returns and profit whether it may be short term or long term.

Read More

What is a Gold IRA?

Published here: http://goldsilverworlds.com/investing/what-is-a-gold-ira/

A Gold IRA is a type of retirement account by which physical gold or other precious metals are held in custody for the benefit of the IRA account owner. It works like a regular IRA but instead of using paper assets, The IRA holds bullions and coins. So basically, Gold IRA is a type of investment vehicle used to save for retirement by buying or holding gold bullions and other approved precious metals. with your traditional or Roth IRA, you stash your savings in the form of stocks, bonds or mutual funds.  In a Gold IRA, you use precious metals. You can also own many other precious metals aside from gold, examples of which are silver, palladium, and platinum.

This also allows you to invest in other gold-related options like stock in gold mining companies, precious metals mutual funds, precious metals commodity futures or Exchange Traded Funds (ETF).

How to get Gold IRA

Not all precious metals and gold can qualify for an IRA. These metals will have to meet IRA standards. If you have metals that you wish to deposit but have not been checked or approved, you might get rejected. Some accepted forms are the gold and silver American Eagle and Canadian Maple Leaf coins, the Austrian Philharmonic coin, PAMP Suisse Gold bars, Sunshine Gold and Silver Bars and most platinum bars. To get a Gold IRA, you will need a custodian to hold and provide the account for you. This is because the gold will be deposited into an IRS-approved depository and not a regular savings account. So to find an approved custodian, you can go to your nearest bank, credit union, trust company or brokerage firm and acquire a custodian for your gold.  Of course, you would want a qualified custodian you can trust with your asset and not just any company or person.

Weighing the costs: Pros and cons

One of the benefits of holding or owning physical gold or gold IRA is that it adds diversity to your retirement portfolio. Having this type of investment provides security for you and your money in the event of an economic meltdown or should stocks go south. Gold has already proven to be a considerable hedge against inflation, unlike stocks and bonds. One of the major cons could be the requirement to find a trustworthy custodian rather than just committing to the first person you meet. Another risk of having a gold IRA is the instability surrounding gold mines or companies. Other investors also dislike that gold IRAs don’t pay dividends.  One good thing is that your gold or precious metals are insured up to a certain amount when kept by the custodian which gives you a safer investment.  Some advisors say that you would be better off with an account that pays dividends.  Bottom line is to think everything through and spend more time understanding the economic decision you are making.  This will not only ensure wise decision making but allow you to plan your investment portfolio properly.

Read More

5 Reasons to Buy Silver instead of Gold

Published here: http://goldsilverworlds.com/physical-market/5-reasons-to-buy-silver-instead-of-gold/

Is silver really better than gold? Why should someone buy silver instead of buying gold? What potentials does silver have as an investment? All these questions will be answered right here. It is natural of an investor to be curious and want to discover if one type of asset is better than another. This is particularly true when it comes to silver and gold since both markets generally differ in size.

1. Money in silver

Silver isn’t part of our currency, yet it is still considered of value along with gold. One evidence is that this cannot be generated easily and thus depreciates like paper or digital forms. And by real money, we do mean physical silver—not ETFs or certificates or futures contracts.

Here’s why silver and gold has potential value,

• They have never been defaulted on.
• They have no counter party risk.
• They have long term use as money.

So as a general overview, owning physical silver gives you a real asset that has served as money for thousands of years.

2. Silver is practical for small purchases

Silver itself is not cheap to buy but can be more practical when you want to use it. Perhaps you don’t want to use a full ounce of gold to meet a small financial need, hence silver could be of more potential value. Since it frequently comes in smaller denominations than gold, you can sell only what you want or need at the time.

3. Silver outperforms gold in bull markets

The market for silver is so small, in fact, that a little money moving into or out of the industry can impact the price to a much greater degree than other assets which include gold itself. This higher volatility rate also signifies that in bear markets, silver falls more than gold but soars further and higher than gold in bull markets.

4. Global demand is growing

World demand for silver is already growing.  Almost all major government mints have seen record levels of sales, with most already operating at peak production. Rising demand, especially in China and India, is very evident in today’s world. Both countries have very long histories when it comes to an affinity with precious metals. Thus, since these surging demands don’t happen so often, there will be consequences later when rising demands meet low supply.

5. Silver is a hard asset

There are a limited number of investments that you can hold in your hand, silver and gold are one of them.

The markets are full of paper profits, digital trading, and currency creation. However, this is in contrast with gold and silver investment options as these are one of the rare few you can store, hold or even have in your pocket. And it can be as private and confidential as you want. Physical silver is also a tangible hedge against all forms of hacking and cybercrime.

So generally these are some of the reasons why silver is generally better than gold and why investing in silver is also a good option, not only does it diversify your portfolio, it also has many more benefits along with gold and other precious metals.

Read More

Gold & Silver Investors’ 8 Commandments for Avoiding Rip Offs

Published here: http://goldsilverworlds.com/gold-silver-insights/gold-silver-investors-8-commandments-for-avoiding-rip-offs/

For every promising investment opportunity, you come across, there are multiple opportunities for bad-faith brokers and hucksters to try to rip you off.

It could be undisclosed commissions and fees in an annuity, unwanted accounts opened up by a banker seeking additional fees, trades sabotaged by market manipulators, or any number of other schemes.

Rip-off artists, unfortunately, operate within the precious metals space as well.

Most recently, a scammer posing as a government agent in order to gain people’s trust was convicted of selling counterfeit gold bars and phony Morgan silver dollars. He took one investor for $11,000, according to reports.

You can avoid this type of scam as well as other common cheats when buying or selling precious by heeding the following guidelines.

1. Avoid “Too Good to Be True” Deals

If a price on a bullion product sounds too good to be true – or comes with exorbitant incentives or exaggerated claims – you should be suspicious.

Gold and silver bullion products do not legitimately sell below spot prices. Individuals holding precious metals can visit a dealer and sell items immediately, for full value. Given that everyone has this option, it is highly likely anyone offering items well below actual value is trying to stick it to you.

Legitimate dealers cannot afford to offer items way below cost either. Dealers must charge small premiums above spot prices to reflect product minting costs and the costs of doing business. (One notable exception: 90% silver U.S. coins minted prior to 1965 (aka “junk” silver) which exhibit significant wear occasionally become available at melt value or even slightly lower.)

2. Choose a Reputable Dealer and Use Extreme Care Buying from Unknown Parties Online

Find a reputable dealer who offers prompt, reliable service, and fair prices. Customers who buy based solely on slick advertisements or low quoted prices risk getting left holding the bag when that dealer fails to deliver.

Every so often a dealer will come along that tries to undercut the industry with super-low prices. Only a few years back a “low price leader” called Tulving & Company went bust. A similar blow up occurred at the Northwest Territorial Mint in 2016.

In both cases, warning signs included delivery delays and rising customer complaints. A slew of customers ultimately lost tens millions of dollars when their orders went undelivered.

Bottom line – receiving actual delivery of your metals is way more important than getting the lowest price!

Take a few minutes to investigate a dealer’s online reputation before ordering. You should also expect the dealer to provide a firm estimate as to when the order will ship when the order is placed.

3. Avoid eBay, Craigslist, and Other Online Bulletin Boards

You may be tempted to peruse sources such as eBay, Craigslist, or flea markets to try to find hidden bargains. But all too often, the only ”hot deals” being offered are from sellers with questionable or poor reputations.

Auction sites, including eBay, charge significant fees to the seller. That means reputable dealers must charge very high prices within that platform – passing along the fees eBay charges them. Better prices are usually available by going directly to dealers outside of eBay.

It is always better to know you are dealing with an established business with a reputation for fair dealing, rather than random individuals who can disappear in the night.

With underground sources, you can spend hours researching, bidding, emailing, phoning, driving, and waiting… only to still be left worrying that the product you bought might be counterfeit, stolen, or otherwise not as described.

4. Avoid Rare Coins and Other Hard-To-Sell Products Price Way Above Their Melt Value

Numismatics – coins that carry hefty premiums as collectibles – are a huge profit opportunity for dealers and scammers alike.

Gold and silver bullion products do not legitimately sell below spot prices.

Only serious collectors and experts are qualified to make wise investment decisions in so-called rare coins, so scammers love to peddle them.

If you are a bullion investor, you are more concerned with the number of ounces you hold than the supposed rarity or aesthetic value of coins.

Sometimes the dealer is the scammer – making false claims about a coin’s history, for example, or engaging in “bait and switch” tactics and outright lies to steer unwitting customers into high-premium coins.

There are prominent numismatic dealers that had paid for celebrity endorsements and TV commercials now face litigation over their dishonest sales tactics.

The numismatic market also attracts forgers. There’s little incentive to tamper with bullion coins that sell close to melt value when the value of a numismatic coin can be hugely inflated by altering its grade or appearance slightly.

5. Know Exactly What Something Is Worth to Sell… Before You Buy

Doing a bit of upfront due diligence to determine how – and for how much – you can sell the precious metals you are considering buying can help you steer clear of big mistakes.

It’s not unusual to find a seller of so-called “rare” coins would only pay you 60% of your purchase price if you were to sell it back to them the next day. Most coins being represented as “rare” are not particularly scarce or desirable. They do not bring much premium above the value of their metal content when it is time to sell.

Bottom line – avoid precious metals that are not actively traded. If the difference between the price you will pay to buy and the price you would receive to sell is more than 5-10%, you are likely paying too much.

6. Never Sell Coins, Rounds or Bars at More Than a 5% Discount to Melt Value

When the time comes to sell your bullion, the “cash for gold” sign displayed at your local strip mall represents a fast and convenient way to get paid a fraction of what your bullion is worth.

Whether it’s a jewelry store, a pawn shop, or a scrap gold middleman, you almost certainly won’t be offered anything near fair value. If you negotiate aggressively, you might get closer. But you’ll almost always get a better upfront offer from a large national bullion dealer.

Some coin dealers will offer more than others, of course. A small local shop that doesn’t carry much inventory may only be able to serve as a middleman for your bullion (and lower the buy price accordingly). Or they may not be able to make an offer at all. A large national dealer will be generally able to accept bullion in larger quantities and varieties – and with narrower buy/sell spreads.

7. Treat Your Bullion Purchases Confidentially and Store Your Metals Securely

A precious metals stash will be at higher risk of theft if you don’t secure it. One of the very best ways to secure your gold and silver is to keep your mouth shut. Loose lips really do sink ships.

A good home safe that is hidden from view and embedded in or bolted into concrete will go even further to minimize the chances of a burglary.

It can also be a good idea to keep a separate, larger stash in a professionally secured storage facility. A bank safe-deposit box is not suitable for this purpose. Nor are pooled bullion programs offered by brokerage firms.

A few years ago, MF Global lost clients’ gold when it co-mingled their assets with those of the firm…and the firm’s bad derivatives bets caused it to go bankrupt.

Insist on fully segregated storage for maximum security. Money Metals Depository offers this service, as do a few other dedicated bullion storage facilities.

8. Know When Your Bullion Order is Expected to Ship and Monitor the Dealer’s Follow Through

A dealer who is repetitively slow to ship orders is, at best, a poor operator.

At worst, late shipments are a signal that the dealer is in serious financial trouble. They are selling inventory they don’t have and can’t pay for without waiting for funds to come in from future buyers.

Very occasionally there can be legitimate reasons for a delayed shipment.

For example, there have been a few short periods in recent years when mints and refiners were not able to keep up with the huge demand for coins, rounds, and bars, and extended lead times for delivery were not uncommon. But reputable dealers will explain any expected shipping delay upfront, so the client knows what to expect.

With the current glut of inventory in the market, however, there is no excuse for delivery delays at the present time. So, if you do not receive prompt delivery, you are most definitely taking more risk by placing another order with that particular dealer.

While performing your due diligence on a dealer, it is wise to look for regular customer complaints about late deliveries. The Better Business Bureau website is one good place to search for what people have to say.

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.

Read More

IPO ALERT: Chinese Tech IPOs Continue Despite Trade War

Published here: https://www.profitconfidential.com/ipo/chinese-tech-ipos-continue-despite-trade-war/

Chinese Tech IPOs to Watch
Fear, fear, fear. Investors have been feeling it ever since President Donald Trump provoked a trade war with China, yet there’s a silver lining to consider: Chinese tech giants are going public at a steep discount.

We saw that with the Xiaomi IPO.

Shares fell below the IPO price within hours of trading. Although analysts blamed this failure on Xiaomi’s underwhelming financials, I think the overall market environment had a strong part to play. Pessimism is a real thing, folks.

However, pessimism.

The post IPO ALERT: Chinese Tech IPOs Continue Despite Trade War appeared first on Profit Confidential.

Read More

Interest rates and its effect on Gold and precious metals

Published here: http://goldsilverworlds.com/gold-silver-insights/interest-rates-and-its-effect-on-gold-and-precious-metals/

An interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. The assets borrowed could include cash, consumer goods, and large assets such as a vehicle or building.

In terms of borrowed money, the interest rate is typically applied to the principal, which is the amount of money lent. The interest rate is the cost of debt for the borrower and the rate of return for the lender.

So in other words, interest rates are the prices for holding or loaning money. Banks give out interest rates for saving money which attracts depositors. Banks also receive interest rates for each loan they give out with the deposited money.

Interest rates and Inflation

Lower interest rates mean a higher demand for loans from businesses and individuals. Each loan increases the money supply system and according to the quantity theory of money, (supply and demand), The growth of the money supply will mean an increase in inflation. So this means that lower interest rates will highen inflation and inversely, higher interest rates will equal to lower inflation.

As previously discussed, Interest rates have an effect on inflation and subsequently, this also affects gold and precious metals.

Gold and Precious metals

A precious metal is a term used for the classification of rare metals that have high economic value.  The value of these metals is driven by various factors like rarity and industrial uses. The most popular precious metals with investors are gold, platinum, and silver. Precious metals tend to do well when inflation rates are above interest rates, making it a store of value against loss of value in paper currencies. So as interest rates rise to combat inflation, Precious metals will also be affected as this means the prices of gold and other precious metals could fall.

As an investment, precious metals are sought after to diversify portfolios and as a store of value, particularly as a hedge against inflation and during times of financial uncertainty. The single most popular precious metal for investment purposes is gold, followed by silver but when interest rates rise and go beyond inflation rates, Gold and other precious metals will most likely drop in prices.

Conclusion

The rise of interest rates is more likely the attempt of the federal reserve to regulate inflation and thus affect cash holdings and investments of investors and businesses alike. But these changes will fight the rise of inflation and therefore, help consumers and investors in different aspects of business and spending plus assist them through higher savings interest rates. On the downside, higher interest rates mean higher prime rates, credit card rates and increase in the U.S. national debt and lower gold and precious metal prices.

Read More

Sound Money Needed Now More Than Ever

Published here: http://goldsilverworlds.com/gold-silver-experts/sound-money-needed-now-more-than-ever/

By Clint Siegner, Money Metals Exchange

The sound money movement reemerged on the national political scene a decade ago. In 2008, the financial crisis brought in a fresh wave of U.S. gold and silver investors.

Ron Paul and the Tea Party advocated for limiting government and ending the Federal Reserve system. Sound money advocates made real inroads in recruiting Americans to their cause based on evidence that the nation is headed for bankruptcy.

The implications of the most recent financial crisis went way beyond budget and finance.

Many Americans grasped the more significant lesson. The perpetual expansion of government spending lay behind the corresponding decline in personal liberty for them, their children, and their children’s children.

Dishonest money is a dream for politicians and bankers, but it is a nightmare for citizens. Charts showing the final abandonment of the remnants of the gold standard in 1971 and the exponential rise in government debt helped people make the connection between dishonest, unlimited fiat money and unlimited government.

Here is one example from the Daily Caller…

The trend shown on this chart has not changed or improved. The red bar on the right-hand side of the current chart now stands more than twice as high with total government debt north of $21 trillion.

There is no credible effort in Washington to limit spending. It is safe to say U.S. deficits and the corresponding borrowing will continue to rise exponentially. It will continue until confidence finally collapses; either in the nation’s ability to repay, or in the dollar, or both.

The nation needs sound money more desperately now than ever.

Unfortunately, the debt chart above isn’t the only chart that tells a damning story. Below is a chart from TF Metals Report which shows the regular beatings given to silver in recent months. The picture for gold looks similar.

This is what a controlled market looks like!

The bankers and central planners hated the lesson Americans got following the 2008 financial crisis. They are using the markets to condition people to respond differently. Buy stocks, buy bonds — any conventional “paper” securities. And, for the love of Pete, keep borrowing.

For gold and silver investors, the conditioning is delivered in the form of a regular bludgeoning each time the metals start to show strength.

Any who still question whether markets are manipulated, simply aren’t paying attention. Or they rely upon CNBC for all of their investment news. The topic has been covered extensively on alternative news sites, including by Money Metals.

Crooked and relentlessly painful markets, combined with optimism surrounding Donald Trump, is a potent combination.

Yes, there was some grumbling when Trump signed the latest budget and expansion of government.

However, many fewer Americans feel the sense of alarm that prevailed when the Federal government was running trillion-dollar deficits under Obama. Others may be alarmed, but they question whether gold and silver will work as honest money given the price never seems to reflect the reality of the nation’s finances.

Too many Americans are effectively tuned out when it comes to the message of sound money and limited government. That is tragic. Few will be ready and a whole lot more will be caught by surprise when the inevitable reckoning finally arrives.

Clint Siegner is a Director at 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 Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

Read More

Effects of Inflation on Gold and Precious Metals

Published here: http://goldsilverworlds.com/gold-silver-insights/effects-of-inflation-on-gold-and-precious-metals/

Inflation is characterized as a general increase in prices and fall in the purchasing value of money. But the question we want to answer is “How does this affect gold and precious metals?” We’ll get there in a moment.

When the price levels rise, each unit of currency will buy you less goods and services, therefore, Inflation reduces the purchasing power per unit of money. This can affect the economy in various ways, like increase the opportunity cost of holding money, reduce the burden of private and public debt, change in the prices and demand for Gold and precious metals and so many more.

Inflation and interest rates also have a direct relationship to one another as the smallest change on either side can have an adverse effect on each other and the economy. Inflation can be directed by many factors like rise in oil prices, rise of interest rates, rising commodities ..etc.

Gold and Precious metals

Inflation also has a direct effect on gold. When inflation rises, gold rallies. As we have mentioned earlier, inflation is the increase in prices of goods caused by the increases in the money supply, so analogous relationship can be seen between gold and money supply. Gold and other commodities that are priced internationally in US dollars automatically cost more because you’ll need more of the newly-devalued dollars to purchase the same amount of gold. With the steady increase of prices in the market due to inflation there could be a stronger demand for gold and other precious metals.

Gold as an inflation hedge

An inflation hedge is an investment that maintains or increases its value over time. Hence, an inflation hedge should provide protection against the depreciation of the currency. When you invest in Gold, this becomes a Hedge against rising inflation and the fall of the U.S. Dollar. Historically Gold has served as a Hedge from these two major problems, with the rising Inflation gold typically appreciates and when investors find out their money is losing its value, they would rather choose to put in on a hard asset that will maintain its value, by which Gold has been a prime example.

Conclusion

Inflation has a great impact on the prices in the market and the economy and with the steady rise of prices, investors are already looking for a hedge to maintain the value of their money. Gold has always been considered as a hedge against inflation and other economic uncertainty, so it’s a good bet to invest in gold as inflation soars higher along with other precious metals like silver and platinum.

 

 

 

Read More

Michael Pento: Inflation to Skyrocket When Fed Reverts to New QE & Interest Rate Cuts

Read More