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Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label all time high. Show all posts
Showing posts with label all time high. Show all posts

Saturday, February 25, 2017

As Bitcoin and gold converge at $1250, which asset is the best to buy with your money?

On Friday Feb. 24 we saw the price of gold end the week over $1250, and bitcoin near its own all-time high of nearly $1230 begging the question of which asset of the two is the best to buy if you have the money.

Followers of either gold or bitcoin have strong arguments both for and against each asset, while there are also a number of investors who are in favor of owning both as a means of wealth protection.  However, if an individual only had $1250 to spend on one or the other, what parameters would separate the two to make one stand out more than the other.


Bitcoin has the potential for much bigger growth, and in this it acts as both a form of currency and type of investment.  But Bitcoin relies upon many factors such as widespread public acceptance to function in commerce, and the hope that governments do not criminalize the crypto-currency as being a threat to their monetary systems.

Additionally however, Bitcoin is completely portable and transferable, and can be taken across borders without anyone having knowledge of its existence.

But perhaps it's biggest failing is that it is not tangible in the physical sense, and has as much emotional value to an individual as their plastic debit card, or even as poker chips do while gambling in a casino.

Live New York Gold Chart [Kitco Inc.]

Gold on the other hand has a history stretching back to the beginning of mankind, and has been both money and a store of wealth of over 5000 years.  And while it is much more difficult to store in larger quantities than Bitcoin, and much more difficult to transfer across borders and customs than if someone simply carried a pen drive with them in their carry-on luggage, gold is easily the most recognizable form of money and could be used for commerce in just about every city, nation, or village on the planet.

As fiat currencies show their age and their accelerating decline in value, assets like gold and Bitcoin will both reign as strong alternatives for people to transfer their wealth into for the distant future.  And the question of which one to choose will become a real issue in the days ahead now that both have reached virtual equilibrium in both price and desirability.


Wednesday, January 18, 2017

Demand for gold surging as paper gold in the GLD ETF running at levels not seen since 2011

2011 was the year gold reached its all-time high against the dollar when it climbed from $1325 at the end of January to over $1900 by early September.  And during that year investments in the GLD ETF were also at record highs.

Subsequently traders saw the gold price fall over the course of the next four years, ending its bear market run in January of 2016.  But as we enter into a new Presidency in January of 2017, and conditions looking very similar to what occurred last year in the gold markets following the central bank's first rate hike in over a decade, something else is occurring that is sure to spark a run in the gold price and it is happening once again in the paper gold market.

On January 17, the GLD ETF had risen 13 of the last 15 trading days, creating a scenario for gold not seen since it rose to its all-time high back in 2011.

Gold chart for September 2011 when it reached its all-time high 
The popular gold-tracking GLD ETF has risen in 13 of the past 15 sessions through Tuesday, the first time it has done so since summer of 2011. 
Gold has suffered a precipitous drop since peaking in mid-2016, with Donald Trump's election and the Federal Reserve's rate hike serving as two notable bearish catalysts. 
Each of the events sent the dollar surging and yields rising — both of which are bad news for gold. After peaking at nearly $1,380 per troy ounce in July, gold found itself below $1,130 per troy ounce in the middle of December. 
Since then, gold has staged a subdued but nonetheless persistent rise. In the 15 sessions since Dec. 22, gold has risen more than 7 percent. 
The last time the GLD rose as consistently was in the 15 sessions ended July 26, 2011, which similarly saw the ETF rise a bit less than 7 percent. 
To be sure, 2011 is not a year that gold fans remember fondly. The metal topped out just a few months later, in September, at $1,923.7. A gut-wrenching decline was ahead, and the value of the metal has pretty much been declining ever since. - CNBC
Gold price to date for 2017

Wednesday, January 4, 2017

Bitcoin price could surpass gold in dollars by the end of the week

As the price of Bitcoin crushed through the $1100 resistance level with great gusto last evening, it appears to only be a matter of time before the crypto-currency reaches and surpasses its all-time high of $1165.

But perhaps what is even more astonishing is that Bitcoin is now only $20 from equaling the dollar price for gold, which currently stands at the same all-time high price that Bitcoin achieved back in 2013.
graph
Bitcoin prices are up $100 on the day, having already shot past the $1,100 mark. 
Markets have risen nearly 10% over the course of the day’s trading, according to data from the CoinDesk Bitcoin Price Index (BPI), which hit a high of $1,141 at time of writing before falling back. 
With the move, global exchange averages have inched closer to the BPI's all-time high of $1,165.89, set on 30th November, 2013, leaving them roughly $25 below that level. 
The digital currency's price appreciated sharply after crossing the $1,100 line, quickly spiking to a high of $1,129.28, before meeting some resistance. - Coindesk
This anomaly in price between gold and Bitcoin is centered around a two-fold dichotomy, where manipulation of one is much easier for the banks to accomplish since they can do so simply by dumping thousands of bogus paper contracts.  And at the other end of the spectrum is the ongoing global currency crisis that is occurring from Venezuela to China, making it much easier for individuals and investors to move their money around using Bitcoin rather than through purchasing gold or silver and trying to utilize them as a medium of exchange.

While there may some short-term resistance for Bitcoin to reach and surpass its all-time high price of $1165, the chances are very good we could see this happen before the market close on Friday in Asia.  But either way, with Bitcoin, gold, or silver, all three have quickly become the money of choice for people seeking to protect themselves from the cash bans, capital controls, and overall destruction of the sovereign money they primarily use.

Monday, November 14, 2016

The dollar vs. gold dichotomy: As dollar strengthens it opens door for greater gold buying

As we have mentioned many times before here at The Daily Economist, you should not value gold simply in its relation to the dollar.  In fact, all one has to do is look at countries like Venezuela and now India to know that when a nation's currency loses confidence or value, gold soars to all-time highs in relation to their money.

Of course we in the U.S. quite often are only interested in what happens to things in relation to the dollar, and in many cases rightly so since it still holds the position as the global reserve currency.  But that in itself should not be a deterrent since the recent strength in the dollar has created an incredible buying opportunity for physical gold.

5 Day dollar chart:


One Week Gold Chart:


As you can see in the above charts, in the same period that the dollar climbed 400 bps to over 100 on the index, gold fell to $1216 and its lowest point vs. the dollar in some months.

But here is the catch many gold bugs fail to realize... when the dollar strengthens it means that your purchasing power in that currency is much greater, so you inevitably get more 'bang for your buck'.  It is only when the dollar is collapsing and gold prices are also falling that purchasing gold becomes a losing proposition.

A stronger dollar is bad news for foreign markets as seen by the historic drop in the Chinese Yuan as well as in the Euro and Yen.  And it also means that investors and traders there will be looking towards gold as a safe haven to protect against the devaluing of their currency, which will lead to even greater shortages in gold than we already have today.

Friday, August 5, 2016

Markets soar to new all-time highs as they realize the Fed will never raise rates on completely manipulated good news

The monthly job report came out for July today, and the massive higher than expected number is sending markets soaring to new all-time highs.  In fact, for the first time in 16 years the Nasdaq has equaled its previous all-time high and could close with a new record.

But underlying all of this is a fantastic dichotomy in fiscal and monetary policies that Wall Street has finally caught on to...  and that is, the government will continue to report bogus manipulated better than expected data, and the Fed will simply ignore it and keep going forward with zero interest rates.


This of course is the signal for speculation to now go all out in equities.
One week ago, the BEA admitted that it had "found a problem" when it comes to calculating GDP numbers. Specifically it blamed "residual seasonality" adjustments for giving historical GDP numbers a persistent optimistic bias. This came in the aftermath of last week's shocking Q2 GDP report which printed at 1.2%, less than half of Wall Street's consensus. 
Today, seasonality made another appearance, this time however in the much anticipated July number, which unlike the woeful Q2 GDP number, was the opposite, coming in far higher than expected. In fact it was higher than the top Wall Street estimate. 
As Mitsubishi UFJ strategist John Herrmann wrote in a note shortly after the report, the "jobs headline overstates" strength of payrolls. He adds that the unadjusted data show a “middling report” that’s “nowhere as strong as the headline" and adds that private payrolls unadjusted +85k in July vs seasonally adjusted +217k. 
We leave it up to readers to decide just why the government may want to represent what would otherwise have been a far weaker than expected report, into a blowout number, one which merely adds to the economic "recovery" narrative, which incidentally will come in very useful to Hillary's presidential campaign. 
Yet even assuming the market has no doubts about the seasonally adjusted headline number, as appears to be the case, the other problem that has emerged for the Fed is how to ignore this strong number. As Bank of Tokyo's Chris Rupkey writes, “Let’s see Yellen get out of this one and find something in the data to once again not raise rates in September.” (We assume he did not see the unadujsted numbers.) 
As he adds, slowing 2Q GDP growth of 1.2% took Sept. rate hike “off the table” and now “the million dollar question” is whether 255k payroll jobs in July, 292k in June put it back on.  As a reminder, Yellen speaks exactly in three weeks time at Jackson Hole on Aug. 26; “let’s see if she provides some guidance." But while rate hike odds may have spiked after today's report, it is almost certain that, as we said last night, the Fed will not dare to hike the rate in September and potentially unleash market turmoil in the most sensitive part of the presidential race. 
As for a December rate hike, there are 4 months until then, and much can happen: who knows, maybe the BLS will even undo the significant seasonal adjustment boost that send July jobs soaring. - Zerohedge


Just remember, there are no markets anymore, only interventions, and for investors the axiom that was created in 2010 is still applicable today...

Don't fight the Fed. 

Tuesday, June 21, 2016

Naked shorting on gold at the Comex now the highest in history

For those who believe in the power of physical gold, either as a trader, investor, or as insurance for a devaluing currency, they must always remember that the battle over price will be a waged more as a long duration war rather than as a single battle for control.  And since the gold price reached its all-time high of $1940 back in 2011, this war to suppress the gold price continues well into its 5th year.

Since the beginning of 2016, gold has not only been the best performing asset in the markets, but it has experienced a paradigm shift where investors and money managers who discredited gold six months ago are now fully into its camp and are fighting to accumulate the metal in an environment of every shrinking supplies.

This of course should have created the catalyst for a huge boom in the gold price if the markets were equitable and fair.  But since gold is far more than just a valuable asset, and is also the barometer for each nation's currency, protection of the dollar as what is at the heart of this war to suppress the gold price, and it appears now that the powers that be are pulling out all the stops.

On Friday June 17, the Commitment of Traders Report (COT) came out and showed that the bullion banks are now shorting the Comex (Commodities Exchange - where the gold price is set) with a record number of naked short contracts meant to keep the price of gold from reaching, breaking through, and closing over $1300 per ounce.

COT Report
Graph courtesy of Streetwise Repots
With Friday’s Commitment of Traders Report, the ridiculous has just metastasized into the sublime as the Commercial Cretins have just gone “over the top” and added another 5.4M “ounces” to their synthetic gold short position. 
At 298,077 contracts declared short, they are now carrying the largest short position in Crimex history. 
The scary part is that these figures don’t include the big rise in open interest yesterday and you just KNOW that it ballooned out due to more Cartel shorting. - Silver Doctors
Geo-political events, along with economic and financial ones, will cause the price of gold to be extremely volatile over the rest of 2016, and well into 2017.  But know that not only is the Bull Market confirmed by most analysts and technical charts, the end game for gold will soon be a breakthrough from its previous all-time highs, and a boon to all those with the patience and stomach to stay the course in their trust in the power of gold.

Saturday, June 11, 2016

One of the world's top market strategists calls for gold to skyrocket as Fed backed into a corner

Michael Belkin, one of the world's top market strategists who consults for the highest net worth money mangers in the U.S., Europe, and Asia, spoke in an interview where he is forecasting gold to skyrocket well past its all-time high because the Fed is backed into a corner where they will soon look towards new quantitative easing, rather than the hiking of rates.

In his 20 minute interview, Belkin believes that gold is barely into the first inning of its new bill run, and reaching its 2011 levels of $1940 should be just the start of where it eventually ascend to.

Why Gold & Silver Will Skyrocket To New All-Time Highs 
Michael Belkin: “Yellen is going to reverse course and people are going to be flooding out of the U.S. dollar, which was just a momentum play that has faded and isn’t working anymore.  So gold is going to get a currency-kicker and eventually a QE-kicker.  We are only in inning number one (of a nine inning game).  And back to the all-time highs for gold and silver, that may sound ridiculous but I think that’s just the first target.” - King World News

Thursday, June 9, 2016

Quarterly sales of silver Canadian Maple Leafs hit new record

Investors of precious metals can thank the Fed’s jawboning, and the bullion bank’s manipulation of both gold and silver, to allow for perhaps the greatest bargain ever in a discounted price measured for inflation.  And because of this, the Canadian Mint reported on June 7 that more silver Maple Leaf coins were sold in the first quarter than at any time in their history.
Sales of Canadian bullion hit a new record for Q1 of 2016 by passing out 10.6 million ounces to buyers through the first three months of the year.

Monday, July 27, 2015

Economic indicators look more and more like 2007, and forecast the new global recession

Few people remember that the start of the Great Recession, and the lead-up to the 2008 credit crisis, began a year before when several economic indicators marked a tremendous slowdown and popping of artificial bubble throughout the world.  In fact, 2007 was when we saw the height of the last stock market boom, and where the Dow lost over 1000 points before the great crash occurred in October of 2008, leading to a 777 point drop in a single day.
But while the stock markets today are the primary benefactors of central bank cheap lending policies and near zero interest rates, equities were not the only indicators forecasting an oncoming crash.  And one of those alternative indicators was the amount of global trade taking place, which for the first time since the middle of 2009 reached an apex and began to slump.
Just like it did at the very end of 2007.
 

Sunday, May 24, 2015

Elites work is nearly done as wealth inequality now reaches new all-time record

Just as the Patriot Act has done little to stop terrorism within the United States, so too has Dodd-Frank and bank bailouts not righted the ship following the 2008 credit crisis.  But in each of these laws is the underlying truth that they have accomplished exactly what Congress intended them to do, and that is to put the screws on the rights and liberties of the American people.
For the Patriot Act, we now have 100% total surveillance without a court order, and the creation of a government agency (DHS) that labels honest Americans, not Islamic militants, as the number one threat to the country.
And with Dodd-Frank and the Fed’s use of Quantitative Easing (QE), the elites work in the financial real is nearly complete as a new report out shows that the disparity and wealth inequality between the 1% and the rest of America is now at the highest level in history.
Greater than during the Roaring 20’s, and the Gilded Age.
 

Tuesday, November 19, 2013

Stock market euphoria: Dow crosses 16000 and S&P; goes over 1800

Quantitative Easing has reached its 2013 goals with more than a month to spare.  On Nov. 18, the Dow crossed over 16000 for the very first time, and the S&P 500 achieved 1800 as each exchange set new intraday records for stock prices.

The only numbers that matter today are 16000, 4000 and 1800: those are the Fed’s closing targets for the Dow Jones, the Nasdaq and the S&P. Following last night’s Chinese euphoria which saw the Shanghai Composite surge by 2.87%, or up 61.4 to just under 2,200 on renewed hopes for Chinese reform by 2020, the Fed’s price targets should all be quite easily achievable. - Zerohedge


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