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Showing posts with label investors. Show all posts
Showing posts with label investors. Show all posts

Tuesday, May 23, 2017

Gold signals potential breakout as price once again achieves golden cross technical

In today's world, if all markets were freely traded then fundamentals and technicals would actually mean something to traders and investors.  However, with most major banks having been found guilty over the past five years of rigging almost every market, and the Federal Reserve assuring that equity markets will never go down any real extent due to trillions in cheap money, the once long-standing indicators of bullish and bearish sentiments are only relevant to the most ardent of investors.

But with that being said there are still thousands of analysts and traders who rely heavily upon technical analysis to make investing decisions and forecast market direction for a given asset class.  And on May 22 one of these technicals moved positive after weeks of price declines to have once again achieved the signal of a golden cross.

And the asset which has signaled this bullish sentiment and technical move is gold.

Gold is up nearly 10 percent this year and might be primed for more gains if a signal tracked by technical analysts triggered Monday is any guide. 
A small gain was enough to push the metal's 50-day moving average price above the average price of the last 200 days, forming what's known as a "golden cross" in technical analysis circles. This is seen as a positive signal that demonstrates an asset is outperforming so well in the short-term that it may reverse a longer term downtrend. - CNBC

Tuesday, March 28, 2017

Gold and silver hitting tough resistance at key levels of $1260 and $18.50

Following the Fed's move two weeks ago to raise interest rates by a mere quarter point, the Dow has fallen seven days in a row, the dollar has dropped over 250 bps, and gold and silver have risen by several percentage points to levels not seen since last November following the Presidential election.  And while the two primary metals have experienced hardly any days of losses since March 15, they are now running up against hard resistance points at $1260 and $18.50 respectively.

Gold traded through one trend-line (August-present) it struggled with just a few days prior, but came very near another trend-line (off the July high). Also, it failed from just above the 200-day MA and below the late February peak. Risk is heightened of a decline from the area between here and 1264. 
Silver is trading very near the July-present trend-line and right around the 200-day MA. Bearish price action has yet to present itself (i.e. - key reversal bar, engulfing bar, etc.), but the stance is neutral to bearish at this juncture with resistance at hand in both gold and silver, along with support for the US dollar. - Daily FX
Should both metals be able to break through these hard resistance levels then it appears technically there will be relatively smooth sailing to $1300 for gold, and potentially $21 for silver as they will both have crossed above their 200 day moving averages.

Right now gold and silver are back to working in tandem against movements from the U.S. dollar.  And if the U.S. currency, which came close to falling below its own 200 day moving average on Monday morning at 98.62, should break through that level with strength, then it will most likely lead to both gold and silver soaring past these hard resistance levels and open up the Bull Market to investors who have been waiting for this to happen on their technical charts.

As future of Bitcoin continues to be up in the air, investors looking towards other crypto-currencies for less risk

While the future of Bitcoin is still up in the air due to the fight between two conflicting paths on how it should be managed and processed, speculators who have been at the core of recent price moves are now seeking alternative crypto-currencies that may provide less risk.

At the current time Bitcoin is not likely to implode if either of the two camps (Segwit and Bitcoin Unlimited) are successful in overtaking the other in their goals to improve upon the original and outdated blockchain setup, but the outcome will effect confidence in what is still a fringe and slowly maturing alternative form of money.  And as such many of the individuals and institutions who currently are in Bitcoin are appearing not to be afraid to take their profits and invest in other burgeoning crypto-currencies that at this time are less expensive.

Image result for crypto currencies
It's been a volatile period for bitcoin investors, as holders of the crypto currency prepare for a potential 'fork' in the blockchain. 
From Friday morning until Monday afternoon, bitcoin was trading under the $1,000 level, and even fell beneath $900 on Saturday. This is significant as, barring the weekend of March 18 and 19, bitcoin has traded above $1,000 since early February and hit a fresh all-time high of around $1,325 on March 10. 
Bitcoin faces a scaling issue, where the number of bitcoin transactions that can happen on the blockchain at any one time is limited. This is creating a backlog of transactions that are needed to be processed and slowing down the system. 
As a result, investors are hedging their bets or selling out of bitcoin, waiting to see whether or not the fork will happen, and if so, which blockchain will be favored by the market. 
Data from Bitfinex indicates around 49 million more coins have been sold than bought, or roughly 5 percent of total coins traded, in the last 30 days. Through March, the number of long bitcoin positions held by investors has decreased from 26,858 to above 23,142, while the number of short positions has increased from 9,820 to 14,731. 
Meanwhile, the market cap of blockchain assets other than bitcoin, such as ether, dash and monero, has more than doubled since March 10 from $3.5 billion to more than $7 billion, according to Chris Burniske, blockchain products lead analyst at ARK Invest. 
"At the same time, bitcoin's market cap has gone from $19 billion to $16 billion. Hence, bitcoin's market cap has lost $3 billion in value while the combined market cap of all other blockchain assets has added more than $3 billion," he told CNBC via email. 
"Given these market indicators, it would appear investors are diversifying their blockchain asset holdings, positioning themselves for a generally rising tide in this emerging asset class." - CNBC

Wednesday, March 22, 2017

China's Silk Road project moves to cyberspace as official Belt and Road web portal goes online

Over the past few years China has been investing hundreds of billions of dollars (RMB equivalents), and working diligently towards resurrecting the ancient 'Silk Road' that was one of the greatest innovations in history for trade and commerce.  And as economic power continues to shift from West to East here in the early stages of the 21st century, China is using their Belt and Road initiative to connect the two by both land and sea.

Yet on March 22 we can now add a third conduit to the modern day Silk Road as China announced that they have officially opened their Silk Road website, and it will act as a portal to the world for investors, commerce, and up to the minute information.

Image result for china silk road project
The official website of the Belt and Road Initiative (www.yidaiyilu.gov.cn) was launched Tuesday, offering information on investment policies and enterprises involved in the initiative, among other topics. 
The website, called the "Belt and Road Portal," also has an English version and is operated by the State Information Center.
The website aims to offer information in other languages such as Russian, French, Arabic and Spanish within this year, according to a statement on the website. 
The initiative, proposed by China in 2013, aims to build a trade and infrastructure network connecting Asia with Europe and Africa along the ancient Silk Road trade routes. - China Daily

Friday, February 3, 2017

Gold demand soaring to four year highs across the world as central banks and individuals pile into metals

There were a number of different stories published this week that validate why gold demand is not only increasing, but hitting four year highs as currency and economic fears push both central banks and individuals into the precious metals.


China's demand for gold can't be met
A couple of weeks ago, I was in Toronto meeting with gold industry experts. One night, I spoke with a man who has been in the gold business for over 45 years.
For over four decades, this man has bought and sold gold. He has bought and sold gold mining shares. He has bought and sold gold mines. During this time, he has also worked with the Chinese government, Chinese industry and Chinese investors. He knows a few things about gold, and about Chinese gold. 
Here’s what he said to me: “I’ve seen estimates out of China that over 375 million Chinese want to buy gold. But they can’t. They live in the remote interior of the country, not the more open, coastal cities. These Chinese have little or no access to gold markets. And even if they did have access, there’s not enough gold.” 
The man explained that any Chinese with means and access is buying gold. He told me that just the Shanghai Gold Exchange has over 10 million customers. 10 million separate, account-holding customers. Just for gold. - Daily Reckoning
Gold demand rose 2% in 2016 according to World Gold Council
The Brexit vote and the election of Donald Trump drove global demand for gold to a four-year high in 2016, as pension funds and other institutional investors piled into the precious metal while higher prices put consumers off jewellery purchases. 
Global gold demand rose 2% last year to reach 4,309 tonnes, the highest level since 2013, according to a report from the World Gold Council, which represents gold miners. - The Guardian
Gold price continues to climb following inaction by the Fed
Gold hit an 11-week high on Thursday after the U.S. Fed eral Reserve gave no clear signal on the likelihood of a March interest rate increase in its latest statement, prompting another drop in the dollar. 
The U.S. currency slipped to a 12-week low against a basket of currencies and an eight-week low versus the euro after the U.S. central bank gave an upbeat view on the economy, but no hint of accelerating rate hikes. Spot gold struck its highest level since Nov. 17 at $1,225.30 an ounce, and was up 0.9% at $1,219.96. - Fortune
Gold backed bank deposit accounts in Turkey skyrocket
The price of gold, considered a safe haven in investments, has broken records one after another since last year, while the number of precious metal deposit accounts kept in banks are on a rise in parallel with President Recep Tayyip Erdoğan's call on people to convert their foreign exchange savings into gold or Turkish lira in an attempt to help boost the value of the Turkish lira. Having broken successive records since last year, gold became one of the favorite investment instruments in 2016 again. 
According to Banking Regulation and Supervision Agency (BDDK) data, gold deposit accounts in banks soared to TL 16.964 billion ($4.54 billion) at the end of 2016 from TL 10.624 billion at the end of 2015. As far as the last one year's transactions are concerned, this figure corresponds to 51.6 tons of gold, based on the average gold price of TL 122 per gram. 
A total of TL 15.922 billion worth of gold deposit accounts belonged to natural entities, while TL 1.042 billion worth of them belonged to commercial institutions and others in 2016. - Daily Sabah
As more and more individuals, pension funds, hedge funds, and investors come to the realization that historic asset classes like bonds, currencies, and real estate no longer provide sufficient yield for the risk involved, it would only take 1% of the money currently dedicated to these assets to completely wipe out gold and silver supplies, and create the environment where gold no longer has a definable value since it will become priceless.


Thursday, January 12, 2017

Gold up over $1200 and crosses 50 day moving average setting the stage for a move in either direction

The gold price crossed an important psychological barrier in early morning trading on Jan. 12 that places the metal at a crossroads to either move extremely higher, or fall back if it fails to hold the key resistance level.

On Thursday gold went above $1200 for the first time since its severe beatdown following the November Presidential elections when bullion banks dumped so many naked shorts into the futures market that it was the equivalent of three years worth of mine production.  This led to gold falling below its 50, 100, and even 200 day moving averages until it settled at a bottom of around $1125.

Since then however, it has begun a steady climb back to $1200, aided by investors covering numerous amounts of short positions that in some cases went back to bad bets made during the time of the Brexit vote.

However now that it has breached its new 50 day moving average, it will take on some strong resistance that should it succeed in holding this price, will assuredly move much much higher as loss of confidence in global currencies will aid in the move once again towards gold.

As one can see from the daily gold futures price chart below, it breached the 30-day SMA of $1,161.82 with a strong bullish candle. The commodity will now face stiff resistance from expected selling pressure near $1,200, which earlier acted as a crucial support. Calls of $1,200 as support are still etched in my mind, but probably too much faith was put into that. The 50-day simple moving average of $1,200.98 will pose additional stress on the commodity. But I am optimistic, and with adequate time and patience, the metal can cross this bear's mansion as well. - Seeking Alpha

Tuesday, November 1, 2016

Investors, traders, and analysts expect gold to be higher in forecasts for 2017

Gold has been validated to currently be in the next leg of a Bull Market and investors, traders, and analysts all see the price going much higher in 2017.

In a poll conducted by Reuters on Oct. 28, 35 Wall Street participants confirmed that the gold price will go up next year, with the average price range being about $1331 per ounce.

Gold is expected to post its highest average annual price in four years in 2017, a Reuters poll showed on Friday, after bottoming out this year following three straight years of decline. 
The poll of 35 analysts and traders conducted over the last two weeks returned an average gold price forecast for 2017 of $1,331 an ounce. That would be the highest average since 2013, when the metal plunged 28 percent year on year. 
Respondents predicted an average gold price this year of $1,270 an ounce, slightly above the current average of $1,258. That reflects a stronger expected performance in the fourth quarter, when prices are expected to average $1,300. - Reuters
On a side note, the estimated price range of $1331 from Wall Street participants does not take into consideration geo-political or financial black swans, which like with Brexit, could send gold skyrocketing well above their current forecasts and closer towards gold's all time highs.

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. 

Thursday, July 28, 2016

Economist Marc Faber is now telling investors to put 25% of their portfolio into physical gold

Last week, famed economist Marc Faber spoke at a seminar for the Chartered Financial Analyst group out of Chicago, which brings together many of the top investment professionals in the United States.  During his time behind the podium, the Gloom, Boom, and Doom economist advocated that the global economy and financial systems have reached such a point where investors need to re-allocate much of their portfolios to physical assets such as gold, and even suggested that they replace currencies and bonds with up to 25% of their allocation going towards the precious metal.

Every year, Faber is brought on stage by an organization of elite investors, the CFA Institute, during a seminar in Chicago for highly trained investment professionals from throughout the world. And he was there Thursday. 
Why would an investing horror star be there? Because the most savvy of investment pros are taught not only to cherish the sweet delights of a soaring stock market, but also to look at what could go wrong, to test their happy thoughts and to prepare. 
Faber challenges oblivious investors in his "Gloom, Boom & Doom Report," which focuses more on doom than boom. But he also points out that even during doom there is always something that will boom. Faber said he wouldn't go as far as to suggest people buy property in Aleppo, Syria, now, but you get the idea: Money is made when investors dig through carnage, not when they buy something that's been popular a long time. 
Faber told the investment professionals gathered in Chicago that they shouldn't be prejudiced against gold. Although the typical investment pro keeps less than 1 percent of his or her portfolio in gold, Faber suggests 25 percent. He sees it as protection from a dangerous combination of tremendous government debt and massive bond-buying by central banks globally trying to fight off recession with near-zero interest rates. Besides gold, Faber has invested in Asian real estate and some stocks and bonds. - Chicago Tribune

Wednesday, July 13, 2016

Gold rally to continue as higher prices will spark new buyers to jump in the already tight market

A new report out on July 12 suggests that the ongoing gold rally will not only sustain itself going forward, but will spark much higher prices as new buyers come into the already tight market.

Analysts from both UBS and Credit Suisse are in agreement that the gold bull market has barely begun to move because the amount of investors and buyers have been very limited so far.  And they assess that once the price breaks through a certain point, it will spark an unlimited amount of buyers who see gold as a much more secure bet in today's environment of negative interest rates and helicopter money.

Gold Rebound Linked to Fall in Interest Rates
It’s been a stellar six months for gold investors. The yellow metal has surged 28 percent year-to-date, its best first half of the year since 1974, and there are signs that the rally is just getting started. That’s the assessment of analysts from UBS and Credit Suisse, who see gold entering a new bull run. According to UBS analyst Joni Teves, gold could climb to $1,400 an ounce in the short term on macroeconomic uncertainty, dovish monetary policy and lower yields. 
“These factors,” Teves writes, “justify strategic gold allocations across different types of investors” and should encourage hesitant investors to participate. 
Joining UBS in forecasting further gains is Credit Suisse, which sees gold reaching $1,500 by as early as the start of next year. As Kitco reports, Credit Suisse analyst Michael Slifirski writes that “the surprise Brexit vote has solidified and intensified macro and political uncertainty and extended the time frame for a negative real rate environment in the U.S. and potentially abroad.” 
This is precisely what I told BNN’s Paul Bagnell this week, using Canada as an example. The Canadian 10-year yield is sitting just below 1 percent, while inflation in May came in at 1.5 percent. When we subtract the latter from the former, we get a real rate of negative 0.5 percent—meaning inflation is eating your lunch. Like negative bond yields, negative real rates have in the past accelerated momentum in gold’s Fear Trade. - Forbes

Friday, July 8, 2016

Japan investors fleeing from negative rate bonds and buying/storing gold in Switzerland out of fear of government confiscation

The Japanese people have gone through a great deal over the past 30 years, and trust in their government may have finally reached the low point.  That is because after years of zero and now negative interest rates, the transference of their retirement accounts to the U.S. in exchange for Treasury debt, and a money printing scheme that has completely destroyed their economy, those with money left are breaking away from the system and buying and offshoring physical gold in vast quantities.

There are three primary reasons why the Japanese populace and investors are fleeing out of Yen based assets and into physical gold.  First, because of asset deflation and negative interest rates the Japanese feel there is no investment left besides gold that will protect or grow their wealth within their economy.  Secondly, following a recent visit from former Federal Reserve Chairman Ben Bernanke to Japan, the people recognize that the only remaining option for the central bank is to expand the money supply to the point where all assets will become bubble inflated, and wealth will be evaporated from an insolvent currency.  And finally, the real threat of asset confiscation, particularly for gold, is now weighing on the minds of the Japanese and why they are choosing to store their gold offshore and in Swiss vault accounts.

Peter Boockvar – “Buy As Much Gold As You Can Now”
As Bloomberg reports, in the face of a clear lack of trust in Japanese leadership, local investors are buying gold to store in Switzerland. The reason: they are increasingly worried about confiscation which is why they are storing it half way around the globe.  The number of buyers jumped 62% in the first six months from the second half of 2015, Atsuko Sato Whitehouse, head of Japanese markets at the London-based BullionVault investment service, said this week.  
The clear action of gold buying comes only months after we reported on the increased demand for safes in Japan. This is what we said back in February: “Look no further than Japan’s hardware stores for a worrying new sign that consumers are hoarding cash--the opposite of what the Bank of Japan had hoped when it recently introduced negative interest rates,” WSJ wrote this morning. “Signs are emerging of higher demand for safes—a place where the interest rate on cash is always zero, no matter what the central bank does.” 
However, something has changed, and it is almost as if Japan is expected the ghost of FDR to arrive soon and confiscate their gold. 
“Many of our Japanese customers think it’s too risky to hold gold bars at home and they want to keep them in Switzerland because they are anxious about the future of Japan,” Whitehouse said in an interview. The country’s growth has stagnated for a decade, defying fiscal and monetary stimulus which has driven up public debt to more than double the value of annual economic output.

Tuesday, June 14, 2016

Bitcoin jumps $50 overnight, reaches two year high against the dollar

2016 is quickly becoming the year of the alternative or non-dollar forms of money.  Since January, gold and silver have outperformed every other currency, and are in fact two (gold being number one) of the best performing assets for the year.
But there is another form of money that has risen in value just as much as gold and silver, but is hardly being mentioned at all in the mainstream.  And with a sudden jump overnight of over $50 in relation to the U.S. dollar, Bitcoin has now risen to its highest point in the past two years.
Bitcoin chart
Read more on this article here...

Friday, June 10, 2016

Investors pull out nearly $100 billion from Britain ahead of Brexit vote

An interesting thing happened along the way of Britain’s drive to leave the European Union… and that is that the fears are not being felt by the people who currently are over 50% of the way towards a Brexit, but instead from the establishment who desperately needs the vote to go in favor of remaining under the thumb of Brussels to protect their own fiefdoms.
And yet, it appears that the elite may be seeing the writing on the wall, as during the months of March and April, investors have pulled out nearly $100 billion in investments from the British Isle.
finTech_european-central-bank
Read more on this article here...

Thursday, May 26, 2016

As the Russian economy stands above the U.S. and Europe, Western investors rush in despite sanctions

Just as the U.S. Congress goes out of its way to allow insider trading and non-Obamacare health insurance among its own members, so too do policies like economic sanctions only exist for non-U.S. corporations and governments.  And as both the Eurozone and Wall Street continue to wallow in zero and negative interest rate environments, and extremely flat economies, the one country that the U.S. has targeted for economic warfare is the one country that is suddenly standing out in economic growth.
And because of this, businesses and investors are flocking to jump on board Russia’s economic revival despite sanctions that would normally keep them locked out.
Sanctions
Read more on this article here...

Monday, May 23, 2016

Loss of confidence in central bank policies seen as a major driver for gold prices to go higher

Last week, no less than four Federal Reserve regional Presidents went public in advocating that the U.S. central bank raise rates during their quarterly meeting in June.  Of course, every one cited a caveat that it should be done only if economic conditions warrant it, but seeing as the Fed, as well as the ECB, have spent more months jawboning policy changes than actually doing them, the market has come to the realization that central banks more and more are to be likened to the boy who cried wolf.

And this is one of the major reasons why gold prices have soared to more than 20% gains since the beginning of the year, and following the unexpected December rate hike by Janet Yellen.  And it is because of the combination of central banks not following through on their promises, and a growing lack of confidence in them, that is leading many investors and fund managers to advocate to their clients to buy gold for the first time since 2013.

I think we are in a new gold market actually. Investors are very concerned about financial risk and gold is being used as a safe heaven. Especially, investors are looking at central bank policies. We've seen these radical central bank policies that don't seem to be working and now with negative rates, the Fed not able to increase rates as aggressively as they'd like to, it's creating a lot of concerns in the financial system. - Joe Foster, Manager of the Lombard Odier World Gold Expertise Fund. - Morningstar
In addition to Joe Foster, several hedge fund managers like Stanley Druckenmiller and George Soros have put their own money on the line and are taking large positions in gold because the state of the financial system is warranting it in spades.

This current Presidential election cycle is also revealing the lack of confidence in central banks to be able to create monetary policies that will rescue both the economy and the debt bomb that they and governments have created since the advent of ZIRP, NIRP, and QE over the past eight years.  And it is why the likes of Donald Trump and Bernie Sanders are joining in with economists like Jim Rickards to call for a return to a gold standard of some form, and removal of absolute power over currencies by the central banks.
The Fed was getting bashed from all sides. "It is unacceptable that the Federal Reserve has been hijacked by the very bankers it is in charge of regulating," Democratic candidate Bernie Sanders said in a New York speech in January. Economists who support Sanders, like Nobel prizewinner Joe Stiglitz, see the Fed's quantitative easing as a form of trickle-down economics that's exacerbated inequality. 
The proponents of gold or some other fixed monetary rule are more likely to be found in the Republican Party, and what they object to is the very idea of money creation by fiat, not just its distributional effect. Still, there's some overlap. Ted Cruz, in one of the early candidate debates last year, said the Fed "should get out of the business of trying to juice our economy and simply be focused on sound money and monetary stability, ideally tied to gold." 
Then there was Donald Trump. "We used to have a very, very solid country because it was based on a gold standard," he told WMUR television in New Hampshire in March last year. But he said it would be tough to bring it back because "we don't have the gold. Other places have the gold." - St Louis Post Dispatch
In the end however, the U.S. may end up being the follower and not the leader of the return to the gold standard, as economies like China and Russia are preparing for a return of gold backed money and trade through their massive accumulation of physical gold.  And at stake is the power and authority to control the next coming global financial system, and where that old axiom still rings true... as those who hold the gold, make the rules.

Wednesday, May 11, 2016

Despite recent pullback and consolidation, J.P. Morgan and Hedge Fund Manager validate gold bull market

Ever since gold briefly crossed $1300 per ounce last week, the price of the precious metal has fallen due to profit taking, and a massive effort by the central banks to suppress the price through shorting the market with near record naked contracts.  But this has only led to a consolidating of the market around $1250, and a removal of most weak hand investors during the last run-up.

And it is because of the strength of this consolidation that on May 11, a well known hedge fund manager along with bullion bank J.P. Morgan both announced validation that gold is well into, and definitely in the next Bull Market.

gold
Billionaire hedge fund manager Paul Singer said that gold’s best quarter in 30 years is probably just the beginning of a rebound as global investors -- including Stan Druckenmiller -- weigh the ramifications of unprecedented monetary easing on inflation. 
“It makes a great deal of sense to own gold. Other investors may be finally starting to agree,” Singer wrote in an April 28 letter to clients. “Investors have increasingly started processing the fact that the world’s central bankers are completely focused on debasing their currencies.” - Billionaire Paul Singer, Bloomberg
And J.P. Morgan's assessment...
Gold prices are surging this year, and that has one of Wall Street's largest banks flocking to the yellow metal. 
"We're recommending our clients to position for a new and very long bull market for gold," JPMorgan Private Bank's Solita Marcelli said Tuesday on CNBC's "Futures Now." After seeing three back-to-back years of losses, the precious metal has rallied 20 percent in 2016. And that's just the start of the next leg higher, according to Marcelli. "$1,400 is very much in the cards this year." - CNBC

Sunday, May 8, 2016

Investors moving from Junk to gold

For those who live and breathe in the investing world, they know that the bond markets are much bigger than the stock markets.  And while a decline or even collapse in equities is a bad thing, it doesn't hold a candle to the economic destruction that can come from the same results in the bond market.

For many years following the 2008 credit crisis, and subsequent move by the Fed to zero interest rates, bonds have been a primary safe haven for banks, investors, and even sovereign governments, especially to foreigners looking to eek out a return in a wildly speculative market climate.  And with the search for yield at all costs helping to create a derivative 'weapon of mass economic destruction', the question few in the financial community have asked is, what would we do when the unwinding of bonds and derivatives comes?

Well, it appears one of the answers to this is the rush into gold, and as the unwinding of junk bonds begins in earnest, many are seeing the precious metal a viable safe haven for what is coming next.



As Bloomberg reports, the withdrawals from equity and credit funds highlighted the lack of faith in the rally that helped stocks briefly erase their annual losses last month. Equity traders have remained on the sidelines, with volume down in recent weeks as investors sought safer assets such as gold. 
The S&P 500 just suffered its biggest two-week retreat since February as signs of slowing growth in the world’s largest economy mounted. Worldwide stock ETFs lost $12.6 billion in the four days through May 5, wiping out more than six weeks of inflows, as the MSCI All-Country World Index capped its worst week in three months. 
“The market is becoming more cautious and using ETFs to allocate tactically. We’ll probably continue to see more flows into gold and less into equities.” 
The $5.3 billion pulled from State Street’s SPDR S&P 500 ETF Trust represented more than 40 percent of the total withdrawals recorded in the first days of the month, according to data compiled by Bloomberg tracking funds of more than $100 million. Underscoring the flight from risk assets, BlackRock Inc.’s iShares iBoxx $ High Yield Corporate Bond ETF also saw outflows as traders yanked $2.3 billion from it. 
Instead, they poured more than $1 billion in the SPDR Gold Shares and almost $540 million in the iShares TIPS ETF, which tracks inflation-protected Treasury notes. - Zerohedge

Tuesday, April 26, 2016

Average Americans still haven’t returned to the stock market after 2008 collapse

When the stock market crashed in 1929, it took until the 1950’s for the Dow Jones to return to its former all-time high of 24 years earlier.  And it also took until the post-war and post-Depression decade before the average American felt secure enough in the equity markets to begin investing on Wall Street.
Over the past 60 years, both the Federal government, and the brokerage houses made it easier for everyday people to play in the stock markets, until the 2008 crash changed all that when equities declined by over 55%.
Yet unlike the 1987 crash, and the bursting of the Dotcom bubble in 2000, this crash appears to be long lasting as a new gallup poll out shows that only 52% of U.S. adults have ever invested in the markets, and that is the lowest percentage in more than two decades.
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Friday, April 15, 2016

When the SGE declares its own gold price next week, the arbitrage battle for gold really begins

April 19 is the expected day the Shanghai Gold Exchange (SGE) is to declare its own Yuan denominated gold price in the world's largest physical gold market, and we are now less than four days away from what could be a radical sea change in the entire precious metals industry.

This is because no one yet knows at what price the SGE is expected to open with next week, but since the market currently marks up gold sales with as much as a 40% premium already, chances are extremely good that it will be much higher than the price long controlled by London and the U.S. Comex.

And should this truly be the case, where China announces a price that is greater than the Spot price determined in Western markets, then part one of China's gambit will be revealed, and it involves an arbitrage scheme meant to entice a shifting of all metals Eastward, using the greed of the West to accomplish this.

An arbitrage is when one market buys or sells an asset at a much different price than another market, allowing customers and investors the chance to skim profits from the difference between the two prices.  And an example of this would be if the SGE offered a buy price of say $1600 in U.S. dollar equivalent, where the current Comex spot price is $1235.  This difference in price would trigger a run on the Comex, where investors would try to buy up all available gold contracts, demand delivery, and then sell it to the SGE and collect the difference in profit.  The result of course is that the West would suddenly be drained of all their gold, and now China would have sole control over the global gold market.

Analyst Dr. Jim Willie also spelled this out in an interview he did earlier this week.

The Chinese attack within the Gold market could hit Satanist bankers where they live, in the fire of mid-April.... The arrival of the Gold futures contract in Shanghai poses an additional risk for the Western banker cabal, a grand crime syndicate which extends to the energy firms, the military industrial complex, the big pharmaceutical firms, and the press networks. 
A real valid bonafide Gold contract which delivers physical gold would enable vast arbitrage to buy cheap in London and sell dear in China. Any acceleration in the arbitrage activity, combined with any sincere attempt to set the Gold Fix in a reasonable manner that puts equilibrium as priority, and the Western bankers will face the USDollar kicked to the curb and possible global boycott. - Rogue Money
It is no coincidence that one time London Gold Fix committee member Deutsche Bank came out yesterday and admitted to the fraud and manipulation that has long taken place in the Western gold markets, and these revelations will provide China a strong boost for their new pricing mechanism if/when it comes out next week.  And besides just investors rushing to leave the Comex and begin participating in the SGE, a more important group of metal players will just as likely do the same, and they are the miners and refiners of gold and silver who will gladly take their production and move East to finally get a price worthy of their output.

Saturday, February 27, 2016

Germany's biggest financial institution Deutsche Bank tells investors to buy gold

Was it prudence or capitulation that led Germany's largest, and invariably most insolvent financial institution Deutsche Bank to tell their investors on Feb. 26 to buy gold?  But either way this recommendation could not have come at a better time.  This is because two days ago gold hit what it known as a 'Golden Cross' on technical charts, meaning the trend for prices is upwards and headed towards a strong bull market.

And perhaps most importantly, Deutsche Bank stands on the precipice of not only becoming bankrupt themselves, but they have the potential to take down many major banks in Europe and the United States due to their $70 trillion in derivative exposure.


Buy gold as “insurance is warranted” Deutsche Bank have advised in a note issued today.  
The embattled German bank has said that rising economic risks and market turmoil mean investors should buy gold for insurance.
Since the beginning of the year gold is by far the market's best performing asset, and in a recent look at historic trends is the best start for a year since 1980 when it completed a massive bull run from $35 per ounce to $850 an ounce over the course of a decade.