Rob McEwen provided Kitco with an insider’s view on the mining industry and physical gold investment. McEwen was the founder and former CEO of Goldcorp, the world’s fourth largest mining company, so his insights into precious metals should not be taken lightly.
McEwen had 3 very important observations for investors:
1. If prices remain this low, there’s a possibility of gold and silver supply shortages as miners produce less.
In a new podcast, Tom Woods tears apart an article from the liberal website Think Progress in which an amateur economist attacks the gold standard. Joseph Salerno (Academic Vice President of the Mises Institute) and Jeffrey Herbener (Associate Editor of the Quarterly Journal of Austrian Economics) joined Woods to counter the mainstream misconceptions of the gold standard.
Think Progress went so far as to claim that the gold standard is responsible for increased consumer price volatility. This is clearly wrong, which Woods proves with a single chart. Notice when consumer prices really start to skyrocket – right around 1971 when Nixon closed the “gold window.”
The CEO of Degussa Golchandel, the largest precious metals bullion dealer in Europe, explained why he disagrees with the mainstream market sentiment concerning the price of gold. Rather than dropping to $1,000 an ounce, Wolfgang Wrzesniok-Rossbach expects a $1,500 price point in the near future. He has three core reasons for this analysis: speculative investors have largely stopped selling paper gold, physical demand for both jewelry and bullion is rising, and mine production and supply is not increasing.
He also explained why Degussa has just opened its first Asian retail bullion store in Singapore, which is the latest evidence of the trend of physical gold moving from West to East:
when a market has a certain size we are perfectly fine with it, and Singapore has that size with 5.5 million people, 50 million tourists a year. [It has] a very stable environment, actually, politically as well as economically… Plus, there’s a lot of support from the government to create a vibrant gold market in Singapore…”
Mainstream economists continue to defend and even praise Ben Bernanke’s response to the 2008 financial crisis. But as it becomes more and more obvious that the United States economy never fundamentally recovered from the Great Recession, savvier analysts are speaking up. On Bloomberg TV, David Stockman lambasted Bernanke for flooding the markets with zero-cost money, arguing that the former Fed Chairman’s book would be better titled The Courage to Print, rather than The Courage to Act. Stockman ended with a dire warning for investors:
This market is going to collapse, and if it doesn’t I’ll shave my beard. It’s absolutely going to collapse, because when you give traders and speculators free money overnight, they just roll it. They roll it and roll it. They take every kind of position…”
Doug Casey spoke with Greg Hunter of USAWatchdog. Just like Jim Rickards, Jim Grant, and Dr. Ron Paul, Casey believes we’re in the middle of a cataclysmic era of central bank intervention that will result in an unprecedented monetary collapse. In fact, Casey doesn’t think the United States ever got clear of the economic hurricane that devastated the markets in 2008. Instead, we’re simply in the eye of the storm, and things are going to get much worse before they get better. His advice? Buy gold and silver:
The average guy after he does these things I’ve just mentioned, should buy gold, frankly. Don’t keep your savings in a bank, so much as [in] gold coins… Or silver coins. Silver is more volatile than gold, and of course since it’s worth so much less, it’s harder to store if you have a significant amount of wealth. But absolutely [also buy silver]. In fact, I think there’s more upside in silver than there even is in gold… “
Jim Rickards agrees with Peter Schiff – the United States is already in a recession. However, the Federal Reserve and Wall Street economists won’t realize this until long after the fact, because the models they use to forecast are deeply flawed. Rickards predicts that the Fed will begin another round of monetary easing in March of 2016. What form will it take? Rickards isn’t sure, but he lays out five options:
Even at zero [percent interest rates], there are five ways to ease. They can do QE4. They can do helicopter money. They can do currency wars – cheapen the dollar. They can do negative interest rates. The other way to do it is forward guidance, which is just talking. I actually expect they’ll reintroduce forward guidance. So gold is just a cross trade. If the dollar gets weaker, then the dollar price of gold is going to go back up again…”
In a speech delivered at Liberty Fest Houston, Tom Woods explores the concept of money and how it has been corrupted by modern governments. This is a great introduction to economics to share with your friends. Woods covers the history of money, the historical reality of deflation versus inflation, and how the boom/bust business cycle was created by central planning. He explains why Peter Schiff’s prediction of the 2008 financial crisis was based on sound economics, and how interest rate manipulation will continue to distort global economies.
Conceptually speaking, there’s no reason for a government to be involved [in the creation of money]. People can get to this point just by figuring out, ‘I need things and the best way for me to get them is to use a marketable good.’ … This comes about spontaneously. However, it’s money after all, and the government is going to want a piece of this somehow. So little by little, the government is going to insinuate its way into this process. It will do so in ways that will at first seem harmless…”
When asked by Bloomberg why he buys gold, Jim Grant explained that he is investing in monetary disorder. This disorder is already in motion, caused by central bankers who don’t understand that interest rates are actually a price. Manipulating interest rates is a type of artificial price control, which Grant warns always ends in disaster.
Gold is something to hold as an investment in the disorder of money as manipulated and managed by central bankers… One can observe that nominal interest rates without adjusting for anything were far higher during the Depression than they are now. These are the lowest nominal interest rates… in the history of the world. “
Last week, Donald Trump told Fox Business that he no longer buys gold. Dr. Ron Paul later rebutted Mr. Trump’s position, explaining the logic for long-term investment in the yellow metal. Much like Peter Schiff, Dr. Paul has been a consistent advocate for sound money and an opponent of the Federal Reserve. Watch and read some of Dr. Paul’s recent commentary here, here, and here.
I don’t think about these daily changes [in the price of gold]. I think about what happened in 1933. When you turned in an ounce of gold, you got 20 federal reserve notes that are worth 2 federal reserve notes now. If you kept your gold and turned it in today, you would get 1,170 federal reserve notes. That’s what counts.”
Nowadays, the mainstream assumption is that everyone is better off getting a college degree, no matter what. The economics of this logic are actually far more complicated. In a detailed video analyzing the cost of higher education, Stefan Molyneux of Freedomain Radio reviews some important studies debunking this new American myth. Molyneux has interviewed Peter Schiff in the past, which you can watch here.
One of the most notable parts of Molyneux’s video begins at 23:30, when he compares the average salaries of various careers and the costs of achieving that career. For instance, a plumber at age 50 will earn about $71K a year with just a couple years of apprenticeship or trade school.