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Rising Price of Gold a Vote of No-Confidence in Central Bankers; $10K Gold on the Horizon (Video)

POSTED ON May 23, 2016  - POSTED IN Interviews

Jim Rickards recently appeared on CBC News’ The Exchange and made the case for $10,000 gold.

He said the recent jump in the price of gold represents a world-wide vote of no-confidence in central bankers.

The increase in the dollar price of gold is just a reflection of the decline of the dollar. So, it’s sort of a vote of no-confidence in central bank policies. Investors are looking around saying. ‘We’re losing confidence in central bank money. We’d like another form of money, thank you very much.’ It’s called gold. So, that’s part of the reason gold is going up.”

Rickards went on to explain why he thinks gold will ultimately hit $10,000. He said it’s not a guess, and he doesn’t just throw that number out to get attention or to be provocative. He actually has mathematical calculations behind his assertion. Rickards explains his reasoning in this video.

Gold as Legal Tender in Arizona? Close But No Cigar

POSTED ON May 20, 2016  - POSTED IN Original Analysis

company-addison-qualeThis article was submitted by Addison Quale, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.

While many of us watch with concern as our economy slowly implodes and central bankers run amok, there are actually some hopeful signs we are moving in the right direction—the direction of sound money, that is.

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An exciting bit of news came out of Arizona this past week. A bill calling for gold and silver to be considered legal tender passed both the state House and the Senate by large margins. Legally recognizing gold and silver as legal tender would exempt these monetary metals from capital gains taxes – making them much more attractive to investors

The bill was ultimately vetoed by Governor Doug Ducey, who remarked that it might lead to “unintended consequences.”

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Congress Helped Break Puerto Rico; Now It’s Trying to Fix It

POSTED ON May 20, 2016  - POSTED IN Key Gold Headlines

Policies create by Congress helped break Puerto Rico. Now it’s  wrangling over over how to fix it, as time seems to be running out on the US territory.

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Congress has struggled to find solutions acceptable to both Republicans and Democrats. The House Natural Resources Committee released a compromise bill around midnight Wednesday, hoping to bring the various sides together. Earlier this month, the Puerto Rican Government Development Bank defaulted on a $422 million payment. A $1.9 billion debt payment looms in June. Meanwhile, as Reuters reports, the island is hurtling toward a full-blow humanitarian crisis:

Puerto Rico has already defaulted on some of its roughly $70 billion in debt while trying to cope with a 45% poverty rate among its 3.5 million US citizens. In addition, it is reeling from a Zika virus outbreak that is hurting its critical tourism industry.”

Apparently, it’s a lot easier for government to create a debt crisis than it is to fix it.

Welcome to Obama’s Grand Jobs Recovery: Part-Time Work for Everyone!

POSTED ON May 19, 2016  - POSTED IN Key Gold Headlines

Jobs, jobs, jobs!

We’ve been hearing about strong jobs growth for months. And it’s true. There are lots of new jobs. It’s a good thing too, because a lot of people need two or three to make ends meet in today’s economy.

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The Fed is hinting strongly at an interest rate hike in June. In fact a lot of people have taken it as a foregone conclusion that the US central bank will definitely hike rates next month.

But as Peter Schiff pointed out on his recent podcast, the Fed didn’t say it is going to raise interest rates in June. Fed officials said they would consider a rate-hike appropriate if certain things fell into place.

One of the factors the Fed relies heavily on in its “data-dependent” decision making process is the employment picture. As Peter said – it isn’t good. The April numbers were not encouraging:

Marc Faber: Fed Won’t Raise Rates; Helicopter Money More Likely (Video)

POSTED ON May 19, 2016  - POSTED IN Interviews

With the release of the Federal Reserve’s April meeting minutes, it’s all of a sudden a forgone conclusion that the Fed will raise interest rates in June.

Marc Faber, publisher of the Gloom Boom & Doom Report, thinks it’s all a bunch of hot air. He appeared on Kitco News yesterday and argued that the Fed isn’t going to raise rates. Instead, it will end up engaging in even more extraordinary monetary policy:

My impression is that the Fed will not increase rates any further this year – my impression is that the economy is actually weaker than the statistics would suggest and that they will refrain from increasing rates. My impression will also be that eventually there will be some type of helicopter money in the US, or the launch of QE4.”

Foreign Central Banks Jettisoning US Debt at Alarming Pace; Buying Gold

POSTED ON May 18, 2016  - POSTED IN Key Gold Headlines

Continuing a trend that started last year, central banks around the world are dumping US debt at a record pace.

Central banks sold off a net $17 billion in US Treasury bonds in March. Sales set a record in January, hitting $57 billion. China, Russia, and Brazil led the way, each dumping at least $1 billion in US debt in March alone.

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So far in 2016, global central banks have jettisoned $123 billion in US debt. Last year, they sold off $226 billion. According to the Treasury Department, central banks are selling US Treasuries at a pace not seen since at least 1978.

Chinese Bank Buys Huge London Gold Vault Expanding Influence on World Gold Market

POSTED ON May 17, 2016  - POSTED IN Key Gold Headlines

China is serious about gold and continues to expand its influence on the world gold market.

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On Monday, China’s largest bank announced the purchase of one of Europe’s biggest gold vaults. Reuters reported the sale:

ICBC Standard Bank is buying Barclays’ London precious metals vault, giving the Chinese bank the capacity to store gold worth more than $80 billion in the secret location. The vault is one of the largest in Europe, with a capacity to hold 2,000 tons of gold, silver, platinum and palladium. It has been operational since 2012. ICBC Standard Bank said on Monday it has signed an agreement to buy the vaulting business and transfer the associated contracts, subject to consent. The deal is expected to complete in July.”

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Rout In Retail Likely to Continue

POSTED ON May 17, 2016  - POSTED IN Original Analysis

company-addison-qualeThis article was submitted by Addison Quale, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.

Despite some good numbers in April, a look at the fundamentals indicates the rout in retail will likely continue long-term.

Mainstream media wants us to think that our economy is still humming along. With the stock market recovering from a recent drop, unemployment numbers staying steady, and other areas of the globe dealing with much greater issues than the US, most people can be forgiven for nodding their heads in agreement.

But there are clearly serious issues plaguing the economic health of this nation. Take for instance the area of retail.

The retail sector has suffered mightily, as this so-called recovery, the weakest on record, has not delivered as advertised. Consumers are clearly in no mood to spend these days. Instead, they are tightening their belts and paying off credit cards.

Now Is Not a Normal Time: Central Banks Buying Piles of Gold

POSTED ON May 17, 2016  - POSTED IN Key Gold Headlines

These are not normal economic times.

Interest rates have remained artificially low, plunging into negative territory in many places. Central banks continue to inflate the money supply with quantitative easing. Some policy-makers have even floated the idea of helicopter money. Worldwide money printing is reportedly approaching $100 trillion.

There is no end to this crazy monetary policy in sight. This led billionaire investor Stanley Druckenmiller to recommend selling US stocks to buy gold. Well-known hedge fund manager Paul Singer said the recent surge in gold is just the beginning. And Bank of America said gold is entering a new and long bull market.

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The Inflationary Process and Its Beneficiaries

POSTED ON May 16, 2016  - POSTED IN Original Analysis

Joel BaumanThis article was submitted by Joel Bauman, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.

In my latest post titled Inflation: A Semantic Change Worth Noting, I briefly reviewed the changing connotation of the terms ‘inflation’ and ‘deflation.’

In this final post in my 2-part series on inflation and banking, I look at the inflation process who whom it benefits.

The inflationary process is facilitated by two means: expanding the Federal Reserve’s balance sheet, and through credit expansion via fractional reserve banking.

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As the Fed buys assets, it creates the money to purchase them out of nothing but a promise. This is what most TV pundits refer to as “printing money.” The larger the Fed’s balance sheet grows, the more money must be created in order to finance these purchases.