Commodity Trade Mantra

Posts Tagged ‘Central Banks’

Ironically, Gold and Silver will find Buyers in Crowds at Higher Prices Than at Lower

Even after you’ve done the research & decided to participate, buying into price weakness against the herd & contrary to your emotions is not an easy thing to do. But time & again, some of the world’s most successful investors have done just that. You might want to consider joining their ranks. As new nominal highs in both gold and silver are printed, several situations begin to develop.

Asset Bubbles Created by Central Banks Setup a Perfect Storm for Gold

Unless central banks are willing to initiate ultimate protocols, the inevitable result will be a bursting of all these asset bubbles and an explosion for gold that will make its $1940 high in 2011 look like pocket change. Gold will likely soar to a record within five years as asset bubbles burst in everything from bonds to credit and equities, forcing investors to find a haven.

Why the Coming Wave of Defaults Will Be Devastating

In an economy based on borrowing, loan defaults & deleveraging matter. Defaults mean loans & bonds won’t be paid back. The owners of the bonds & debt (mortgages, auto loans, etc.) will have to absorb massive losses. Having unleashed tens of trillions of dollars in new credit since 2008, the central banks have simply increased the likelihood & scale of the coming default conflagration.

Finally The Fed Admits It Has No Clue on Inflation & Investment Spending

The most interesting comment by Fed Chair Janet Yellen was her admission that she and her prestigious voting members don’t have a clue why inflation and capital investment spending have not returned to loftier levels. Then how do they yet expect a significant 250 basis point credit tightening over the next couple of years in an economy muddling along just above “stall” speed?

The Fed’s Missed Window To Hike Rates & Failed Realizations

What is clear is the Federal Reserve should have chosen to increase rates long ago where such tightening of monetary policy would have been somewhat offset by the continued floods of interventions. The window to lift interest rates appears to have closed which could potentially be a policy nightmare. Eventually something has to give & it will likely not be the outcome the Fed hopes for.

Silver will be the Top Performing Asset in 2017

Silver had a massive run from the lows of $15.83 to $21.22 &is set to rally higher. No markets rise vertically, a 50% Fibonacci correction is a healthy and accepted norm. The weaker hands are out of silver, whereas, the stronger hands have bought the white metal at lower levels. You need to invest at the right time and to be positioned properly for when high volatility strikes.

The SDR Is Designed As A Rescue Operation For The US Dollar

The IMF created the SDR Substitution Account in 1969. T he core idea is that the SDR Substitution Account Central Banks allows to diversify their existing US dollar reserves in a one-time conversion away from the dollar into IMF’s SDR, comprised of the US dollar, European euro, Japanese yen and British pound, in an off-market transaction, so as not to depress the dollar’s exchange rate.

Double Digit Inflation And The Rise of Gold

Inflation can really spin out of control very quickly. So is double-digit inflation rate within the next five years in the future? It’s possible. We would see a struggle from two to three, and then jump to six, and then jump to nine or ten. This is another reason why having a gold allocation now is of value. Because if and when these types of development begin happening, gold will be inaccessible.

Exposing The Link Between Monetary Policy And Social Inequality

Our monetary policy direction has been prolonging the slowdown since 2008. The longer we wait, the worse the hit we will take. We are going from one bubble to another and are just postponing the inevitable. Under our current system, which has stripped the working class from their savings, they are exposed to greater risks than ever before.

A Gold Standard & Debt Jubilee for an Honest Money Monetary System

A gold standard handcuffs corrupt governments, forcing them to operate somewhere near a balanced budget, at all times. It handcuffs criminal central banks, restraining the speed with which they steal-by-inflation to a near-zero rate. Only alternative to Debt Slavery: Debt Jubilee – the complete renunciation of all debts. We absolutely require a gold standard but cannot till we don’t have a debt jubilee.

Gold Investment Necessitated by Failed Monetary Policies

Many analysts are interpreting weak Japanese Government Bond demand as a signal that investors are starting to lose confidence in the effectiveness of unconventional monetary policies, following increasingly desperate bids by the world’s central banks to reflate the global economy. In this environment, we believe investors are using gold to hedge portfolio risk as they add more stocks.

Helicopter Money Tested And Failed Spectacularly, Surprising Only Economists

Imagine waking one morning to find extra cash in your account, a gift from your country’s central bank. That might sound outlandish. But the concept of so-called helicopter money is being seriously debated by economists. Helicopter money handed directly to consumers, the theory goes, would send us scurrying to the shops to spend our windfalls, boosting confidence in the economy.

Gold Prices will easily Triple on a Collapse in the Monetary System

What could possible make gold prices go from roughly $1,350 an ounce now to triple in value at US$4,200? The inability of central banks to wind down their balance sheets and the continued effort to stimulate the economy by, admittedly, unconventional means will end our current currency system. We will then return to some sort of gold standard, thus sending it soaring.

Giant Financial Bubbles created by Central Banks are Fracturing

Nearly everywhere on the planet the giant financial bubbles created by the central banks during the last two decades are fracturing. The latest examples are the crashing bank stocks in Italy & elsewhere in Europe & the sudden trading suspensions by three UK commercial property funds. It’s beginning to feel like August 2007 all over again. Of course, central banks have nothing to do with it at all!

Common Sense Investing in Gold and Silver will Return When All Hell Breaks Loose

I actually believe the future values of gold and silver could be even more silly and stupid than $12,00o or $360, respectively. Why? Because the popping of adult sized massive financial bubbles could actually push gold and silver investment percentages even higher than what they were in 1980. That would happen when global investors try to invest 10% in gold or say just 1-2% in silver.

Greenspan Warns Of Imminent Crisis, Urges A Return To Gold Standard

“If we went back on the gold standard & adhered to the structure of the gold standard as it exited prior to 1913, we’d be fine. Remember that the period 1870 – 1913 was one of the most aggressive periods economically that we’ve had in the U.S. & that was a golden period of the gold standard. I’m known as a gold bug & everyone laughs at me, but why do central banks own gold now?” – Alan Greenspan

So Far, So Good - What's Next for Gold and Silver? Brexit Aftermath

Gold outperformed the US dollar & Treasuries as the go-to safe haven asset. Investors rushing around on Friday & looking for somewhere to flee favored gold. World financial markets are highly leveraged & massively interconnected. The collapse of even one bank or hedge fund can have vast implications. Here are some early insights on Brexit as it relates to the gold and silver markets.

This Time Central Banks Will Need A Bailout: Make Sure You Buy Gold

In the late ‘90s, Wall Street bailed out a hedge fund. In 2008, the Federal Reserve bailed out Wall Street. But in 2018, it’s the central banks that will need a bailout. And what will happen to the dollar when the Fed loses international credibility? I worked hard for my money & I want to preserve it. I don’t want to see it wiped out. Gold will preserve my wealth & that’s why I have it.

The True Bearer of the Title ‘Risk Free Asset’ Should be Gold

The true bearer of the title ‘risk free asset’ should be gold – not T-bills or whatever other names government paper has. This is because gold is liquid under all market conditions. Silver is another excellent way to minimize your dependence on the goodwill of others. The former Bank of England head Lord Mervyn King offers good reasons for individual investors to buy & hold gold.

Is There A Better Insurance Against Global Risk Than Gold? I Doubt It!

Negative rates kill the incentive to save & without savings, there will be no investments or growth in the economy. But the biggest disaster is hitting the pension sector. When risks are major, it is critical to protect yourself against them. It is not a coincidence that some of the most successful investors in the world are recommending physical gold as insurance against these risks.

follow us

markets snapshot


Market Quotes are powered by Investing.com India

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook