Commodity Trade Mantra

Posts Tagged ‘Global Debt’

Rate Hike Largely Priced into Gold and Silver - What about Rationality in Sell-off?

Could the FED finally raise rates before 2016 draws to a close? That sounds plausible in theory, but there are a number of factors that do not support a rate hike in the near term. But even if they do hike rates, this move is already largely priced into gold and silver. We should question the rationality of this sell off. After all, the gold price often moves higher along with interest rates.

Gold Edging Close to Triggering a “Buy” Signal. Will You Buy?

Banks added 27 tonnes to their reserves in August in an effort to diversify their assets and hedge against their own policies. In a survey of 19 central bank reserve managers, the WGC found that close to 90 percent of them have plans either to increase their gold reserves or maintain them at current levels. Investors might consider doing the same, for the very same reasons.

Plunge in Gold and Silver may soon be Reversed with Multi-fold Vengeance

Gold and silver might have further to fall in the near term, but market bulls expect the retreat to offer investors who missed the first-half 2016 precious metals’ rally a strong buying opportunity. There are many undeniable and solid reasons to support this view. Here are the major factors that will ensure that investments in gold and silver remain attractive.

Gold and Silver Rally to Resume from Around 26th Sept - Expect Volatility Till Then

I believe that the bull run in gold and silver, that paused in its tracks in July, will continue swinging both ways with a high degree of volatility till Sept end, but will be back in a more vigorous and ferocious form soon after. I strongly believe that this bull-run-on-steroids phase in gold and silver will take off around 26th September 2016. Secure your tomorrow ….today.

Are You Prepared for the Hyperinflation Shock? Get on the Gold Wagon Now!

The problem is that no one is prepared for the coming shock. All of this printing will result in global hyperinflation of at least similar proportions to the Weimar republic or Zimbabwe. The final decline of the currencies will be reflected in the gold and silver prices. Gold at $1,330 and silver at $19 is a bargain, but with hyperinflation, we could add quite a few zeros to their prices.

In Search for Money that's Good as Gold - What Better than Gold Itself?

Excess debt exerts strong deflationary pressures, and major central banks are now fighting those pressures with such measures as negative interest rates. If inflation wins, as the Fed wishes it to, the dollar may cheapen dramatically & the gold price will shoot up. Wayward monetary policies bring about a search for money that is good as gold. What better than gold itself?

One-Fifth Of All Worldwide Stock Market Wealth Is Already Gone

As bad as things are in the U.S. right now, the truth is that we still have a long way to go to catch up with the rest of the planet. Around the world, many major stock market indexes are already down more than 30 or 40 percent. Overall, the MSCI All-Country World Index is now down 20 percent, which officially puts us in bear market territory.

Gold In 2016: "The Economic Power Is Shifting"

In the near-term, paper gold is extremely oversold, reflecting the expression of western establishment sentiment in the paper markets. Compared with the situation at the time of the Lehman crisis, gold is significantly cheaper today, which is wholly at odds with the continuing systemic risk to fiat currencies from under-capitalised banks, unprepared for the prospect of markets normalising.

Financial Forecast: Six signs that 2016 will be much worse than 2015

Over the course of 2015 we witnessed several events that had, and will have, negative repercussions. The financial systems as a whole, once again, got deeper into debt. For how much longer can central banks & governments continue kicking the can down the road without any real reform? Here are answers to these questions to identify trends for 2016 by looking at six key issues.

Peak Debt & The Need For A Reliable Store of Value: GOLD

Most investors seem unconcerned about the unsustainable levels of global debt and the inflationary potential of the trillions of dollars created by the major central banks especially the U.S Federal Reserve. I expect to see gold and silver demand increase dramatically in the coming years as more prudent investors see the truth and look for a reliable store of value.

Why Central Banks Are Pressing Investors To Hold Gold

Since their lows in March 2009, both the S&P 500 & German DAX have had triple digit gains of almost +170%. At the same time, real economies have more or less stagnated. In the meantime, the price of gold has increased by 21% during the same period. Which asset do you think is more at risk of being in bubble territory? Which one do you think has a bigger upside?

The Facts About Gold and Gold Speculations

Excessive debt is deflationary. Central banks can’t tolerate deflation so inflation is their game. They will print more & more. Global debt (official), not counting unfunded liabilities, exceeds $200 Trillion. It will increase but probably will not be paid. More debt means more currency in circulation, currencies are devalued, and gold becomes more expensive.

Gold Is Down. Remember - Fed will achieve Inflation ‘whatever it takes’

If the Fed maintains its tight money mantra in the middle of a deflationary currency war, then gold & other commodities could go a bit lower. My expectation is the Fed will wake up to the damage it’s doing and reverse course. The commodity and currency markets will soon hear the message that the Fed will achieve inflation ‘whatever it takes’. And then – gold will once again shine.

Europe, China Stocks & Commodities Crashing – Are U.S. Stocks Next?

European stocks are crashing, Chinese stocks are crashing, and commodities are crashing. And guess what? All of those things happened before U.S. stocks crashed in the fall of 2008 too. In so many ways, it seems like we are watching a replay of the financial crisis of 2008, but this time around the world is in far worse shape financially.

Hold “Physical Cash, Gold and Silver” To Protect Against Systemic Risk – Fidelity

Ian Spreadbury, who oversees the investment of over £4 billion of clients’ money in bond markets for Fidelity, said, “Systemic risk is in the system and as an investor you have to be aware of that.” To deal with these risks Spreadbury advocates a well-diversified portfolio. Cash should be spread out in different banks & that investors hold gold and silver.

How Is Gold Impacted By Runaway Debt?

The world now sits beneath a mountain of debt worth $200 trillion. If gold backed total global debt 100%, it would be valued at $33,900 per ounce. It’s unlikely that gold will ever reach $33,900 per ounce—or even $12,000, as James Turk calculates—but the fact that supply has not kept up with debt levels suggests that gold prices might very well rise.

Global Economy May “Collapse” Warn HSBC – Gold Is Lifeboat

The chief economist of HSBC – Stephen King, has compared the global economy to the Titanic. Given the significant & growing economic risks of today, it is prudent to have an allocation to physical bullion stored in reliable vaults in the safest jurisdictions around the world. Have you got your lifeboat ready?

The Debt To GDP Ratio For The Entire World: 286%

Seven years after the bursting of a global credit bubble resulted in the worst financial crisis since the Great Depression, debt continues to grow. In fact, rather than reducing indebtedness, or deleveraging, all major economies today have higher levels of borrowing relative to GDP than they did in 2007.

Global Debt Now $200 Trillion!

Global debt is now in the region of $200 trillion. Unless and until the debt based system is replaced there can only ever be an increasing debt load and an urgency for economic growth with the consequent degradation of our environment and a debt enslaved humanity.

Can Gold Save The World From the Credit Bubble?

Governments & central banks created the currency & credit bubbles. When fiat currencies crash in the next crisis, backing currencies with gold could “save the world” & restore confidence in fiat currencies but only after significant trauma. Perhaps central banks will do the “right thing,” but only after exhausting all other alternatives.

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