Commodity Trade Mantra

Posts Tagged ‘Negative Interest Rates’

Warning Bells to Prepare for the Worst - Preserve Wealth with Gold

U.S. debt levels are higher now than they’ve ever been, according to the Federal Reserve Bank of New York. Loose monetary policy has artificially inflated stock prices despite weak economic growth. Instead of buying low and selling high, you’re buying high and crossing your fingers. Stocks appear to be overvalued right now, in turn boosting the safe-haven investment case for gold.

Gold Prices Just 1% Shy of Ripping Higher - All Upside Indicators Intact

We have both of the strongest indicators of rising precious metal prices intact. Silver has already broken out and trades above its 200-day moving average and long-term resistance levels, and gold is about 1% away from cracking its own price wall of $1,300. The coming weeks (or even months) could be exactly what you’ve been preparing for.

Negative Real Rates to Drive Gold Prices Higher Despite Fed Hikes

With arguably the two biggest drivers of the gold price trending in the yellow metal’s favor, gold prices are likely to go higher. Although the dollar could rise if Washington implements some structural reform, real rates aren’t headed higher anytime soon based on the Fed’s actions. If past is prologue, as inflation rises over the coming months, gold will do very well.

Are Gold ETFs Gearing Up for a Rally on the New-found Optimism?

The inflationary outlook is finally looking up in the developed economies. Political risks in Europe including Brexit worries, French elections and talks of Scotland’s independence vote have brightened the prospects for higher gold prices. So, investors intending to profit out of the new-found optimism in the gold space may consider gold ETFs like SPDR Gold Shares GLD, etc.

Mega Investors Loading up on Gold - Are They Cornering the Gold Market?

China has become a debt crisis waiting to happen. Central banks in Europe have deployed negative interest rates that rapidly erode value. And in the United States wealth has been borrowed from future economic growth to feed bubbles in stocks and real estate. That’s why billionaires are rapidly rushing into their old standby, gold. It’s the only asset that can be trusted right now.

Why Gold Will Benefit From The Alternative Fact of the Cashless Society

Negative interest rates & bail-ins will only work if cash cannot be removed from the system. The threat of a cashless society is seemingly greater than ever. Going cashless will not rid us of people & organisations who wish to commit horrific & illegal acts. This will no doubt drive up demand for tangible currencies such as gold and silver which should be held outside of the banking system.

7 Federal Reserve Tools and Why They’re All Flawed

Here is a survey of seven Federal Reserve tools in the Fed toolkit to stimulate the economy if recession or deflation gains the upper hand and why their toolkit is flawed. Their toolkit consisting of interest rate hikes to fight inflation, and a litany of tools to fight deflation, shows that the Fed will be fully engaged in manipulating the U.S. economy for an indefinite period of time.

Gold Is Cheap Insurance - No Matter What, Real Interest Rates Will Remain Negative

Either inflation or negative real rates would definitely be a plus for gold prices. If the economy really starts to show strong growth, the Fed will begin a series of rate hikes to put the brakes on inflation, but we anticipate them to be reactive. In either case, real interest rates will remain negative, or at best near zero in both scenarios. This makes a very strong case for holding gold at current prices.

After a War on Cash, can the War on Gold be far behind?

The global elites are using negative interest rates & inflation to make your money disappear. One solution to this is to buy physical gold. But if the government has a war on cash, can the war on gold be far behind? Probably not. Governments always use money laundering, drug dealing & terrorism as an excuse to deprive citizens of the ability to use money alternatives such as physical cash & gold.

Gold Investment a Safe Bet No Matter What the Fed Does

Yellen’s comments Friday about running a “high-pressure economy” make it clear that inflation moving a point or two above the 2% target will not trigger a rate hike. The Fed Chair also made it clear in remarks a month or two ago that she was not afraid to use negative rates. We are in a unique situation today in that any action from the Fed is likely to boost gold prices.

Stack Gold and Silver, Avoid Paper Assets and Politicians to Retire Happily

We don’t know what the next twenty years will bring, but based on the last 3,000 years we can reasonably expect massively more debt, more central banker control over economies, unfulfilled promises from politicians, devalued fiat currencies, monetary crises, wars, diminishing middle class, and that gold and silver will remain money and continue as a store of value.

Rising Inflation & Sagging Confidence in Central Banks will Catapult Gold Prices Higher

Inflation may surprise to the upside. Consumer prices are set to rise as oil rebounds, while low or negative interest rates and bond buying by central banks have failed to boost economies. Interest rate hikes are incredibly positive for gold prices, because of the existence of the huge QE “money ball” that sits at the Fed & other central banks. Gold prices need another rate hike from Janet to move higher.

Can the Price of Silver (the Year's Top Performer) Continue to Rally?

With the price of silver up nearly 40% year-to-date, investors are wondering whether it can continue. Experts say it may have more room to run, particularly as global interest rates continue to stay negative. It wouldn’t be inconceivable to see a silver supply shortage if there was heightened demand, & in that case, a silver to gold ratio of 20 to 1 (or lesser) is not an impossibility.

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.

If the Fed does What it Wants to, the Result will be the Opposite of What it Wants

The US economy is slowing perceptively. What should the Fed be doing? They might want to cut interest rates. Problem. Another tool in the arsenal – cheapen the US dollar. Again there is a problem. Whether that works & what is a good idea are separate issues. Certainly a rate hike would take the stock market down 20%. It’s going to be just the opposite of what the Fed wants.

Gold Bullion Flows Reverse Back into the West - What does it Mean?

U.S. has become a significant gold importer. Gold is flowing from vaults in London, Switzerland & even Dubai to the U.S. In May, U.S. imported over 50 times the monthly average amount of gold. Investor demand was the largest component of gold demand for Q1 and Q2 – the first time this has ever happened. This means that more U.S. investors are diversifying their assets into gold.

Case for Owning Real Money - Gold and Silver Outside the Banking System

We’re in a situation on a global basis we’ve never been in before, which is that the reserve currency of the world is failing, which means you need something outside of the system. You need something that’s not electronic-based, has no counterparty risk, that’s universally recognized & of high value that could be used anytime, anywhere by anyone. That of course is gold and silver.

Gold Equity Market Bull will be as Ferocious as the Bear from 2012 to 2015

Over the past 45 years there have been 7 bull cycles & 7 bear cycles with varying duration & gains. No bear market was as horrific as the one just experienced from Oct 2012 until mid-Dec 2015. Does that mean that the new gold market we are currently in will last longer and provide opportunity for even stronger gains than those experienced in previous bull cycles? Only time will tell.

Negative Interest Rates: The Tax On Capital

Negative interest rates remove the positive “interest” paid to savers which is supposed to (partially) protect us from the rapacious “real inflation” running at 10+% per year. They go well beyond even this level of economic theft & criminality. Negative interest rates tax capital. How do you “stimulate” an economy by taxing capital? The inevitable result can only be the complete economic destruction.

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.

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