Max Keiser

Tilaa syöte syöte Max Keiser
Gold, Silver, Bitcoin
Syötteen kokonainen osoite. 46 min 13 s sitten

GoldCore Capitalising On Brexit With Dublin Gold Vault

3 tuntia 9 min sitten

(Reuters) – Gold broker and storage company GoldCore said on Tuesday it had opened a gold vault in Dublin, aiming to attract investors looking for an alternative to London after Brexit.

Dublin-based GoldCore, which set up the facility in collaboration with security firm Loomis International, said it was Ireland’s first institutional grade vault.

“Brexit and other financial and geopolitical risks make asset diversification and owning assets in different jurisdictions more important than ever,” GoldCore said in a statement.

London is a global precious metals trading and storage hub and GoldCore is not alone in seeking to position itself for potential new business amid the uncertainty of Britain’s planned exit from the European Union next year.

Sources on Monday told Reuters the Bank of France had partnered with U.S. banking group JPMorgan (JPM.N) to expand its range of gold bullion services for other central banks – a business dominated in Europe by London and the Bank of England.

GoldCore offers trading, delivery and storage of gold coins and bars internationally and was founded in 2003. Loomis is one of the world’s largest operators of professional bullion vaults.

News and Commentary

GoldCore seeks to capitalise on Brexit with Dublin gold vault (Reuters.com)

Dublin broker opens new vault for gold bars exiting London due to Brexit (IrishTimes.com)

Gold broker and storage company GoldCore said on Tuesday it had opened a gold vault in Dublin (CNBC.com)

GoldCore capitalising on Brexit with Ireland’s first institutional grade vault. (EuroNews.com)

PRECIOUS – Gold edges up as dollar drifts away from multi-month high (CNBC.com)

Premier Foods to stockpile raw materials in the run-up to Brexit (BBC.com)

Dow falls in wild session as Wall Street fails to recover from sharp losses (CNBC.com)

U.S. government posts $100 billion deficit in October (Reuters.com)

‘Lame-duck’ Congress returns, facing budget, Mueller, border wall issues (Reuters.com)


Source: ZeroHedge.com

Silver Cheapest To Gold In 25 Years – Watch China (ZeroHedge.com)

UBS: Australian Home Prices Could Collapse 30% (Bloomberg.com)

S&P 500 by two-thirds, warns fund manager (MarketWatch.com)

America’s Fake-Money Success Was an Accident – Bonner (BonnerAndPartners.com)

Ray Dalio’s Faith in Gold Is Unshaken (Bloomberg.com)

 

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

13 Nov: USD 1,197.55, GBP 928.70 & EUR 1,066.18 per ounce
12 Nov: USD 1,207.05, GBP 940.05 & EUR 1,072.34 per ounce
09 Nov: USD 1,219.05, GBP 936.96 & EUR 1,075.81 per ounce
08 Nov: USD 1,223.45, GBP 932.02 & EUR 1,071.01 per ounce
07 Nov: USD 1,235.05, GBP 938.64 & EUR 1,074.62 per ounce
06 Nov: USD 1,234.85, GBP 947.75 & EUR 1,083.58 per ounce

Silver Prices (LBMA)

13 Nov: USD 14.02, GBP 10.85 & EUR 12.46 per ounce
12 Nov: USD 14.16, GBP 11.00 & EUR 12.57 per ounce
09 Nov: USD 14.34, GBP 11.01 & EUR 12.63 per ounce
08 Nov: USD 14.49, GBP 11.06 & EUR 12.70 per ounce
07 Nov: USD 14.67, GBP 11.15 & EUR 12.77 per ounce
06 Nov: USD 14.70, GBP 11.25 & EUR 12.89 per ounce


Recent Market Updates

– Store Gold In The Safest Vaults In Ireland
– Investors Set To Store Gold In Dublin Due To Brexit Risks
– Investors Start Buying Gold ETFs In October In Bullish Shift
– As Brexit Looms and Stocks Plunge In October – Now May Be The Time to Invest in Gold
– AMERICAN ELECTIONS FARCE AS POLITICIANS IGNORE THE LOOMING $121.7 TRILLION DEBT CRISIS
– Gold ETFs See Strong Demand In Volatile October After Robust Global Gold Demand In Q3
– Venezuela Seeks To Repatriate $550 Million Of Gold From London
– Big Short’s Eisman Is Shorting Two U.K. Banks on Brexit
– “Red October” Highlights Importance of Rebalancing Portfolios and Gold’s “Very Positive” Outlook
– Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally
– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply

GoldCore Secure Storage Ireland – Information and Introduction Video Here

 

Investors Set To Store Gold In Dublin Due To Brexit Risks

Ti, 11/13/2018 - 15:01
(Media Release) Investors Set To Move and Store Gold In Dublin Due To Brexit Risks

– Investors in Ireland, the UK and internationally can for the first-time own gold in a secure and liquid way in accredited, professionally managed, fully insured, institutional grade vaults

– Secure gold investment in Ireland for first time as global risks intensify and Dublin will compete with London as a favoured gold storage location

– Brexit will likely impact the 300bn London gold market as investors move gold to other jurisdictions including Dublin

Investors in Ireland, the UK and internationally can for the first time invest in gold stored in secure, professionally managed, institutional grade vaults in Dublin, Ireland.

As financial and geopolitical risks including trade wars, the Trump Presidency and Brexit intensify, Ireland’s longest established gold broker, GoldCore have moved to enable Irish, UK and international investors to invest in and own gold stored in fully insured, specialist gold vaults in Dublin.

Brexit and other financial and geopolitical risks make asset diversification and owning assets in different jurisdictions more important than ever.

Institutional gold storage, Ireland’s first, is being managed by GoldCore in collaboration with Loomis International in a modern state of the art secure storage facility in south county Dublin, with easy access to the airport.

GoldCore, which was established in Dublin in 2003 and is now a global gold storage specialist, has long offered storage in some of the safest vaults, in the safer jurisdictions in the world.

“Dublin was soft launched to our clients in October and since then we have been very pleasantly surprised by the demand”, said GoldCore CEO Stephen Flood. “We expect demand in Dublin to exceed that of London sometime in 2019 as UK and Irish clients seek to spread their holdings across jurisdictions. Zurich is still the most sought after location, but Dublin has already surpassed Singapore and Hong Kong and may now usurp the second spot from London.”

“We considered operating our own vaults or going the safety deposit box option but there were unappreciated risks to clients and indeed a lack of liquidity for investors who could not easily and quickly sell their gold when they wished to” said the GoldCore CEO.

“Our new institutional gold storage offering will be offered to retail, HNW, family office, pension, broker and institutional investors” continued Flood, “and we believe it will be of interest not just to Irish and UK investors but also to U.S. investors, particularly Irish Americans, and indeed international investors looking for a secure location to store their gold.”

GoldCore make a market in gold bars (1 oz and 1 kilo) and popular legal tender gold bullion coins from the Royal Mint (CGT free gold coins for UK investors), the Royal Canadian Mint, the U.S. Mint, the Perth Mint and the Austrian Mint. Investors can buy or sell their gold online or on phone and do not have the security risk of having to take their gold out of a safe deposit box, deliver it and have it verified at specialist bullion vaults before being able to sell it.

Loomis International are one of the leading valuables storage providers in the world. Loomis provide secure transportation, management and storage of precious metals and are a member of the London Bullion Market Association (LBMA) whose membership is comprised of government mints, refiners, bullion dealers and major international banks.

“We are excited to collaborate with GoldCore on Secure Storage Ireland. We have worked with GoldCore since 2009 and we like the way they are always being innovative and putting the client first in terms of investing in gold in a secure way” said a senior representative of Loomis International.

The gold vaults managed by Loomis International meet the highest vault security standards. They are members of the Irish Security Industry Authority (ISIA) and the Private Security Authority (PSA). The latter is the statutory body with responsibility for licensing and regulating the private security industry in Ireland. The vault providers have good relationships with key freight companies, airports, airlines and the Irish police force, An Garda Siochána.

Investors have shown renewed interest in gold as an investment in 2018 due to Brexit, Trump and increasing global economic and geopolitical uncertainty.
Ends


About Secure Storage Ireland

  • The gold vaults managed by Loomis International meet the highest vault security standards. Loomis are one of the leading valuable storage providers in the world and provide secure transportation, management and storage of precious metals internationally.
  • Loomis are a member of the London Bullion Market Association (LBMA) whose membership is comprised of government mints, refiners, bullion dealers and major international banks. LBMA member vaults ensure the chain of integrity for gold bars.
  • GoldCore make a market in gold bars and coins fabricated and minted by LBMA approved government mints and refineries. The LBMA have strict rules in terms of purity and quality of gold bars as so their members. This reduces the risk of counterfeit coins and bars and helps GoldCore ensure that we deal in authentic gold coins and bars.
  • The vaults being managed by GoldCore in conjunction with Loomis International are of the highest vault security standards – greater even than Central Bank of Ireland security requirements. The facility is a member of the Irish Security Industry Authority (ISIA) and the Private Security Authority (PSA). The latter is the statutory body with responsibility for licensing and regulating the private security industry in Ireland.
  • The vault operators are experts in the movement of valuables such as cash and precious metals that require secure transportation internationally. They have relationships with key freight companies, airports, airlines, the Irish Justice Department and the Irish police force, An Garda Siochána.
  • GoldCore are making a market in gold bars (1 oz and 1 kilo) and popular legal tender gold bullion coins from the Royal Mint (CGT free gold coins for UK investors), the Royal Canadian Mint, the U.S. Mint, the Perth Mint and the Austrian Mint.
  • Liquidity is important for investors who can buy or sell their gold online or on the phone at any time. They do not have the hassle, stress and security risk of having to keep their keys safe, find their keys, take their gold out of a safe deposit box, in person take it out of the building in which their box is located, deliver it and have it verified (and potentially assayed) at specialist bullion vaults before being able to sell it.

About GoldCore

– Founded in 2003, GoldCore are international gold brokers who are expert in the trading, delivery and storage of gold coins and bars and have transacted over $1 billion worth of precious metals in the last 15 years (incorporated on October 23, 2018).

– GoldCore have over 16,000 private, pension and corporate clients in over 150 countries, with over $140 million in precious metals under management. Gold, silver, platinum and palladium bullion storage services in Zurich, Singapore, Hong Kong, Perth, Dublin and London are offered to mass affluent, pension and HNW investors and to financial advisers, brokers, family offices and other institutional investors.

– GoldCore’s bullion trading platform is one of the most sophisticated and safest in the industry. Client’s bullion coins and bars are individually allocated & segregated under direct client control and ownership. Bullion is owned in ultra-safe vaults strictly outside the global banking system.

– GoldCore’s research is quoted and featured in international media – on CNBC, CNN, Reuters, the Financial Times and Bloomberg. It provides insights into the importance of diversification and the importance of owning precious metals as part of diversified investment and pension portfolios and as financial insurance.

Related Links

GoldCore Secure Storage Ireland – Information and Introduction Video Here


For further information, please contact GoldCore CEO, Stephen Flood or Research Director Mark O’Byrne – 
Call +44 (0)203 086 9200 / +353 1 6325010

Understanding the Global Recession of 2019

Ma, 11/12/2018 - 17:57

2019 is shaping up to be the year in which all the policies that worked in the past will no longer work. As we all know, the Global Financial Meltdown / recession of 2008-09 was halted by the coordinated policies of the major central banks, which lowered interest rates to near-zero, bought trillions of dollars of bonds and iffy assets such as mortgage-backed securities, and issued unlimited lines of credit to insolvent banks, i.e. unlimited liquidity.

Central governments which could do so went on a borrowing / spending binge to boost demand in their economies, and pursued other policies designed to bring demand forward, i.e. incentivize households to buy today what they’d planned to buy in the future.

This vast flood of low-cost credit and liquidity encouraged corporations to borrow money and use it to buy back their stocks, boosting per-share earnings and sending stocks higher for a decade.

The success of these policies has created a dangerous confidence that they’ll work in the next global recession, currently scheduled for 2019. But policies follow the S-Curve of expansion, maturity and decline just like the rest of human endeavor: the next time around, these policies will be doing more of what’s failed.

The global economy has changed. Demand has been brought forward for a decade, effectively draining the pool of future demand. Unprecedented asset purchases, low rates of interest and unlimited liquidity have inflated gargantuan credit / asset bubbles around the world, the so-called everything bubble as most asset classes are now correlated to central bank policies rather than to the fundamentals of the real-world economy.

Keenly aware that they’ve thinned their policy options and financial buffers to near-zero, central banks are struggling to normalize their policies by raising rates, reducing their balance sheets by selling assets and tightening lending conditions / liquidity.

Unfortunately for central banks, global economies are now junkies addicted to zero interest rates and central bank stimulus / support of bond markets, stock markets and real estate markets. The idea of normalization is to slowly inch the financial system and economy back to levels that were normal in previous eras, levels that allowed some room for central banks to respond to recessions and global financial crises by lowering rates and extending credit to insolvent lenders.

But reducing the drip of financial heroin hasn’t ended global economies’ addiction to extraordinary easy financial conditions. Rather, it’s illuminated the dangers of their continued addiction.

As soon as authorities attempt to limit their support / stimulus, markets wobble into instability. The entire economic structure of “wealth” is now dependent on asset bubbles never popping, for any serious decline in asset valuations will bankrupt pension funds, insurers, local governments, zombie companies and overleveraged households–every entity which is only solvent as long as asset bubbles expand or maintain current valuations.

So how do central banks normalize their unprecedented policies without popping the asset bubbles they’ve created? The short answer is: they can’t.Rising interest rates are a boon to savers and Kryptonite to borrowers–especially over-leveraged borrowers who must roll over short-term debt and borrow more just to maintain the illusion of solvency.

As if this wasn’t enough to guarantee recession in 2019, there’s the unintended consequences of capital flows. Capital famously flows to where it’s treated best, meaning wherever it earns the highest yields at the lowest risk, and where the rule of law protects capital from predation or expropriation.

When all central banks pursued roughly the same policies, capital had options. Now that the Fed has broken away from the pack, capital has only one option: the U.S. The Federal Reserve should have begun normalizing rates etc. back in 2013, and if they’d been wise enough to do so then even baby steps over the past 5 years would have led to a fairly normalized financial environment.

But Ben Bernanke and Janet Yellen blew it, so it’s been left to the current Fed leadership to do the heavy lifting over a much shorter timeline. Predictably, pulling away the punch bowl has spoiled the asset-bubble party, and now all the asset bubbles are increasingly at risk of deflating.

But the yields and relative risk available in US-dollar denominated assets is starting to look a lot more attractive and lower risk than assets denominated in yen, yuan and euros. Capital flows tend to be self-reinforcing: as capital flows out of at-risk economies, it dampens investment, speculation and spending as the economy is drained of capital.

Owners of assets notice this decay and so they decide to sell and move their capital to safer ground. Selling begets selling, and pretty soon nobody’s left to catch the falling knife, ie. buy assets that are rapidly losing value.

This is what surprised Alan Greenspan (by his own account) in 2008: bubbly markets quickly become bidless, that is, buyers vanish and sellers who want to unload their assets for cash find nobody’s willing to part with cash for a plummeting asset.

The central bank “solution” to bidless markets is to become the buyer of last resort: when no sane investor will buy bonds, stocks or real estate, then the central bank starts buying everything in sight.

We are already seeing this in action as Chinese governmental agencies have started quietly buying empty flats in ghost buildings to prop up the housing market. The idea here is to restore confidence with a relatively modest burst of quiet buying. But when markets turn and confidence is lost, sentiment can’t be restored so easily: sensing their last chance is at hand, sellers dump assets at a quickening pace, overwhelming the modest central bank buying.

This leaves the central bank with a stark and sobering choice: either let the asset bubble collapse and accept the immense destruction of “wealth,” or buy the whole darn market. This is the unintended consequence of employing unprecedented policies for a decade: like using antibiotics every day for years, eventually resistance develops and the “fix” no longer works.

Now that central banks have inflated assets into the stratosphere, there’s $300 trillion in global financial assets sloshing around seeking higher yields and capital gains. How much of this $300 trillion can central banks buy before they destabilize currencies? How much can they buy before they run out of political goodwill?

Isn’t it obvious that repeating the policies of 2009 won’t be enough to save the system from a long-delayed reset?

 

My new mystery The Adventures of the Consulting Philosopher: The Disappearance of Drake is a ridiculously affordable $1.29 (Kindle) or $8.95 (print); read the first chapters for free (PDF)

My book Money and Work Unchained is now $6.95 for the Kindle ebook and $15 for the print edition.

Read the first section for free in PDF format. 

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

Investors Start Buying Gold ETFs In October In Bullish Shift

Ma, 11/12/2018 - 17:37

Billion-Dollar Monthly Boost in Buying of Gold ETFs Offers Hope to Gold Investors

by Myra Saefong of Marketwatch

Exchange-traded funds backed by gold increased their holdings by $1 billion in October, marking a possibly bullish shift in investor sentiment toward the precious metal.

The ETFs hold physical gold assets, which are equivalent to the fund’s asset value. Investors in the funds don’t own gold directly and thus save on storage costs. The ETFs are constantly buying and selling gold as investors purchase and redeem fund shares.

Gold bars sit across a one kilo gold bar at bullion dealers Goldcore, in London, U.K., on Thursday, March 11, 2010. Photographer: Chris Ratcliffe/Bloomberg

In October, the global ETFs and similar products added 16.5 metric tons, bringing their holdings up to 2,346 metric tons. That’s the first monthly gain in four months, according to data from the World Gold Council, or WGC.

“These numbers are very encouraging,” says George Milling-Stanley, head of gold strategy at State Street Global Advisors, who worked on the 2004 launch of the largest gold-backed ETF, the SPDR Gold Shares GLD.

The numbers “confirm our view that investors are once again turning to gold as a defensive asset, offering some protection against the unexpected, whether these tail risks are macroeconomic or geopolitical in nature.”

Other reasons for holding gold include portfolio diversification, liquidity, relatively low volatility, and improved risk-adjusted returns, he says.

The strong monthly gain in gold ETF holdings follows a net reduction of 103.2 metric tons in the third quarter, according to the WGC. Those were the first quarterly outflows since the first quarter of 2016.

“Flows into gold-backed ETFs are often indicative of investor sentiment in the market, as well as reactionary moves to the price of gold,” says Juan Carlos Artigas, director of investment research at the WGC.

But the market has also “seen inflows into low-cost gold-backed ETFs over the past few months, which suggest there are long-term investors buying gold as a strategic asset,” says Artigas.

Full article on Marketwatch


Related Content

Gold ETFs See Strong Demand In Volatile October After Robust Global Gold Demand In Q3

As Brexit Looms and Stocks Plunging In October – Now May Be The Time to Invest in Gold

 

 

News and Commentary

 

Gold prices hold steady near 1-month low (Reuters.com)

Gold prices likely to rise by year-end: analysts (VietnamNews.vn)

In Bullish Shift, Investors Start Buying Gold ETFs (Barrons.com)

Silver Speculators Reduced Their Bearish Bets To Best Position In 13 Weeks (Investing.com)


Source: Marketwatch

Is this an ominous sign that another recession is looming? (MarketWatch.com)

What plunging oil prices may be telling us about the stock market and global economy (MarketWatch.com)

Global GDP Still Propped Up By A Massive Amount Of Debt (GoldSeek.com)

Nightmare Scenario For Beijing: 50 Million Chinese Apartments Are Empty (ZeroHedge.com)

Big investors sue 16 banks in U.S. over currency market rigging (Reuters.com)

Gold Prices (LBMA AM)

09 Nov: USD 1,219.05, GBP 936.96 & EUR 1,075.81 per ounce
08 Nov: USD 1,223.45, GBP 932.02 & EUR 1,071.01 per ounce
07 Nov: USD 1,235.05, GBP 938.64 & EUR 1,074.62 per ounce
06 Nov: USD 1,234.85, GBP 947.75 & EUR 1,083.58 per ounce
05 Nov: USD 1,231.60, GBP 946.61 & EUR 1,081.96 per ounce
02 Nov: USD 1,235.50, GBP 948.00 & EUR 1,079.83 per ounce

Silver Prices (LBMA)

09 Nov: USD 14.34, GBP 11.01 & EUR 12.63 per ounce
08 Nov: USD 14.49, GBP 11.06 & EUR 12.70 per ounce
07 Nov: USD 14.67, GBP 11.15 & EUR 12.77 per ounce
06 Nov: USD 14.70, GBP 11.25 & EUR 12.89 per ounce
05 Nov: USD 14.74, GBP 11.33 & EUR 12.96 per ounce
02 Nov: USD 14.82, GBP 11.38 & EUR 12.95 per ounce


Recent Market Updates

– As Brexit Looms and Stocks Plunge In October – Now May Be The Time to Invest in Gold
– AMERICAN ELECTIONS FARCE AS POLITICIANS IGNORE THE LOOMING $121.7 TRILLION DEBT CRISIS
– Gold ETFs See Strong Demand In Volatile October After Robust Global Gold Demand In Q3
– Venezuela Seeks To Repatriate $550 Million Of Gold From London
– Big Short’s Eisman Is Shorting Two U.K. Banks on Brexit
– “Red October” Highlights Importance of Rebalancing Portfolios and Gold’s “Very Positive” Outlook
– Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally
– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply

Gold and the Great Unraveling

La, 11/10/2018 - 17:55

Michael Oliver started working in financial markets in 1975. Same year when US citizen Gold Bullion saving ‘re-legalization’ occurred & not coincidentally COMEX gold futures contract trading started (i.e. just prior to the  US Treasury cables recently published by Wikileaks revealing 1974 gold concerns over its potential to out-compete with the US dollar savings among the US citizenry).

Full news related silver gold podcast backlinks  plus a critical 1980 Silver COMEX chart leading to an over $1.1 billion USD silver-related bailout to follow.

Cheers Stacy… Max… and to you reading this.

Why Are so Few Americans Able to Get Ahead?

Pe, 11/09/2018 - 21:16

Despite the rah-rah about the “ownership society” and the best economy ever, the sobering reality is very few Americans are able to get ahead, i.e. build real financial security via meaningful, secure assets which can be passed on to their children.

As I’ve often discussed here, only the top 10% of American households are getting ahead in both income and wealth, and most of the gains of these 12 million households are concentrated in the top 1% (1.2 million households). (see wealth chart below).

Why are so few Americans able to get ahead? there are three core reasons:

1. Earnings (wages and salaries) have not kept up with the rising cost of living.

2. The gains have flowed to capital, which is mostly owned by the top 10%, rather than to labor ((wages and salaries).

3. Our financialized economy incentivizes cartels and other rentier skims, i.e. structures that raise costs but don’t provide any additional value for the additional costs.

It’s instructive to compare today’s household with households a few generations ago. As recently as the early 1970s, 45 years ago, it was still possible for a single fulltime-earner to support the household and buy a home, which in 1973 cost around $30,000 (median house price, as per the St. Louis FRED database).

As recently as 20 years ago, in 1998, the median house price in the U.S. was about $150,000— still within reach of many two-earner households, even those with average jobs.

As the chart below shows, real median household income has only recently exceeded the 1998 level— and only by a meager $1,000 annually. If we use real-world inflation rather than the under-estimated official inflation, real income has plummeted by 10% or more in the past 20 years.

This reality is reflected in a new study of wages in Silicon Valley, which we might assume would keep up due to the higher value of the region’s output.The study found the wages of the bottom 90% declined when adjusted for inflation by as much as 14% over the past 20 years:

“The just-released report showed that wages for 90 percent of Silicon Valley workers (all levels of workers except for the top 10 percent)are lower now than they were 20 years ago, after adjusting for inflation. That’s in stark contrast to the 74 percent increase in overall per capita economic output in the Valley from 2001 to 2017.”

source: Why Silicon Valley Income Inequality Is Just a Preview of What’s to Come for the Rest of the U.S.

Meanwhile, the median house price has more than doubled to $325,000 while median household income has stagnated. Please note this price is not adjusted for inflation, like the median income chart. But if we take nominal household income in 1998 (around $40,000 annually) and compare it to nominal household income now in 2018 (around $60,000), that’s a 50% increase–far below the more than doubling of house prices.

To raise stagnant incomes, the Federal Reserve and other central banks have attempted to generate a wealth effect by boosting the valuations of risk-on assets such as stocks, bonds and commercial real estate. But the Fed et al. overlooked the fact that the vast majority of these assets are owned by the top 10%–and as noted above, the ownership of the top 10% is concentrated in the top 1% and .1%.

As a result, the vast majority of the wealth effect capital gains have flowed to the top 1%:

Lastly, the cartel structure of the U.S. economy has raised costs while providing no additional value. One example is higher education, a cartel that issues diplomas with diminishing economic value that now cost a fortune, a reality reflected in this chart of student loan debt, which simply didn’t exist a generation ago:

Our entire economy is characterized by cartel rentier skims, central-bank goosed asset bubbles and stagnating earned income for the bottom 90%.Given these realities, the bottom 90% are left with few pathways to get ahead in terms of financial security and building secure family wealth. 

My new mystery The Adventures of the Consulting Philosopher: The Disappearance of Drake is a ridiculously affordable $1.29 (Kindle) or $8.95 (print); read the first chapters for free (PDF)

My book Money and Work Unchained is now $6.95 for the Kindle ebook and $15 for the print edition.

Read the first section for free in PDF format. 

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

As Brexit Looms and Stocks Plunging In October – Now May Be The Time to Invest in Gold

Pe, 11/09/2018 - 16:20

Key Gold and Precious Metals News, Commentary and Charts This Week

With Brexit around the corner and stock markets plunging in October – is now the time to invest in gold is asked by This Is Money this week. They kindly mention GoldCore as a leading “online bullion dealer” of physical gold (bars and coins) and informed their readers how “buyers can ask to have it stored, for a charge, or delivered”.

However, the primary focus of markets this week was the U.S. mid term elections in which, largely as expected, the Democrats took the House and the Republicans held the Senate.

We looked at the outcome of the election and the ramifications for markets in the short term and more importantly the long term outlook for markets and the dollar in our latest video update on the “American Election” (click here or below).

Another important development this week was the return of ETF gold demand in a volatile October to compliment the already robust global demand seen in Q3, according to the latest World Gold Council research.

Gold coin and bar demand jumped 28% to 298.1t in Q3 as investors and store of value buyers took advantage of the lower gold price and sought protection against currency weakness and tumbling stock markets. Global gold ETFs and similar products rose in October by 16.5 tonnes(t) to 2,346t which was the equivalent to US$1.0bn in inflows.

The global gold repatriation trend continued with Venezuela back in the headlines in this regard as they struggled to get their hands on  the $550 million worth of Venezuelan gold stored in the Bank of England.

Investors globally are getting more concerned about Brexit and the risks it poses to UK banks and the UK economy to the point that some are engaging in a “Big Short” of UK banks (hint: Eisman) and UK investors and financial advisers are again looking at gold favourably.

All in all a busy and interesting week in markets and in the gold market and again there were more pros than cons.

From all the GoldCore team – have a great weekend!

Charts and Tables this Week

Source: USDebtClock.org

 

Source: Bloomberg

 

Source: Bloomberg

 

Source: Bloomberg

 

Market Updates and Key News this Week

AMERICAN ELECTIONS FARCE AS POLITICIANS IGNORE THE LOOMING $121.7 TRILLION DEBT CRISIS

Gold ETFs See Strong Demand In Volatile October After Robust Global Gold Demand In Q3

Venezuela Seeks To Repatriate $550 Million Of Gold From London

Big Short’s Eisman Is Shorting U.K. Banks on Brexit

With Brexit Coming and Stocks Plunging – Now May be the Time to Invest in Gold

Gold Prices Gain as Split Congress Pushes Dollar Lower

Gold Gains On Weaker Dollar; Treasuries Swing Wildly As U.S. Election In Focus

Exclusive: Venezuela Seeks To Repatriate $550 Million of Gold from Britain

Goldman Says the Return of Fear Is a Good Thing for Gold 

 

 

Listen on iTunes, Blubrry  & SoundCloud  or watch on YouTube above

 

Today’s News and Commentary

Maduro Scrambles to Bring Venezuela’s Gold Back from the UK (Thetimes.co.uk)

Asian Stocks Fall as China Slowdown Worries Rise: Markets Wrap (Bloomberg.com)

Gold edges down as Fed’s interest rate view strengthens dollar (Reuters.com)

Gold’s price hit 8-day low in Asia (FXStreet.com)

Stocks stay mostly lower as the Fed stands pat on interest rates (MarketWatch.com)

Fed holds interest rates steady, says economy remains on track (Reuters.com)


Source: Bloomberg

With Brexit Coming and Stocks Plunging – Now May be the Time to Invest in Gold (ThisIsMoney.co.uk)

Ballooning US Debt Is Like The Boiling Frog” (Yahoo.com)

Wall Street Says Fed Is in Denial About $4 Trillion Dilemma (Bloomberg.com)

NEW Robert Kiyosaki Interview: Rich Dad Teachings (Youtube.com)

A Crack in the Silver Dike – Butler (SilverSeek.com)

Text of November FOMC statement (MarketWatch.com)

 

Learn More and Watch Direct Access Gold Video Here

Gold Prices (LBMA AM)

08 Nov: USD 1,223.45, GBP 932.02 & EUR 1,071.01 per ounce
07 Nov: USD 1,235.05, GBP 938.64 & EUR 1,074.62 per ounce
06 Nov: USD 1,234.85, GBP 947.75 & EUR 1,083.58 per ounce
05 Nov: USD 1,231.60, GBP 946.61 & EUR 1,081.96 per ounce
02 Nov: USD 1,235.50, GBP 948.00 & EUR 1,079.83 per ounce
01 Nov: USD 1,223.25, GBP 950.47 & EUR 1,075.85 per ounce

Silver Prices (LBMA)

08 Nov: USD 14.49, GBP 11.06 & EUR 12.70 per ounce
07 Nov: USD 14.67, GBP 11.15 & EUR 12.77 per ounce
06 Nov: USD 14.70, GBP 11.25 & EUR 12.89 per ounce
05 Nov: USD 14.74, GBP 11.33 & EUR 12.96 per ounce
02 Nov: USD 14.82, GBP 11.38 & EUR 12.95 per ounce
01 Nov: USD 14.45, GBP 11.19 & EUR 12.68 per ounce

Recent Market Updates

– AMERICAN ELECTIONS FARCE AS POLITICIANS IGNORE THE LOOMING $121.7 TRILLION DEBT CRISIS
– Gold ETFs See Strong Demand In Volatile October After Robust Global Gold Demand In Q3
– Venezuela Seeks To Repatriate $550 Million Of Gold From London
– Big Short’s Eisman Is Shorting Two U.K. Banks on Brexit
– “Red October” Highlights Importance of Rebalancing Portfolios and Gold’s “Very Positive” Outlook
– Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally
– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
– Dublin Housing Boom Set To Bust?

AMERICAN ELECTIONS FARCE AS POLITICIANS IGNORE THE LOOMING $100 TRILLION PLUS DEBT CRISIS

To, 11/08/2018 - 15:29

In today’s update we look at yet another ‘Punch and Judy’ American election farce which once again ignored the ‘Elephant in the room’ – the inevitable U.S. $121.7 trillion debt crisis and the coming global $250 trillion debt crisis.

We briefly look at the outcome of the elections, how markets have reacted in the short term and more importantly the long term outlook for markets and the dollar

We examine the “Punch and Judy” farce that were the American elections this week in which both the politicians, the media and the people again managed to completely ignore one of the greatest financial, economic and societal challenges facing the U.S. and indeed the world – the coming U.S. and global debt crisis.

Trump said he would erase America’s debt in 8 years. It’s now bigger than ever. When this promise was made, the national debt stood at $19 trillion. When Trump became President the US National debt was just below $20 trillion; it has since risen to $21.7 trillion.

During Obama’s presidency, the total national debt has risen from $10.6 trillion to nearly $20 trillion.

This debt is just the nominal national debt and there is also the not insignificant matter of the between $100 trillion and $200 trillion in unfunded liabilities – for medicare, medicaid and social security. As the Baby Boomers retire, these liabilities are coming due in the coming years.

The U.S., like the EU and most western nations, is “kicking the can down the road.” Consequently, a U.S. and global debt crisis looks likely in the coming months and years.

Trump was elected on a promise to reduce the debt and government spending including that on the military and the Deep State. Not only has he failed miserably in this goal – he had done the opposite. He has not been a man of his word and like a lot of politicians – both Republican and Democrat, left and right – he talks the talk but completely fails to walk the walk!

Politics in the U.S. and globally has been reduced to a modern ‘Punch and Judy’ show. It is akin to a kids puppet show in which the competitors beat each other up and it is a distraction for the child like electorate. The politicians resemble mere puppets to corporate and Wall Street vested interests who are ‘pulling the strings’ and enriching themselves from behind the political stage.

This is happening at the expense of individuals, families, farmers, entrepreneurs, small and medium size enterprises, less politically connected corporations and banks and ultimately society itself.

Massive military expenditures are justified – nearly half of U.S. government expenditure now goes to the arms industry – by scaring the people with the latest bogeyman du jour. There are evil villains every where as the Deep State and their corrupt and idiotic politicians and a compliant media who do the fear mongering of the Deep State. Constant political and media fear mongering and “cat calls” of “look behind you” at the latest enemy of the day.

The lists grows longer by the day:
Evil Russia in Soviet era to evil Saddam Hussein and Iraq (once an ally) to Gadafi in Libya (once an ally) to North Korea (who were an existential threat and evil one week and then became allies more recently and “Little Rocket Man” may become an enemy again if necessary) to evil Muslims everywhere (except fundamentalist Saudi Arabia who West sells arms to) to evil Russians again in recent years, and now we appear set for an even bigger enemy – those evil Chinese who are now hacking our devices and trying to monitor us. Western governments would never do such a thing!

Tweedle Dum Tweedle Dee: During the 2000 United States presidential election, candidate Ralph Nader claimed that George W. Bush and Al Gore were not very different in their policies and how they had become captured by corporate and Wall Street interests. He rightly called them the parties and candidates – Tweedledum and Tweedledee.

Trajectory towards empire is inexorable and now has a momentum and life of its own alas. Ralph Nader, Ron Paul were opportunities to change the trajectory which were not embraced unfortunately.

Ultimately all of this bodes badly for the US, its economy and the US dollar.

The threats posed to the U.S. dollar as the global reserve currency of the world and the coming dollar and fiat currency devaluations as currency wars intensify make owning physical gold in the safest ways possible essential to all who wish to preserve wealth in the coming years.

Watch American Election Video Update Here


Related Content

Prepare For Interest Rate Rises And Global Debt Bubble Collapse

Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold

 

Direct Access Gold Podcast Special – Learn About The Safest Way To Own Gold

 

News and Commentary

 

Gold prices hold steady, eyes on Fed meeting (Reuters.com)

Asian markets make strong gains, led by export-heavy stocks (MarketWatch.com)

Gold posts first climb in 4 sessions as dollar weakens after midterm election (MarketWatch.com)

More candidates, more money and a big bet: How Democrats won the House (Reuters.com)

Housing sentiment tumbles to lowest in year – Polled say now is not a good time to buy (CNBC.com)

Gold Prices Gain as Split Congress Pushes Dollar Lower (Investing.com)


Source: KingWorldNews

Capital Economics – What will cause the next global downturn? (CapitalEconomics.com)

White House Pulls CNN’s Jim Acosta’s Media Credentials (ZeroHedge.com)

Bank Run In Southwestern Chinese City Could Signal “Impending Financial Crisis” (ZeroHedge.com)

Gold/Oil Ratio Now Moving Strongly In Favor Of Gold (KingWorldNews.com)

Dumping the dollar, Iran and South Korea agree to cross-currency trade (RT.com)

 

Gold Prices (LBMA AM)

07 Nov: USD 1,235.05, GBP 938.64 & EUR 1,074.62 per ounce
06 Nov: USD 1,234.85, GBP 947.75 & EUR 1,083.58 per ounce
05 Nov: USD 1,231.60, GBP 946.61 & EUR 1,081.96 per ounce
02 Nov: USD 1,235.50, GBP 948.00 & EUR 1,079.83 per ounce
01 Nov: USD 1,223.25, GBP 950.47 & EUR 1,075.85 per ounce
31 Oct: USD 1,217.70, GBP 955.77 & EUR 1,074.25 per ounce

Silver Prices (LBMA)

07 Nov: USD 14.67, GBP 11.15 & EUR 12.77 per ounce
06 Nov: USD 14.70, GBP 11.25 & EUR 12.89 per ounce
05 Nov: USD 14.74, GBP 11.33 & EUR 12.96 per ounce
02 Nov: USD 14.82, GBP 11.38 & EUR 12.95 per ounce
01 Nov: USD 14.45, GBP 11.19 & EUR 12.68 per ounce
31 Oct: USD 14.34, GBP 11.23 & EUR 12.64 per ounce


Recent Market Updates

– Gold ETFs See Strong Demand In Volatile October After Robust Global Gold Demand In Q3
– Venezuela Seeks To Repatriate $550 Million Of Gold From London
– Big Short’s Eisman Is Shorting Two U.K. Banks on Brexit
– “Red October” Highlights Importance of Rebalancing Portfolios and Gold’s “Very Positive” Outlook
– Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally
– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
– Dublin Housing Boom Set To Bust?
– Palladium Surges To All Time Record High On Russian Supply Concerns

Gold ETFs See Strong Demand In Volatile October After Robust Global Gold Demand In Q3

Ke, 11/07/2018 - 15:24

– Gold ETFs saw inflows in volatile October as investors again hedged risk
– Gold ETFs see demand of 16.5 tonnes(t) in October to total of 2,346t, the equivalent of US$1B in inflows
– Global gold demand was robust in Q3 – demand of 964.3 tonnes – plus 6.2t yoy
– Strong central bank and store of value coin and bar demand offset the gold ETF outflows in Q3
– Central bank gold reserves grew 148.4t in Q3, up 22% yoy
– Gold coin and bar investors took advantage of the price dip and demand for gold coins and bars rose 28% yoy

The latest research from the World Gold Council on gold demand trends in Q3 and demand for gold ETFs in October are must reads and point to strong ongoing demand which bodes well for the gold market in the coming  months.

According to the World Gold Council, gold demand was 964.3t in Q3 which was 6.2t higher y-o-y.

Gold coin and bar demand jumped 28% to 298.1t as investors and store of value buyers took advantage of the lower gold price and sought protection against currency weakness and tumbling stock markets.

Jewellery demand rose 6% in Q3 as lower prices seem to have caught Asian consumers’ attention. Technology registered its eighth consecutive quarter of y-o-y growth, up 1%.

Central bank gold buying was robust again as a growing number of central bank buyers saw demand in this sector rise 22% y-o-y to 148.4t, the highest level of quarterly net purchases since 2015.

The 13% rise in global gold demand offset large ETF outflows, primarily from the U.S. market.

However, those gold ETF outflows reversed in a very volatile October and global gold ETFs and similar products rose in October by 16.5 tonnes(t) to 2,346t which was the equivalent to US$1.0bn in inflows

Excellent research, data and charts from WGC here:

Positive inflows in gold-backed ETFs as investors hedge risk (Gold.org)

Gold Demand Trends Q3 2018 (Gold.org)

 

Learn More and Watch Direct Access Gold Video & Podcast Here

 

News and Commentary

Stocks Lose Gains, Dollar Falls as Traders Mull a Split Congress: Markets Wrap (Bloomberg.com)

Gold gains on weaker dollar; U.S. election in focus (Reuters.com)

Election results 2018: Track midterm races and the battle for control of Congress (MarketWatch.com)

China’s gold consumption continues to grow (Nation.com.pk)

Former JP Morgan trader pleads guilty to manipulating U.S. metals markets for years (CNBC.com)

October inflows to gold-backed ETFs up as investors hedged risk -WGC (Reuters.com)

Energy cost of ‘mining’ bitcoin is more than twice that of gold (TheGuardian.com)


U.S. Treasuries “see wild swings”. Source: Bloomberg

Democrats Poised to Take House Control as GOP Holds Senate (Bloomberg.com)

Democrats Win Control Of US House As Republicans Keep Senate (ZeroHedge.com)

Mortgage Rates Hit 7-Year High (EconomicBlogs.org)

How Did “Exhaustive” Investigation of the Silver Market by the CFTC miss this? (GoldSeek.com)

GATA’s past and the future of gold and silver – Murphy (Gata.org)

 

Gold Prices (LBMA AM)

06 Nov: USD 1,234.85, GBP 947.75 & EUR 1,083.58 per ounce
05 Nov: USD 1,231.60, GBP 946.61 & EUR 1,081.96 per ounce
02 Nov: USD 1,235.50, GBP 948.00 & EUR 1,079.83 per ounce
01 Nov: USD 1,223.25, GBP 950.47 & EUR 1,075.85 per ounce
31 Oct: USD 1,217.70, GBP 955.77 & EUR 1,074.25 per ounce
30 Oct: USD 1,220.00, GBP 956.36 & EUR 1,074.33 per ounce

Silver Prices (LBMA)

06 Nov: USD 14.70, GBP 11.25 & EUR 12.89 per ounce
05 Nov: USD 14.74, GBP 11.33 & EUR 12.96 per ounce
02 Nov: USD 14.82, GBP 11.38 & EUR 12.95 per ounce
01 Nov: USD 14.45, GBP 11.19 & EUR 12.68 per ounce
31 Oct: USD 14.34, GBP 11.23 & EUR 12.64 per ounce
30 Oct: USD 14.43, GBP 11.32 & EUR 12.71 per ounce


Recent Market Updates

 

– Venezuela Seeks To Repatriate $550 Million Of Gold From London
– Big Short’s Eisman Is Shorting Two U.K. Banks on Brexit
– “Red October” Highlights Importance of Rebalancing Portfolios and Gold’s “Very Positive” Outlook
– Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally
– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
– Dublin Housing Boom Set To Bust?
– Palladium Surges To All Time Record High On Russian Supply Concerns
– Happy Birthday GoldCore

Venezuela Seeks To Repatriate $550 Million Of Gold From London

Ti, 11/06/2018 - 15:02

Venezuela Seeks Return Of Gold Worth $550 Million From Bank of England

CARACAS (Reuters) – Venezuela is seeking to repatriate about $550 million in gold bars from the Bank of England because of fears it could be caught up in international sanctions on the country, two sources with direct knowledge of the effort told Reuters.

Source: ZeroHedge

Venezuela’s hard currency holdings have dwindled as existing U.S. financial sanctions have effectively blocked President Nicolas Maduro’s government from borrowing on international markets.

The Trump administration on Thursday issued a new round of sanctions banning U.S. citizens from having dealings with anyone involved in “corrupt or deceptive” gold sales from Venezuela, as part of efforts to boost pressure on Maduro.

Maduro’s government is seeking to bring 14 tonnes of gold held in the Bank of England back to Venezuela, according to two public officials with direct knowledge of the operation, who asked not to be identified.

The Bank of England has sought to clarify what Venezuela wants to do with the gold, one of the officials said.

Venezuela’s central bank did not respond to a request for comment. The Bank of England declined to comment.

The plan has been held up for nearly two months due to difficulty in obtaining insurance for the shipment, needed to move a large gold cargo, one of the officials said.

“They are still trying to find insurance coverage, because the costs are high,” the official said.

Venezuela is in its fifth year of recession with annual inflation at more than 400,000 percent, leading to increased incidence of hunger and disease and spurring an exodus of some 2 million citizens.

Maduro says his government is victim of an “economic war” led by the opposition and fueled by Washington’s sanctions. His critics blame the country’s state-led economic model, stringent exchange controls and nationalizations of private companies.

Losing the gold would be a significant blow to the country’s finances. Lack of hard currency can create shortages of basic goods ranging from staple foods to drugs and automobile parts.

The amount is equivalent to five times the total hard currency that Venezuela has sold in 2018 via hard currency auctions that are carried out under the country’s 15-year-old exchange control system, according figures compiled by local consultancy Sintesis Financiera.

The government has promised to auction 2 billion euros in foreign exchange over an unspecified time frame, without saying where it plans to obtain those funds.

But even if Venezuela manages to repatriate the gold, the new U.S. sanctions could make selling it to raise hard currency difficult.

“If the government wants to carry out operations with the gold that it plans to bring, it would have to be done with allied countries because of the sanctions,” said Tamara Herrera, an economist with Sintesis Financiera.

Venezuela has been exporting gold to Turkey in the last year, a business that has grown as Maduro has built up ties with Turkish President Tayyip Erdogan.

Selling the gold directly from the Bank of England to a foreign buyer would be logistically easier than shipping it, but could also risk running foul of sanctions.

Venezuela for decades stored gold that makes up its central bank reserves in foreign bank vaults, which is common among developing countries.

The country’s late socialist leader Hugo Chavez, citing the need for Venezuela to have physical control of central bank assets, in 2011 repatriated around 160 tonnes of gold from banks in the United States and Europe to the central bank in Caracas.

But some of Venezuela’s gold remained in the Bank of England. Starting in 2014, Venezuela used this gold for “swap” operations in which global banks lent Venezuela several billion dollars with the gold as collateral.

Venezuelan central bank statistics show the central bank’s gold holdings by June this year had dropped to 160 tonnes from 364 tonnes in 2014, as some of the swap agreements expired without Venezuela returning the funds – leaving the gold in the hands of the banks (Goldman Sachs being one of the banks).

In 2017, such swap agreements became difficult due to U.S. sanctions, which blocked U.S. financial institutions from bankrolling any new financing operations.

Full article via Reuters here

 

Learn More and Watch Direct Access Gold Video & Podcast Here

 

News and Commentary

 

Exclusive: Venezuela seeks to repatriate $550 million of gold from Britain (Reuters.com)

Gold prices steady, eyes on U.S. midterm elections (Reuters.com )

Gold prices post a modest decline as dollar weakens ahead of midterm vote (MarketWatch.com)

Energy stocks lift S&P, Dow; Apple drags (Reuters.com)

Mining bitcoin uses more energy than mining gold (PRI.org)


Source: ZeroHedge

Maduro Scrambles To Repatriate Venezuela’s Gold After Trump Crackdown (ZeroHedge.com)

Rate Reversal Ahead, Bullish For Gold (Youtube.com)

Economic Brake Lights – Mauldin (GoldSeek.com)

SWOT Analysis: Election Spotting – Holmes (GoldSeek.com)

Is The Long Anticipated Crash Among Us – Moran (Youtube.com)

 

Gold Prices (LBMA AM)

05 Nov: USD 1,231.60, GBP 946.61 & EUR 1,081.96 per ounce
02 Nov: USD 1,235.50, GBP 948.00 & EUR 1,079.83 per ounce
01 Nov: USD 1,223.25, GBP 950.47 & EUR 1,075.85 per ounce
31 Oct: USD 1,217.70, GBP 955.77 & EUR 1,074.25 per ounce
30 Oct: USD 1,220.00, GBP 956.36 & EUR 1,074.33 per ounce
29 Oct: USD 1,230.75, GBP 958.88 & EUR 1,078.38 per ounce

Silver Prices (LBMA)

05 Nov: USD 14.74, GBP 11.33 & EUR 12.96 per ounce
02 Nov: USD 14.82, GBP 11.38 & EUR 12.95 per ounce
01 Nov: USD 14.45, GBP 11.19 & EUR 12.68 per ounce
31 Oct: USD 14.34, GBP 11.23 & EUR 12.64 per ounce
30 Oct: USD 14.43, GBP 11.32 & EUR 12.71 per ounce
29 Oct: USD 14.65, GBP 11.42 & EUR 12.86 per ounce


Recent Market Updates

– Big Short’s Eisman Is Shorting Two U.K. Banks on Brexit
– “Red October” Highlights Importance of Rebalancing Portfolios and Gold’s “Very Positive” Outlook
– Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally
– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
– Dublin Housing Boom Set To Bust?
– Palladium Surges To All Time Record High On Russian Supply Concerns
– Happy Birthday GoldCore
– “IMF Warning Highlights Gold’s Importance As A Diversification and Happy Birthday GoldCore”

Turn Off, Tune Out, Drop Out

Ma, 11/05/2018 - 17:23

Timothy Leary famously coined the definitive 60s counterculture phrase, “Turn on, tune in, drop out” in 1966. (According to Wikipedia, In a 1988 interview with Neil Strauss, Leary said the slogan was “given to him” by Marshall McLuhan during a lunch in New York City.)

An updated version of the slogan might be: Turn Off, Tune Out, Drop Out: turn off mobile phones, screens, etc.; tune out Corporate Media, social media, propaganda, official and unofficial, and drop out of the status quo economy and society.

Dropping out of a broken, dysfunctional status quo in terminal decline has a long history. The chapter titles of Michael Grant’s excellent account of The Fall of the Roman Empire identify the core dynamics of decline:

The Gulfs Between the Classes

The Credibility Gap

The Partnerships That Failed

The Groups That Opted Out

The Undermining of Effort

Our focus today is on The Groups That Opted Out. In the decline phase of the Western Roman Empire, people dropped out by abandoning tax-serfdom for life in a Christian monastery (or as a worker on monastery lands) or by removing themselves to the countryside.

Today, people drop out in various ways: early retirement, disability or other social welfare, homesteading or making and saving enough money in the phantom-wealth economy that they can quit official work in middle age.

We can see this in the labor participation rates for the populace at large, women and men. The labor participation rate reflects the percentage of the population that’s in the workforce, either working or actively looking for work.

That the number of people in the workforce has declined significantly is well-known. The US Census pegs the number of people ‘not in the labor force’ at 95 million.This includes people who are disabled, in school, etc., so the number should be taken with a grain of salt. But the decline in the relative size of the labor force is remarkable:

Interestingly, the labor participation rate for women has held steady compared to the entire populace.

Now compare it to the labor participation rate for men, which has absolutely cratered:

The difference between genders is striking. Gender roles in society and the economy are clearly causal factors. Many have speculated that the decline in traditional strongholds of male employment such as manufacturing explain the decline of males in the workforce. As for the high participation of women, we might speculate that being caregivers for children and elderly parents requires earning an income, and as these responsibilities continue to fall more heavily on females, it may be that fewer women have the option of dropping out.

As for turning off, consider this account of tech overlords turning off their own childrens’ access to screens (via GFB): A Dark Consensus About Screens and Kids Begins to Emerge in Silicon Valley “I am convinced the devil lives in our phones.”

I’ve written about mobile phone and social media addiction many times, so the reluctance of tech elites to let their own children suffer the ravages of digital addiction isn’t surprising.

As for tuning out, the strident voices of political polarization are not as widespread as generally perceived: Hidden Tribes: A Study of America’s Polarized Landscape found that the rabidly leftist / “progressive” tribe is a mere 8%, and their opposite tribe on the right is equivalently modest in number.

It doesn’t take much observation to surmise that the majority in the middle are tuning out both polarizing extremes. Partisans may view this abandonment as negative, i.e. apathy, but this would be misreading the situation: the reality is the majority are tired of the poisonous polarities and the stultifying, going-nowhere toxic frenzy that destroys participants’ equilibrium and sanity.

An unknown but likely staggeringly large percentage of small business owners in the U.S. are an inch away from calling it quits and closing shop. At some point the ever-higher costs of burdensome, mostly useless bureaucratic compliance and complexity, the ever more costly junk fees, filing fees, permits, penalties and taxes, the higher costs of labor overhead (healthcare insurance, workers comp, etc.) and the ever-rising costs of materials and services make it an easy decision to drop out of the rat race and either sell the business to someone less grounded in reality or just close it down.

Those who tire of being nailed by “tax the rich” schemes can drop out by earning less. Sell out, move out, drop out. Unfortunately for all those who depend on the Savior State, the state cannot force people losing money and their mental health to continue operating enterprises. (At least not yet.) Once small business and the productive wealthy (i.e. upper middle class) sell out, move out and drop out, it’s game over for the “tax the rich” crowd and the local economy.

Dropping out is an increasingly attractive option. For those unable to drop out,turning off and tuning out are increasingly attractive options. 

My new mystery The Adventures of the Consulting Philosopher: The Disappearance of Drake is a ridiculously affordable $1.29 (Kindle) or $8.95 (print); read the first chapters for free (PDF)

My book Money and Work Unchained is now $6.95 for the Kindle ebook and $15 for the print edition.

Read the first section for free in PDF format. 

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

Big Short’s Eisman Is Shorting U.K. Banks on Brexit

Ma, 11/05/2018 - 14:58

Big Short’s Eisman Is Shorting U.K. Banks on Brexit

– Eisman says U.K. is one of the biggest risks globally
– He is betting against two UK banks in the lead up to Brexit
– Eisman may short 50 other UK firms if “Trotskyite” Corbyn becomes UK PM
– Eisman is famous for betting against the US housing market ahead of the 2008 subprime-mortgage crisis

by Business Insider UK

 

The hedge-fund manager famous for betting against the US housing market ahead of the 2008 crash is shorting a pair of British bank stocks in anticipation that the UK falls out of the European Union without securing a Brexit deal.

“I’m shorting two stocks in the UK,” he told a conference in Dubai over the weekend, as reported by Bloomberg. He wouldn’t name the companies.

He reportedly told the conference that while he expects the UK to secure a deal with Brussels, he then expects that deal to be rejected in the UK parliament, ultimately forcing Britain out of the bloc without a deal.

Bloomberg notes that Metro Bank, and CYBG, the parent company of Clydesdale Bank and Yorkshire Bank, are the two most shorted UK financial stocks.

Some 6.6% of Metro Bank’s stock is currently being shorted, data from Castellain Capital’s Short Interest Tracker showed on Monday morning.

Eisman said that while he is currently shorting just two UK stocks, that number could rise as high as 50 if Labour Party leader Jeremy Corbyn were to become prime minister, because he believes Corbyn’s policies would be detrimental to the UK economy.

“I’ve got a screen of about 50, and I might short all 50 if I think Jeremy Corbyn is going to be prime minister,” he said.

“Corbyn’s a Trotskyite. Now I know my Trotskyites well and I know you don’t want to be invested in the UK if a Trotskyite is prime minister,” he added.

Eisman was the main character in “The Big Short,” the nonfiction book by Michael Lewis about the 2008 subprime-mortgage bubble in the US. Steve Carell played Eisman in the 2015 film adaptation.

Since gaining notoriety beyond the financial sphere after the book’s publication, Eisman has been a vocal market commentator, and in the last couple of years in particular has warned frequently about the health of European banks, particularly those in Italy, and Germany’s biggest lender Deutsche Bank.

“Deutsche Bank is a problem bank,” he said in an interview in May.

A short seller makes money by borrowing a company’s shares and selling them, with the aim of buying them back at a lower price and returning them, pocketing the difference.

Full Business Insider article here

 

News and Commentary

 

Goldman Says the Return of Fear Is a Good Thing for Gold (Bloomberg.com)

Stocks Drop, Yuan Slides as Trade Optimism Dims: Markets Wrap (Bloomberg.com)

Asian shares fall on trade, Fed rate hike fears, pound hits 2-week top (Reuters.com)

Gold prices hold steady amid easing dollar (Reuters.com)

Russia’s gold reserves smash Soviet-era (1941) record as part of de-dollarization drive (RT.com)

China’s new gold appetite (SCMP.com)

Families feel the pinch as cost of living rises to over €50,000 a year (IrishTimes.com)


Source: Bloomberg

The 60/40 portfolio allocation keeps burning investors, so why do they still use it? (MarketWatch.com)

Here’s what the bear market in home construction stocks is trying to tell us (MarketWatch.com)

The Heart of the Matter – S&P May Lose 2/3’s of Value – Hussman (HussManFunds.com)

Epsilon Theory: A False Sense of Stability (EpsilonTheory.com)

Gold Market Manipulation Update from New Orleans Investment Conference (Gata.org)

East trusts in physical gold while West prefers ‘mindless optimism’ (RT.com)

 

Gold Prices (LBMA AM)

02 Nov: USD 1,235.50, GBP 948.00 & EUR 1,079.83 per ounce
01 Nov: USD 1,223.25, GBP 950.47 & EUR 1,075.85 per ounce
31 Oct: USD 1,217.70, GBP 955.77 & EUR 1,074.25 per ounce
30 Oct: USD 1,220.00, GBP 956.36 & EUR 1,074.33 per ounce
29 Oct: USD 1,230.75, GBP 958.88 & EUR 1,078.38 per ounce
26 Oct: USD 1,236.05, GBP 964.98 & EUR 1,087.23 per ounce

Silver Prices (LBMA)

02 Nov: USD 14.82, GBP 11.38 & EUR 12.95 per ounce
01 Nov: USD 14.45, GBP 11.19 & EUR 12.68 per ounce
31 Oct: USD 14.34, GBP 11.23 & EUR 12.64 per ounce
30 Oct: USD 14.43, GBP 11.32 & EUR 12.71 per ounce
29 Oct: USD 14.65, GBP 11.42 & EUR 12.86 per ounce
26 Oct: USD 14.69, GBP 11.48 & EUR 12.94 per ounce

Learn More and Watch Direct Access Gold Video & Podcast Here

 


Recent Market Updates

– “Red October” Highlights Importance of Rebalancing Portfolios and Gold’s “Very Positive” Outlook
– Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally
– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
– Dublin Housing Boom Set To Bust?
– Palladium Surges To All Time Record High On Russian Supply Concerns
– Happy Birthday GoldCore
– “IMF Warning Highlights Gold’s Importance As A Diversification and Happy Birthday GoldCore”
– End Of The Financial World?

Will Your Retirement Efforts Achieve Escape Velocity? Sadly, most of us will outlive our savings

Su, 11/04/2018 - 16:55

Simply put, the vast majority of adults today will outlive their savings (if they have any).

The traditional concept of “retirement” (leaving the workforce and enjoying life until one becomes too infirm) is simply a pipe dream at this point for most.

For those still aspiring to retire, here are the keys to success.

Click to read full article

What’s Behind the Erosion of Civil Society?

La, 11/03/2018 - 17:39

As the mid-term elections are widely viewed as a referendum of sorts, let’s set aside politics and ask, what’s behind the erosion of our civil society? That civil society in the U.S. and elsewhere is fraying is self-evident. It isn’t just the rise of us-or-them confrontations and all-or-nothing ideological extremes; social bonds between people are weakening.

There are many probable causes: addictive technologies such as social media and smartphones; chronic economic stress, greater mobility and a host of more subtle factors.

One such factor is the erosion of community and its replacement with state (government) or corporate structures. One of the most insightful essays I’ve read in the past few years is a report from the Guardian (U.K.) on What Happened When Walmart Left a low-income rural community in America’s Coal Country.

One of the most tragic findings, in my view, was that Walmart was the social hub of the community: Walmart was the place to go to meet friends, people-watch, walk around to pass the time, etc.

This is a remarkable reversal of a traditional community, which is centered around communal public spaces such as churches, temples, etc., town squares, Main Street, the local marketplace, etc. Now the center of social life is a corporate-owned private space dedicated to maximizing the profits of the corporation.

This dependency on corporate spaces is paralleled by a dependency on corporations and the state for income and the organization of social life.

This leads to the another tragedy: the near-complete lack of any non-state, non-corporate social structures; the general zeitgeist was near-total dependence on the state and corporations not just for income but for the structure of everyday life, to use historian Fernand Braudel’s phrase.

While the reporter found a few households had started gardens, the majority of people with what I term enforced leisure in my book Money and Work Unchained (i.e. little to no paid work available) did not use their leisure to create art (the fantasy of supporters of Universal Basic Income) or invest time and energy in non-state, non-corporate social structures; they spent their time watching TV, social media, etc.

This near-total dependence on state and corporate structures is so ubiquitous that it goes unnoticed and unmentioned. Not only have non-state, non-corporate social structures vanished, people have lost the values, skills and tools needed to assemble and maintain such structures.

We have lost much of the social connectedness that humans need, and we mourn this loss in ways that are not directly connected to our loss of social capital: addiction, loneliness, and early death.

How can we strengthen or repair our own connections and social fabric in such a disintegrative era?

There are two basic approaches: stop participating in destructive dynamics, and assemble the foundations of a connected social life.

If we use physical health as an analogy for social health, the first step towards improved health is stop consuming poison, i.e. stop destroying one’s health.

In the realm of decaying social relations, the poisons are readily apparent:

— The mass media, with its dependence on hysteria, fear, group-think and obsession with virtue-signaling as publicly displayed proof of one’s fealty to self-righteousness.

The mass media and social media both substitute passive watching and clicking for doing things in the real world via active participation.

–Toxic social media, a topic I discussed this week: Why Is Social Media So Toxic?

— Smartphones, when they cease to be occasional means of communication and become addictive: those who take their phones to bed, interrupt sex to check their phones (yes, studies have found this to be disturbingly common), ignore live conversations to respond to texts, etc., have a monkey on their back.

— An overly busy life that serves the needs of the workplace and household logistics but leaves no time, energy or awareness for actual intimacy, communication, friendship, sharing or belonging.

Why is it so difficult to make and maintain meaningful social bonds and belonging? While the long answer could easily fill several volumes, the short answer is something like this: the structure of modern-day life conspires against making and maintaining authentic social bonds.

By structure, I mean the large-scale financial /built structures of the economy and the large-scale structures of government—-the two hierarchies that dominate everyday life.

In effect, a vast experiment is taking place without any controls: an economic mode of production that focuses exclusively on maximizing profits is fostering 24/7 marketing and addictive technologies while a vast central state expands its reach into every aspect of daily life. Meanwhile, both dominant large-scale hierarchies have little reason to concern themselves with the erosion of the social order.

Rebuilding social capital and social connectedness is not something that can be done by governments or corporations; it requires a social revolution that is bottom-up, self-organizing–a do-it-yourself revolution without leaders or hierarchy or structure.

The good news is anyone can participate in this social revolution by re-ordering their everyday life to nurture authentic social connectedness.

 

My new mystery The Adventures of the Consulting Philosopher: The Disappearance of Drake is a ridiculously affordable $1.29 (Kindle) or $8.95 (print); read the first chapters for free (PDF)

My book Money and Work Unchained is now $6.95 for the Kindle ebook and $15 for the print edition.

Read the first section for free in PDF format. 

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

LBMA Gold Transparency Chart

La, 11/03/2018 - 15:02

Gold and silver markets in US dollar terms moved sideways this week. The gold price looks to be settling around the $1,235 US dollar per troy oz level, while the silver spot price gained a few cents closing just over $14.80 per troy ounce.

In this episode, we’ll blow some mathematical holes through the LBMA gold transparency push. As well, with the general western world silver price containment machinations which, judging by the long term price data, have often been effective from the 1980s up to today.

LBMA Gold Transparency Chart @15:46 precisely.

The New York COMEX silver price transparency chart is @21:51.

Interesting to note, western driven silver price containment almost broke out 2006 to early 2008, and in 2011.

And too, we’ll cover a gold related Executive Order signed by President Trump this week, as the US Treasury continues sanctioning the Venezuelan regime headed by dictator Nicolás Maduro.

You can find the FULL POST on our website with additional backlinks including the outrageous Miami Herald story on Venezuela’s two tier bolivar exchange rate heist 2012-2018 extracting billion$ allegedly enriching Nicolás Maduro insiders and helping to continually prop up said regime.

“Red October” For Global Stocks Highlights Gold’s “Very Positive” Outlook

Pe, 11/02/2018 - 14:46

Key Gold and Precious Metals News, Commentary and Charts – This Week’s Golden Nuggets

After a volatile month, which is being called “Red October,” our latest video update was released and we considered the sharp fall in stock markets globally, falling property markets in the UK and Australia and gold’s safe haven gains in all currencies.

Gold acted as a hedge in all currencies in October, rising 1.7% in dollars, 4.4% in euro terms and 4.2% in sterling terms. Bitcoin and other crypto currencies did not act as hedges or stores of value and bitcoin was down nearly 4%.


October Market Performance (Source: Finviz.com)

As we told Bloomberg yesterday (excerpt below), the long term outlook “looks very positive for gold”:

“Risk aversion has crept back in as we’ve seen declines in emerging markets around the world and now Asian markets following,” said Mark O’Byrne, Dublin-based executive director at brokerage Goldcore Ltd. “Fund managers are rebalancing after a very good run on the stock market, taking chips off the table and putting money into gold and cash, hence why the dollar has also risen.”

Gold and the dollar may continue to rise in tandem in the short term, “but I’d be amazed if that continues into 2019,” said O’Byrne. U.S. policymakers won’t want the currency to go much higher, whereas gold demand is just starting to come back. “So although I wouldn’t want to bet against the dollar in the short-term, longer term it looks very positive for gold.”

Market volatility and the ever more uncertain economic outlook are increasing the demand for and diversification into physical gold by investors, store of value buyers and indeed central banks (see News today).

Gold bullion buying by central banks has reached its highest level in almost three years – since Q4, 2015. There was nearly $6 billion worth of gold accumulated in the third quarter alone. It was surprising in this context to see the gold price actually weaken and remained depressed until the pick up just seen in October.

Central bank gold buying was strong and so too was global investor demand for gold coins and bars.  They have seen a sharp 28% rise year on year as bullion buyers accumulated on gold’s price weakness.

This very robust global demand was offset by surprisingly heavy selling of the U.S. gold ETF (SPDR) during the same period. We will consider these important demand trends in more detail next week.

From all the GoldCore team – have a great weekend!

 

Market Updates and Key News this Week

Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally

Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months

Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns

How Gold Outshone Bitcoin In October

Gold Is Acting As a “Hedge and Safe-haven Asset, Exactly When Investors Need One” said GoldCore

 

Charts this Week

 


Gold in USD – 10 Years – GoldCore.com

 


Source: ZeroHedge

 

Source: U.S. Global Investors

 

Listen on iTunes, Blubrry  & SoundCloud  or watch on YouTube above

 

Today’s News and Commentary

 

“Longer Term It Looks Very Positive For Gold” (Bloomberg.com)

Gold buying by central banks hits its highest level in almost three years (CNBC.com)

Gold prices steady; U.S. nonfarm payroll data awaited (Reuters.com)

Central bank gold buying hits highest level since 2015 – $5.8 Billion in Q3 (EconomicTimes)

ISM manufacturing index falls to 6 month low in October as price rises, shortages weigh (MarketWatch.com)


Source: World Gold Council

Gold Demand Trends Third Quarter 2018 (Gold.org)

The Best And Worst Performing Assets In “Brutal” October (ZeroHedge.com)

Euro Bid to Challenge King Dollar Collides With Political Risk (Bloomberg.com)

You have far more control over your money than the system would have you believe (SovereignMan.com)

Mortgage rates slide as echoes of 2006 haunt the housing market (MarketWatch.com)

 

Learn More and Watch Direct Access Gold Video Here

Gold Prices (LBMA AM)

01 Nov: USD 1,223.25, GBP 950.47 & EUR 1,075.85 per ounce
31 Oct: USD 1,217.70, GBP 955.77 & EUR 1,074.25 per ounce
30 Oct: USD 1,220.00, GBP 956.36 & EUR 1,074.33 per ounce
29 Oct: USD 1,230.75, GBP 958.88 & EUR 1,078.38 per ounce
26 Oct: USD 1,236.05, GBP 964.98 & EUR 1,087.23 per ounce
25 Oct: USD 1,232.15, GBP 954.67 & EUR 1,079.36 per ounce

Silver Prices (LBMA)

01 Nov: USD 14.45, GBP 11.19 & EUR 12.68 per ounce
31 Oct: USD 14.34, GBP 11.23 & EUR 12.64 per ounce
30 Oct: USD 14.43, GBP 11.32 & EUR 12.71 per ounce
29 Oct: USD 14.65, GBP 11.42 & EUR 12.86 per ounce
26 Oct: USD 14.69, GBP 11.48 & EUR 12.94 per ounce
25 Oct: USD 14.74, GBP 11.43 & EUR 12.92 per ounce

Recent Market Updates

– Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally
– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
– Dublin Housing Boom Set To Bust?
– Palladium Surges To All Time Record High On Russian Supply Concerns
– Happy Birthday GoldCore
– “IMF Warning Highlights Gold’s Importance As A Diversification and Happy Birthday GoldCore”
– End Of The Financial World?
– Gold Reserves Surge 1,000% In Hungary As It Joins Poland, Russia, China and Other Central Banks Buying Gold

Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally

To, 11/01/2018 - 14:22

Alarm Bells Ring and Gold Rises In October As Stocks and Property Fall Globally – Video Update

In our latest video update, we consider the performance of markets in a volatile October. Stock markets globally fell sharply while gold acted as a hedge in all currencies, rising 1.7% in dollars, 4.4% in euro terms and 4.2% in sterling terms.

Stocks Fall Sharply in October
The S&P 500 is just short of a 10% decline from its record September high and remains on pace for the worst month since 2009. It has fallen from a record high of 2930 to 2640. In October alone, the S&P is down 7.3%.

Asian shares as represented by the MSCI Asia Pacific Index have entered a bear market. Many Asian stock indices, including China, fell into a bear market last week amid the global sell-off and China is down a large 30%. Japan and Australia are down nearly 15% from recent peaks


October Market Performance (Finviz.com)

From their 52-week highs, the big tech stocks, the FANGs are down sharply: FB -33.9% AMZN -23.8% NFLX -32.8% GOOGL -18.0% and the FANG index is now in bear market territory.

Is this a correction or the start of a bear market or crash? We are not betting people at GoldCore but if we had to bet, our money is on one of the latter two – a bear market or a crash in the coming months.

Property Falls Continue
House prices in over valued markets continue to fall with Australia being at the vanguard in this regard. House prices are ‘falling by over $1,000 a week’ in Sydney and Melbourne according to Deloitte.

In the UK, the housing market, particularly in London, continues to slow down. UK house asking prices have been slashed and asking prices of almost two-in-five properties for sale in Britain has been reduced by an average of more than £26,000.

In London, 39.5 per cent of property listings have been reduced in price. Kensington and Chelsea registered the biggest drop in cash terms with an average discount of £127,394.

In Ireland, the Dublin housing boom looks vulnerable and weakness has crept into the higher end of the prime Dublin housing market as Brexit jitters deepen.

Conclusion
Many political, economic and financial risks have been ‘bubbling’ away under the surface and were being ignored as risk assets, especially U.S. stocks, kept marching higher.

As financial markets fell in October, these risks came to the fore and became harder for the media to ignore.

Yet still very few have “joined the dots” and considered how the confluence of these many risks will likely create another global financial crisis…

Watch Video Update With Charts Here

 

News and Commentary

Gold prices recover from 3-week low on softer US dollar (EconomicTimes)

U.S. Mint American Eagle gold coin sales rise 7.3 pct in October (Reuters.com)

Stocks surge to cap off wild October, but S&P 500 posts biggest monthly loss since 2011 (Bloomberg.com)

Cost of Dublin luxury homes falls for first time since recovery (IrishTimes.com)

How Gold Outshone Bitcoin In October (Forbes.com)

One ominous sign that another recession is looming (MarketWatch.com)

The Same Old COMEX Gold Games (GoldSeek.com)

Ireland in danger of turning boom to bust again (IrishTimes.com)

From the GoldCore Vault (Sept 2018): Gold Largest One Day Price Rise in History (GoldCore.com)

 

 

Gold Prices (LBMA AM)

31 Oct: USD 1,217.70, GBP 955.77 & EUR 1,074.25 per ounce
30 Oct: USD 1,220.00, GBP 956.36 & EUR 1,074.33 per ounce
29 Oct: USD 1,230.75, GBP 958.88 & EUR 1,078.38 per ounce
26 Oct: USD 1,236.05, GBP 964.98 & EUR 1,087.23 per ounce
25 Oct: USD 1,232.15, GBP 954.67 & EUR 1,079.36 per ounce
24 Oct: USD 1,231.65, GBP 952.80 & EUR 1,078.68 per ounce

Silver Prices (LBMA)

31 Oct: USD 14.34, GBP 11.23 & EUR 12.64 per ounce
30 Oct: USD 14.43, GBP 11.32 & EUR 12.71 per ounce
29 Oct: USD 14.65, GBP 11.42 & EUR 12.86 per ounce
26 Oct: USD 14.69, GBP 11.48 & EUR 12.94 per ounce
25 Oct: USD 14.74, GBP 11.43 & EUR 12.92 per ounce
24 Oct: USD 14.75, GBP 11.42 & EUR 12.92 per ounce

Learn More and Watch Direct Access Gold Video & Podcast Here

 

Recent Market Updates

– Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months
– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
– Dublin Housing Boom Set To Bust?
– Palladium Surges To All Time Record High On Russian Supply Concerns
– Happy Birthday GoldCore
– “IMF Warning Highlights Gold’s Importance As A Diversification and Happy Birthday GoldCore”
– End Of The Financial World?
– Gold Reserves Surge 1,000% In Hungary As It Joins Poland, Russia, China and Other Central Banks Buying Gold
– How Do You Sell Your Digital Gold When the Internet Goes Down?

Why Is Social Media So Toxic?

Ke, 10/31/2018 - 18:14

It seems self-evident that the divisiveness that characterizes this juncture of American history is manifesting profound social and economic disorders that have little to do with politics. In this context, social media isn’t the source of the fire, it’s more like the gasoline that’s being tossed on top of the dry timber.

My thinking on social media’s toxic nature has been heavily influenced by long conversations with my friend GFB, who persuaded me that my initial dismissal of Facebook’s influence was misplaced.

Our views of all media, traditional, alternative and social, is of course heavily influenced by our own participation / consumption of each type of media.Those who watch very little corporate-media broadcast “news” find the entire phenomenon very bizarre and easily mocked, and the same holds true for those who do not have any social media accounts: the whole phenomenon seems bizarre and easy to mock.

As for alternative media, many people accustomed to traditional media have never visited a single blog or listened to a single podcast.

Part of my job, as it were, is to monitor all three basic flavors of mass media, and do so as objectively as I can, which is to say, seek out representative narratives and commentaries across the full political and social spectra of each media.

So why is social media so toxic to healthy dialog and tolerance, and to those who live much of their lives via social media? I think we can discern several dynamics that direct the entire social media space.

1. The feedback loops within each “tribe” strengthen the most divisive, toxic narratives and opinions.

In the anti-Trump tribe, for example, those calling most vociferously for Trump’s head on a stake are “rewarded” by praise from other members of the tribe via “likes” and positive comments on the “bravery” of their extreme language.

Others note this feedback and are naturally drawn into trying to top the extreme language: I want Trump’s head on a stake, and then let’s set it on fire, etc.

In the real world, expressing such extreme views soon draws negative or moderating feedback from those outside the social media’s claustrophobic “tribe.” More reasonable people will politely suggest that such extremism isn’t very helpful, or they will start shunning the frothing-at-the-mouth firebrand.

But in the social media world, there are no moderating feedbacks. Anyone who dares question the extremism being reinforced by the “tribe” is quickly attacked or ejected from the tribe. Attacking moderate voices increases the potential “rewards” / likes from tribal members.

2. All human social interactions have a potential impact on the perceived relative status level of the participants, and jockeying for higher status is embedded in social animals such as humans. So naturally we’re drawn to organizing our participation in social media around the implicit task of improving our status / upward mobility.

In the real world, it’s relatively arduous to increase one’s social status,especially as the widening wealth/income gap effectively disenfranchises an increasing percentage of the populace.

In the real world, increasing one’s social status depends on one’s class, i.e. who we hope to impress. Raising one’s status usually requires some expenditure: a trip abroad to an exotic locale that few other social climbers have visited; a new fully loaded pickup truck, another graduate degree, a trip to Las Vegas, etc.

In the social media world, increasing one’s perceived place in the pecking order of “likes” (or views), number of “friends”, etc., depends less on conspicuous consumption / bragging (without appearing to brag, of course) and more on pleasing the tribe in ways that garner more “likes” and “friends.”

In the real world, to raise one’s status, we need to flash the diamond ring, show off the new luxury car/truck, flash photos of the exotic locale, display the graduate diploma, etc. But online, there’s very little in the way of verification: we are who we present ourselves to be.

As opportunities to upward social/financial mobility fade and downward mobility becomes the norm for a great many individuals and “tribes,” the appeal of a cost-free way to increase one’s status increases proportionately.

3. The expansion of the number of “tribes” one can belong to in social media. In the real world, jockeying for higher status is limited to one’s immediate circle of family, friends and colleagues, and to a lesser degree, wider circles in membership organizations such as alumni groups, trade associations, etc. It’s hard to impress the wider world because very few of us have any access or exposure in traditional media.

But in social media, we can become “known” and “liked” in Instagram, Facebook, Twitter, etc. or within specific online communities within the social media world. In other words, if we can’t “be somebody” in the wider world or the real world, we can still “become somebody” in a smaller (but still very real and important to its participants) group online.

The desire to improve our social standing is natural. What’s unnatural is the toxicity of doing so through social media.

If we put these three dynamics together, it’s little wonder so many people are drawn to living a major part of their lives online, and modifying their behaviors and views to increase their social standing / visibility online by whatever attracts more view, “likes” and “friends.”

These dynamics help us understand why social media is intrinsically toxic to civil society: being civil doesn’t raise one’s status, while reaching for new extremes is rewarded by the “likes” and “friends” all humans crave as manifestations of our social status.

 

My new mystery The Adventures of the Consulting Philosopher: The Disappearance of Drake is a ridiculously affordable $1.29 (Kindle) or $8.95 (print); read the first chapters for free (PDF)

My book Money and Work Unchained is now $6.95 for the Kindle ebook and $15 for the print edition.

Read the first section for free in PDF format. 

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

Gold Analysts At LBMA See 25% Return To $1,532/oz In 12 months

Ke, 10/31/2018 - 14:19

(by Reuters from BOSTON, LBMA)
The price of gold is expected to rise to $1,532 an ounce by October next year, delegates to the London Bullion Market Association’s (LBMA) annual gathering predicted on Tuesday.


Gold in USD (10 Years)

A poll of delegates at the LBMA conference in Boston also predicted higher prices in a year’s time for silver, platinum and palladium.

Spot gold has had a difficult few months, falling from a high of $1,366.07 in January to as low as $1,159.96 in August as the dollar strengthened and the U.S. Federal Reserve pushed ahead with interest rate rises.

But it has since clawed back to around $1,225 an ounce as volatility on global stock markets revived interest in bullion as a safe place to store assets.

The poll also showed that delegates expect silver prices to rise to $15 an ounce by the end of October 2019 from around $14.50 on Tuesday.

Platinum prices were forecast to increase to $1,010 an ounce over the next year from around $835 on Tuesday and palladium was expected to rise to $1,195 from around $1,075.

Analysts and traders polled by Reuters this month said they expected gold prices to average $1,300 an ounce in 2019, silver to average $16.40, platinum to average $875 and palladium to average $1,025.

Full article from Reuters

 

Learn More and Watch Direct Access Gold Video & Podcast Here

 

News and Commentary

Gold Analysts See Prices Rising To $1,532/oz Over 12 months (Reuters.com)

Gold finishes with a loss as U.S. equities market climbs, dollar strengthens (MarketWatch.com)

Gold falls to 1-1/2 week lows, 100-DMA support around $1220 level (FXStreet.com)

Goldman Says the Return of Fear Is a Good Thing for Gold (Bloomberg.com)

‘Extremely rare’ gold coins searched for by divers in 1840 shipwreck off South Carolina (Gata.org)

Rickards: Debt Bomb Ready to Explode (DailyReckoning.com)

America’s Debt: A Recipe for Disaster (BonnerAndPartners.com)

After Germany’s Merkel Comes Chaos (DollarCollapse.com)

UK Begins Confiscating Wealth Without Criminal Charges (ZeroHedge.com)

Cash is king again, but is that also a sign that another recession is looming? (MarketWatch.com)

 

Listen on iTunes, Blubrry  & SoundCloud  or watch on YouTube above

 

Gold Prices (LBMA AM)

30 Oct: USD 1,220.00, GBP 956.36 & EUR 1,074.33 per ounce
29 Oct: USD 1,230.75, GBP 958.88 & EUR 1,078.38 per ounce
26 Oct: USD 1,236.05, GBP 964.98 & EUR 1,087.23 per ounce
25 Oct: USD 1,232.15, GBP 954.67 & EUR 1,079.36 per ounce
24 Oct: USD 1,231.65, GBP 952.80 & EUR 1,078.68 per ounce
23 Oct: USD 1,235.60, GBP 950.67 & EUR 1,076.45 per ounce

Silver Prices (LBMA)

30 Oct: USD 14.43, GBP 11.32 & EUR 12.71 per ounce
29 Oct: USD 14.65, GBP 11.42 & EUR 12.86 per ounce
26 Oct: USD 14.69, GBP 11.48 & EUR 12.94 per ounce
25 Oct: USD 14.74, GBP 11.43 & EUR 12.92 per ounce
24 Oct: USD 14.75, GBP 11.42 & EUR 12.92 per ounce
23 Oct: USD 14.71, GBP 11.33 & EUR 12.83 per ounce


Recent Market Updates

– Gold Improves Investment, Pension and Central Bank Portfolio’s Risk-Adjusted Returns
– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
– Dublin Housing Boom Set To Bust?
– Palladium Surges To All Time Record High On Russian Supply Concerns
– Happy Birthday GoldCore
– “IMF Warning Highlights Gold’s Importance As A Diversification and Happy Birthday GoldCore”
– End Of The Financial World?
– Gold Reserves Surge 1,000% In Hungary As It Joins Poland, Russia, China and Other Central Banks Buying Gold
– How Do You Sell Your Digital Gold When the Internet Goes Down?
– IMF Issues Dire Warning – ‘Great Depression’ Ahead?

Central Bank Increases Gold Reserves 10 Fold As Is Of “Economic and National Strategic Importance”

Ti, 10/30/2018 - 13:33

By Frank Holmes via GoldSeek

– Hungary increases gold reserves 10 fold and central bank Governor sees gold as having “economic and national strategic importance”
– Central banks diversifying into gold in order to ensure the national foreign exchange reserves are “safer” and to “reduce risk”
– Gold allocation reduces volatility & enhances returns in investment & pension portfolios
– As stocks sold off aggressively, gold & Google searches for ‘gold price’ rose significantly

 

Hungary isn’t known today as one of the world’s top gold producing countries. There was a time, though, when it accounted for around three-quarters of Europe’s entire output of the yellow metal, if you can believe it.

According to historian Peter Sugar’s A History of Hungary, the central European country was a “veritable El Dorado” in the 14th century, and its gold pieces circulated widely across the entire continent, competing with those minted in Italy and England.

It was this rich mining heritage that Hungary’s central bank evoked when it announced last week its decision to increase gold holdings tenfold, from 3.1 metric tons to 31.5 tons, taking gold’s share of total reserves to 4.4 percent. (Gold accounts for 73.5 percent of U.S. reserves, by comparison, the most of any country.) Hungarian central bank governor Gyorgy Matolcsy described the move as one of “economic and national strategic importance,” adding that the extra gold made the country’s reserves “safer” and “reduced risk.”

This is the first time since 1986 that Hungary has increased its gold holdings.   

The country isn’t alone in its mission to diversify. This month we also learned that Poland became the first European Union (EU) member to increase its gold reserves in two decades. The Eastern European country added as much as 9 metric tons of hard assets between July and August of this year.

Central banks in Russia, Turkey and Kazakhstan have also kept up their gold buying, representing close to 90 percent of the activity we’ve seen this year.

Meanwhile, the EU has continued to print paper money.

A Good Store of Value

So why should banks—or investors, for that matter—be interested in boosting their gold holdings?

One reason is timing. Until recently, gold prices have been relatively affordable, trading at 52-week lows of around $1,180 an ounce in mid-August and at the end of September. Central banks’ investment was wisely made. From those lows, gold is now up more than 4 percent on stock volatility.

Check out the chart below. I think it’s fascinating to see the relationship between dramatic moves in the stock market and people’s interest in gold. When stocks sold off a couple of weeks ago, Google searches for “gold price” jumped to their highest in at least a month. This shows, I believe, that people recognize gold as a good store of value when market volatility reemerges.

Gold Has Helped Improve a Portfolio’s Risk-Adjusted Returns

Returning to what Hungarian central bank governor Matolcsy said about risk reduction, a certain amount of gold has been shown to improve a portfolio’s Sharpe ratio, according to the World Gold Council’s (WGC) most recent Gold Investor. The Sharpe ratio, in case you’re unaware, measures a portfolio’s risk-adjusted returns relative to its peers, based on standard deviation. The higher the ratio is over its peers, the better the risk-adjusted returns.

Analysts at New Frontier Advisors found that an institutional portfolio with a 6 percent weighting in gold had a higher Sharpe ratio than one without any gold exposure. This means that volatility was reduced without hurting returns.

Although analysts were looking at Chinese portfolios in particular, the WGC’s Fred Yang believes these findings can just as easily be applied to portfolios that are invested in U.S.-, European- or U.K.-listed assets. The “research indicates,” Yang says, “that most well-balanced portfolios would benefit from a modest allocation to gold.”

I’ve often advocated for a 10 percent Golden Rule—with 5 percent in bullion, the other 5 percent in gold stocks—and so New Frontier’s research is illuminating. It also helps explain Hungary and Poland’s actions, as well as those of other net purchasers of gold.

Holding Firm Against Rising Treasury Yields

I’ve shown many times in the past that the price of gold is inversely related with real rates. The yellow metal has especially struggled when Treasury yields have outpaced inflation.

The two-year Treasury yield, for instance, is just under 3 percent today, a more-than-10-year high. Because consumer prices are rising at 2.3 percent year-over-year, according to the latest report from the Labor Department, the two-year has a positive real yield—and this has historically weighed on gold.

You would think, then, that its price would be much lower than it is. I’m impressed with how well it’s held up.

Get more of Frank’s thoughts on gold on the latest Frank Talk Live by clicking here

 

Learn More and Watch Direct Access Gold Video & Podcast Here

 

News and Commentary

Gold consolidates after fourth week of gains in a row (MarketWatch.com)

Gold to stage modest recovery from 19-month lows: Reuters poll ($1,300 in 2019) (Reuters.com)

Gold prices edge down despite fears trade war could ramp up (EconomicTimes)

LBMA to reveal size of London’s gold market on Nov. 20 (Reuters.com)

US may be planning tariffs on remaining $257 B in Chinese goods if Trump-Xi talks fail (CNBC.com)

“Safe-haven gold is again acting as a hedge and safe-haven asset, exactly when investors need one” said GoldCore (MarketWatch.com)

Gold Upleg Fuel Abounds (Zealllc.com)

Why Central Bank Buying Has the Gold Market Guessing (Bloomberg.com)

Monday’s fading stock-market rally is evidence that the worst is far from over for Wall Street (MarketWatch.com )

How much each U.S. president has contributed to the national debt (MarketWatch.com)

Listen on iTunes, Blubrry  & SoundCloud  or watch on YouTube above

Gold Prices (LBMA AM)

29 Oct: USD 1,230.75, GBP 958.88 & EUR 1,078.38 per ounce
26 Oct: USD 1,236.05, GBP 964.98 & EUR 1,087.23 per ounce
25 Oct: USD 1,232.15, GBP 954.67 & EUR 1,079.36 per ounce
24 Oct: USD 1,231.65, GBP 952.80 & EUR 1,078.68 per ounce
23 Oct: USD 1,235.60, GBP 950.67 & EUR 1,076.45 per ounce
22 Oct: USD 1,222.90, GBP 938.09 & EUR 1,062.21 per ounce

Silver Prices (LBMA)

29 Oct: USD 14.65, GBP 11.42 & EUR 12.86 per ounce
26 Oct: USD 14.69, GBP 11.48 & EUR 12.94 per ounce
25 Oct: USD 14.74, GBP 11.43 & EUR 12.92 per ounce
24 Oct: USD 14.75, GBP 11.42 & EUR 12.92 per ounce
23 Oct: USD 14.71, GBP 11.33 & EUR 12.83 per ounce
22 Oct: USD 14.63, GBP 11.23 & EUR 12.72 per ounce


Recent Market Updates

– Gold Gains Nearly 1% On Week As Global Stock Markets Fall Sharply
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– End Of The Financial World?
– Gold Reserves Surge 1,000% In Hungary As It Joins Poland, Russia, China and Other Central Banks Buying Gold
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– IMF Issues Dire Warning – ‘Great Depression’ Ahead?

Sivut