Thursday, July 23, 2015

Jim Rickards' Take on China's Gold

Jim has a different take on China's gold than many gold bugs and bloggers. I find his explanation and analysis makes a lot of sense and in line with the current Chinese political and fiscal policies.

What is China trying to do? What rules are they to play along? Best of all, his final advice on gold price:

"It will go higher when all central banks, China’s and the U.S.’ included, confront the next global liquidity crisis, worse than the one in 2008, and individual citizens stampede into gold to preserve wealth in a world that has lost confidence in all central banks.

When that happens, physical gold may not be available at all. The time to build your personal gold reserve is now."

Wednesday, July 22, 2015

Top Money Managers Deemed Gold Undervalued First Time in 5 Years

With the current beaten gold price (paper market), many gold stocks have been slammed and oversold.  This is attracting attention from a number of top money managers to turn to gold.  According to the BofA Merrill Lynch Fund Manager Survey for July, "gold judged undervalued for first time in five years."

In fact, gold has been undervalued for a long time with all the money printing by the various central banks around the world.  Gold price may continue to drop as the Fed keeps its talk on interest rate rising, which is causing the US Dollar to rise.  But as soon as they decide to delay this decision in view of the current deflationary economic situation around the world, gold price will shoot up again as people move away from the US Dollar into hard assets like gold and silver.

So be sure you own some physical gold or silver and mining stocks while they are much hated.

Sunday, June 28, 2015

Will There Be A "Grexit"?

Will Greece leave the EU? What will happen to the Euro if a "Grexit" happens? What will happen to Greece economy if they leave the EU?

Check out Jim Rickard's take on this current development in Greece.

"Greece’s headline drama will unfold the same way it has for the last five years. There will be a lot of turmoil. I’m not saying there aren’t problems in Greece; there are big problems there. But what I’ve said all along going back to 2010 is that Greece isn’t leaving the euro; there will be no Grexit.

Nobody’s going to get kicked out or qui

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Tuesday, April 28, 2015

What Will Happen to Gold When the Chinese Yuan Joins the SDR Basket

There has been much speculation recently regarding the likelihood of China announcing a much bigger gold reserve for possible inclusion of the RMB (renminbi – or yuan) into a reset IMF Special Drawing Right as a preliminary move towards recognition of the yuan as a global reserve currency.

What will this mean to its pegging to the US Dollar? Will it continue to peg itself to the Dollar?

When the Chinese yuan is included into the SDR basket, what will this mean for gold and the Chinese currency? Bearing in mind that the Chinese has been aggressively accumulating gold in the past few years. This is an event to be watched.

The IMF will be holding a meeting in May which will start to discuss formally any revisions to the composition of the SDR. A second meeting will be held in October which will confirm any new changes and the revised SDR basket will come into operation on January 1st 2016.

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Tuesday, January 20, 2015

Jim Rickards : Brace Yourself for an Epic Economic Meltdown

By Jim Rickards : Over the coming months, I believe we could see an economic meltdown at least six times the size of the 2007 subprime mortgage meltdown.

Circumstances lead me to believe it could play out like the meltdown I experienced in 1998 after Long-Term Capital Management (LTCM) failed.

This time, however, there will be several crucial differences that will leave investors and regulators unprepared....

The next financial collapse, already on our radar screen, will not come from hedge funds or home mortgages. It will come from junk bonds, especially energy-related and emerging-market corporate debt.

The Financial Times recently estimated that the total amount of energy-related corporate debt issued from 2009-2014 for exploration and development is over $5 trillion. Meanwhile, the Bank for International Settlements recently estimated that the total amount of emerging-market dollar-denominated corporate debt is over $9 trillion.

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Mike Maloney on the Possible Global Ramifications due to Recent Swiss Franc Reevaluation

Watch this video as Mike Maloney gives some historical examples that shows the possibility of global ramifications due to the recent Swiss Franc reevaluation.  Be sure you are prepared before they happened (if Mike is right).

 "This is desperate. The central banks are now backed into a corner, and everything that I've been predicting is starting to unfold here, it's unfolding very slowly and on a scale that is huge. But it's not going to be slow forever. There's going to come a day where slow turns into very fast, and a lot of this stuff happens overnight...for instance, the currency unpeg. Nobody knew it was coming, it happened immediately. These things always eventually end up being good for precious metals. I don't look forward to the economic chaos that we are about to go through, but we'll get through it and it'll be a different world when we come out the other end. Hopefully what ends up happening is free enterprise, free markets, capitalism and sound money win. That would be the best outcome." - Mike Maloney, January 2015