Category: maxkeiser

How Do You Sell Your ETF or Vaulted Gold When the Internet Goes Down?

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How Do You Sell Your Digital Gold When the Internet Goes Down?

– Do you own gold in the safest way possible?

– Do you own gold via an exchange traded fund, a digital gold provider or another form of pooled gold?

– Have you ever thought about how you would sell or access your gold if the internet went down or if your gold provider became compromised or un-contactable?

– In this episode of the Goldnomics Podcast, we discuss how Direct Access Gold ensures liquidity, competitive pricing and outright ownership of investors’ gold through the Direct Access Gold Contingency Agreement.

– Cyber, digital, geopolitical and systemic risks are very real and increasing today. There is no way to completely eliminate these risks but Direct Access Gold mitigates and greatly reduces them

– In the event of certain geopolitical, digital and systemic risks materialising, it is important that gold buyers and investors can take delivery or move their gold to a location of choice

Direct Access Gold is being considered as a game-changer when it comes to the level of safety, security and access that precious metals investors have when it comes to their gold

– It is an industry first that addresses some of the perceived weaknesses of digital gold and gold ETFs (Exchange Traded Funds); the single point of pricing or liquidity and the lack of access and outright ownership underlying gold assets

Learn More and Watch Direct Access Gold Video Here:

DAG Video Still Play V2

Did you know that only a tiny fraction of ETF and digital gold holdings are effectively available for delivery in coin or bar format at any one time?

Probably less than 1%!

Rather than owning gold coins or bars outright, you may be part of a pool of investors who all have an interest in large 400 ounce gold bars. This means that you own a part or parts of a bar and your holding is not capable of being separated from that of other investors.

As a result it is not possible in most circumstances to easily take possession of your gold. If you are a holder of an ETF (an Exchange Traded Fund), you own a share in a fund that has an interest in a pool of gold bars and you most likely don’t even have direct access to your gold.

This creates an unappreciated degree of risk…

 

News and Commentary

Gold prices hold steady as investors wait for Fed minutes (Reuters.com)

Asian markets jump following Wall Street’s big gains (MarketWatch.com)

U.S. industrial output rises, but momentum slowing (Reuters.com)

Hungary Boosts Gold Reserves 10-Fold, Citing Safety Concerns (Bloomberg.com)

Hungary raises gold reserves tenfold on safety concerns (RT.com)


Source: Bloomberg

Art mania and tech stocks – The financial canary’s desperate last gasp (MoneyWeek.com)

China May Have $5.8 Trillion in Hidden Debt With ‘Titanic’ Risks (Bloomberg.com)

S&P Reveals $5.8 Trillion In “Hidden” Chinese Debt With “Titanic Credit Risks” (ZeroHedge.com)

Your shout: how gold could bring stability to volatile crypto markets (WhatInvestment.co.uk)

October Doesn’t Disappoint: Volatility Is Back After a Tranquil Third Quarter (GoldSeek.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

17 Oct: USD 1,226.75, GBP 933.68 & EUR 1,061.38 per ounce
16 Oct: USD 1,228.85, GBP 931.35 & EUR 1,061.73 per ounce
15 Oct: USD 1,233.00, GBP 937.70 & EUR 1,064.45 per ounce
12 Oct: USD 1,218.75, GBP 922.11 & EUR 1,052.15 per ounce
11 Oct: USD 1,201.10, GBP 910.31 & EUR 1,040.27 per ounce
10 Oct: USD 1,186.40, GBP 902.02 & EUR 1,033.00 per ounce

Silver Prices (LBMA)

17 Oct: USD 14.65, GBP 11.16 & EUR 12.69 per ounce
16 Oct: USD 14.76, GBP 11.16 & EUR 12.74 per ounce
15 Oct: USD 14.74, GBP 11.19 & EUR 12.71 per ounce
12 Oct: USD 14.60, GBP 11.04 & EUR 12.60 per ounce
11 Oct: USD 14.40, GBP 10.90 & EUR 12.45 per ounce
10 Oct: USD 14.38, GBP 10.92 & EUR 12.50 per ounce


Recent Market Updates

– IMF Issues Dire Warning – ‘Great Depression’ Ahead?
– Poland Raises Gold Holdings to Record High in September – IMF
– Why It’s Worth Holding Gold Bullion in Your Portfolio
– Gold’s Best Day In 2 Years Sees 2.5 Percent Gain As Global Stocks Sell Off – This Week’s Golden Nuggets
– Gold Up 2.5 Percent As Global Stock Rout Spreads To Europe
– “Gold Is On The Cusp” Of An “Explosion Higher” As Stock and Tech “Crash Is Coming”
– Gold Bottoms As Gold Industry Consolidates and Weak Hands Capitulate
– 60 Charts For The (Last Few Remaining) Gold Bulls
– Poland and Australia Buy Gold As Global Property Bubble Bursts – This Week’s Golden Nuggets
– Brexit To Burst Dublin and London Property Bubbles? GoldCore Video

Vía Max Keiser https://ift.tt/2R0BRZg

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IMF Issues Dire Warning – ‘Great Depression’ Ahead?

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IMF Issues Dire Warning – ‘Great Depression’ Ahead?

– “Large challenges loom for the global economy to prevent a second Great Depression” warn IMF
– Massive government debts and eroded fiscal buffers since 2008 suggest global dominos await a single market crash
– 2008 crisis measures cast long, dark “terrifying” shadow

by William Pesek via Asia Times

Is another “Great Depression” on the horizon?

It would be easier to dismiss these words from Nouriel Roubini, Marc Faber or other doom-and-gloom prognosticators. Coming from Christine Lagarde’s team, though, they take on a new dimension of scary.

The International Monetary Fund head isn’t known for breathlessness on the world stage. And yet the IMF sounded downright alarmist in its latest Global Financial Stability report, stating that “large challenges loom for the global economy to prevent a second Great Depression.”

Even some market bears were taken aback. “Why,” asks Michael Snyder of The Economic Collapse Blog would the IMF use this phrase “in a report that they know the entire world will read?”

Perhaps because, unfortunately, the findings of other referees of global risks – including the Bank for International Settlements – hint at similar dislocations.

Ten years after the Lehman Brothers crisis, these worrisome warnings that will be explored in depth at this week’s annual IMF meeting in Bali. The tranquil setting, though, will offer few respites from cracks appearing in markets everywhere – from Italy to China to Southeast Asia, where currencies are cratering like it’s 1998 again.

Source: Wikipedia

Potential flashpoints and a long line of dominos

Italy is the current flashpoint – and the latest target of “domino effect” chatter in frothy world markets. China’s shadow-banking bubble, and the extreme opacity and regulations that enable it, also came in for criticism. And, of course, the 800-pound beast in any room where global investors gather these days: Donald Trump’s assault on world trade.

But the real worry is the health of foundations underpinning these and other risks.

As the BIS warned on Sept. 23, the global economy faces a potential “relapse” of the “Lehman shock” of 2008. “Things look rather fragile,” says BIS chief economist Claudio Borio. Equally worrying, he adds: “There’s little left in the medicine chest to nurse the patient back to health or care for him in case of a relapse.”

A similar connection of dangerous dots runs through the IMF’s latest report. The big problem, says Malhar Nabar, deputy chief of IMF research, is the one that investors tend to ignore or explain away: how much of the Lehman fallout is still with us.

“There are many countries, even today, that are operating below pre-crisis trends,” Nabar says. “And what’s interesting is not just countries that suffered banking crises in 2007-2008 but also other countries outside of that epicenter that were affected through trade links or through financial links.”

Increased inequality is one troubling side-effect. Yet Nabar highlights, “possible long-lasting effects of the crisis on potential growth” that might seem tangential to Wall Street’s crash – lower birth rates, lower fertility and even “some evidence of slower technology adoption.” All this, he says, “can affect productivity growth and potential growth going forward.”

There is no doubt that many of the official policy actions taken since 2008 “seemed to have helped limit the harm.” But the costs of those efforts are only beginning to get calculated.

2008 crisis measures cast long, dark shadow

Excessively loose monetary policies have exacerbated the widening inequality trends unfolding pre-Lehman crackup. At the same time, there’s been, in the words of the IMF, a “large accumulation of public debt and the erosion of fiscal buffers in many economies following the crisis point to the urgency of rebuilding defenses to prepare for the next downturn.”

Yet all the diplomatic speak in the world can’t sugarcoat the roughly $250 trillion crisis unfolding in slow motion. That’s the level to which the world’s debt burden ballooned since the Lehman crash. That’s 18 times China’s annual gross domestic product.

And with official rates from Washington to Tokyo still at ultra-low levels historically, there’s little ammunition to battle the next reckoning.

Italy’s debt woes are an obvious weak link. One reason: just as with US officials after 2008, Europe did more to treat the symptoms of its woes than address underlying causes.

So is China’s unbalanced economy, one being trolled by US President Donald Trump’s tariffs arms race. This year’s 6.4% drop in the yuan is raising eyebrows for good reason. For one thing, it coincides with a marked slowdown in exports, industrial production, fixed-asset investment and an 18% plunge in Shanghai stocks this year. For another, it raised the specter of sizable defaults on dollar debt, which would reverberate through the global economy.

And therein lies Asia’s problem.

Asia’s exposure

In general, the region has journeyed a long way since the darkest days of 1997 and 1998. Financial systems are stronger and governments are more transparent. Currencies are more flexible. Foreign-exchange reserves have been rebuilt. That leaves advanced economies from South Korea to Singapore reasonably well equipped to withstand fresh turmoil.

But there are cracks in the region’s developing markets, as the ferocity of currency plunges in India, Indonesia and the Philippines show. Investors may argue they’ve learned from past misstates, but still fall prey to herd mentalities.

It’s an urgent wakeup call for India’s Narendra Modi, Indonesia’s Joko Widodo and Rodrigo Duterte of the Philippines to narrow current-account and budget deficits. Leaders also need to devise macroprudential firewalls against global contagion.

The problem for Asia: contagion could come as much from the West and its own backyard.

Trump’s fiscal incompetence – including a $1.5 trillion tax cut America didn’t need – could roil global rates and the dollar. A recent spike in 10-year yields to 3.2%, the highest in seven years, could be a bad omen. Trump, too, is publicly dueling with his hand-picked Federal Reserve chairman. And given Trump’s legal woes, the odds of new tariffs or even military action to distract voters can’t be ruled out.

Any new assault on China could devastate Japan’s reflation effort. True, epic Bank of Japan easing and a weaker yen boosted exports. It pushed Nikkei 225 index stocks to 27-year highs. Yet Asia’s No. 2 economy is in harm’s way if the US-China brawl trumps the region’s key growth engine.

Even before most policymakers and financiers arrive in Bali this week, the IMF is signaling that global growth has plateaued. It downgraded output to 3.7% from 3.9%.

That not the end of the world, per se. But with trade battles intensifying and dormant old devils re-emerging, all bets could soon be off.

That is a lot more than depressing: it’s terrifying.

IMF Global Financial Stability Report (2018) can be accessed here

 

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Avoid Digital & ETF Gold – Key Gold Storage Must Haves

 

 

 

 

 

News and Commentary

Gold prices hold steady as investors wait for Fed minutes (Reuters.com)

Asian markets jump following Wall Street’s big gains (MarketWatch.com)

U.S. industrial output rises, but momentum slowing (Reuters.com)

Hungary Boosts Gold Reserves 10-Fold, Citing Safety Concerns (Bloomberg.com)

Hungary raises gold reserves tenfold on safety concerns (RT.com)


Source: Bloomberg

Art mania and tech stocks – The financial canary’s desperate last gasp (MoneyWeek.com)

China May Have $5.8 Trillion in Hidden Debt With ‘Titanic’ Risks (Bloomberg.com)

S&P Reveals $5.8 Trillion In “Hidden” Chinese Debt With “Titanic Credit Risks” (ZeroHedge.com)

Your shout: how gold could bring stability to volatile crypto markets (WhatInvestment.co.uk)

October Doesn’t Disappoint: Volatility Is Back After a Tranquil Third Quarter (GoldSeek.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

16 Oct: USD 1,228.85, GBP 931.35 & EUR 1,061.73 per ounce
15 Oct: USD 1,233.00, GBP 937.70 & EUR 1,064.45 per ounce
12 Oct: USD 1,218.75, GBP 922.11 & EUR 1,052.15 per ounce
11 Oct: USD 1,201.10, GBP 910.31 & EUR 1,040.27 per ounce
10 Oct: USD 1,186.40, GBP 902.02 & EUR 1,033.00 per ounce
09 Oct: USD 1,187.40, GBP 910.26 & EUR 1,036.01 per ounce

Silver Prices (LBMA)

16 Oct: USD 14.76, GBP 11.16 & EUR 12.74 per ounce
15 Oct: USD 14.74, GBP 11.19 & EUR 12.71 per ounce
12 Oct: USD 14.60, GBP 11.04 & EUR 12.60 per ounce
11 Oct: USD 14.40, GBP 10.90 & EUR 12.45 per ounce
10 Oct: USD 14.38, GBP 10.92 & EUR 12.50 per ounce
09 Oct: USD 14.33, GBP 10.98 & EUR 12.51 per ounce


Recent Market Updates

– Poland Raises Gold Holdings to Record High in September – IMF
– Why It’s Worth Holding Gold Bullion in Your Portfolio
– Gold’s Best Day In 2 Years Sees 2.5 Percent Gain As Global Stocks Sell Off – This Week’s Golden Nuggets
– Gold Up 2.5 Percent As Global Stock Rout Spreads To Europe
– “Gold Is On The Cusp” Of An “Explosion Higher” As Stock and Tech “Crash Is Coming”
– Gold Bottoms As Gold Industry Consolidates and Weak Hands Capitulate
– 60 Charts For The (Last Few Remaining) Gold Bulls
– Poland and Australia Buy Gold As Global Property Bubble Bursts – This Week’s Golden Nuggets
– Brexit To Burst Dublin and London Property Bubbles? GoldCore Video
– Perth Mint’s Gold and Silver Bullion Coin Sales Soar In September
– “I’m Favouring Equities and Gold Over Bonds” – Stepek

Vía Max Keiser https://ift.tt/2P6GzY2

Poland Raises Gold Holdings to Record High in September – IMF

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(Reuters) – Poland raised its gold holdings to the highest in at least 35 years, data from the International Monetary Fund showed on Monday.

The country increased its holdings by 4.4 tonnes from August to about 117 tonnes in September, a record, according to data going back to January 1983.

“We have a really exciting announcement coming this Thursday, learn more about it here…”

“While the exchange-traded funds (ETFs) were losing tonnage, the central banks were buying since they had to maintain domestic currency values against a rising dollar,” said George Gero, managing director at RBC Wealth Management.

“I think you will see that continuing. Central banks are trying to maintain some hold on their currencies by storing gold.”

Holdings of SPDR Gold, the largest gold-backed ETF, have registered declines of more than 4 million ounces since hitting a peak in late April as investors have preferred the safety of the U.S. dollar against a backdrop of rising interest rates and as a U.S.-China trade tussle unfolds.

The trade dispute and rising dollar have in turn weighed on emerging markets, with the Polish zloty declining more than 6 percent this year.

 

 

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Avoid Digital & ETF Gold – Key Gold Storage Must Haves

 

 

 

 

 

News and Commentary

Poland raises gold holdings to record high in September – IMF (Reuters.com)

Gold hovers near 2-1/2 month high as investors seek safe haven refuge (Reuters.com)

Gold Rises To Near 3-month High (RTTNews.com)

West-Saudi tensions lift safe havens; world stocks slip (Reuters.com)

U.S. budget deficit jumps to $779 billion (MarketWatch.com)

Goldman Sachs’ seedy underbelly exposed in shocking tapes (NYPost.com)


Source: Bloomberg

How to avoid being ruined by nasty stockmarket surprises (MoneyWeek.com)

‘Great Depression’ Ahead? IMF Sounds Dire Warning (ATimes.com)

We Saw Similar Setups In 2000 & 2007 (ZeroHedge.com)

Oil Jumps After Saudi Official Floats “Trial Balloon” Op-Ed Envisioning “Oil Weapon” Devastation (ZeroHedge.com)

Last Week Was Just A Taste Of The Coming Gold Short Squeeze (SeekingAlpha.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

15 Oct: USD 1,233.00, GBP 937.70 & EUR 1,064.45 per ounce
12 Oct: USD 1,218.75, GBP 922.11 & EUR 1,052.15 per ounce
11 Oct: USD 1,201.10, GBP 910.31 & EUR 1,040.27 per ounce
10 Oct: USD 1,186.40, GBP 902.02 & EUR 1,033.00 per ounce
09 Oct: USD 1,187.40, GBP 910.26 & EUR 1,036.01 per ounce
08 Oct: USD 1,194.80, GBP 914.86 & EUR 1,040.67 per ounce

Silver Prices (LBMA)

15 Oct: USD 14.74, GBP 11.19 & EUR 12.71 per ounce
12 Oct: USD 14.60, GBP 11.04 & EUR 12.60 per ounce
11 Oct: USD 14.40, GBP 10.90 & EUR 12.45 per ounce
10 Oct: USD 14.38, GBP 10.92 & EUR 12.50 per ounce
09 Oct: USD 14.33, GBP 10.98 & EUR 12.51 per ounce
08 Oct: USD 14.47, GBP 11.10 & EUR 12.61 per ounce


Recent Market Updates

– Why It’s Worth Holding Gold Bullion in Your Portfolio
– Gold’s Best Day In 2 Years Sees 2.5 Percent Gain As Global Stocks Sell Off – This Week’s Golden Nuggets
– Gold Up 2.5 Percent As Global Stock Rout Spreads To Europe
– “Gold Is On The Cusp” Of An “Explosion Higher” As Stock and Tech “Crash Is Coming”
– Gold Bottoms As Gold Industry Consolidates and Weak Hands Capitulate
– 60 Charts For The (Last Few Remaining) Gold Bulls
– Poland and Australia Buy Gold As Global Property Bubble Bursts – This Week’s Golden Nuggets
– Brexit To Burst Dublin and London Property Bubbles? GoldCore Video
– Perth Mint’s Gold and Silver Bullion Coin Sales Soar In September
– “I’m Favouring Equities and Gold Over Bonds” – Stepek
– Poland Buys Gold For First Time In 20 years
– This Week’s Golden Nuggets – Central Banks, Goldman, Bank of America Positive On Undervalued Gold

Vía Max Keiser https://ift.tt/2CQFBt8

How Many Households Qualify as Middle Class?

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What does it take to be middle class nowadays? Defining the middle class is a parlor game, with most of the punditry referring to income brackets as the defining factor.

People tend to self-report that they belong to the middle class based on income, but income is not the key metric: 12 other factors are more telling measures of middle class membership than income.

In Why the Middle Class Is Doomed (April 17, 2012) I listed five minimum threshold characteristics of membership in the middle class:

1. Meaningful healthcare insurance (i.e. not phantom insurance with $5,000 deductibles, etc.) and life insurance.

2. Significant equity (25%-50%) in a home or equivalent real estate

3. Income/expenses that enable the household to save at least 6% of its income

4. Significant retirement funds: 401Ks, IRAs, etc.

5. The ability to service all debt and expenses over the medium-term if one of the primary household wage-earners lose their job

I then added a taken-for-granted sixth:

6. Reliable vehicles for each wage-earner

Author Chris Sullins suggested adding these additional thresholds:

7. If a household requires government assistance to maintain the family lifestyle, their Middle Class status is in doubt.

8. A percentage of non-paper, non-family home hard assets such as family heirlooms, precious metals, tools, etc. that can be transferred to the next generation, i.e. generational wealth.

9. Ability to invest in offspring (education, extracurricular clubs/training, etc.).

10. Leisure time devoted to the maintenance of physical/spiritual/mental fitness.

Correspondent Mark G. recently suggested two more:

11. Continual accumulation of human and social capital (new skills, networks of collaborators, markets for one’s services, etc.)

And the money shot:

12. Family ownership of income-producing assets such as rental properties, bonds, etc.

The key point of these thresholds is that propping up a precarious illusion of consumption and status signifiers does not qualify as middle class. To qualify as middle class (that is, what was considered middle class a generation or two ago), the household must actually own/control wealth that won’t vanish if the investment bubble du jour pops, and won’t be wiped out by a medical emergency.

In Chris’s phrase, “They should be focusing resources on the next generation and passing on Generational Wealth” as opposed to “keeping up appearances” via aspirational consumption financed with debt.

What does it take in the real world to qualify as middle class?

Here are my calculations based on our own expenses and those of our friends in urban America. We can quibble about details endlessly, so these are mid-range estimates. These reflect urban costs; rural towns/cities will naturally have significantly lower cost structures. Please make adjustments as suits your area or experience, but please recall that tens of millions of people live in high-cost left and right-coast cities, and millions more have high heating/cooling/commuting costs.

The wages of those employed by Corporate America or the government do not reflect the total cost of benefits such as healthcare insurance. Self-employed people like myself pay the full costs of benefits, so we have to realize there is no ideal average of household expenses. Some households pay very little of their actual healthcare expenses, other pay for part of these costs and still others pay most or all of their healthcare insurance and co-pays.

1. Healthcare. Let’s budget $15,000 annually for healthcare insurance. Yes, if you’re 23 years old and single, you will pay less, so this is an average. If you’re older (I’m 64), $15,000 a year only buys you and your spouse stripped down coverage: no eyewear, medication or dental coverage–and that’s if your existing plan is grandfathered in. (If you want non-phantom ObamaCare coverage, the cost zooms up to $2,000/month or $24,000 annually.)

Add in co-pays and out-of-pocket expenses, and the realistic annual total is between $15,000 and $20,000 annually: Your family’s health care costs: $19,393 (this was before ACA).

Let’s say $15,000 annually is about as low as you can reasonably expect to maintain middle class healthcare.

2. Home equity. Building home equity requires paying meaningful principal. Let’s say a household has a 15-year mortgage so the principal payments are actually meaningfully adding to equity, unlike a 30-year mortgage. Let’s say $5-$10,000 of $25,000 in annual mortgage payments is interest (deductible) and $15-$20,000 goes to principal reduction.

3. Savings. Anything less than $5,000 in annual savings is not very meaningful if college costs, co-pays for medical emergencies, etc. are being anticipated, and $10,000 is a more realistic number given the need to stockpile cash in the event of job loss or reduced hours/pay. So let’s go with a minimum of $5,000 in cash savings annually.

4. Retirement. Let’s assume $6,000 per wage earner per year, or $12,000 per household. That won’t buy much of a retirement unless you start at age 25, and even then the return at current rates is so abysmal the nestegg won’t grow faster than inflation unless you take horrendous risks (and win).

5. Vehicles. The AAA pegs the cost of each compact car at $7,000 annually, so $14K per year assumes two compacts each driven 15,000 miles. The cost declines for two paid-for, well-maintained clunkers and increases for sedans and trucks. Let’s assume a scrimp-and-save household who manages to operate and insure two vehicles for $10,000 annually.

6. Social Security and Medicare Taxes. Self-employed people pay full freight Social Security and Medicare taxes: 15.3% of all net income, starting with dollar one and going up to $127,200 for SSA. But let’s take a household of two employed wage-earners and put in $8,000.

Property taxes: These are low in many parts of the country, but let’s assume a level between New Jersey/New York/California level of property tax and very low property tax rates: $10,000 annually.

Income tax: There are too many complexities, so let’s assume $2,000 in state and local taxes and $5,000 in federal taxes for a total of $7,000.

7. Living expenses: Some people spend hundreds of dollars on food each week, others considerably less. Let’s assume a two-adult household will need at least $12,000 annually for food, utilities, phone service, Internet, home maintenance, clothing, furnishings, books, films, etc., while those who like to dine out often, take week-ends away for skiing or equivalent will need more like $20,000.

8. Donations, church tithes, community organizations, adult education, hobbies, etc.: Let’s say $2,000 annually at a minimum.

Note that this does not include the cost of maintaining boats, RVs, pools, etc., or the cost of an annual vacation.

Here’s the annual summary:

Healthcare: $15,000 
Mortgage: $25,000 
Savings: $5,000 
Retirement: $12,000 
Vehicles: $10,000 
Property taxes: $10,000 
Income and Social Security/Medicare taxes: $15,000 
Living expenses: $12,000 
Other: $2,000

Minimum Total: $106,000

Vacations, travel, unexpected expenses, etc: $5,000.

Realistic Total: $111,000

That’s almost double the median household income of $59,000. Note that this $111,000 household income has no budget for lavish vacations, luxury vehicles, large pickup trucks, boats, second homes, college expenses, etc. There is no budget for private schooling. Most of the family income goes to the mortgage, taxes and healthcare. Savings are modest, along with living expenses and retirement contributions. This is a barebones budget.

$111,000 household income is right about the cut-off point for the top 20% of household income. How close are you to the top 1%?

Toss in a jumbo mortgage, college tuition paid in cash, an aging parent to care for or any of a dozen other major expenses and the minimum quickly rises to $155,000, which puts the household in the top 10% of household income.

How can we even talk about a “middle class” when the minimum thresholdsput the household in the top 20%? And we haven’t even considered the ultimateminimum threshold of middle class membership: family ownership of income-producing assets such as businesses, rental properties, bonds, etc.

The key takeaway of this chart is the concentration of the household wealth of the bottom 90% in the family home. The wealthy and upper-middle class own income-producing assets, while the bottom 90% own some life insurance, cash and pensions, but their largest asset by far is the family home. (They also “own” a tremendous amount of debt.)

The problem is life insurance, cash and pensions don’t generate much income, and neither does the family home. Households counting on the equity in bubble-priced housing are not factoring in the unwelcome reality that all bubbles pop, even housing bubbles that can’t possibly pop.

To have the equivalent security and generational wealth enjoyed by the middle class two generations ago, households have to check off all 12 minimum thresholds. I’m not sure there is a “middle class” any more; if we use these 12 minimum thresholds, the U.S. now has a super-wealthy class (top .01%), a very wealthy class (top .5%), an upper class (top 9.5% below the wealthy) and the rest(bottom 90%), with varying levels of security and assets but at levels far below what median-income households enjoyed in bygone eras.

By the standards of previous generations, the middle class has been stripmined of income, assets and purchasing power. 

My new mystery The Adventures of the Consulting Philosopher: The Disappearance of Drake is $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.

Vía Max Keiser https://ift.tt/2NH71CH

“It Always Pays To Hold Some Gold”

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“It Always Pays To Hold Some Gold”

by John Stepek of Money Week

“We have interest rates going up at a clip that’s much faster than certainly a lot of people, including myself, would have anticipated. I think the Fed is out of control.”

Central banks are independent, in theory. But that won’t stop the president of the US from giving his full and frank opinion on their performance.

Gold Britannias 2019 (1 oz)

Donald Trump reckons the Federal Reserve is to blame for the recent spasm of panic in markets.

“I’d like our Fed not to be so aggressive because I think they’re making a big mistake.”

Will Trump get his wish?

Will the Fed respond to Trump’s threats? Or to those of the market?

As I write this, markets appear to be recovering a bit of poise. BTFD (the excitable version of “buy the dip”) dies hard (although let’s get to the end of the US session before we make too many judgements about when or if this wobble might end).

But while the S&P 500 is not yet down 10% (the magic number that represents a “correction”), both the tech-heavy Nasdaq and the wider Russell 2000 are already in correction territory.

Those are quite chunky falls by recent standards. And that’s just talking about the US. As Michael Mackenzie points out in the FT, world markets have really had it bad – the FTSE All-World index, excluding the US, is now down around 17% from its January peak. That’s almost a bear market (which is deemed as 20% for essentially arbitrary reasons.)

Meanwhile, gold – that much-detested haven for those still superstitious enough to fear that economists and central bankers haven’t quite got all of this figured out yet – had a big bounce, all the way up to $1,220 an ounce.

We don’t know what the Fed will do. It’s a difficult position for Jerome Powell to be placed in. If he looks as though he’s caved to Trump, then his credibility is shot. Yet at the same time, the Fed has a history of responding to market falls with soothing words.

Powell might have started out talking tough, but is he really going to feel comfortable standing there with the S&P 500 down 10%-15%, with everyone shouting at him “do something”? Be interesting to find out.

Say Powell buckles. Markets cheer up. But then inflation gets a clearer run. And it’s amazing how quickly the narrative can go from fearing an imminent recession to fretting about an inflationary boom.

Or Powell stays strong. Markets continue to slide. How long does that go on for before they either wake up and realise everything’s OK – or before Powell realises that in fact, he is being over-optimistic about the economy’s capacity to accept higher rates?

Days like these are why you hold a bit of gold in your portfolio

I don’t know what’s going to happen. But to me, this is the point of owning a bit of gold in your portfolio. It’s insurance. It’s the asset that goes up when most things are going down. It benefits from two main things: currency debasement and panic.

So say Powell backs down and, rather than heading for recession, inflation in fact takes off. Gold would benefit in that scenario, even if most other things struggled.

Or say Powell stands firm, and it turns out markets are right to panic and we end up with an economy suddenly crushed under its debt burden. Again, gold would benefit from the sheer panic and the rush for any liquid asset with no counterparties.

And if, instead, everything is OK – well, who cares what’s happening to your gold if the rest of your portfolio is melting up?

However, beyond that, I’d also point out that I fully believe that the eventual resolution to the fallout from the 2008 financial crisis will be that we shift to a new monetary regime. That’ll be quite a kerfuffle. During said kerfuffle, I think owning some gold will also be psychologically helpful.

Let’s unpack that a bit in the little space we have left this morning, though I’ll be returning to it here and in MoneyWeek again and again.

Until early last century, currencies were tied to gold. That made it hard to expand the money supply. It also made it hard for governments to overspend. So it often got abandoned temporarily – usually during wartime – but countries did make the effort to get back onto it, as something of a badge of honour.

But then, in the run-up to World War II and during the Depression, various countries which had rejoined the gold standard at too high a rate (Britain being the main one) ditched it altogether. Then the chaos of World War II came along, and left the US the only developed country with any money left, basically.

So in the wake of that cataclysm, we got the Bretton Woods system – one that linked global currencies to the dollar, with the dollar itself pegged to gold. This ended in 1971, when Richard Nixon (another somewhat controversial president) took the US off the gold standard.

From then on, we entered the era of purely fiat currencies. Within countries, money is backed by faith in the government and the economy. And the global system is backed up by the US dollar.

So in effect, we’ve gone from a strict gold standard, to a very loose gold standard conducted via the US dollar, to a purely fiat standard, with the US dollar the global “reserve” currency.

The coming global financial order will involve China as a big player

As you might have gathered, changes in the monetary system tend to be accompanied by trauma. World War II; the inflation and political upheaval of the 1970s.

And of course, we’re now seeing the fallout from the 2008 near-collapse of the financial system. Funnily enough, right after that happened, there were explicit calls from Europe for “a new global financial order”. Then the eurozone crisis hit, and Europe became rather more preoccupied with its own woes.

But these transitions are not things that are decided at the negotiating table. They may be formalised there, but only after events have forced everyone’s hands.

The move away from the global dollar standard is a while off, and it may be decades before we formally recognise the transition in the same way that we recognise the shift from Bretton Woods.

But it starts with China turning the yuan into a proper reserve currency. That would ultimately involve a free float, and the process of getting there would be highly disruptive and uncomfortable for all involved.

So keep an eye on what China does with its currency.

And also, hang on to your gold.

Courtesy of Money Week

 

 

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Avoid Digital & ETF Gold – Key Gold Storage Must Haves

 

 

 

 

 

News and Commentary

Asian markets resume their fall, with tech stocks leading the way (MarketWatch.com)

Gold rises as Asian shares dip amid China concerns (Reuters.com)

China’s gold reserves fall in value as overall forex holdings fall too (SharpsPixley.com)

Rally Erupted in Gold Market Days After Funds Made Big Bear Bet (Bloomberg.com)

Gold Revitalized as Equity Sell-Off Spurs Second Weekly Advance (Bloomberg.com)

Shelves Empty as Specter of Hyperinflation Stalks Zimbabwe (Bloomberg.com)


Source: ZeroHedge

Why It’s Worth Holding Gold in Your Portfolio (MoneyWeek.com)

How Brexit will hit sterling (MoneyWeek.com)

Stock market’s nightmare may be far from over (MarketWatch.com)

A Sears liquidation could create some winners and over 100,000 losers (MarketWatch.com)

Italy Declares War On Merkel And The EU (Strategic-Culture.org)

Relative Scarcity Of Physical Gold Prompts Large Drawdowns From Funds, ETFs (ZeroHedge.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below


Gold Prices (LBMA AM)

12 Oct: USD 1,218.75, GBP 922.11 & EUR 1,052.15 per ounce
11 Oct: USD 1,201.10, GBP 910.31 & EUR 1,040.27 per ounce
10 Oct: USD 1,186.40, GBP 902.02 & EUR 1,033.00 per ounce
09 Oct: USD 1,187.40, GBP 910.26 & EUR 1,036.01 per ounce
08 Oct: USD 1,194.80, GBP 914.86 & EUR 1,040.67 per ounce
05 Oct: USD 1,201.10, GBP 921.48 & EUR 1,045.08 per ounce

Silver Prices (LBMA)

12 Oct: USD 14.60, GBP 11.04 & EUR 12.60 per ounce
11 Oct: USD 14.40, GBP 10.90 & EUR 12.45 per ounce
10 Oct: USD 14.38, GBP 10.92 & EUR 12.50 per ounce
09 Oct: USD 14.33, GBP 10.98 & EUR 12.51 per ounce
08 Oct: USD 14.47, GBP 11.10 & EUR 12.61 per ounce
05 Oct: USD 14.64, GBP 11.23 & EUR 12.73 per ounce


Recent Market Updates

– Gold’s Best Day In 2 Years Sees 2.5 Percent Gain As Global Stocks Sell Off – This Week’s Golden Nuggets
– Gold Up 2.5 Percent As Global Stock Rout Spreads To Europe
– “Gold Is On The Cusp” Of An “Explosion Higher” As Stock and Tech “Crash Is Coming”
– Gold Bottoms As Gold Industry Consolidates and Weak Hands Capitulate
– 60 Charts For The (Last Few Remaining) Gold Bulls
– Poland and Australia Buy Gold As Global Property Bubble Bursts – This Week’s Golden Nuggets
– Brexit To Burst Dublin and London Property Bubbles? GoldCore Video
– Perth Mint’s Gold and Silver Bullion Coin Sales Soar In September
– “I’m Favouring Equities and Gold Over Bonds” – Stepek
– Poland Buys Gold For First Time In 20 years
– This Week’s Golden Nuggets – Central Banks, Goldman, Bank of America Positive On Undervalued Gold
– Central Banks Positivity Towards Gold Will Provide Long Term “Support To Gold Prices”

Vía Max Keiser https://ift.tt/2QOFAc0

Gold’s Best Day In 2 Years Sees 2.5 Percent Gain As Global Stocks Sell Off

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Gold’s Best Day In 2 Years Sees 2.5 Percent Gain As Global Stocks Sell Off – This Week’s Golden Nuggets

News, Commentary, Charts and Videos You May Have Missed

Here is our Friday digest of the important news, commentary, charts and videos we were informed by this week.

Market jitters and volatility have returned this week and the sell-off in US government bonds led to sharp falls on Wall Street centered on the very overvalued tech sector and the NASDAQ.

(Bloomberg)

Gold is 1.3% higher for the week as of mid-morning European trading today. It needs to close positively this week in order to confirm a possible trend change.

A lower close this week, despite the significant volatility, would be bearish in the short term and suggest that gold needs a period of further consolidation before the bull market can resume in earnest.

It is too soon to tell if this week marks the much-anticipated turning point for gold but it certainly felt like an important week in the markets.

We had an excellent client event in our new offices in Dublin on Wednesday evening and over 60 clients attended and enjoyed presentations by Mark O’Byrne and Stephen Flood. There was a very interesting Q&A session with some very informed clients. It was the first of many events – Galway, Cork, Manchester, London, NYC etc in the coming months.

Enjoy and have a nice weekend!


Market Updates This Week

Gold Up 2.5 Percent As Global Stock Rout Continues

“Gold Is On The Cusp” Of An “Explosion Higher” As Stock and Tech “Crash Is Coming”

Gold Bottoms As Gold Industry Consolidates and Weak Hands Capitulate

60 Charts For The (Last Few Remaining) Gold Bulls

 

News This Week

Gold Edges Higher In All Currencies As Global Stocks Slip

Investors Yank Record Cash Out of Stock, Real Estate, and Muni ETFs

Venezuela’s 2018 Inflation to Hit 1.37 Million Percent – IMF

Canadian Billionaire Investor Sprott says Bearish Gold Forecasters Have ‘No Friggin’ Idea

 

Videos This Week

 

 

 

 

 

Charts This Week


Gold Up 2.5 Percent On Thursday After Global Stock Rout (Finviz)

 

(Bloomberg)

 


(Bloomberg)

 


(Bloomberg)

 


Stock Buybacks Have Soared Faster Than Capital Spending (U.S. Global Investors)


Total Shares Outstanding of S&P 500 Consumer Staples Companies Are Plunging (U.S. Global Investors)


The Barrick-Randgold merger will create the world’s largest gold miner, valued at $18 billion (U.S. Global Investors)

 

News and Commentary

Gold at 2-month high as investors take refuge from a stock market slump (MarketWatch.com)

Gold Comes Alive in Biggest Jump Since `16 After Equities Roiled (Bloomberg.com)

Gold on Best Run in 6 Weeks as Dollar Strength Peaks (Bloomberg.com)

Gold near highest in over 2 mths as equity plunge boosts safe-haven appeal (Reuters.com)

Bitcoin slumps more than 5%, puts ‘digital gold’ status in jeopardy (MarketWatch.com)


Source: Bloomberg

Trump says Fed caused the stock market correction, but he won’t fire Chair Powell (CNBC.com)

ECB cannot come to Italy’s rescue without EU bailout: sources (Reuters.com)

‘Expensive energy is back’ — and it’s threatening the global economy, IEA warns (CNBC.com)

Global Internet Could Crash In Next 48 Hours – “Outage Across The World” (ZeroHedge.com)

How to safely ignore everything that happened yesterday (SovereignMan.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below


Gold Prices (LBMA AM)

11 Oct: USD 1,201.10, GBP 910.31 & EUR 1,040.27 per ounce
10 Oct: USD 1,186.40, GBP 902.02 & EUR 1,033.00 per ounce
09 Oct: USD 1,187.40, GBP 910.26 & EUR 1,036.01 per ounce
08 Oct: USD 1,194.80, GBP 914.86 & EUR 1,040.67 per ounce
05 Oct: USD 1,201.10, GBP 921.48 & EUR 1,045.08 per ounce
04 Oct: USD 1,199.45, GBP 925.02 & EUR 1,043.28 per ounce

Silver Prices (LBMA)

11 Oct: USD 14.40, GBP 10.90 & EUR 12.45 per ounce
10 Oct: USD 14.38, GBP 10.92 & EUR 12.50 per ounce
09 Oct: USD 14.33, GBP 10.98 & EUR 12.51 per ounce
08 Oct: USD 14.47, GBP 11.10 & EUR 12.61 per ounce
05 Oct: USD 14.64, GBP 11.23 & EUR 12.73 per ounce
04 Oct: USD 14.63, GBP 11.27 & EUR 12.72 per ounce


Recent Market Updates

– Gold Up 2.5 Percent As Global Stock Rout Spreads To Europe
– “Gold Is On The Cusp” Of An “Explosion Higher” As Stock and Tech “Crash Is Coming”
– Gold Bottoms As Gold Industry Consolidates and Weak Hands Capitulate
– 60 Charts For The (Last Few Remaining) Gold Bulls
– Poland and Australia Buy Gold As Global Property Bubble Bursts – This Week’s Golden Nuggets
– Brexit To Burst Dublin and London Property Bubbles? GoldCore Video
– Perth Mint’s Gold and Silver Bullion Coin Sales Soar In September
– “I’m Favouring Equities and Gold Over Bonds” – Stepek
– Poland Buys Gold For First Time In 20 years
– This Week’s Golden Nuggets – Central Banks, Goldman, Bank of America Positive On Undervalued Gold
– Central Banks Positivity Towards Gold Will Provide Long Term “Support To Gold Prices”
– Europe Unveils “Special Purpose Vehicle” With Russia and China To Bypass SWIFT, Jeopardizing Dollar’s Reserve Status

Vía Max Keiser https://ift.tt/2yzi0IT

Gold Is Best Performing Asset In Global Stock Rout

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Gold Up 1.2 Percent As Global Stock Rout Spreads To Europe

– Gold gains 1.27% as stock markets fall globally
– EuroStoxx -2%, FTSE -1.9%, Nikkei -4%, Shanghai -5.3%
– Gold, silver outperform all assets in stock market rout
– Trump accuses Fed of going “crazy” by continuing to raise rates
– Huge spike in VIX and volatility on deepening concerns of market correction or crash

1 Day Relative Performance (Finviz)

Gold has gained 1.2% today on safe-haven demand as sharp declines on Wall Street spread throughout Asia and Europe.

Stocks in Europe have slumped to a more than 18-month low after sharp losses on Wall Street, centered on tech stocks and the Nasdaq.

The worst losses in eight months triggered a significant sell-off in stocks in Asia. China’s main stock indexes slumped over 5 percent and MSCI’s broadest index of Asian shares not including Japan ended down 3.6 percent, having struck its lowest level since March 2017.

It meant MSCI’s 24-country emerging market index had its worst day since early 2016, after Wall Street’s swoon had given the 47-country world index equivalent its worst day since February.

The losses were not helped by President Donald Trump accusing the  Federal Reserve of going “crazy and “loco” as trade wars appear to be intensifying.

The VIX or Cboe Volatility Index has more than doubled in the last week. The huge spike in volatility comes as there are deepening concerns of a major market correction – particularly in the U.S.

Gold and silver, the traditional havens in times of volatility, are again displaying their lack of correlation and frequent inverse correlation (over the long term) with risk assets. The precious metals’ hedging benefits to investors portfolios are being seen as they again benefit from a safe haven bid exactly when investors need it.

 

 

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Avoid Digital & ETF Gold – Key Gold Storage Must Haves

 

 

 

 

 

News and Commentary

Stock Rout Spreads as Bonds, Currencies Stay Calm for Now (Bloomberg.com)

Gold prices edge higher as global stocks sag, U.S. dollar slips (Reuters.com)

India’s Sept gold imports drop 14 pct on weak rupee-GFMS (Reuters.com)

Dow plunges more than 800 points in worst drop since February (CNBC.com)

U.S. bond yields near seven-year high stymie world stocks’ recovery (Reuters.com)


Source: Bloomberg

Trump says the Federal Reserve has ‘gone crazy’ by continuing to raise interest rates (CNBC.com)

Major Event Looms As Italy’s Lega Popularity Rises With Each EU Confrontation (ZeroHedge.com)

We Are In Uncharted Junk Terrain: Corporate Credit Quality Is Far Weaker Than In 2000 And 2007 (ZeroHedge.com)

US-Russia tensions threaten nuclear arms race and tensions (FT.com)

Crypto theft hits nearly $1 billion in first nine months, report says (Reuters.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below


Gold Prices (LBMA AM)

10 Oct: USD 1,186.40, GBP 902.02 & EUR 1,033.00 per ounce
09 Oct: USD 1,187.40, GBP 910.26 & EUR 1,036.01 per ounce
08 Oct: USD 1,194.80, GBP 914.86 & EUR 1,040.67 per ounce
05 Oct: USD 1,201.10, GBP 921.48 & EUR 1,045.08 per ounce
04 Oct: USD 1,199.45, GBP 925.02 & EUR 1,043.28 per ounce
03 Oct: USD 1,203.50, GBP 925.73 & EUR 1,040.55 per ounce

Silver Prices (LBMA)

10 Oct: USD 14.38, GBP 10.92 & EUR 12.50 per ounce
09 Oct: USD 14.33, GBP 10.98 & EUR 12.51 per ounce
08 Oct: USD 14.47, GBP 11.10 & EUR 12.61 per ounce
05 Oct: USD 14.64, GBP 11.23 & EUR 12.73 per ounce
04 Oct: USD 14.63, GBP 11.27 & EUR 12.72 per ounce
03 Oct: USD 14.74, GBP 11.36 & EUR 12.75 per ounce


Recent Market Updates

– “Gold Is On The Cusp” Of An “Explosion Higher” As Stock and Tech “Crash Is Coming”
– Gold Bottoms As Gold Industry Consolidates and Weak Hands Capitulate
– 60 Charts For The (Last Few Remaining) Gold Bulls
– Poland and Australia Buy Gold As Global Property Bubble Bursts – This Week’s Golden Nuggets
– Brexit To Burst Dublin and London Property Bubbles? GoldCore Video
– Perth Mint’s Gold and Silver Bullion Coin Sales Soar In September
– “I’m Favouring Equities and Gold Over Bonds” – Stepek
– Poland Buys Gold For First Time In 20 years
– This Week’s Golden Nuggets – Central Banks, Goldman, Bank of America Positive On Undervalued Gold
– Central Banks Positivity Towards Gold Will Provide Long Term “Support To Gold Prices”
– Europe Unveils “Special Purpose Vehicle” With Russia and China To Bypass SWIFT, Jeopardizing Dollar’s Reserve Status
– Gold Set to Soar Above $1,300 – Goldman and Bank of America

Vía Max Keiser https://ift.tt/2RHZve6

[KR1290] Keiser Report: No Strings Attached

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In this episode of the Keiser Report, Max and Stacy examine President Nana Addo Dankwa Akufo-Addo of Ghana’s assertion that China’s investments in Africa are not colonialism. At the UN, the president noted that he sees leaders of other nations lining up to visit China in order to receive similar investments and that the infrastructure and jobs they are providing are needed. They also look at some research which finds that China’s ‘no strings attached’ aid may actually be better than the Western approach. In the second half, Max interviews Steve Beauregard of Bloq.com about the state of cryptocurrency markets today – from ICO booms and busts to building out the next stage of the growth in the industry. They also discuss why AirBnB being allowed to offer equity in the platform to Superhosts such as himself could be a good thing.

Vía Max Keiser https://ift.tt/2Efu6Nw

“Gold Is On The Cusp” Of An “Explosion Higher” As Tech “Crash Is Coming”

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“The Crash Is Coming” As “Money-Printing Never Works” Warns Hickey

by Christoph Gisiger via FUW.ch

Few investors have a deeper understanding of the tech sector than Fred Hickey. 

The renowned editor of the popular investment newsletter «The High-Tech Strategist» draws alarming parallels to the bursting of the dotcom bubble in the year 2000 and spots high risks in stock market darlings like Amazon and Apple.

For the industry veteran, one important reason to be concerned are rich valuations. He also sees troubles ahead with respect to the rise in interest rates and the growing mountain of debt around the world. 

Against this background, the outspoken contrarian sees bright opportunities in gold and in attractively priced mining stocks.

About Fred Hickey

For many investors around the world, Fred Hickey’s monthly newsletter is a must read. It’s a unique treasure of deep knowledge that goes way beyond the tech sector. Having grown up in Lowell, Massachusetts, in the heartland of the computing cluster around Route 128, Mr. Hickey has been fascinated by technology since his youth. After graduating from the University of Notre Dame, he started working for the former telecom giant General Telephone & Electronics. In 1987, he began writing his newsletter for his friends and family. After just five years it went so well that he could make a living out of his investing tips. Today, Mr. Hickey who likes to take long walks in his rare spare time, lives far away from Wall Street in Nashua, New Hampshire, and in sunny Costa Rica.

Mr. Hickey, despite raising interest rates, global trade tensions and turmoil in the emerging markets the stock market in the United States is chasing one record after record. How long will this go well?

Today’s situation reminds me of the fall 2000 which was a very difficult time for me as a contrarian investor. The internet bubble had broken in March when the Nasdaq peaked at 5132 and all those crazy valued dotcom stocks had crashed. In the three weeks after the Nasdaq had peaked it looked like the whole stock market had broken. But it hadn’t because investors rotated into what they perceived to be safer big cap tech names. So, they piled into stocks like Intel, Cisco, Microsoft, Nortel, EMC and Sun Microsystems. And that’s what we’re seeing today in a similar way with stocks like Amazon, Apple and, again, Microsoft.

What happened next?

Once we got into September and October, the market started to roll over. Back then, I was short via puts a number of tech stocks. My biggest short position was Intel and the stock first went higher and higher. In August 2000, Intel rose 20% in just one month and pushed into a new high of almost 76 $ a share. For me, these were some of my toughest days trying to fight the mania. The maniacs were piling into the stock and had no clue. They were only chasing momentum – just as they’re doing it today.

But as soon as Labor Day rolled around, Intel’s shares started to fall because fundamentally the business was deteriorating. Intel had to lower its outlook and the stock crashed 45% in one month. Think about it: At that time, Intel was the second largest company in the world. It’s the equivalent of Amazon today which means that Amazon’s market cap would go from around $1 trillion to $550 billion in just one month. That’s a shocking thing. But the difference is that Intel’s P/E ratio was 55 back then. Amazon’s is 155 today.

Then again, there are also important differences. In 2000, the Fed Funds Rate was 6,5%. Today it’s hardly more than 2%. Shouldn’t that provide some kind of safety net for stocks?

The bulls argue that interest rates are very low. Therefore, they think the coast is clear. But here’s the problem: By dropping rates to zero percent or even lower central banks have encouraged the whole world to take on an enormous amount of debt. Global world debt amounts to $245 trillion and it’s up 40% since the credit crisis. They have tried to correct a debt crisis with much more debt. Just consider the US, for instance: We have more than doubled our debt up to $21.2 trillion and we added $1.4 trillion of debt in the last twelve months. So even though interest rates for US treasuries are historically still very low at this point, we are heading into severe troubles. Even with rates staying where they are today the interest expense for the US government is going to be skyrocketing in the next years just like the price of bitcoin before it broke at the end of 2017.

Why is this a problem for stocks?

This huge amount of debt is causing all kinds of other problems. With rates around the world now rising we’re probably looking at another emerging market crisis. There are some twenty countries now whose currencies have fallen by double digits against the dollar. And in the US, it’s not just the government that borrowed heavily. Consumers have borrowed a record amount of debt as well as corporations. This means that higher interest expenses will more than offsets or at least equalize the positive effects from Trump’s tax cuts – and these tax cuts are going to increase the deficit even more. Yet, the people who funded the US deficits are dropping their treasury holdings. Japan, China, Russia and Mexico have all sold a lot of treasuries. The only ones remaining who are now funding the US in a big way are the Europeans because they still have negative rates. But as rates in Europe eventually are going to rise this support could go away, too. Investors who are piling into these big-name tech stocks are not thinking about that.

You have been bearish for some time. When will judgement day come?

No one knows exactly when. In March 2000, I didn’t know that the Nasdaq would break, nor did I know that S&P 500  would break a number of months later. But today, I know that the most elusive objects of speculation, the cryptocurrencies, have broken. Also , the situation in the emerging markets is getting worse, interest rates are rising, the Federal Reserve is scaling down its balance sheet and consumers are in trouble. We’re already seeing indications of weakness in the housing market as well as in auto sales. So, it’s just a matter of time and each time the Fed raises rates further it’s a adding a straw to the camel’s back. The Fed knows that this is an extremely difficult situation even though they never admit it. Almost every time we had interest rate hike campaigns by the Fed it led to a recession and a bear market. I don’t know if history will repeat exactly. But I know it does rhyme and we’re kind of in the same situation today as we were in the fall of 2000.

But weren’t equity valuations significantly higher at that time?

True, the P/E ratios don’t look as high as they were in 2000. But other indicators do. For instance, the median price to sales ratio for the S&P 5000 is two times higher than it was in 2000. What’s more, the median price to book value is just as high as it was back then. This shows that this bubble is much broader than it was in 2000. And think about all the methods that corporations have taken in order to pump up their earnings which includes the record number of corporate buybacks and non-GAAP- earnings numbers. They do everything they can to make earnings look better than they are. If you were to take all those gimmicks out, you probably have P/E ratios just as crazy as you did in 2000.  That’s how dangerous this bubble is. But there is no recognition in the market just as there was no recognition in 2000 of the danger that was ahead.

So, which of today’s mega-cap tech stock is the most vulnerable?

Some of them have already started to break. Facebook  has broken. The stock is down quite a bit and, the company is under great pressure. There are regulatory issues and they are losing customers. Netflix  has broken, too. But if you look at the biggest names, the ones that are still holding up, Apple looks like the most vulnerable.

Why?

Apple is a smartphone maker. But even though it has the largest market valuation in the world, it’s not the number one smartphone maker. Until recently, Apple was number two after Samsung but now it dropped to number three because Huawei, a Chinese smartphone maker, surpassed it. Also, Xiaomi which is right behind Apple is growing dramatically faster and will soon take out the number three spot.

Agreed, but Apple has successfully positioned itself as a premium brand in the smartphone market. Also, their service business shows robust growth.

But keep in mind that a lot of these services are games for smartphones. If you are losing market share and you are not selling much more smartphones you are not going to be able to sell services. A year ago, Apple announced their tenth anniversary iPhone X. It was supposed to kick off a new super-cycle like the iPhone 6 Plus did in 2014. But sales aren’t that great, and inventories rose significantly. Now, they’ve launched a series of new products like the iPhone XS Max. But these new products don’t have many new features. And right now, the Chinese makers have really good products at one third less of the price. This is what happened in the PC market, this is how people lose market share. So how the heck can you be valuing Apple at $1.1 trillion? They’re losing market share and they’re trying to raise prices in a saturated mature market. Nevertheless, the share price keeps rising which makes the stock highly vulnerable.

Which is the strongest big-cap tech stock?

I’d say Google has a better longer-term position. But let me tell you what happened in 2000 to all those big cap names: Intel’s stock, even though it was the second largest company globally, fell 80% until it bottomed. Cisco’s stock fell 90% and that was the third largest company. Nortel fell 99%, and EMC and Sun Microsystems fell 96%. So, if you’re asking which one of today’s big cap tech stocks is going to do better I would refer to Intel after the dotcom crash: It did better than the other stocks with “only” 80% decline. That’s what the future looks like today and there will be no place to hide.

So how are positioned as an investor?

Since this is a bubble I’m doing exactly what I was doing in 2000: I’m not long any tech stocks because I’m expecting a crash. When I’m bullish I like to be in stocks which generate lots of cash flow, have high margins and these are oftentimes software companies. But when I’m bearish, I want to be short – through put-options – stocks where the cash just flies out the door and where the cycles are so extreme that we get the biggest booms to busts. That’s in the semiconductor world and that’s where my focus is. The semiconductor market has topped, and some memory makers are getting hit hard already. Western Digital has gone from over $100 late last year to around $50. Micron Technology is getting hammered as well. I also have put options on Intel and Nvidia . The semiconductor equipment manufacturers are starting to get hit, too. Lam Research went from around $220 to $150 and Applied Materials is getting hit, too.

How bad will it really get? In the past decades, investors could always count on the Fed to step in when things get dicey.

There is going to be a lot of pain unless the Fed comes in and prints a heck of a lot more money. With interest rates still at these low levels, they are not going to be able to lower rates much more. In fact, when they tried to lower rates in 2007/08 it didn’t have any impact. The markets kept plunging so they had to launch quantitative easing. So, this time it’s going to be another round of quantitative easing which will hopefully indicate to the people that the central banks are never going to be able to get us out of this. Money printing never works. If it worked, everybody would have been doing it for 5000 years. A lot of governments have tried it and every time it has failed. All you get is malinvestments, overcapacities, asset bubbles and all these evil things.

So, what should investors do?

Up to the 2000 bubble I was a 100% in tech names. That worked out great because I benefited from the great bull market in the 80s and 90s. But I sold my last tech stock in late 1998 when I realized that this was a bubble. I also realized that the Fed and the other central banks were out of control. I didn’t know how out of control they would get. I don’t think anyone could have imagined that there would be trillions of dollars around the world with negative rates because this never happened before in human history. Also, I would never have imagined of $15 trillion printed around the world. All I knew for sure was that monetary policy was out of control. So, I looked around and asked myself what will do well when the central banks are going crazy? How can I protect my wealth if they are debasing the currencies in order to continue with these bubbles? And of course, historically the best way to protect your money is precious metal.

Gold and especially gold mining stocks had an amazing run in that last decade. But since 2011 gold’s glimmer seems to have faded.

Two factors were responsible for this: growing production and shrinking demand from financial investors. But now, I think the gold market bottomed in December of 2015.

Gold production is going down because many mining companies have slashed their exploration and development. There are no new major mines that have been found and there aren’t many which are being developed. That means supply has started to shrink and it will continue to shrink. On the other side, we had a great disinvestment in gold by US investors who have poured all their money into stocks. But when the stock market declines, as I expect, they are going to do what they usually do: They are going back into gold and demand will increase at the same time as supply is decreasing.

How will this impact the stocks of gold miners?

In the last gold bull market which started in 2001, gold was up 650% but the gold miners were up 17 times. Also, in the first phase of what I consider the new gold bull market which began in 2016, gold went up 30% but mining stocks went up 160%. So, you can see the leverage, especially when these stocks are depressed like today. For me as a contrarian, this is an amazing moment. On one hand, it’s a demoralizing moment like it was in 2000. But at the same time, it’s the most exciting moment since gold is on the cusp of an explosion higher.

All you have to do is to be willing to wait and to be patient for it to happen, but most people are not.

 

7_Key_Storage_Must_Haves_-_Copy.jpg

 

 

Avoid Digital & ETF Gold – Key Gold Storage Must Haves

 

 

 

 

 

News and Commentary

Gold inches up as retreat of bond yields weigh on dollar (Reuters.com)

Rising yields suggests ‘conflicting factors’ over U.S. growth: Fed’s Kaplan (Reuters.com)

Small-business sentiment retreats from 45-year high, NFIB says (MarketWatch.com)

Tech rebound props up Wall Street, but global growth concerns weigh (Reuters.com)

IMF cuts world economic growth forecasts on tariff war, emerging market strains (Reuters.com)


Source: Bloomberg

Investors Yank Record Cash Out of Stock, Real Estate, and Muni ETFs (BloombergQuint.com)

Italy’s bond yields fall after Tria makes Draghi-style pledge (Reuters.com)

Rising Interest Rates Start Popping Bubbles — The End Of This Expansion Is Now In Sight (DollarCollapse.com)

Think You’re Prepared For The Next Crisis? Think Again. (PeakProsperity.com)

Blockchain Tech Coming to Commodity Markets, Blythe Masters Says (Bloomberg.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below


Gold Prices (LBMA AM)

09 Oct: USD 1,187.40, GBP 910.26 & EUR 1,036.01 per ounce
08 Oct: USD 1,194.80, GBP 914.86 & EUR 1,040.67 per ounce
05 Oct: USD 1,201.10, GBP 921.48 & EUR 1,045.08 per ounce
04 Oct: USD 1,199.45, GBP 925.02 & EUR 1,043.28 per ounce
03 Oct: USD 1,203.50, GBP 925.73 & EUR 1,040.55 per ounce
02 Oct: USD 1,192.65, GBP 919.77 & EUR 1,035.46 per ounce

Silver Prices (LBMA)

09 Oct: USD 14.33, GBP 10.98 & EUR 12.51 per ounce
08 Oct: USD 14.47, GBP 11.10 & EUR 12.61 per ounce
05 Oct: USD 14.64, GBP 11.23 & EUR 12.73 per ounce
04 Oct: USD 14.63, GBP 11.27 & EUR 12.72 per ounce
03 Oct: USD 14.74, GBP 11.36 & EUR 12.75 per ounce
02 Oct: USD 14.51, GBP 11.20 & EUR 12.59 per ounce


Recent Market Updates

– Gold Bottoms As Gold Industry Consolidates and Weak Hands Capitulate
– 60 Charts For The (Last Few Remaining) Gold Bulls
– Poland and Australia Buy Gold As Global Property Bubble Bursts – This Week’s Golden Nuggets
– Brexit To Burst Dublin and London Property Bubbles? GoldCore Video
– Perth Mint’s Gold and Silver Bullion Coin Sales Soar In September
– “I’m Favouring Equities and Gold Over Bonds” – Stepek
– Poland Buys Gold For First Time In 20 years
– This Week’s Golden Nuggets – Central Banks, Goldman, Bank of America Positive On Undervalued Gold
– Central Banks Positivity Towards Gold Will Provide Long Term “Support To Gold Prices”
– Europe Unveils “Special Purpose Vehicle” With Russia and China To Bypass SWIFT, Jeopardizing Dollar’s Reserve Status
– Gold Set to Soar Above $1,300 – Goldman and Bank of America
– Goldnomics Podcast: Silver Guru – David Morgan – Silver and Gold Will Protect in the Coming Currency Collapse

Vía Max Keiser https://ift.tt/2yaOJVC

“Gold Is On The Cusp” Of An “Explosion Higher” As Tech “Crash Is Coming”

https://ift.tt/2PrES47

“The Crash Is Coming” As “Money-Printing Never Works” Warns Hickey

by Christoph Gisiger via FUW.ch

Few investors have a deeper understanding of the tech sector than Fred Hickey. 

The renowned editor of the popular investment newsletter «The High-Tech Strategist» draws alarming parallels to the bursting of the dotcom bubble in the year 2000 and spots high risks in stock market darlings like Amazon and Apple.

For the industry veteran, one important reason to be concerned are rich valuations. He also sees troubles ahead with respect to the rise in interest rates and the growing mountain of debt around the world. 

Against this background, the outspoken contrarian sees bright opportunities in gold and in attractively priced mining stocks.

About Fred Hickey

For many investors around the world, Fred Hickey’s monthly newsletter is a must read. It’s a unique treasure of deep knowledge that goes way beyond the tech sector. Having grown up in Lowell, Massachusetts, in the heartland of the computing cluster around Route 128, Mr. Hickey has been fascinated by technology since his youth. After graduating from the University of Notre Dame, he started working for the former telecom giant General Telephone & Electronics. In 1987, he began writing his newsletter for his friends and family. After just five years it went so well that he could make a living out of his investing tips. Today, Mr. Hickey who likes to take long walks in his rare spare time, lives far away from Wall Street in Nashua, New Hampshire, and in sunny Costa Rica.

Mr. Hickey, despite raising interest rates, global trade tensions and turmoil in the emerging markets the stock market in the United States is chasing one record after record. How long will this go well?

Today’s situation reminds me of the fall 2000 which was a very difficult time for me as a contrarian investor. The internet bubble had broken in March when the Nasdaq peaked at 5132 and all those crazy valued dotcom stocks had crashed. In the three weeks after the Nasdaq had peaked it looked like the whole stock market had broken. But it hadn’t because investors rotated into what they perceived to be safer big cap tech names. So, they piled into stocks like Intel, Cisco, Microsoft, Nortel, EMC and Sun Microsystems. And that’s what we’re seeing today in a similar way with stocks like Amazon, Apple and, again, Microsoft.

What happened next?

Once we got into September and October, the market started to roll over. Back then, I was short via puts a number of tech stocks. My biggest short position was Intel and the stock first went higher and higher. In August 2000, Intel rose 20% in just one month and pushed into a new high of almost 76 $ a share. For me, these were some of my toughest days trying to fight the mania. The maniacs were piling into the stock and had no clue. They were only chasing momentum – just as they’re doing it today.

But as soon as Labor Day rolled around, Intel’s shares started to fall because fundamentally the business was deteriorating. Intel had to lower its outlook and the stock crashed 45% in one month. Think about it: At that time, Intel was the second largest company in the world. It’s the equivalent of Amazon today which means that Amazon’s market cap would go from around $1 trillion to $550 billion in just one month. That’s a shocking thing. But the difference is that Intel’s P/E ratio was 55 back then. Amazon’s is 155 today.

Then again, there are also important differences. In 2000, the Fed Funds Rate was 6,5%. Today it’s hardly more than 2%. Shouldn’t that provide some kind of safety net for stocks?

The bulls argue that interest rates are very low. Therefore, they think the coast is clear. But here’s the problem: By dropping rates to zero percent or even lower central banks have encouraged the whole world to take on an enormous amount of debt. Global world debt amounts to $245 trillion and it’s up 40% since the credit crisis. They have tried to correct a debt crisis with much more debt. Just consider the US, for instance: We have more than doubled our debt up to $21.2 trillion and we added $1.4 trillion of debt in the last twelve months. So even though interest rates for US treasuries are historically still very low at this point, we are heading into severe troubles. Even with rates staying where they are today the interest expense for the US government is going to be skyrocketing in the next years just like the price of bitcoin before it broke at the end of 2017.

Why is this a problem for stocks?

This huge amount of debt is causing all kinds of other problems. With rates around the world now rising we’re probably looking at another emerging market crisis. There are some twenty countries now whose currencies have fallen by double digits against the dollar. And in the US, it’s not just the government that borrowed heavily. Consumers have borrowed a record amount of debt as well as corporations. This means that higher interest expenses will more than offsets or at least equalize the positive effects from Trump’s tax cuts – and these tax cuts are going to increase the deficit even more. Yet, the people who funded the US deficits are dropping their treasury holdings. Japan, China, Russia and Mexico have all sold a lot of treasuries. The only ones remaining who are now funding the US in a big way are the Europeans because they still have negative rates. But as rates in Europe eventually are going to rise this support could go away, too. Investors who are piling into these big-name tech stocks are not thinking about that.

You have been bearish for some time. When will judgement day come?

No one knows exactly when. In March 2000, I didn’t know that the Nasdaq would break, nor did I know that S&P 500  would break a number of months later. But today, I know that the most elusive objects of speculation, the cryptocurrencies, have broken. Also , the situation in the emerging markets is getting worse, interest rates are rising, the Federal Reserve is scaling down its balance sheet and consumers are in trouble. We’re already seeing indications of weakness in the housing market as well as in auto sales. So, it’s just a matter of time and each time the Fed raises rates further it’s a adding a straw to the camel’s back. The Fed knows that this is an extremely difficult situation even though they never admit it. Almost every time we had interest rate hike campaigns by the Fed it led to a recession and a bear market. I don’t know if history will repeat exactly. But I know it does rhyme and we’re kind of in the same situation today as we were in the fall of 2000.

But weren’t equity valuations significantly higher at that time?

True, the P/E ratios don’t look as high as they were in 2000. But other indicators do. For instance, the median price to sales ratio for the S&P 5000 is two times higher than it was in 2000. What’s more, the median price to book value is just as high as it was back then. This shows that this bubble is much broader than it was in 2000. And think about all the methods that corporations have taken in order to pump up their earnings which includes the record number of corporate buybacks and non-GAAP- earnings numbers. They do everything they can to make earnings look better than they are. If you were to take all those gimmicks out, you probably have P/E ratios just as crazy as you did in 2000.  That’s how dangerous this bubble is. But there is no recognition in the market just as there was no recognition in 2000 of the danger that was ahead.

So, which of today’s mega-cap tech stock is the most vulnerable?

Some of them have already started to break. Facebook  has broken. The stock is down quite a bit and, the company is under great pressure. There are regulatory issues and they are losing customers. Netflix  has broken, too. But if you look at the biggest names, the ones that are still holding up, Apple looks like the most vulnerable.

Why?

Apple is a smartphone maker. But even though it has the largest market valuation in the world, it’s not the number one smartphone maker. Until recently, Apple was number two after Samsung but now it dropped to number three because Huawei, a Chinese smartphone maker, surpassed it. Also, Xiaomi which is right behind Apple is growing dramatically faster and will soon take out the number three spot.

Agreed, but Apple has successfully positioned itself as a premium brand in the smartphone market. Also, their service business shows robust growth.

But keep in mind that a lot of these services are games for smartphones. If you are losing market share and you are not selling much more smartphones you are not going to be able to sell services. A year ago, Apple announced their tenth anniversary iPhone X. It was supposed to kick off a new super-cycle like the iPhone 6 Plus did in 2014. But sales aren’t that great, and inventories rose significantly. Now, they’ve launched a series of new products like the iPhone XS Max. But these new products don’t have many new features. And right now, the Chinese makers have really good products at one third less of the price. This is what happened in the PC market, this is how people lose market share. So how the heck can you be valuing Apple at $1.1 trillion? They’re losing market share and they’re trying to raise prices in a saturated mature market. Nevertheless, the share price keeps rising which makes the stock highly vulnerable.

Which is the strongest big-cap tech stock?

I’d say Google has a better longer-term position. But let me tell you what happened in 2000 to all those big cap names: Intel’s stock, even though it was the second largest company globally, fell 80% until it bottomed. Cisco’s stock fell 90% and that was the third largest company. Nortel fell 99%, and EMC and Sun Microsystems fell 96%. So, if you’re asking which one of today’s big cap tech stocks is going to do better I would refer to Intel after the dotcom crash: It did better than the other stocks with “only” 80% decline. That’s what the future looks like today and there will be no place to hide.

So how are positioned as an investor?

Since this is a bubble I’m doing exactly what I was doing in 2000: I’m not long any tech stocks because I’m expecting a crash. When I’m bullish I like to be in stocks which generate lots of cash flow, have high margins and these are oftentimes software companies. But when I’m bearish, I want to be short – through put-options – stocks where the cash just flies out the door and where the cycles are so extreme that we get the biggest booms to busts. That’s in the semiconductor world and that’s where my focus is. The semiconductor market has topped, and some memory makers are getting hit hard already. Western Digital has gone from over $100 late last year to around $50. Micron Technology is getting hammered as well. I also have put options on Intel and Nvidia . The semiconductor equipment manufacturers are starting to get hit, too. Lam Research went from around $220 to $150 and Applied Materials is getting hit, too.

How bad will it really get? In the past decades, investors could always count on the Fed to step in when things get dicey.

There is going to be a lot of pain unless the Fed comes in and prints a heck of a lot more money. With interest rates still at these low levels, they are not going to be able to lower rates much more. In fact, when they tried to lower rates in 2007/08 it didn’t have any impact. The markets kept plunging so they had to launch quantitative easing. So, this time it’s going to be another round of quantitative easing which will hopefully indicate to the people that the central banks are never going to be able to get us out of this. Money printing never works. If it worked, everybody would have been doing it for 5000 years. A lot of governments have tried it and every time it has failed. All you get is malinvestments, overcapacities, asset bubbles and all these evil things.

So, what should investors do?

Up to the 2000 bubble I was a 100% in tech names. That worked out great because I benefited from the great bull market in the 80s and 90s. But I sold my last tech stock in late 1998 when I realized that this was a bubble. I also realized that the Fed and the other central banks were out of control. I didn’t know how out of control they would get. I don’t think anyone could have imagined that there would be trillions of dollars around the world with negative rates because this never happened before in human history. Also, I would never have imagined of $15 trillion printed around the world. All I knew for sure was that monetary policy was out of control. So, I looked around and asked myself what will do well when the central banks are going crazy? How can I protect my wealth if they are debasing the currencies in order to continue with these bubbles? And of course, historically the best way to protect your money is precious metal.

Gold and especially gold mining stocks had an amazing run in that last decade. But since 2011 gold’s glimmer seems to have faded.

Two factors were responsible for this: growing production and shrinking demand from financial investors. But now, I think the gold market bottomed in December of 2015.

Gold production is going down because many mining companies have slashed their exploration and development. There are no new major mines that have been found and there aren’t many which are being developed. That means supply has started to shrink and it will continue to shrink. On the other side, we had a great disinvestment in gold by US investors who have poured all their money into stocks. But when the stock market declines, as I expect, they are going to do what they usually do: They are going back into gold and demand will increase at the same time as supply is decreasing.

How will this impact the stocks of gold miners?

In the last gold bull market which started in 2001, gold was up 650% but the gold miners were up 17 times. Also, in the first phase of what I consider the new gold bull market which began in 2016, gold went up 30% but mining stocks went up 160%. So, you can see the leverage, especially when these stocks are depressed like today. For me as a contrarian, this is an amazing moment. On one hand, it’s a demoralizing moment like it was in 2000. But at the same time, it’s the most exciting moment since gold is on the cusp of an explosion higher.

All you have to do is to be willing to wait and to be patient for it to happen, but most people are not.

 

7_Key_Storage_Must_Haves_-_Copy.jpg

 

 

Avoid Digital & ETF Gold – Key Gold Storage Must Haves

 

 

 

 

 

News and Commentary

Gold inches up as retreat of bond yields weigh on dollar (Reuters.com)

Rising yields suggests ‘conflicting factors’ over U.S. growth: Fed’s Kaplan (Reuters.com)

Small-business sentiment retreats from 45-year high, NFIB says (MarketWatch.com)

Tech rebound props up Wall Street, but global growth concerns weigh (Reuters.com)

IMF cuts world economic growth forecasts on tariff war, emerging market strains (Reuters.com)


Source: Bloomberg

Investors Yank Record Cash Out of Stock, Real Estate, and Muni ETFs (BloombergQuint.com)

Italy’s bond yields fall after Tria makes Draghi-style pledge (Reuters.com)

Rising Interest Rates Start Popping Bubbles — The End Of This Expansion Is Now In Sight (DollarCollapse.com)

Think You’re Prepared For The Next Crisis? Think Again. (PeakProsperity.com)

Blockchain Tech Coming to Commodity Markets, Blythe Masters Says (Bloomberg.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below


Gold Prices (LBMA AM)

09 Oct: USD 1,187.40, GBP 910.26 & EUR 1,036.01 per ounce
08 Oct: USD 1,194.80, GBP 914.86 & EUR 1,040.67 per ounce
05 Oct: USD 1,201.10, GBP 921.48 & EUR 1,045.08 per ounce
04 Oct: USD 1,199.45, GBP 925.02 & EUR 1,043.28 per ounce
03 Oct: USD 1,203.50, GBP 925.73 & EUR 1,040.55 per ounce
02 Oct: USD 1,192.65, GBP 919.77 & EUR 1,035.46 per ounce

Silver Prices (LBMA)

09 Oct: USD 14.33, GBP 10.98 & EUR 12.51 per ounce
08 Oct: USD 14.47, GBP 11.10 & EUR 12.61 per ounce
05 Oct: USD 14.64, GBP 11.23 & EUR 12.73 per ounce
04 Oct: USD 14.63, GBP 11.27 & EUR 12.72 per ounce
03 Oct: USD 14.74, GBP 11.36 & EUR 12.75 per ounce
02 Oct: USD 14.51, GBP 11.20 & EUR 12.59 per ounce


Recent Market Updates

– Gold Bottoms As Gold Industry Consolidates and Weak Hands Capitulate
– 60 Charts For The (Last Few Remaining) Gold Bulls
– Poland and Australia Buy Gold As Global Property Bubble Bursts – This Week’s Golden Nuggets
– Brexit To Burst Dublin and London Property Bubbles? GoldCore Video
– Perth Mint’s Gold and Silver Bullion Coin Sales Soar In September
– “I’m Favouring Equities and Gold Over Bonds” – Stepek
– Poland Buys Gold For First Time In 20 years
– This Week’s Golden Nuggets – Central Banks, Goldman, Bank of America Positive On Undervalued Gold
– Central Banks Positivity Towards Gold Will Provide Long Term “Support To Gold Prices”
– Europe Unveils “Special Purpose Vehicle” With Russia and China To Bypass SWIFT, Jeopardizing Dollar’s Reserve Status
– Gold Set to Soar Above $1,300 – Goldman and Bank of America
– Goldnomics Podcast: Silver Guru – David Morgan – Silver and Gold Will Protect in the Coming Currency Collapse

Vía Max Keiser https://ift.tt/2yaOJVC