He talked about what’s happened, where things stand now, and what to expect going forward.
David Morgan
Tue, 09/22/2020 – 05:58
The View from our White House/Larry White/9-16-2020
“Whatever; the fact is that gold tends to sustain its value over time. National currencies, eroded by inflation and political manipulation, do not. …… As I say, a rising gold price reflects, above all other things, a loss of trust in the value of fiat currencies, for which there is good reason right now.” – Jeremy Warner, The Telegraph
“The sale [of a large portion of the UK’s gold holdings] was a personal decision by Gordon Brown on the advice of the Treasury mandarins who thought it would make him look “modern” and of course it all came unstuck. It would plague him for the rest of his career and remains one of the great blots on his reputation.” – Robert Pringle, Central Banking
USAGOLD note: We recall that the British government’s argument at the time was that the gold could be swapped for currencies that drew an interest rate. How shortsighted it all seems today. At a time when major currencies are being debased aggressively and Britain is suffering the economic pain of Brexit, how comforting would it be to have that gold sitting in the national vault gathering dust at nearly $2000 per ounce. (Gold, by the way, it sold at under $300 per ounce in 1999.) Robert Pringle is formerly head of public policy for the World Gold Council and founder of the Central Banking Journal.
Related note: If you have an interest in the 1999 UK gold sales, you might find “Britain’s gold sales ‘a reckless act” an engaging read. It includes the complete text of an important speech delivered in the House of Commons at the time by Sir Peter Tapsell – a speech by the way that still rings with clarity today as one of the most eloquent public appeals ever made on the merits of gold ownership for both nation-states and individuals. Reprinted with the permission of the United Kingdom Parliamentary Archives, it also includes comments from other members of Parliament and those of Patricia Hewitt, Economic Secretary to the Treasury.
The post Robert Pringle comments on the Telegraph article – ‘When money dies, gold comes into its own’ first appeared on Today’s top gold news and opinion.
Real Investment Advice/Lance Roberts/9-18-2020
“However, in the midst of the ‘mania,’ things like valuation, revenue, or even viable business models didn’t matter. It was the ‘Fear Of Missing Out,’ which sucked investors into the fray without regard for the underlying risk. Though South Sea Company shares were skyrocketing, the company’s profitability was mediocre at best, despite abundant promises of future growth by company directors.”
USAGOLD note: Sound familiar? There is one major difference between the 1720 South Seas Bubble and today. Only one company’s shares were affected in the 18th-century version. Today hundreds of companies are similarly affected many of them bearing the distinction of zombie companies in the modern parlance. Lance Roberts offers some interesting perspective and background at the link above.
(Click image to enlarge.)
The post Newton, physics and the market bubble first appeared on Today’s top gold news and opinion.
. . . not in stocks but in gold and silver.
Actually, it’s been the right move to buy dips in the metals since 2016. But now the reasons for buying are evident.
* Under the Trump administration, fedgov has exploded the national debt by nearly $7 trillion;
* Fedgov national debt now stands at $26.47 trillion, up from $5.67 trillion in year 2000;
* The Federal Reserve increased its balance sheet to $7 trillion from $4.7 trillion in February. Remember, when the Fed buys assets, it does so with money created out of thin air;
* If Biden becomes the next president, Modern Monetary Theory, which proclaims that government debt does not matter, could come into play;
* Yet if Trump is re-elected, we’ve seen debt rise massively under his administration. Remember, he is often called the King of Debt, meaning that he does not fear debt, and that we can expect more;
* If Biden is elected, the Democrats have promised just about everything to be free: college educations, day care, Medicare for all, debt forgiveness for college loans, not to mention the trillions to be spend on the Green New Deal.
The list is not inclusive but is illustrative of what’s coming.
There’s an old saying in the stock market, and it applies just as well to gold and silver: The trend is your friend. Once a trend gets started, go with it. The trend I’m talking about a continuation of higher precious metals prices fueled by give-away programs, deficit spending, and money creation at the Fed. It will take a disaster to stop these programs. That disaster could be the collapse of the dollar, however far out in the future.
While any purchases made at these levels may see more dips before the metals go higher, still higher prices are in the future.
Now is the time to buy the dips in gold and silver.
The post It’s time to buy the dips. . . first appeared on CMI Gold & Silver.
