Bloomberg/Nathan Crooks/12-8-2020

“As for bitcoin relative to gold, I have a strong preference for holding those things which central banks are going to want to hold and exchange value in when they are trying to transact.”

USAGOLD note: How many ultimately see bitcoin as a store of value? How many, despite all the hoopla, as just another speculative investment? Dalio worries about America facing an “internal and/or external existential conflict” between now and the 2024 election – one of several interesting points made in this must-read interview. Under such circumstances, Dalio makes no bones about which of the two is likely to be the preferred asset of last resort.

The post Ray Dalio says flood of money unlikely to recede, asset prices will soar first appeared on Today’s top gold news and opinion.

CNBC/Hugh Son and Dawn Giel/12-8-2020

“The yield on the 10-year Treasury was last at just 0.9% and has stayed below 1% since breaking below that threshold during the March pandemic collapse in stocks. Since bond prices must move inversely to yields, people like Dimon see little room for Treasurys to rally with rates already at such low levels.”

USAGOLD note:  Difficult to understand why anyone would buy a yield instrument that simply does not yield a thing after inflation – except of course if you were speculating rates might go even lower. The last safe haven left standing in the zero rate environment looks to be gold – the one asset that is not simultaneously someone else’s liability.

The post Jamie Dimon on U.S Treasurys: I wouldn’t touch them with a 10-foot pole.” first appeared on Today’s top gold news and opinion.

The Power of Gold Diversification
“Although it is needed in good times, it can be vital when times are difficult.”

This short article begins with reference to a speech by Sir Peter Tapsell on the merits of gold ownership before the House of Commons in 1999. The occasion was Britain’s proposed sale of over half of its gold reserves at under $300 per ounce. It ends by comparing the performance of two investment portfolios from the time of that speech to present. One portfolio – the more successful of the two – included a diversification with gold; the other did not. Sir Tapsell, who passed away in 2018, lived to see his defense of gold vindicated. Though his argument before the House of Commons failed to stop the sales, it goes down as one of the most eloquent appeals ever made on the merits of gold ownership for nation-states and individuals alike.

[LINK]

---

Ready to move from education to action?
ORDER DESK: 1-800-869-5115 x100/orderdesk@usagold.com
ONLINE ORDER DESK-24/7

Important! – Gold’s Century: While stocks dominated headlines, gold quietly performed

The post https://www.usagold.com/cpmforum/2020/12/powergolddiversification/ first appeared on Today’s top gold news and opinion.

Investment Research Dynamics/Dave Kranzler

“The appointment of Janet Yellen as Treasury Secretary fully removes the ‘Chinese Wall’ that is supposed to separate the Fed and the Government. I believe her appointment signals a decision to transition monetary policy into the unfettered implementation of ‘Modern Monetary Theory.’”

USAGOLD note:  An interesting read on the new Biden government’s economic policy, Kranzler sees the “merger” as working to “fund a late portion of “the coming bond issuance or risk a rapid escalation in interest rates, especially at the longer end of the curve.” This, he says, is “MMT in a nutshell” and “exceedingly bullish for the precious metals sector.” It will not be long until gold investors – especially the old guard – begin to think about this sort of thing. Judging from the strong run of business at USAGOLD since the election, it seems the process has already begun.

---

Repost from 12-4-2020

The post Bullish for gold: Yellen’s appointment merges Treasury and Fed first appeared on Today’s top gold news and opinion.

Seeking Alpha/Lyn Alden Schwartzer

In my October 2, 2019 article, “The Most Crowded Trade“, I said to look for a weaker dollar in 2020, and also stated that the Fed would likely start expanding its balance sheet by buying Treasuries in 2020 or perhaps as early as that quarter in 2019 due to oversupply. Days later, the Fed indeed announced that they will begin buying Treasuries, and as of this writing well over a year later, they haven’t stopped.

Here’s the dollar index since my October article, having fallen from about 99 to 92:

Chart courtesy of TradingEconomics.com

Going forward over the next 3-5 years, I still expect many currencies including the dollar to continue to devalue vs hard assets, and for the dollar to probably be among the weaker major currencies during that timeframe (with occasional counter-rallies against that trend, as is natural).” [Emphasis added.]

USAGOLD note:  The rest of Schwartzer’s article is worth the visit at the link above.

---

Repost from 12-7-2020

The post The dollar’s place in the world is shifting over time first appeared on Today’s top gold news and opinion.

SC gold mine draws scrutiny — again. Toxic waste violations found at lab, state says  The State