Gold, silver see price gains amid slumping greenback, rising oil Kitco NEWS
Month: April 2021
Categories
Stefan Gleason: The Big Inflation Scam
Tom welcomes Stefan Gleason, president of Money Metals Exchange, to the show. The idea of sound money is something that holds it’s value over time in contrast to fiat currencies. The market has chosen gold and silver over thousands of years as the money that sustains and preserves purchasing power.
They focus on improving public policy at the state level via the Sound Money Defense League. There are more options for improving laws at a state level than at the Federal level, and they have had several successes. To that end, they have created a Sound Money Index that measures differences between states regarding policies like sales taxes. He outlines why sales taxes on investments like bullion is a silly idea.
He discusses how inflation affects capital assets that are often taxed, but there is no actual gain in wealth in most cases. Taxes are one of the great injustices of our system because it slowly destroys wealth. The IRS considers bullion to be collectibles and is taxed higher than other investments, and States typically follow after the Federal policies. They have been able to remove gold and silver from the State income tax in Arizona and Wyoming. They point out to legislatures that taxing metals drives business to other states.
He explains the potential merits of the Texas Depository Systems and why it was setup outside of Wall Street interests.
States and smaller governments often have reporting and holding requirements for small dealers and pawnshops. They are required to upload photos of items along with the information about the seller. This system is very inefficient and a significant burden on the dealers.
He discusses the Federal Reserve System and why pushing for sound money at that level is difficult. They are pressing for audits of America’s gold holdings since these have not been audited in over seventy years. There are concerns regarding the quantity and quality of the metal, and just because the gold is in a vault doesn’t mean the United States has ownership.
Lastly, Stefan gives an overview of Money Metals, their various services, and educational resources.
Time Stamp References:
0:00 – Intro
1:52 – Defining Sound Money
4:10 – Sound Money Index
8:06 – State Taxes on Metals
14:14 – Capital Gains & Inflation
21:27 – Buying across State Lines
26:44 – Texas Depository System
31:14 – Four Areas of Bad Laws
36:26 – Sound Money Scores
40:19 – Federal Progress
46:54 – Monthly Savings Plan
49:35 – Money Metals & Wrap Up
Talking Points From This Episode
- Promoting Sound Money at the state level.
- Purpose of the Sound Money Index
- Inflation & Capital Gains Taxes
- Promoting Sound Money at the Federal Level.
Guest Links:
Twitter: https://twitter.com/MoneyMetals
Website: https://moneymetals.com
Website: https://www.soundmoneydefense.org/
Stefan Gleason is President of Money Metals Exchange, a national precious metals investment company and news service with over 500,000 readers and 250,000 customers. He launched the company while president of a national newsletter publishing company dedicated to helping subscribers protect their freedoms, assets, and privacy.
Gleason founded Money Metals Exchange in 2010 in response to the abusive practices of national advertisers of “rare” coins. These companies often mark up their coins to 50%, 100%, or even higher above their actual melt value. Money Metals believes the average investor should only purchase precious metals at or near their true melt value. The rare coin market is only suitable for highly experienced collectors with money to blow.
Gleason also leads marketing, publishing, and real estate holding companies and legislative projects involving sound money and the precious metals industry. Previously, Gleason served as Vice President of the National Right to Work Legal Defense Foundation in Springfield, Virginia. Gleason is a graduate of the University of Florida with a BA degree in Political Science.
Gleason has frequently appeared on national television shows and networks such as CNN, CNBC, Fox News, Christian Broadcasting Network, and C-SPAN’s Washington Journal. He is often interviewed on national radio shows such as the Lars Larson Show, Michael Reagan Show, G. Gordon Liddy Show, and Ken Hamblin Show. Gleason’s analysis and commentary have appeared in The Wall Street Journal, TheStreet.com, Seeking Alpha, Investing.com, Newsweek, and National Review, among thousands of other national, state, and local newspapers, wire services, and Internet sites.
image credit: flickr
This interview originally appeared on Palisades Gold Radio
Categories
Central Banks May Ramp Up Gold Buying
Ignore what central bankers are saying; instead, watch what they are doing.
While they poo-poo gold or pretend it doesn’t exist, global central banks have been quietly but aggressively accumulating gold bullion for several years now. The Central Bank of Russia, for example, has been a consistent buyer of gold.
Other major central banks have also been acquiring and holding the metal, although some scaled back last year following the pandemic and record-high prices for the metal.
Given more favorable market conditions and greater risks to holding U.S. dollar reserves, central banks may soon ramp up their gold buying again.
The Hungarian Central Bank cited “long-term national and economic policy strategy objectives” for its move.
The central bank also mentioned new risks that have developed as a result of the ongoing Covid-19 pandemic that has shaken the world.
The bank described gold as one of the most crucial reserve assets worldwide.
Central bank gold buying over the last decade helped support the price of gold. The sharp trend higher in central bank purchases did, however, come to a pause last year as record prices and the economic consequences of the global pandemic response took hold.
Central bank acquisitions got off to a slow start in 2021. But as the buying trend is resuming, these financial behemoths will likely become net buyers for the year.
With global central banks not only buying but also holding so much physical gold bullion, it naturally begs the question of why.
There are several reasons that these powerful financial institutions look to add gold to their reserves. These include diversification, stability, and potential price appreciation.
Diversification
It is no secret that gold can add portfolio diversity.
The yellow metal tends to have a negative correlation to stocks, and often moves inversely to the Federal Reserve Note “dollar” index as well. This means that as the value of equity portfolios declines or as dollar-denominated holdings lose value, the price of gold may rise, all or partially offsetting those losses.
Stability
The great J.P. Morgan once stated “Gold is money, everything else is credit.”
In our view, nothing could be more true.
As a reliable store of wealth and value for thousands of years, physical gold has a reputation as a protector of wealth and value.
Unlike fiat, or paper currencies, gold cannot be created out of thin air on a whim. It cannot be manipulated or otherwise messed with to facilitate desired outcomes. The gold market is driven simply by the laws of supply and demand.
The Dutch Central Bank put it well, noting, “A bar of gold always keeps its value. Crisis or not. That gives a safe feeling. The gold holdings of a central bank are therefore a beacon of confidence.”
Price Appreciation
The gold market has come a long way in recent years and may just be getting started on a multiyear bull run higher.
The yellow metal has, since the early 2000s, more than quadrupled in value as measured in Federal Reserve Notes.
Kicking off the 21st Century at around $400 per ounce, the yellow metal has made fresh all-time highs last summer at nearly $2100 per ounce and still trades near or above its all-time highs in virtually all world currencies.
Given the free-wheeling printing press policies of every central bank, there simply is no barrier to sharply higher gold prices.
If the dollar continues to weaken, pushing inflation higher, the price of gold could easily double or more from recent levels – putting $5000 per ounce on the table.
There are obviously many more reasons to own physical gold. The three outlined here are some of the biggest, however, and are primary drivers of central bank buying.
If the biggest, most powerful financial institutions in the world see the value opportunity presented by gold ownership, shouldn’t you?
Through the first six months of fiscal 2021, the US government ran a record $1.7 trillion budget deficit. Federal Reserve Chairman Jerome Powell said this is sustainable – for now. During a webinar sponsored by the Economic Club of Washington DC, Powell said the economy can handle the current debt load. But he did warn […]
The post Blog first appeared on SchiffGold.
Categories
Peter Schiff: Inflation Coming in Hot
Federal Reserve Chairman Jerome Powell keeps telling us not to worry about rising prices, assuring us that any increase in price inflation is “transitory.” It appears most of the mainstream is buying this hook line and sinker. The March CPI number was expected to come in hot due to a much lower baseline. Prices tanked […]
The post Blog first appeared on SchiffGold.
All going up at fast paces far faster than the Consumer Price Index (CPI) is claiming… by Jason Burack of Wall St For Main St Over the last few weeks […]
Categories
Gold’s Low At $1670 – $1680 Will Hold
Silver must rally now for confirmation that something more ominous is not in the cards… by Michael Ballanger via Streetwise Reports When I was a very young boy, schoolchildren were […]
The business closures, mask orders, and stay-at-home orders have made it abundantly clear that governors will enthusiastically embrace emergency orders that last many months… by Ryan McMaken of Mises Institute […]
Since last year, we’ve finally had a break-out in inflation, and yet gold has gone from $2000 to $1750… Marco Roque with Chris Marcus of Arcadia Economics Will surging #inflation […]
Americans are unaware that the low-grade morons from Washington have given an American military guarantee to the neo-nazis installed in Ukraine… by Paul Craig Roberts via PaulCraigRoberts.org One Question Before […]