Author: Gold News Club

BloombergOpinion/Noah Smith/6-29-2020

“If capital begins to abandon the U.S. and the dollar in large amounts, the currency will crash and Americans will find themselves paying much more for everything from cars to televisions to gasoline to imported food. Interest rates will be raised in an attempt to lure back investment capital, and the country might undergo a period of stagflation worse than the 1970s. Large-scale unrest would undoubtedly result and — in the worst-case scenario — the U.S. could collapse like Venezuela.”

USAGOLD note:  Smith starts this opinion piece with the idea that the United States is already in a decline but that it has occurred slowly, barely noticed.  He ends with the assessment posted above.

New York Sun/Editorial/7-2-2020

“Talk about an ideological coup. This was the real thing. Fiat money meant there was no fixed value to the dollar, neither in gold nor silver. If one were to present a piece of Federal Reserve scrip — a sawbuck, say — at the Treasury, one could exchange it for neither gold nor silver but for merely more scrip, maybe ten singles, or slugs that, owing to the Coinage Act of 1965, are made of base metal dolled up to look like silver or copper.”

USAGOLD note:  Every once in awhile the New York Sun publishes a gem of an editorial on monetary economics.  Most simultaneously embrace and transcend party politics.  The link above takes you to the latest …… Bad money drives good into hiding, as Gresham taught us and Ed Stein so effectively illustrated in the cartoon above.

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Reuters/Svea Herbst-Bayliss

“More hedge funds went out of business during the first three months of 2020 than at any other time since 2015 as the coronavirus led to heavy losses and investors pulled out billions in assets.”

USAGOLD note:  Huh?  Didn’t the stock market just wind up the best quarter in years? Looks like some folks didn’t get the memo.

Repost from 7-2-2020

321Gold/Stewart Thomson

• What about inflation? Well, money printing inflates what it is aimed at. If money is electronically printed and poured into stock, bond, and real estate markets, that’s what gets inflated.
• As the rich versus poor net worth and income spreads widen dramatically, social unrest usually begins, and of course that’s in play now on the streets of America.
• The government will eventually demand the Fed aim much more of its printed money at Main Street, rather than just at the rich. That’s when serious inflation can happen.

USAGOLD note:  The latest bullet points from Stewart Thomson at the link above …… We would add gold to that first bullet.  It can benefit from asset inflation too as it did post-2008 (and some say it is now).

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Repost from 7-1-2020

In June, gold-backed ETFs recorded their seventh consecutive month of positive flows, adding 104 tons – equivalent to US $5.6 billion or 2.7% of assets under management.

This brought 1^st half global net inflows to 734 tons, significantly above the highest level of annual inflows, both in tonnage terms (646 tons in 2009) and US-dollar value (US $23 billion in 2016).

To put this strength of demand into context, 1^st half inflows are also significantly higher than the multi-decade record level of central bank net purchases seen in 2018 and 2019 and could absorb about 45% of global gold production for the 1^st half of 2020.

See our Gold Specials Page for some really good values.

Brazilian court orders 20,000 gold miners removed from Yanomami Park  Mongabay.com