(Editor note: readers may also be interested in The Causes & Results of Hyperinflation)
Following yesterday’s WGC reports about the role of gold in investment portfolios, this report looks at gold’s performance during inflationary and deflationary times. Gold, non-perishable and limited in supply, is seen as relatively immune to inflation, financial crises and credit default. Topically, periods of negative real interest rates are thought to support the demand for gold, because the opportunity cost of holding gold decreases when real interest rates fall. Weak dollar has also been seen to drive up the price of gold. [Read more...]
June Non-Farms Payroll prints at +80,000 on expectations of +100,000
Unemployment rate 8.2% [Read more...]
Paper pushing, flip/flopping Jim Cramer of Mad Money took a letter tonight from a follower of his show concerning diversifying assets into Gold. With CNBC ratings falling faster than a Pre-FOMC silver smash, perhaps CNBC executives have advised Cramer to seek investment information from legitimate sources such as Zerohedge and SD.
“Alright, Here is one from Schultz in Arizona.”
Question: Jim, How much gold should I hold as a % of my portfolio? [Read more...]
In a move that has slipped under the radar of even the alternative financial media, China celebrated Independence Day by handing the US Dollar’s reserve currency status another severe flesh wound.
China moved Wednesday to make Australia the first G20 nation with the ability to directly convert its currency into Chinese yuan, bypassing the US dollar.
The writing is on the wall for the dollar’s reserve currency status.
Australia is hoping to become the third country in the world to be able to directly convert its currency into Chinese yuan. [Read more...]
Matt Taibbi, Rolling Stone contributing editor, and Dennis Kelleher, president and CEO of Better Markets, analyze the Libor interest rate-rigging scandal engulfing the banking industry with “Viewpoint” host Eliot Spitzer. Like TF stated in our interview this week- ‘ALL MARKETS ARE MANIPULATED! LIBOR is Manipulated, & Silver Isn’t? Are You Kidding Me?‘
Taibbi states: ‘LIBOR is like the sun at the center of the financial universe. If they’re monkeying around with LIBOR… this is like finding out the whole world is built on quicksand because LIBOR is in EVERYTHING!!‘
MUST WATCH!! [Read more...]
Yahoo Finance published a bankster’s wet dream Wednesday, reporting on it’s main page that gold and oil were both down 100%.
Every other market (NASDAQ, DOW, 10-year, and EUR/USD) was reported accurately, yet the YF main page lists oil -$87.66, -100%, and gold -$1,621.80, -100%.
Screen shot below: [Read more...]
Bloomberg reports JP Morgan is being investigated over manipulation of the power market.
We’ll refrain for electrical current jokes involving silver.
At this point, what does JP Morgan NOT manipulate?? ALL MARKETS ARE MANIPULATED!!!
JPMorgan Chase & Co. is being investigated over potential power-market manipulation that inflated payments for electricity, according to the U.S. Federal Energy Regulatory Commission.
JPMorgan Chase & Co. (JPM)’s refusal to turn over e-mails in a federal probe of potential energy-market manipulation is the latest challenge for Chief Executive Officer Jamie Dimon as the bank faces multiple investigations. [Read more...]
The ECB refrained from taking rates to negative territory this morning, but the Danish Central Bank has joined today’s global devaluation, becoming the first nation to institute a NIRP (negative interest rate policy), slashing certificate of deposit rates to -0.2%.
It won’t be the last.
QE to Infinity….AND BEYOND!!!
Full release below: [Read more...]
Any guesses on the exact time that the Fed, ECB, and Bank of England gave our favorite TBTF CEO’s the orders to make up their own LIBOR statistics rather than reporting their real borrowing rates?
Perhaps the LIBOR chart will assist you: [Read more...]
Regular SD readers will remember SD contributor SRSrocco’s recent article highlighting Barrick’s 200 million ounce silver problem with it’s Pascua-Lama mine.
Barrick’s problems at Pascua-Lama took a sharp turn for the worse Tuesday, as Argentina’s Supreme Court reversed a lower court ruling suspending an Argentinian glacier protection law.
Silver Wheaton is waiting for their phyzz, and it doesn’t look like a single ounce is coming out of Pascua-Lama anytime soon.
Argentina’s Supreme Court has reversed a lower court ruling that suspended a glacier protection law in mining-friendly San Juan Province, threatening to derail several multi-billion-dollar mining projects. [Read more...]
The cartel raided gold and silver just prior to the COMEX open this morning, as once again (last seen with the $50 gold smash 5 minutes prior to the Swiss National Bank devaluation of the CHF) gold and silver have been smashed counter-intuitively immediately prior to new massive easing.
The Bank of England announced £50 billion in new QE this morning, the ECB slashed rates 25 basis points, even the Peoples Bank of China slashed rates, and GOLD AND SILVER GET HAMMERED! [Read more...]
The ECB has cut the main refinancing rate to record low of 0.75%. Gold dropped sharply immediately following the announcement, but is currently rising again.
Gold is trading at $1603.75/oz. Analysts from Standard Bank in London say that a rate cut implies a lower real interest rate, which ultimately is bullish for gold. Gold’s fundamentals have not changed. [Read more...]
Doc’s Deal Of The Day