Precious Metals

Fast-Food Strike Means Time to Buy Gold

"It’s clear from the stories I read that Burger Nation doesn’t realize the predicament it’s in, nor does it understand the law of unintended consequences. Push on a balloon in one spot, a bulge appears elsewhere … which is to say that the status quo with consumer prices today will not be the status quo tomorrow when wages are $15 an hour. Salaries will go up, but so too will consumer prices, and the spending power of $15 will feel exactly like the spending power of $7 to $10 – and workers will have essentially gone nowhere economically, though America could find herself hamstrung by a new financial crisis — runaway inflation." Continue reading →

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Financial Times Sees “Endless Cycle Of Bubble, Financial Crisis And Currency Collapse”

"It's funny: nearly five years ago, when we first started, and said that the world is doomed to an endless cycle of bubble, financial crisis and currency collapse as long as the Fed is around, most people laughed: after all they had very serious reputations aligned with a broken and terminally disintegrating economic lie. With time some came to agree with our viewpoint, but most of the very serious people continued to laugh. Fast forward to last night when we read, in that very bastion of very serious opinions, the Financial Times, the following sentence: 'The world is doomed to an endless cycle of bubble, financial crisis and currency collapse.'" Continue reading →

Continue ReadingFinancial Times Sees “Endless Cycle Of Bubble, Financial Crisis And Currency Collapse”

Pay me in gold: Romania’s new term as it gets more of Rosia Montana

"One completely new aspect of the agreement between Gabriel and the Romanian government is over payment of the royalty. Romania can opt to be paid in gold bullion, which could be a fair amount of gold in the end, with total delivery measured in tonnes not ounces. The six percent royalty is on gross revenue. Romania can take the equivalent value in gold. As a Gabriel spokesperson put it, 'essentially they can request six percent of the value of our production.' It could - emphasis on could - mean Romania hauls in some 15 tonnes of gold, life of mine. That, in turn, amounts to about 15 percent of Romania's official gold reserves, which are just over 100 tonnes." Continue reading →

Continue ReadingPay me in gold: Romania’s new term as it gets more of Rosia Montana

India gold price at all-time high

"As we have discussed in previous articles, gold is synonymous with savings and security for many of India’s 1.24 billion people and recent events clearly show why. With capital leaving the country, investors fleeing the stock market and dumping Indian bonds, the only asset that has protected capital has been gold. In fact, holders of gold have prospered in an environment where there are few safe assets. The RBI has attempted to make gold ownership difficult and expensive for Indian buyers by restricting imports and increasing taxes, yet the chart below is evidence they have failed in their campaign." Continue reading →

Continue ReadingIndia gold price at all-time high

Indians Who Bought Gold, Won. Those Who Didn’t, Lost.

"The idiot Keynesians who ran the Bank of India destroyed the rupee. In India, fathers buy gold for their daughters’ dowries. They don’t buy rupees. India put a tax on gold imports in a vain attempt to save the rupee. It didn’t work. The government hates it when Indians buy gold. This shows a lack of faith in the government. That lack of faith is well deserved. The government said that Indians who bought gold were making a big mistake. But it turns out that Indians who trusted the government’s rupee made the big mistake. If you think it can’t happen here, you could wind up like all those Indians who have lost a quarter of their wealth in recent months. They believed their government. Silly them." Continue reading →

Continue ReadingIndians Who Bought Gold, Won. Those Who Didn’t, Lost.

Gold’s Protective Power In Action: India’s Ongoing Currency Destruction

"Although the Indian currency has been falling against the dollar for four decades now, it certainly is in an accelerating downtrend lately. The following paragraphs, quotes and charts paint a picture of a country desperately trying to save its economy and currency. The victims of this situation are of course the citizens. In their attempt to run to gold, they are stopped by their own government. How ironic is this situation when looking as an outsider. Did you ask yourself: am I prepared if this situation hits my country? In this global currency war, that just started two years ago and is expected to last till at least 2020, every country will be hit sooner or later. Are you prepared?" Continue reading →

Continue ReadingGold’s Protective Power In Action: India’s Ongoing Currency Destruction

India Bans All Gold Coin Imports, Increases Capital Controls

"Not satisfied with raising import tariffs on gold and putting in place jarring new FX flow capital controls, it seems the war on a weakening Rupee continues. We previously discussed the unintended consequence of such actions - including the rise of the gold smuggler - but the latest total ban on the importation of gold coins and medallions is edging India closer and closer to the Argentinian edge of Cristina Fernandez totalitarianism (after the initial ban on sales in June). In an effort to 'moderate outflows' of Rupee, the Indian central bank slashed the amount of money families can send out of the country per year to $75k and limited overseas investment to 100% of net worth (from 400%)." Continue reading →

Continue ReadingIndia Bans All Gold Coin Imports, Increases Capital Controls

South African labor unrest spreads, gold, construction strikes loom

"Tens of thousands of construction workers prepared to down tools next week and unions in the gold sector also signaled their intention to call a strike over wages. NUM represents about 64 percent of the roughly 140,000 miners in the South African gold industry, where major operators include AngloGold Ashanti, Gold Fields, Harmony and Sibanye Gold. Seshoka also announced that NUM's 90,000 members in the construction industry would go on strike from Monday. South Africa's faltering economy is already losing an estimated $60 million a day to a strike by 30,000 workers in the car manufacturing sector that accounts for 6 percent of gross domestic product." Continue reading →

Continue ReadingSouth African labor unrest spreads, gold, construction strikes loom

Paulson Offsets Gold Bullion ETF Sale with Gold Swaps

"Hedge fund manager and gold bull John Paulson made headlines this week after regulatory filings revealed he cut his stake in the largest bullion-backed ETF by more than half in the second quarter. However, Paulson offset much of the sale by buying gold swaps in the over-the-counter market, the Financial Times reports, sourcing a person familiar with the matter. 'Paulson & Co.’s decision to shift a chunk of its gold holdings out of the ETF and into the OTC market reflects the relative costs of the two,' the FT reports. GLD charges an expense ratio of 0.40%." Continue reading →

Continue ReadingPaulson Offsets Gold Bullion ETF Sale with Gold Swaps