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The Smart Money is Dumping Stocks
We are getting clear signals from the “smart money” that something bad is looming on the horizon.
The most obvious signal comes from the ultra-wealthy (those worth $20 million or more) who are rapidly moving out of paper assets and into real assets.
For this reason, I want to draw your attention to the fact that the super-wealthy are currently moving their money out of paper assets like stocks and into real assets such as Gold.
The super-rich are looking to protect their wealth through buying record numbers of "Italian job" style gold bars, according to bullion experts.
The number of 12.5kg gold bars being bought by wealthy customers has increased 243pc so far this year, when compared to the same period last year, said Rob Halliday-Stein founder of BullionByPost.
"These gold bars are usually stored in the vaults of central banks and are the same ones you see in the film 'The Italian Job'," added David Cousins, bullion executive from London based ATS Bullion.
The bars which are made from pure gold and are worth more than £300,000 each at today's prices of $1,223 (£760) an ounce.
This is a global phenomenon. Both Russia and China have seen a massive increase in gold bullion purchases. While a percentage of this has been due to the general population (Chinese and Russian consumers are less prone to investing in stocks than their American counterparts) you can safely assume that in countries where 40% and 11% of the populations live off of less than $2 per day respectively, the larger purchases of bullion are driven by the wealthy.
The super rick are also moving into cash.
Billionaires are holding mountains of cash, offering the latest sign that the ultra-wealthy are nervous about putting more money into today's markets.
According to the new Billionaire Census from Wealth-X and UBS, the world's billionaires are holding an average of $600 million in cash each—greater than the gross domestic product of Dominica. That marks a jump of $60 million from a year ago and translates into billionaires' holding an average of 19 percent of their net worth in cash.
Indeed, billionaires' cash holdings far exceed their investments in real estate. Their real-estate holdings average $160 million per billionaire, or about one-fifth of their cash holdings.
http://www.cnbc.com/id/102021996#.
Do not let the above article fool you, some of the super-wealthy are moving out of stocks and into real estate. For this reason, we’re seeing a massive boom in ultra-luxury real estate around the globe.
Finally, the super wealthy’s move into real assets is driving luxury art prices through the roof. Unlike homes or real estate, artwork can be easily stored or moved around. And if you need to park $10+ million into a single item, it’s a relatively easy way of doing it.
The contemporary art market experienced a record-breaking year in 2013/14, smashing through the $2 billion mark for the first time, according to new figures released on Tuesday.
In the year from July 2013, sales of contemporary art at public auctions reached $2.046 billion dollars, up 40 percent on the previous year, Artprice's annual report said
http://news.yahoo.com/record-breaking-contemporary-art-103321463.html
All of these developments beg the question… what do the super-rich, the so called “smart money” know that we don’t?
The simple answer: that stocks are in an epic bubble and a CRASH is coming.
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Best Regards
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Phoenix Capital Research
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OK, so the uber-wealthy are buying gold. They're buying art works. They're holding real estate. They're holding cash. We got figures for all of these. But we didn't get figures for their stock holdings or purchases.
IMO, the article did not support its premise. The premise of the article is "The Smart Money Is Duming Stocks". Yet not a single statistic was presented that showed what the smart money was doing vis-a-vis stocks. In the last year, the S&P went up by 18%. I'm not sure how that can happen without some big money being put into play. Perhaps some of this is due to buybacks, etc. But the fact remains that investments in gold, real estate, art, and the like does not translate into stock-dumping in a world where the rich get richer by the day.
It's unlikely the dumb money is what turned this market around 300 points today.
These kinds of hype articles wouldn't be so bad if they weren't written by really dumb bunnies.
Once again?
Ah, hell, you all know the drill.
I want to know what happens when TSHF and these super rich putzes scury down to the central storage facility where their gold is supposed to be and find 100 other putzes with the same paper claim to their gold?
LMFAO! Who, in their right mind would store anything in a central bank...much less a bar of gold?
Who is this "super rick" you speak of?
If the govt knows a currency collapse/reset is around the corner, shouldn't they print to infinity and then use the paper money to buy gold etc. Then crash the system and you are holding all the land and gold at the new currency non-inflated rates?
Also be wary of gold as an investment. I purchased a $400 circle of gold and so far it has cost me thousands of dollars! It also led to 2 more perpetualling increasing liabilities that consistantly consume more food by the day.
The most obvious signal comes from the ultra-wealthy (those worth $20 million or more) who are rapidly moving out of paper assets and into real assets.
Where have you been? This has been going on for some time.
"These gold bars are usually stored in the vaults of central banks and are the same ones you see in the film 'The Italian Job',"
Oh, THOSE "Gold Bars" (ie gold leaf covered tungsten.)
The most obvious signal comes from the ultra-wealthy (those worth $20 million or more)
"Ultera-wealthy? Sorry, Fonics. $20 mil is chump change in the world of "super rich" people.
Those gold bars are CB IOU gold bars. The actual bars have been (or are being) shipped off to China.
Smart money dumps at peaks...
http://www.globaldeflationnews.com/introduction-to-the-elliott-wave-prin...
yeah, a crash is coming. just not today, tomorrow or next year. but come it will, no doubt.
I think sooner rather than later. For months the major world currencies have traded in a narrow range as if held in limbo by some great force. This has allowed people to think we were on sound footing as central banks across the world continued to print and pump out money chasing the "ever elusive growth" that always appears to be just around the corner. Recently some currencies have made multi-year highs or lows depending on the match-up .
Because of weak demand for goods and most of this money flowing into intangible investments inflation has not been a major problem, but the seeds for its future growth have been planted everywhere. John Maynard Keynes said By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
While there are not many Bond Vigilantes there are a slew of Currency Vigilantes and they are ready to make their presence known. Weakness in the value of the Yen, Pound, and Euro must not go unnoticed. More on why this may be a signal that currency trading is about to get very wild in the article below. Please note, this may also be sending a signal that the whole system is unstable and the stock market is about to drop like a stone.
http://brucewilds.blogspot.com/2014/09/caution-alert-currencies-may-get-wild.html
Who the hell writes these things - a simple edit would show them rick instead of rich - and all the smart people know to get their money into real assets
Who the fuck listens to this bullshit?
AdvancingTime.
...uh, some average Joe who needs an excuse to overpay for RE? (but, but, it's an investment!! --- lol!)
I've elected to add a lake with a cute Japanese bridge to my nine-hole golf course to accomodate exotic tropical fish and a couple of gators here at the Rancho Warbucks Entertainment and Survival Complex three thousand feet under the San Pedro Mountains in old New Mexico. My father was an Ambassador. That's how I got so smart.
This smart Money.....Is that the same Money that our Children will have to pay for for most of their life? The money that was to trickle down after lossing most of it's purchasing Power? The Cash that the Billionaires hold is what should be curculating so people get jobs, cash to pay off debt........
Don't get me wrong.....If you earn the money it's yours, when you bribe a politician thru a lobby or other means it was theft.
Your talking about Warren Buffet of course?
Supposing someone were to come along and hang all of the thieves and traitors then would the children really have to pay off all the debt?
Do it for the children.
Dup
Let me suggest a novel scenario. We are told that the Fed is expected to begin raising interest rates in mid 2015. But in my opinion, any such rate increase will be so small as to be insignificant. Why? Because we really are in a completely new situation globally. The market for new toys for those who could afford them is saturated. Resources of all kinds are becoming scarce, and therefore expensive given the current income distribution. Stock valuations with PE ratios between 20 and 30 will be considered acceptable given continuing low interest rates. The stock market will correct, but not collapse. The share of government revenue to be applied to debt service will not overwhelm the budget. This is mature capitalism. In order to provide financing for new capital investment in infrastructure, high marginal income taxes will be re-installed. Wealth levies will be considered, expecially for those whose ill-gotten gains derive from Wall Street parasitism.
You wouldn't happen to have any gold or silver you want to sell since things are going to be rosy now do you?
A fool and his (real) money are easily separated.
"The market for new toys for those who could afford them is saturated. " there are always newer new toys to "invest" in and sometimes the more exclusive an item is the better.
For example, Ferrari have limited their output to 7,000 car a year but increased their margin. One in a million world-wide will be able to get a new Ferrari, so if you want to see yourself as a hard drivin one in a million top dude in the US you better get your order in quick.
If you consider the amount of money that has been printed/created out of thin air and subtract that from GDP we are probably already in a recession.
That doesn't mean everybody will stop buying, some people will still be making fortunes.
As Rhett Butler so wisely observed in "Gone with the Wind," there is more money to be made in the collapse of a society than in its construction. With so many powerful people dedicated to its preservation, everything possible will be done to prevent a stock market collapse. The corporate elite, with the cooperation of the Fed have demonstrated that they are able to do this. But that does not mean that the overall economy will improve. The business models of most corporations were constructed based on the assumption of a large and expanding middle class that will be buying their goods and services. But with growing income disparity this is no longer the case. Corporations will have to scramble to adjust their business models to the new conditions.
Gold is good
Silver is better
Latifundia is best
See http://andreswhy.blogspot.com/2014/10/should-you-buy-gold.html
Whoever made the observation about 'Italian Job' bars isn't familiar with the concept of good delivery bars...cuz 12.5 kg = 400 troy ounces. Unless referring to a movie has more sex appeal.
"Italian Job" is more accurate since "good delivery" is highly unlikely.
Equities ARE (or a part of ) real assets!
The problem is that in hyperinflation the companies do not do well.
If one owned Siemens in 1913 and sold in 1951 (after three bouts of German hyperinflation) this company, a monster in it's arena, would have lost 50% of it's values purchasing power. Other equities will likely do worse.
Compared to bonds which lose ALL value equities are better.
Only gold will make you super rick!
Equities are not hard assets. They are real but not hard. Hard assets are things like land, realestate, Gold, Silver. Equities are stock in a company that can dissolve into thin air. Hard assets have a core intrinsic value that will never go completely away.
If you think Gold will make you super rich you should diversify more. There is always the threat of a 'windfall tax' on Gold. If they really wanted to stick it to you they could charge a 75% tax. So that one ounce gold coin that is valued at 10,000 only lands you 2,500 when you go to sell it. You can always sell it on the black market but that is just going to get you cash to make ends meet. Its not like your going to be able to liquidate a million dollars in Gold on a black market in any kind of timely fashion.
The last leg will come within the next 6-8 months I think. The llast gasp will be $10-25,000 per person to give our little freinds another month or so to steal everything down to the living room chandlier. Boy is this going to be the wing ding of all time. Milestones
The Smart Money doesn't tell the Dumb Money, what it is Doing...
I think I read this same story here on ZH a few weeks back.
I think I read this same story on here for years
Italian Job Gold bars. Sounds like the ones they pour led inside and paint over the hole with gold paint. E300,000 is almost $380,000 greenbacks. I'll have to check my gold card account to see if I have enough to buy one of those bars. lol
Italian Job Gold bars. Sounds like the ones they pour led inside and paint over the hole with gold paint. E300,000 is almost $380,000 greenbacks. I'll have to check my gold card account to see if I have enough to buy one of those bars. lol
If they have Balinese dancers on the them; you know they're just fake movie props...
But if you hold onto em, you might get to meet Mark Wahlberg and crew!
Good one Tyler. I have an ad with a picture of Obama on the right,.. and another ad with a picture of a .45 cal pistol advertizing holsters on the left. The suggestion, at first glance at the graphics, is very subliminal. But it makes a point!
Yes, the smart money is moving towards hard assets that they control. I contend the primary reason that inflation has not raised its ugly head to become a major economic issue is because we are pouring such a large percentage of wealth into intangible products or goods. This includes currencies. If faith drops in these intangible "promises" and money suddenly flows into tangible goods seeking a safe haven inflation will soar. Like many of those who study the economy I worry about the massive debt being accumulated by governments and the rate that central banks have expanded the money supply.
The timetable on which economic events unfold is often quite uneven and this supports the possibility of an inflation scenario. A key issue being one of timing. If the price of gas jumps to $8 a gallon overnight do you buy gas and not make your car payment or stop driving the twenty miles to work? Answer, it could be months before your car is repossessed so you buy gas.
It is important to remember that debts can go unpaid and promises be left unfilled. If this happens where does it leave us? Chaos and major disruption would result from such a scenario. As we have seen from the economic crisis of 2008 and following many other unsettling developments legal actions can continue to drag on for years. More in the article below.
http://brucewilds.blogspot.com/2014/04/inflation-seed-of-economic-chaos....
you have it all backwards, dude, sorry. If/when the bond bubble finally bursts, it will be one hell of a deflationary shock. Inflation comes when credit expands by leaps and bounds. But when the bubble bursts, credit gets destroyed!
If you'd given his sad excuse for a "blog" a cursory glance, you'd quickly see he's dead-wrong about most everything.
Nevertheless here he is, still using ZH for more shameless self-promotion. Pitiful.
On this we can agree to disagree. I think when the bond market does crash all hell will break loose and the Mother of all money printing will be unleashed. This will make all past printing look like they were done by a JV team and this will bring about the end game of hyperinflation.
Your totally correct, inflation is going to hit but along side with the market crash of paper assets. We haven't seen anything yet.
Yes but a lot of these moves by the super-rick (sic) are made to preserve 60% to 90% of capital, not to make additional profits, which maybe they have covered in some other accounts.
So if you're of more modest means you may not want to act like you're a super-rick.
"contemporary art" as "investment in real assets"? that's quite a stretch. Talk about squandering money on stuff that for most part is so ugly that I don't want to have it around me anyway, not even at zero cost.
I could not agree more. Something made with crayons and a coloring book is not a store of wealth.
I blew my wad yesterday and bought 5 1-oz silver bars for $18.63 ea.....
The Smart Money is Dumping Stocks. If they say they are doing that, then do the opposite, buy...buy...buy!
but where do the super rich store their cash and bullion? In bank accounts and vaults?
Sorry, but only the top fo the top would be protected if there were bail-ins and a major downward re-valuation of the dollar.
The rest will be Corzined just like any other schmuck who leaves their fiat in the banking system. And I'm very doubtful that certain vault facilities won't also be raided when the time comes. Just like how Ukraine, Libya, etc. have all been "liberated" of their gold stashes.
If these people aren't moving their millions out of the banking system into bullion or land or Ferraris, etc. and holding it in their own possession then I don't think many of them will be saved when the SHTF.