China Gold, China’s largest gold conglomerate with primary interests in mining and also refining, is on the hunt for global acquisitions and partnerships and appears to have designs on becoming a kingmaker in the global gold market ... We are witnessing a paradigm shift as gold moves from the West to China and the East. The ramifications of that paradigm shift have yet to be appreciated.
Pensions throughout the western world are in peril due to the pension Ponzi scheme. Powerful forces of both the inflation caused by 100 years of the Federal Reserve debasing the dollar and a possible deflationary crisis due to massive levels of debt globally will be a double whammy which will hit traditional investments such as stocks, property and bonds. Without an allocation to gold, you are not going to have a comfortable retirement ?
The situation in Ukraine and Iraq have gone from bad to worse. There is the potential for a wider Middle East conflict as the region remains a ‘powder keg.’ Iraq may be the match that sees the region explode into chaos and war - with attendant effects on global oil prices and the global economy.
Yesterday, the IMF and World Bank issued warnings about rising interest rates, housing crashes and the global economy. The World Bank’s chief economist is inadvertantly offering important advice to investors and savers when he said that "now is the time to prepare for the next crisis ..."
In order to back the dollars now in circulation and on deposit -- about $2.7 trillion -- with the approximately 261 million ounces of gold believed to be held by the U.S. government, gold prices would have to rise as high as $10,000 an ounce. Who said gold is not money?
Bail-ins or deposit confiscation can now be used in the UK, EU, U.S. and G20 countries. Investors and savers best get prepared for the coming bail-in era.After Cyprus, which country will be the next to suffer bail-ins?
Der Spiegel deemed it was the “end of capitalism”, while Die Welt described Mr Draghi as Europe’s Bismarck and as a near autocrat beyond control. Throughout history, currency debasement has been the easy option for emperors, kings, queens and governments. It is the easy option of central banks and of Goldman's Draghi today.
Gold surged 1.6% in euros to €928/oz after the historic ECB announcement to adopt negative interest rates. Cheap money, financial repression and currency debasement are classic recipes for short term financial and economic gains. Throughout history, they have been the easy options for emperors, kings, queens and governments. They are the easy option for the ECB and central banks today.
Topics discussed in the interview were - China and Russia’s gold hoarding - - Do not trust government ‘headline inflation’ - Importance of owning physical gold internationally - Likelihood of bank bail-ins in G20 countries - Cyprus bail-in did not hurt Russians; Hurt Cypriot savers - You have to be prepared ... Better to be a year early than a day late
We have long warned of the vulnerability of having all your investments and savings in electronic format. The nature of our modern financial and banking system exposes investors and savers to new risks that were not there a generation ago. Prudent diversification today, involves owning some actual physical gold and silver coins and bars in your possession or in allocated, segregated accounts that can be taken delivery of with a phone call.
June is seasonally a poor month for gold and technical damage means gold could be manipulated lower again before half year end ... As one astute commentator said on Twitter this week, being able to acquire cheaper gold given the state of the world today is "like being given discounts on life-rafts on the Titanic ... "
Financial expert, Pentagon insider and bestselling author James Rickards has warned that “typical investors” may not be able to acquire physical gold when prices begin to surge hundreds of dollars a day as “massive shortages” will take place. In another fascinating interview,, Rickards said that gold will become the preserve of the “big guy” in the form of sovereign wealth funds and central banks.
"For us (Russia and China) it is important to deposit those (gold and currency reserves) in a rational and secure way," Putin said. "And we together need to think of how to do that keeping in mind the uneasy situation in the global economy."
With China's push for an international physical exchange, physical demand will begin to have a stronger influence, thereby ending gold manipulation. This will allow gold to rise to a more appropriate price given the scale of macroeconomic, systemic, geo-political and monetary risks of today.
China and Russia signed an historic agreement in Shanghai this week - the ramifications of which have yet to be appreciated ... Reserve currency status does not last forever. Empires rise and fall. The world is constantly changing and evolving.Nothing lasts forever …
