Monday, August 22, 2016

West is selling Gold while East is buying them

Gold Rush

We have in the West rumors of Gold market and Silver market manipulation by most likely the Central banks that want to depress the price. And on the other hand the Asian sovereign funds, central banks, individuals are buying Gold. 

And so you have to ask yourself what exactly is the motivation of Western central banks to depress gold prices. Because their interest would be to sell Gold at high prices at possible to the Asians but that is not the case. 

But I think in general we have had over the last 10 - 20 years specially following the Asian crisis of 1997 - 1998 a huge increase in wealth in Asia, in Central Bank reserves, in Sovereign Funds, in Private Wealth, and if you have a billion dollars what is it for you to put $10m, $20m, $30m, $50m in Gold. So the increase in demand for Gold from Asia comes from a population that has become increasingly affluent.

Thursday, August 18, 2016

Gold is cheap compared to amount of the expansion of Fed's balance sheet

The central banks will continue to print money. When I compare the price of gold in the late 1990's, it was below $300 an ounce. Now it is above $1,300 an ounce. But when I compare the expansion of central banks' balance sheets, the global economy, the quantity of money and credit in the world, then I can make a case that actually gold today is cheaper than in the 1990's when I compare it with all the other monetary aggregates. I think people should still own gold.

Wednesday, August 17, 2016

We could see Helicopter Money in the US after elections

I don't think the Fed will move on rates this year. The employment figures are very questionable on whether there was much of an improvement because government jobs went up and seasonal adjustments took place. The economy is not particularly strong and the Fed is also concerned that $12-trillion worth of sovereign bonds in Europe are having a negative yield. If they increase interest rates in the US, then the dollar will become too strong for the liking.

The BoE (Bank of England), Fed, ECB (European Central Bank) and the BoJ (Bank of Japan) are still buying a monthly $180-billion worth of bonds. There is large monetization. It is larger actually than when QE1 (quantitative easing) started in the US. This will go on. 

Not much will happen before the election in terms of moving up rates or initiating new programs in the US. But next year, it is quite likely that we will have further monetary easing or the so called helicopter money.

Tuesday, August 16, 2016

Tesla could face fierce competition in the future and why you might want to diversify your investments

Watch the Marc Faber video above or click here to play

I think we can easily give back five years of capital gains, which would take the market down to around 1,100. The excess liquidity that have been generated by central banks will lead to a great deal of volatility. I've seen, repeatedly in my life, markets drop 40 or 50 percent, and in some cases I've seen a market like the Dow Jones drop 21 percent in one day. So many things can happen.

Monday, August 15, 2016

We are on the Titanic be sure to get your life saving boats ready

In 2000, we had the NASDAQ bubbling. In 2007, we had the housing bubble and the stock market bubble, but not all stocks were very expensive. But now, we have high real estate prices. We have high stock prices in the U.S., not necessarily elsewhere in the world. And we have, by historical standards, the most expensive funds markets in the world in 5,000 years of history with negative interest rates on more than $12 trillion worth of bonds… So if you tell me, something is not fixed, something is not very unusual. I don’t understand the world anymore.

We are all on the Titanic. We all need life saving boats which is precious metals., Gold, Silver, Platinum... physical stored in a safe place, not necessarily in ETF's.... some equities, some fixed interest securities and some real estate geographically diversified.