John Rubino: The Silver Bull Market Will Be Totally Spectacular

The case for owning precious metals is easy to make, especially silver. According to financial writer John Rubino, it now takes 100 ounces of silver to equal the value of 1 ounce of gold. That’s a near record of 100 to 1 silver/gold ratio. 

Rubino contends, “The silver/gold ratio says silver is clearly a buy based on historical trends and the relationship between gold and silver.

You would expect silver going forward to outperform gold, and you would expect gold to go up as well.

This is now a bull market, and they will both go up, but silver will outperform gold.

There is just so much more debt in the world, and there is so much more of a need for safe haven assets that you would expect silver to blow right through its previous high levels. 

This time around, it could be totally spectacular with what happens with silver. There is going to come a time when everyone will want to talk about silver, but that day is not yet.”

- Source, USA Watchdog

Peter Schiff: Buy Gold and Silver Now before It’s Too Late

Money printing by the Fed and Congress is off the charts. This is why money manager Peter Schiff thinks precious metals are a no-brainer investment. 

Schiff says, “It’s not that gold is gaining in value, it’s that fiat currencies are all losing value. 

Gold is the one stable factor. It’s the one thing governments can’t create out of thin air. Every currency in the world, except the dollar, are hitting new record lows against gold. You need more Euros, Rands or Aussie dollars to buy an ounce of gold.

The U.S. dollar is losing value more slowly, but this is going to change. We are going to win the race to the bottom.

People need to convert their dollars now into gold or silver. If you think the price of gold is going up now, wait til the dollar is the weakest of the currencies.

That’s going to accelerate the appreciation of gold and that’s going to put gold in the spotlight as the replacement to the U.S. dollar as the main reserve asset for global central banks.”

- Source, USA Watchdog

Two French kids reportedly discover gold bars worth over $100,000 during lockdown

Two French kids reportedly stumbled upon more than $100,000 worth of gold while they were in coronavirus lockdown.

According to local media, the children — both around 10 years old — made the discovery when their family went to stay with an older relative in the French town of Vendome after lockdown measures were enforced in March.

A few days after their arrival, they decided to build a fort, BFM TV reported, which led them to search for objects they could use around the house. During the search, the children found the two gold bars wrapped up in old sheets.

Until he saw the bars, the children’s father thought they had found his mother’s antique knife holders, according to BFM.

But when he saw the bars, which weighed around a kilogram each, he contacted local auctioneers who confirmed that they were gold bullion.

The bars are set to be auctioned off at Rouillac auction house in Vendome on June 16. Reportedly worth just over 100,000 euros ($108,979) combined, the bars are estimated to fetch at least 80,000 euros at auction.

Philippe Rouillac, an auctioneer at the organization, told BFM the bars had been bought by the children’s grandmother in 1967 but had been lost since then.

“We are going to wait for gold prices to rise a little more,” he said. He added that at the start of 2020, each bar would be worth around 43,000 euros, but by June, their value could rise to 54,000 euros.

- Source, CNBC

The 2020 In Gold We Trust Report: The Dawning of a Golden Decade

Only a few weeks after publishing last year’s Report we surpassed the resistance zone of around 1360 and gold entered a new phase of the bull market. 

We can expect new all-time high, also in US dollar terms. Looking at more recent days, we see that gold did exactly what it was supposed to do and served as the solid rock during the turbulent times of the corona-crisis.

- Source, In Gold We Trust

Phase 2 Of The China Trade Deal, Weaken China, Rework Supply Chains

Todays interview is with Bob Kudla. The interview starts off with Bob discussing the economy, that it will recover but it will take some time. 

China trade deal might not happen but because of the event the Chinese supply chains are being looked at and reworked. China is now weakened. Gold and silver are ready to move.

- Source, X22 Report

Is a Credit Crisis Looming? The Corona Correction

Roger Hirst and John Dioufas, Refinitiv’s Director of Macro & Economics, talk about the impact of coronavirus across global credit markets. Is a credit crisis on the horizon?

- Source, Real Vision

Globalists Supply Chains Broken, China Weakened, US Economy Positioned For Growth, Gold Next

Today Interview is with Lior Gantz of Wealth Research Group, Lior talks about how people are coping with the event and how his country is opening up for business. 

Lior the talks about the economy and how China's supply chains are now broken the economy has been weakened. The US is positioned to grow and gold is ready to take off.

- Source, X22 Report

Bo Polny: The Coming Gold Rush Will Be Epic, Like Never Before Seen

Cycle expert and financial analyst BoPolny thinks the stock market will have another leg down to “around 15,000 on the DOW, if not lower, by June of 2021.” 

Polny also says, “The markets are finished. We have only seen the start of a recession, and the next thing coming is a worldwide depression. So, what we have seen in the markets is only a warmup. 

We are in a recession going into a depression. This is the third seal of revelation which is a rebalancing of the financial system as we know it. 

The rebalancing specifically relates to gold, silver and paper. The world has been using a paper based monetary system that is, in essence, backed by nothing. 

You might want to say it is backed by good faith and confidence, but I don’t see much faith and confidence in this world anymore. We are going to have a gold rush, and it is going to be epic.”

- Source, USA Watchdog

Robert Kiyosaki: Recession or Depression? What Will be the Winners and the Losers?

Author and Businessman Robert Kiyosaki and I discuss the upcoming financial crisis and how we might prepare.

- Source, Walk the World

5 oz 2011 America the Beautiful | Gettysburg National Military Park Silver Coin

Golden Rule Radio: Gold Climbs As Another Stimulus Package On The Way

This week we review the price movements of gold, silver, platinum, and palladium as news of even more money printing and stimulus packages continues. 

With another $3 trillion bill in the works and quarter 2 numbers just a few months away, how will the market crisis react to these unprecedented monetary actions & how can the precious metals investor be prepared?

- Source, Golden Rule Radio

1.5 oz 2015 Canadian Polar Bear and Cub Silver Coin

Global Economic Depression And Why Another $500 Surge In The Price Of Gold Will Surprise Investors

During the Great Depression, stocks lost 90 percent of their value, people lost savings and jobs. Today there are a record 33 million jobless Americans, double the 15 million jobless in the Thirties or 25 percent of the population then. And today, there are long food lines that rival those of the Great Depression. Yet looking at the stock market and its robust snapback rally, the juxtaposition between the comeback and an economy in freefall is contradictory. Of interest is that at the onset of the Great Depression, stocks actually rallied 50 percent, before losing 90 percent of their value three years later. And, looking for clues about the future from the bond market is futile given the Fed’s dominant presence. While there are similarities, they are differences.

Yet few are putting forward the consequences of the inexorable rise in debt to save the world and fewer are looking at a “never normal” future.

As the world spirals into the worst crisis since the Great Depression, the Fed and Congress have bailed out everyone and everything in conjunction with a “whatever it takes” fiscal policy to keep the economy from seizing up. Desperate times call for desperate measures. However, the grievous economic costs keep piling up. Indeed the economy has rightly been considered “essential”, and to “flatten” the curve, the cure might kill the patient. To replace their zombie economies, the world’s central banks have injected trillions of bridge financing to replace the fallout in demand. In the United States, because of the escalating cost, they are set to borrow a record $4.5 trillion, with much of the debt monetized through the printing press. The Fed has not only pledged to buy more government debt but also riskier high yield corporate debt in a move to drive rates lower and save America’s economy. However, in opening the flood gates, the extraordinary multitrillion dollar bailouts estimated at 15 percent of GDP, eclipses World War II levels. Worse, the trillions are meant to buy time, but the lack of a treatment or a vaccine means that the virus could outlast the bailouts.

Misplaced Optimism

The robust fiscal response has seen a rebound in stocks on optimistic hopes of a V-shaped recovery although much of the economy is repressed by the countrywide lockdown. Everyone wants to go back to normal. However, in the longer term are economic, financial and social consequences and worries. Even before the pandemic, debt at $25 trillion was at near record levels. Still to come is the red ink hangover from contagious corporate defaults, real estate implosions and bailouts.

On average the government borrows about 2 percent of GDP each year, however the Congressional Budget Office projects a $4 trillion budgetary deficit even before the fourth relief bailout package, on pace to eclipse the biggest shortfall in US history. Fed borrowings alone could be as high as 10 times equivalent to more than 20 percent of the size of the US economy but manageable because of record low rates. The IMF has estimated that US public sector debt will grow exponentially from 5.8 percent of national income to 15.4 percent this year and net public debt alone will rise from 85 percent to 107 percent, exceeding the level in 1986. They are not alone. France, the UK and Spain will also have debt at more than 100 percent GDP. The amounts are staggering and larger than the economic output of most countries, eclipsing soon the expenditures of the last war. Debt is growing faster than the economy, and that is just for this year, raising the spectre of a new form of contagion…

- Source, King World News

Michael Pento: How to Know the Perfect Time to Invest in Gold

Master portfolio hedging strategist Michael Pento returns to Reluctant Preppers to weigh in on the tumultuous times we are weathering. 

Michael calls out the corner the central banks have painted us into, dooming the lower class to dependency, eviscerating the middle class, and skimming off unprecedented spoils for the elite. Michael further outlines the successful strategy he follows to thrive despite the volatility, and gives us some cogent insight on why the banks know well that cash and gold impose a check and balance to their otherwise unbridled dominance over the rights and financial well-being of ordinary people, and guidance on what we can do now to protect our futures.

- Source, Reluctant Preppers

Mike Maloney: China's Nuclear Option and Bitcoin Halving

The economic war between USA and China is heating up, with both sides now openly discussing the use of the ‘nuclear option’ - join Mike as he explains what it is, how it works, and how most pundits don’t realize they’ve been wrong on this for quite some time. Mike also addresses the recent questions about the upcoming Bitcoin halving.

- Source, Gold Silver

Golden Rule Radio: What The Fundamentals Are Showing Gold Investors Right Now

Gold & silver market update where we look at the price action of gold, silver, platinum, palladium, the DOW, and S&P500 over the last week. 

Learn what the fundamentals are showing gold investors right now. 

We also explore the question: Is this the calm before the next big market storm? 

Are we in between the next set of volatile market movements stemming from the current market conditions?

- Source, Golden Rule Radio

A Lot More Bankruptcies In The Next 3-6 Months Despite US Stock Market Rally?

During this 25+ minute interview, Jason asks Peter if he thinks the bear market in US stocks that started in February 2020 is over? 

Peter talks about why he thinks that stocks have rallied but that there will probably be a lot more bankruptcies in the real economy in the next 3-6 months. 

Jason and Peter talk about how many casual sit down restaurants cannot make a profit with social distancing and politicians forcing restaurants to open at only 20% to 30% total capacity.

Jason also asks Peter about the Dollar, the amount of borrowing that the US Treasury will need to do and the Fed balance sheet. Will this much borrowing collapse the Dollar?

- Source, Wall St for Main St

Hedge Funds Bet on Gold as Refuge from Unfettered Currency Printing

Some of the largest hedge funds are raising their bets on gold, forecasting that central banks' unprecedented responses to the coronavirus crisis will lead to devaluations of major currencies.

Paul Singer's Elliott Management, Andrew Law's Caxton Associates, and Danny Yong's Dymon Asia Capital are all bullish on the yellow metal, which has risen around 12 percent this year. They are wagering that moves to loosen monetary policy and even directly finance government spending, intended to limit the economic damage from the virus, will debase fiat currencies and provide a further boost to gold.

"Gold is a hedge against unfettered fiat currency printing," said Mr Yong, founding partner at Dymon Asia, which is up 36 percent this year, helped by its bet on the gold price.

New York-based Elliott, which manages around $40 billion in assets, told its investors last month that gold is "one of the most undervalued" assets available and that its fair value was "multiples of its current price."

In a letter, Elliott cited the "fanatical debasement of money by all the world's central banks" as well as low interest rates and disruption to mining caused by coronavirus. Profits from gold positions helped the hedge fund to a gain of about 2 percent in the first quarter...

- Source, GATA

Chain Reaction: Is the Banking Crisis About To Expand?

To show why deflation comes first and why hyperinflation then becomes a distinct possibility, Mike compares US tax receipts to the Wilshire 5000 Index. 

What is immediately apparent is the high correlation between them, until recently. It takes two consecutive quarters of falling economic activity to officially declare a recession, but it’s clear we’ve entered one now. 

This is the deflation. As Mike explains, the reason high or hyperinflation is in the cards is because the falling tax revenue causes the deficit to explode. 

And how does a government typically cover its deficits in that scenario? They run the printing press! (Or more accurately, enter digits into a computer). 

This has occurred many times before in history. One effect of all this fallout could be bank bailouts, bail-ins, or even a bank holiday. Hear how much cash Mike keeps handy in case those events come to pass. 

Enjoy Mike reading from his book, a portion that predicted five years ago what it happening now, how it portends what is ahead, and why he believes a wealth transfer is coming.

- Source, Mike Maloney

Ron Paul: Food Crisis Coming, Should We Blame Coronavirus?

Food industry leaders are warning that a huge food crisis is coming, with slaughterhouses closing across the country and the food supply chain badly damaged. 

Politicians will blame this coming crisis on the coronavirus, but their unprecedented "lockdown" policies have disrupted every aspect of the economy. 

Plus - now the World Health Organization is holding Sweden up as a model on how to handle the coronavirus? Flip flop?

- Source, Ron Paul

Silver Hasn’t Been This Cheap in 5,000 Years of Human History

More than 4,000 years ago, the city of Kanesh was quickly becoming an important commercial trading hub within the ancient Assyrian Empire.

Kanesh was located in the dead center of modern day Turkey, so it was perfectly situated on the route between the Mediterranean and the Black Sea, and between Europe and Asia Minor.

As a result, Kanesh became a popular trading post. And merchants, scribes, and moneylenders from all over the Assyrian Empire traveled there to profit from the boom in copper, tin, and textiles.

What’s extraordinary about this period of history is how many records remain from those day-to-day transactions.

The Assyrians borrowed the writing system from ancient Mesopotamia and routinely chiseled their commercial trades on clay ‘cuneiform’ tablets.

Tens of thousands of these tablets have been discovered by modern archaeologists, so we have an incredible amount of detail about ancient financial transactions.

For example, one tablet on display at the Met in New York City documents the terms of a loan that originated in Kanesh some time in the 19th century BC.

According to the table, an Assyrian merchant named Ashur-idi loaned 3kg of silver to two traders, with 1/3 of the amount to be repaid in one year’s time.

This was fairly common back then: gold and silver were both used as a medium of exchange in ancient times. But this was before coins existed, so transactions would be settled based on weight.

In ancient Babylonia, for instance (which rose to power after the Assyrian Empire faded), the cuneiform tablets from that era tell us that the price of barley averaged about 17 grams of silver per 100 quarts.

And merchants would use elaborate scales to weigh gold and silver when exchanging their goods.

Gold and silver were also exchangeable for each other. Another tablet from ancient Babylonia during the time of Nebuchadnezzer states that 5 shekels of silver were worth ½ shekel of gold.

(A shekel in ancient times was a unit of weight, equivalent to about 8.33 grams.)

This implies a 10:1 ratio between silver and gold.

We’ve discussed this ratio several times; the gold/silver ratio has existed for thousands of years, and up until the 20th century, it remained within that ancient range of between 10 to 20 units of silver per unit of gold.

In modern times, gold and silver are no longer used as a medium of exchange. But there’s still been a long-standing ratio that has persisted for decades.

One ounce of gold has typically been valued at 50 to 80 ounces of silver. Rarely does the ratio go higher (or lower). And when it has, prices have always corrected.

As of this morning the ratio is 112, meaning it now takes 112 ounces of silver to buy one ounce of gold; and today’s level is spitting distance from the ratio’s all-time high of 120, which it reached last month.

And when I say “all-time high,” I mean it. Ancient cuneiform tablets prove that silver has never been so cheap relative to gold in literally thousands of years of human history.

If history is any guide, this means that the ratio should eventually narrow, i.e. the price of silver should rise and/or the price of gold should fall, bringing the ratio back to its more normal range.

And there are plenty of ways to potentially make money from this.

The Chicago Mercantile Exchange, for example, offers a financially-settled futures contract for traders to speculate on the Gold/Silver ratio.

But the CME’s gold/silver ratio contract is very thinly traded and difficult to purchase, so it might not be the best approach.

In theory, one way to speculate that the gold/silver ratio will return to historic norms would be to ‘short’ gold contracts and go ‘long’ silver contracts, i.e. speculate that the price of gold will fall while the price of silver will rise.

But, personally, there’s no chance I would bet against gold right now.

I’ve written for the past several weeks that I approach this entire pandemic from a position of ignorance and uncertainty.

EVERY possible scenario is on the table, and no one can say for sure what’s going to happen next.

There are very few things that are clear. But in my view, one thing that has become clear is that western governments will print as much money as it takes to bail everyone out.

According to the Congressional Budget Office, the US federal government will post a $3.6 TRILLION deficit this Fiscal Year due to all the bailouts. Plus the Federal Reserve has already printed $2 trillion.

Frankly I think they’re just getting started.

With this incomprehensible tsunami of government debt and paper money flooding the system, real assets are a historically great bet.

We’ve talked about this before: real assets are things that cannot be engineered by politicians and central banks– assets like productive land, well-managed businesses, and yes, precious metals.

And they all tend to do very well when central banks print tons of money.

Farmland, for example, was one of the best performing assets during the stagflation of the 1970s.

And financial data over the past several decades shows that whenever they print lots of money, the price of gold tends to increase.

Right now, in fact, the price of gold is relatively cheap compared to the current money supply.

And the price of silver is ridiculously cheap compared to gold. Again, silver has never been cheaper in 5,000 years.

This is why I’d rather just own physical silver. I’m not interested in betting against gold because I expect they’ll continue to print money. In fact I’m happy to buy more gold.

And while we cannot be certain about anything, there’s a strong case to be made that the price of silver could soar...

- Source, Simon Black via Silver Bear Cafe