Although precious metals, platinum and palladium have never functioned as money. Still, many analysts consider them to be suitable hedges against a decline in the dollar. According to the latest GFMS Platinum & Palladium Survey, palladium has much more favorable fundamentals than platinum.
Europe’s economy remains in the doldrums, and central planners there are hinting at fundamental Keynesian moves to weaken the euro, which, in their thinking, would stimulate growth in the eurozone by making European goods cheaper on the world market and foreign goods more expensive for Europeans.
Jim Sinclair recently predicted $3,200 – $3,500 gold by 2020 and “emancipated gold” hitting $50,000. Because of Sinclair having made some really accurate calls in the past, his prediction caused quite a stir in the gold community. Even Ron Paul commented and gave reasoning why Sinclair’s predication is not preposterous.
As has been noted on this blog over the last three years, physical gold and silver are “moving east,” that is, going to Asia. To further support this position, a Singapore retailer of coins and bars announced the opening a 600-ton silver vault, with capacity to hold $390 million in silver at current prices. This
For years, reports that China’s banking system is at risk mostly have been ignored. Now, though, investors are listening as Chinese officials have admitted to problems in the Chinese banking system and its economy. From March 14’s Financial Times: China warning on defaults sparks fears over growth Bad debts on rise * ‘Lehman moment’ concerns
According to Mark Hamrick, bankrate.com economist, there is an accepted theory by Fed critics that the Fed had JFK killed. The only reason for Hamrick to comment on this is to paint all Fed critics as “whacko birds,” to use a John McCain pejorative. No serious Fed critics, such as former Congressman Ron Paul, his
For most investors, the primary reason for buying gold is to hedge against currency debasement, which, of course, comes about because of excessive money creation by central banks and via fractional reserve banking. At times, gold investors stand alone, even being ridiculed by mainstream investors. Now, though, one of Wall Street’s famed names, Merrill Lynch,
In 5 myths debunked about the Federal Reserve, Bankrate’s Mark Hamrick points out that the Fed is audited by Deloitte Touche Tohmatsu Ltd., using generally accepted accounting principles. Therefore, the Fed is audited. Not so fast. While DTT may audit the Fed, it does not delve into the Fed’s gold holdings. DTT does not randomly
In his 5 myths debunked about the Federal Reserve, Mark Hamrick of Bankrate, asserts that the Fed does not print money. He is correct, but he obfuscates the issue. The Bureau of Printing and Engraving prints the paper dollars that we use for money, but paper dollars (and coins) account for only about three percent
So wrote Gillian Tett in Friday’s Financial Times. Mr. Tett started his piece by noting that Nigeria’s central bank had announced that it would convert almost a 10th of Nigeria’s $43 billion reserves from dollars to renminbi. Tett went on to acknowledge that only 0.01 percent of the world’s central bank reserves are now held