Sunday, February 17th, 2019 MST

ZIRP: zero interest rate policy

The Fed (specifically, FOMC: federal open market committee) has been manipulating interest rates for decades.  David Stockman says since 1973, which was only two years after Nixon “closed the gold window.” With the Treasury no longer having to redeem dollars in gold, massive dollar printing began, first in small amounts (millions) but by 2008 in the trillions.

Another gold recommendation

“Remember how much people loved gold back in 2011? I think it is time to love gold that much again.”  Jared Dillian 1/28/19, The Daily Dirtnap. Dillian’s guesses as to why gold recently topped $1300: *The Fed may back off on reducing its balance sheet, which would mean a looser monetary policy than previously anticipated;

A financial tsunami

There are a lot of reasons for buying gold and silver but none better than the financial tsunami that is about to wash over the federal budget as some 10,000 Baby Boomers turn 65 daily in the United States, swelling the rolls of Americans who depend on Social Security and Medicare. ______________ At some point,

A remarkable feat

Having sold gold and silver for more than 45 years, I’ve had the privilege of doing business with some remarkable people, whose names I’ve not mentioned, keeping their investment decisions private.  But, I have to note what a client did recently. He rode his bicycle — alone — from San Diego, CA to Jacksonville, FL

China: another reason to buy gold

China’s economy has been in decline most of this decade, and President Trump’s tariffs on China’s exports of goods to the US worsens China’s woes.  It’s stock market is down some 30% this year. China’s leaders are embracing standard Keynesian moves to ameliorate the situation, starting first with easier credit and expanded tax cuts.  Basically,

A Game of Chicken

With Wednesday’s increase in the fed funds rate to the 2.25% – 2.5% level, Jay Powell, Fed chairman, challenged President Trump to a game of chicken.  Already Powell looks weak. In his press conference after announcing the rate increase, Powell backed off three rate increases forecast for 2019 to two and included in his statement

New Year’s Promotions – be wary

As 2019 rolls around, advertisements will abound with promotions of 2019-dated gold and silver coins.  Many ads will promote First Release or Early Release gold coins at prices hundreds of dollars above the price of bullion coins.  In truth, First Release and Early Release coins are only bullion coins that have been “slabbed” (put in