Market Focus: Metals, Minerals, & Mining
- May 23 Marc Faber: Central Banks Should Be Manipulating Gold Higher, Not Lower by FS Staff
- May 23 Are Covert Operations Underway in the Global Currency Wars? by John Butler
- May 22 Asian Gold Premiums Hit New Highs as Europe Urged to Start Aggressive QE by Adrian Ash
- May 21 Fortune Belongs to the Bold by Ryan Jordan
- May 17 When Central Banks Buy Stocks by Clif Droke
- May 17 Gold at Major Inflection Point by Lee Adler
- May 16 Theory of Interest and Prices in Paper Currency Part II (Mechanics) by Keith Weiner
- May 15 Precious Metals Hit 3-Week Lows, ETFs “Could Sell Another 250 Tonnes of Gold” by Ben Traynor
- May 14 Clues to Watch for the End of QE “Infinity” by Lance Roberts
- May 13 The Big Falacy: Silver Trading More Like a Base Metal by Steve St. Angelo
Dr. Marc Faber: Investors Ignore Neglected Assets When They Are Cheap, Like Gold
Jim is pleased to welcome back Marc Faber PhD, of Marc Faber Limited in Hong Kong. Marc and Jim discuss the current state of the gold market and that Marc is buying gold every month, which he is storing in Asia, not Switzerland or the US. Marc also emphasizes the importance of diversification, and how his assets are evenly divided among real estate, stocks, bonds and gold. He also notes that sadly most investors are always chasing performance, forcing them to usually buy high and sell low. While Marc mentions that currently there are more sellers than buyers in gold, he acknowledges that “something isn’t right in the gold market”. Marc and Jim also discuss the current strength of the US dollar.
Ned Schmidt: I Haven’t Been This Optimistic on Gold in the Last Four Years
Jim welcomes back Ned Schmidt CFA, Publisher of The Value View Gold & The Agri-Food Value View Reports. Ned is very optimistic on gold. He also advises investors to ignore Wall Street, as he believes gold is currently funding the “carry trade”. He notes that Chinese imports of gold have doubled from a year ago. Ned also cites three key factors for his optimism. The first is the ratio between gold valuation and the stock market is the best since 2008. Secondly, he believes the bottom in the price of physical gold is in place. Lastly, Ned believes the next Federal Reserve chairperson, widely believed to be Janet Yellen, will make Ben Bernanke look conservative when it comes to money-printing.
Russell Napier: Emerging Markets Faltering, Foretelling Deflation Ahead
Jim welcomes back Russell Napier, Consultant with CLSA Asia-Pacific Markets. Russell makes the case that faltering economic growth in the emerging markets, weaker commodity prices, a falling yen and strengthening dollar are warning signs of a deflationary shock ahead. Russell believes that the rally in developed-world equities will not last much longer as emerging market growth slows. He is bearish on gold shorter term, but bullish longer-term as both structural and cyclical forces turn in gold’s favor. Russell sees the current falling gold price as a sign that the global reflation is failing and we are nearing a deflationary shock.
Jim Puplava’s Big Picture: Game of Thrones - The Dollar vs. Gold
The first Big Picture topic this week is “Game of Thrones - the Dollar vs. Gold”. Jim looks at the massive global currency debasement among central banks, and in that current game the dollar is king. Gold is in the background and not a major player. Jim believes this will not last, but for now the dollar is winning the game. The next topic, “Forget a QE Exit Plan, Serial Money Printing is the Wave of the Future”, Jim notes that 14 central banks around the world have cut interest rates, and are printing money with no exit strategy in sight. He notes that the next Fed Chairperson, widely assumed to be Janet Yellen, will make Ben Bernanke look conservative when it comes to money printing.