Why The Price Of Silver Could Skyrocket
.Why The Price Of Silver Could Skyrocket
Notes From The Field By Simon Black
April 13, 2020 Bahia Beach, Puerto Rico
By the mid-6th century BC, Darius the Great was ‘King of Kings’, ruling over the vast Achaemenid Empire.
By that time, gold and silver had already been in use by earlier civilizations for thousands of years.
There are cuneiform tablets that are nearly 4,000 years old from ancient Sumeria which record commercial transactions made in gold and silver.
And subsequent civilizations-- the Babylonians, Egyptians, Lydians, etc. all used gold or silver in commerce.
But Darius had a unique idea.
He borrowed the idea of minting gold and silver coins from the Lydians… but then established a fixed exchange rate between the two metals.
Darius decreed that one gold “daric” was worth 13.5 silver coins-- one of the first examples in history of a fixed, bimetallic standard.
His idea caught on. And for thousands of year afterward, later civilizations established a fixed gold/silver ratio.
The Most Important Insurance We Never Buy
.The Most Important Insurance We Never Buy
By Len Penzo
It’s ironic, but bankers and fiscally irresponsible governments despise gold and silver. Why? Because precious metals demand accountability, that’s why.
In short, gold-backed currencies force responsible governments to live within their means.
That is precisely why, back in 1971, Richard Nixon was forced to nullify the Bretton Woods agreement, which was signed at the end of World War II, and permanently close the gold window.
As you might expect, Nixon felt he had no choice. The US had been living well beyond its means for more than a decade, printing lots of federal reserve notes to pay for expensive endeavors the country couldn’t truly afford, like the Vietnam War and LBJ’s so-called “War on Poverty.”
That, in turn, led to an increasingly devalued US dollar. So, in order to preserve their wealth, many of the world’s central banks — led by West Germany, France and Switzerland — began redeeming their rapidly depreciating US dollars for the gold stored in Fort Knox; so much so that by the time 1971 rolled around, America had only half the gold reserves it did in 1960.
If You Think It’s Too Late, Think Again. There’s Still Time
.If You Think It’s Too Late, Think Again. There’s Still Time
Notes From The Field By Simon Black
March 23, 2020 Bali, Indonesia
[Editor’s note: This letter was written by Tim Staermose, Sovereign Man’s Chief Investment Strategist and Editor of the 4th Pillar newsletter.]
I’m writing from my remote rural villa in Southern Bali. I made a mad dash to get back here from Hong Kong before the borders effectively shut to visitors, and airlines cancelled virtually all flights.
Nearly a quarter of a million tourists and other temporary visitors have left Bali in February and March, and no one has come in to replace them.
Up to 80% of the island’s economy relies directly or indirectly on the tourist trade. So, it’s going to be very hard for most people here to make ends meet for as long this coronavirus pandemic, and the extreme government measures instituted to try and deal with it, last.
Payments Panic And The Ending Of Fiat Currencies
.Payments Panic And The Ending Of Fiat Currencies
By Alasdair Macleod Goldmoney Insights March 19, 2020
The unilateral response from governments to the coronavirus is to helicopter money to people and their businesses in unlimited quantities. Their priority is to keep the debt-driven Keynesian show on the road, and policy makers are approaching the task with unseemly gusto.
There was evidence that the credit cycle was already on the turn with the global economy entering its regular period of financial and economic crisis even before the coronavirus hit.
Thinking it is only a matter of dealing with the pandemic before returning to normal is therefore a common and fatal mistake. The combination of current events is leading to an infinite problem: central banks, and the Fed in particular, are trying to backstop everything and they will undoubtedly fail.
The central issue is the dawning inability of the Fed, in charge of the world’s reserve currency, to keep financial markets under control. The quantities of money required to rescue the US economy and dollar-centric supply chains abroad are potentially far greater than anyone realises and will destroy not just the dollar, but the whole fiat money system of rigged financial markets upon which debt financing depends. The EU is in a similar but more parochial fix with the addition of a banking system visibly on the verge of collapse.
The timescale for the demise of unsound fiat currencies is likely to be very short, by the end of 2020 – exactly three centuries since a similar fiat currency experiment failed in John Law’s Mississippi bubble.
Will COVID-19 Lead To A Gold Standard?
.Will COVID-19 Lead To A Gold Standard?
By Alasdair MacleodGoldmoney Insights February 20, 2020
Even before the coronavirus sprang upon an unprepared China the credit cycle was tipping the world into recession. The coronavirus makes an existing situation immeasurably worse, shutting down China and disrupting global supply chains to the point where large swathes of global production simply cease.
The crisis is likely to be a wake-up call for complacent investors, who are content to buy benchmark bonds issued by bankrupt governments at wildly excessive prices. A recession turned by the coronavirus into a fathomless slump will lead to a synchronised explosion of debt issuance for which there are no genuine buyers and can only be monetised.
The adjustment to reality will be catastrophic for government finances, and their currencies. This article explains why the collapse in overpriced financial assets and fiat currencies is likely to be rapid, perhaps giving ordinary people in some jurisdictions an early prospect of a return to gold and silver as circulating money.
Price of Physical Gold Decouples From Paper Gold
.Price of Physical Gold Decouples From Paper Gold
By Tyler Durden Sat, 03/14/2020 Submitted by BullionStar.com
In the last month, from 14 February 2020 to 14 March 2020, we have seen a record number of orders, record order revenue and a record number of visits to our newly renovated and extended bullion centre at 45 New Bridge Road in Singapore.
For the above-mentioned period, we have served 2,626 customers with a sales revenue of more than SGD 50 M, which is 477% higher compared to the same period last year.
The last few days have been our busiest days of all time. Our staff members have been doing a fantastic job in going out of their way to serve as many customers as possible.
With order volume increasing to this magnitude, it’s difficult for us to timely answer all phone and support requests but we are doing our very best to keep response times down.
How the Coronavirus Outbreak Could Impact Gold Stocks
How the Coronavirus Outbreak Could Impact Gold Stocks
By: Michelle Jones MAR 9, 2020, 2:38 PM
As the gold price struggled to stay in the green for the day due to coronavirus concerns, so gold stocks have plunged along with the rest of the equity market. Some investors might think gold stocks offer a safe place to park their capital as the concerns about the coronavirus continue. However, history shows us that it won’t be smooth sailing, even if the gold price continues to soar.
Gold stocks fall amid coronavirus worries
Investor’s Business Daily looked at what happened to gold stocks and the gold price around the 2008 financial crisis, which was the last time gold’s status as a safe-haven asset was called into question.
Will COVID-19 Lead to A Gold Standard?
.Will COVID-19 Lead to A Gold Standard?
By Tyler Durden Sat, 02/22/2020
Authored by Alasdair Macleod via GoldMoney.com,
Even before the coronavirus sprang upon an unprepared China the credit cycle was tipping the world into recession. The coronavirus makes an existing situation immeasurably worse, shutting down China and disrupting global supply chains to the point where large swathes of global production simply cease.
The crisis is likely to be a wake-up call for complacent investors, who are content to buy benchmark bonds issued by bankrupt governments at wildly excessive prices. A recession turned by the coronavirus into a fathomless slump will lead to a synchronised explosion of debt issuance for which there are no genuine buyers and can only be monetised.
The adjustment to reality will be catastrophic for government finances, and their currencies. This article explains why the collapse in overpriced financial assets and fiat currencies is likely to be rapid, perhaps giving ordinary people in some jurisdictions an early prospect of a return to gold and silver as circulating money.
Red Gold: China’s Stealth Plan to Use Gold for World Domination
.Red Gold: China’s Stealth Plan to Use Gold for World Domination
By Marin Katusa
China gold
Gold used to be important.
During and after World War II, every major developed country amassed as much physical gold as they could. It stabilized currencies and signaled independence.
But with the end of the gold standard in 1971, most countries began to sell off their reserves.
So much so that in 1999, an agreement was formed to limit the amount of gold that central banks could sell. Fast forward to today, and Canada’s central bank owns ZERO gold.
Despite the agreement, most countries continued to shed their gold reserves as fast as possible.
Real Money Versus Cryptos and Currencies
.Real Money Versus Cryptos and Currencies
The Final Wakeup Call By Peter B Meyer
When the money goes bad, everything goes. The Rothschild Central Bank sent the US-dollar and affiliated paper currencies on their way down in 1971. It was then that they took the dollar off the golden handcuffs. Enabling the dollar to picking everyone’s pockets, added with coercion of cruel sanctions on every country the Deep State didn’t like. Compared to the pre-1971 dollar, it has lost 98% of its value.
The Fed showered over the last few weeks the financial trading houses – primary dealers – on Wall Street with a total of $2.93 Trillion in short-term loans.
The money is for a Wall Street liquidity crisis that has yet to be explained in credible terms to the public, but as of yet the New York Times does not appear to have an investigative reporter assigned to investigate what’s really going on. Just 11-years after those same trading houses blew themselves up in the biggest financial crash since the Great Depression that took the U.S. and the world economy along for the ride.
This repo – repurchase agreement- loan program began on September 17, 2019 when repo loan rates spiked from approximately 2 percent to 10 percent – meaning either liquid funds were not available to loan, or the mega banks on Wall Street were backing away from lending to certain counterparties.
Got Gold?
Got Gold?
Sanjib Saha February 7, 2020
YEARS AGO, I spent a few days in Bangkok touring the city. A highlight of my short stopover was the temple of Wat Traimit, which houses a five-and-a-half metric ton Golden Buddha, made of approximately $250 million of gold.
Cast more than 700 years ago, the statue symbolized the prosperity and cultural heritage of Sukhothai, the first Thai kingdom. Sometime in the 18th century, the statue was completely plastered over to conceal its value from Burmese invaders.
The significance of the statue was forgotten for some 200 years, until the plaster accidentally chipped off to reveal the gold underneath. The miraculous 1955 discovery made headlines and the statue was restored to its former glory. I was mesmerized by its brilliance and beauty.