March Blog Archives 2016

Gold last traded at $1,235 an ounce. Silver at $15.46 an ounce.

NEWS SUMMARY: U.S. stocks struggled to hold flat line Thursday ahead of key U.S. jobs data report on Friday. Precious metal prices rose on safe haven and momentum buying as the dollar fell to fresh 5-month lows on a weakening Fed outlook.

Roller-coaster first quarter ends; shares, dollar down -Reuters
"World stocks fell for the first time in four days on Thursday, the final day of a roller-coaster first quarter that has hammered the dollar and the pound but has proven the best in decades for gold and bonds....Safe-haven gold has been the big winner of 2016 so far. It ticked up to $1,232 an ounce and has jumped a whopping 16 percent this quarter, its best run in nearly 30 years....This quarter 'has all been about the three C's. Commodities, China and central banks,' said Aberdeen Asset Management investment committee member Kevin Daly."

Isn't it time to get a portion of your money off the Wall Street roller-coaster? Portfolios hedged with physical gold are outperforming others. As Craig Smith wrote earlier this year, gold has a rising role in a global economy. Get ahead of the curve today, read our 2016 Gold Report - Global Edition.

Gold's Biggest Quarterly Gain in Three Decades -Wall Street Journal
"Gold prices rose Thursday and are on track for their biggest quarterly gain in three decades, as investors discount the possibility of the Federal Reserve raising rates in coming months. Gold for April delivery was recently up 0.8% to $1,236.40 a troy ounce on the Comex. Prices are headed for a 17% gain this quarter, the best quarterly performance since 1986....Gold, a popular safe-haven in turbulent times, has also benefited from a broad swath of investors concerns, including fears that central banks are powerless to prevent another 2008-style financial crisis and worries about the consequences of a U.K. exit from the European Union."

Still more upside for gold -CNBC
"Gold prices have been boosted in recent months thanks to global market sell-offs, geopolitics and concerns over leading economies being potential reasons why prices are heading higher. 'There's still a lot more upside scope to go as the long-term chart shows on gold with an eight-year cycle bottom in place,' Ron William, senior tactical & market timing strategist at The ECU Group, told CNBC Thursday. 'Certainly there's a big change in investors psychology now in the yellow metal as seen by the performance. And by the models we're following, it is the best outperformer across multi-assets this year.'"

Look out below! The dollar is dropping...fast -CNBC
"What goes up must come down and that's exactly what one technician said is about to happen with the U.S. dollar index. On CNBC's 'Trading Nation' Wednesday, TradingAnalysis.com founder Todd Gordon said that recent comments from the Federal Reserve could send the greenback plummeting to levels not seen since November 2014. 'The Fed has become more dovish than expected and we're seeing the dollar sell-off,' said Gordon. 'I think the downtrend will sustain for a long period of time.' The currency hit a five-month low Wednesday, one day after a news conference where Fed Chair Janet Yellen outlined the path of gradual interest rate hikes."

Swiss America's 2016 World Money Report explains why the global community is increasingly ditching the U.S. dollar - which could have a dramatic impact on the price of everyday goods, interest rates, financing and investing.

Fed rate talk was 'a bunch of nonsense' -CNBC
"The Federal Reserve was never hiking rates four times this year. Investors didn't believe it, and now Fed Chair Janet Yellen has all but explicitly acknowledged it....'Central bankers at the Fed bark but they won't bite...The economy already is in recession. The question is, when is the Fed going to acknowledge it,' Peter Schiff, founder of Euro Pacific Capital, told CNBC.com. 'I knew all that talk was a bunch of nonsense.'....As David Rosenberg, chief economist and strategist at Gluskin Sheff, pointed out, she used the word 'global' 11 times, which was seven more than her speech to Congress in February, and 'uncertainty' 10 times, up from three in the last speech....'Whenever a central banker is uncertain, rest assured that the only certainty is that he or she does nothing,' Rosenberg said."

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Gold last traded at $1,228 an ounce. Silver at $15.21 an ounce.

NEWS SUMMARY: U.S. stocks advanced modestly Wednesday on momentum from Fed chair Yellen's flip-flop interest rate statements Tuesday. Precious metal prices gave back some of yesterday's gains on speculative profit-taking despite a weaker dollar.

Dovish Yellen takes major inflation gamble -Evans-Pritchard/Telegraph
"Janet Yellen, the head of US Federal Reserve, has vowed to move with extreme care before tightening monetary policy in the face of lingering global deflation and trouble in China. She swatted aside vociferous hawks on the Fed’s voting committee (FOMC), more or less pledging to flood the economy with excess stimulus in order to guarantee a safety margin against any further deflationary shocks. Her dovish comments set off wild moves on the currency markets and a powerful relief rally on Wall Street....'The longer the Fed dithers, the higher rates are eventually going, ' said Paul Ashworth from Capital Economics....The risk is that the US may be drifting into incipient ‘stagflation’, with rising inflation and tepid growth at the same time. That would be an unpleasant surprise for the Fed."

PECIAL REPORT: Hedging the Election -Craig Smith/Lowell Ponte
2016 is a year of dramatic change that may not only redefine American politics, but also the integrity of our money. Today government pervades and perverts America's once free-market economy. All four presidential candidates have positioned themselves to appeal to voters frustrated and angry over being ignored and lied to by the establishment elites of both major political parties. With November's presidential election on the horizon, we can already see what might make one asset go up sharply while others decline. In our latest Special Report you will discover how you might win big this November - regardless of who is elected - by avoiding a costly mistake now. Call 800-289-2646 for a FREE copy of HEDGING THE ELECTION: How You Might Win Big this November By Avoiding a Costly Mistake Now

What Investors Missed Hanging On Yellen's Words -HedgeEye
"Omnipotent (dovish?) Fed head Janet Yellen yesterday said the opposite of her hawkish regional Fed talking heads who made the Old Wall media rounds last week. So, naturally, USD/Rates smoked, reflation rallies! However, what really matters is not Janet Yellen's every last word but economic fundamentals, which continue to slow....'Heck, why buy Utilities on Yellen turn-tailing dovish when you can go right to the vein and buy Gold?' Takeaway: Stick with what has worked all year: Gold, Utilities, Long Bonds (and short the Fed's forecast.)"

We agree. Gold is the safest asset to own in 2016 in light of political and economic uncertainty - as well as numerous other fundamental economic reasons - which are detailed in our 2016 Gold Report - Global Edition.

Hillary & Bernie, Tax Fantasists -Manhattan-Institute
"Soak-the-rich proposals ignore history and wouldn’t raise nearly enough money to fund big spending plans. Here is a question to ask Hillary Clinton and Bernie Sanders: What is the best tax rate to impose on high-income earners to ensure there is enough government revenue to pay for your trillion-dollar promises to voters? Perhaps they think it is 83%, a rate that economists Thomas Piketty and Emmanuel Saez hypothesized in 2014 in a widely circulated paper. Or maybe it is 90%, which Sen. Sanders told CNBC last May was not out of the question. 'Our job is not to think small,' Mr. Sanders elaborated in the Huffington Post a month later. 'It is to think big.'....Progressives have often reminded us that the U.S. had such rates in the past. From 1936 to 1980, the highest federal income-tax rate was never below 70%, and the top rate exceeded 90% from 1951 to 1963. Under Ronald Reagan, the top federal rate declined to 28% by 1988 and has never reached 40% since."

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Gold last traded at $1,243 an ounce. Silver at $15.36 an ounce.

NEWS SUMMARY: U.S. stocks traded higher Tuesday as investors digested dovish remarks from Fed Chair Janet Yellen. Meanwhile, precious metal prices rose over 1% on a sharply weaker dollar following Fedspeak.

Negative interest rates put global economy on razor’s edge -Marketwatch
"Several of the world’s central banks have crossed the Rubicon, commencing a high-risk experiment with negative interest rates. The intent is clear: reduce debt by confiscation and transfer wealth from savers to borrowers. This is ultimately an admission of defeat, as traditional means of bringing excessive debt under control have failed....In effect, negative rates delay essential restructuring to remove the detritus (rubble) of previous crises....Misallocation of capital deepens the malaise, and an ultimate resolution to this global problem becomes even more costly and difficult."

Janet Yellen's Soothing Dovishness -Zero Hedge
"With the central-bank-inspired short-squeeze-driven equity market surge losing momentum, Janet Yellen's 'hint-hint' speech today to The Economic Club of New York comes at a critical moment. Amid the constant chatter of headline-making Fed members, seemingly flooring (and capping) the S&P's movement with their algo-driving comments, Yellen is caught between a credibility-crushing dovish (the world is collapsing and we need to maintain equity 'wealth' creation) rock and the hawkish (rate normalization continues - just look at how awesome jobs are, stupid) hard place. Good luck..."

Investors Warned to Seek Inflation Hedge -Bloomberg
"BlackRock Inc. joined Pacific Investment Management Co. in recommending inflation-linked bonds and warning costs are poised to pick up. 'Stabilizing oil prices and a tighter labor market could contribute to rising actual, and expected, U.S. inflation,' Richard Turnill, BlackRock’s global chief investment strategist, wrote Monday on the company’s website. 'We like inflation-linked bonds and gold as diversifiers.' Policy makers should consider increasing interest rates in April in reaction to a tightening labor market and the prospect of inflation overshooting the 2 percent target, Fed Bank of St. Louis President Bullard said March 23. 'We may well at present be seeing the first stirrings of an increase in the inflation rate - something that we would like to happen,' Fischer, vice chairman of the Fed Board of Governors, said this month."

Craig Smith comment: "BlackRock and PIMCO both see higher inflation and more economic dislocations on the horizon. The warning signs are signaling a major economic event is close. A replay of 2007-2009 could be near, only this time it will be much more destructive with Dodd-Frank restricting government bailouts. Keep in mind the wall between daily banking services and financial services has been torn down. Banks are a one-stop shop now, which puts ALL equity under the banks control at risk. Future bailouts will fall on the shoulders of bank depositors and investors. Now is the time to own physical gold as wealth insurance." Read our 2016 Gold Report - Global Edition.

Paying in cash could fast disappear -Telegraph
"The end of cash is often heralded, but the decline of notes and coins has been slower than many people expected. However, technology companies are relentless in their attempts to stamp out physical money. The latest challenge to cash came last week when Google announced that Android Pay would come to the UK in the coming months....Reports last week claimed that Apple Pay will soon be integrated into websites, meaning online shoppers using Apple’s devices will be able to simply scan their finger to pay."

Big tech is following the government's wishes to help flush physical cash out of the economic system as fast as possible. While many find this trend very convenient, be aware that the 'War Against Cash' is actually a war against your privacy and freedom. In a future cashless society, as Craig Smith and Lowell Ponte wrote in Don’t Bank On It!, everything will be hackable, trackable and taxable. Read The SECRET WAR Against Cash Exposed!

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Gold last traded at $1,222 an ounce. Silver at $15.19 an ounce.

NEWS SUMMARY: Wall Street stocks held slight gains Monday as consumers spent, housing sales jumped and California agreed to $15 minimum wage. Meanwhile, precious metal prices steadied on a weaker U.S. dollar after overnight speculative selling.

"Recent Fed talk has triggered gold investors to take some profits. Additional data to be released this week on home sales, unemployment and manufacturing may tell a more complete story of US economic health. Stay tuned!" - Dean Heskin, CEO, Swiss America

‘The morning that first-quarter GDP died’ -Marketwatch
"The economy is now expected to grow about 1.5%, down from a previous 2.3% estimate, an updated MarketWatch survey of analysts shows. The U.S. expanded at a 1.4% annual pace in the 2015 first quarter. The bevy of downgrades took place after the government reported a meager 0.1% increase in consumer spending in February. The original 0.5% spike in January was also lowered to 0.1%. 'This is the morning that Q1 GDP died,' wrote Stephen Stanley, chief economist at Amherst Pierpont Securities. He cut his forecast to 0.6% from 1.5%. Consumer spending accounted for more than two-thirds of all U.S. economic activity."

Why Atlanta Fed's GDP Forecast Is Crashing -HedgeEye
"The latest Atlanta Fed forecast for Q1 2016 GDP is now (drumroll please)... 0.6%. That's down from 2.7% in February. Yes, that means the Atlanta Fed has lopped off more than 200 bps from its GDP forecast in a month....According to the Atlanta Fed, the estimate's recent decline, from 1.4% to 0.6%, was the result of revised down consumer spending growth and the added drag of declining net exports....On a related note, Hedgeye's Macro team has nailed the last five U.S. GDP numbers. Our current estimate? 1.0%."

23% Of Americans In Prime Working Years Unemployed -Zero Hedge
"As this reality-check data shows, we never really had any sort of meaningful 'economic recovery', and now we have entered the early phases of the next major downturn. So where do we go from here? Unfortunately, our debt-fueled prosperity has provided us with a massively inflated standard of living that is not even close to sustainable. As this bubble bursts, the economic pain is going to be absolutely unprecedented."

Gold Set To Rally Further -Investing
"Fundamentally, gold represents a vote of confidence against the competence of governments and central banks to continue to effectively manage their currencies, their budgets, and the growth of their economies. In a related function, gold is a currency with unique characteristics, much more difficult than fiat currencies for central banks to manipulate (although not impossible), and immune to dilution by money-printing. Finally, gold is also a commodity, and like other commodities, it tends to move in relation to the US dollar. All three of these factors are in play in gold’s start to 2016."

"Precious metals have dynamic momentum in 2016 based on very strong fundamentals," Swiss America chairman Craig Smith commented this morning. He sees many similarities to the stagflationary era of the late 1970s under Jimmy Carter. In 1980 Ronald Reagan and Fed Chair Paul Volcker made the difficult choice to raise interest rates sharply to flush out mispriced assets - which set the stage for over 20 years of solid economic growth. Today the financial risks and stakes are much higher than in 1979 and the need for asset diversification is also much higher. Read Craig's latest Special Report, Hedging the Election.

Betting big on gold -CNN/Money
"An impressive $13.4 billion was poured into gold assets over the past 11 weeks, according to Bank of America Merrill Lynch. That's the largest sustained weekly inflow for gold since during the 2009 financial crisis. Gold is considered a safe asset that tends to rise in demand when people are worried about the economy or fear inflation. Gold skyrocketed earlier this year amid concerns of a recession and bear market in stocks. Gold is up 15% to $1,221 an ounce in 2016, crushing stocks and bonds."

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Gold last traded at $1,221 an ounce. Silver at $15.19 an ounce.

NEWS SUMMARY: U.S. stocks traded lower Thursday, the final trading day of the week, as declining oil prices and dollar strength weighed on traders. Meanwhile, precious metal prices steadied on a firmer dollar and Fed rate hike concerns.

China: World's biggest trade gap -Examiner
"Republican presidential front-runner Donald Trump has been mocked by critics for shouting that China is 'killing us' economically, but a new analysis of U.S.-China trade shows that the trade gap isn't just at a historic high, but that the imbalance is the widest for any bilateral trade, ever. According to the website Howmuch.net, the U.S. exported $116 billion to China in 2015, the same year China exported $481 billion to the United States, producing that $365 billion gap. And it found that the gap is growing so fast that it will 'almost quintuple' over the next 15 years."

China's Unsettling Acquisitiveness of U.S. Assets -NY Times
"A buying spree by a Chinese insurance company that has emerged seemingly overnight is flashing a warning sign....An alliance led by the Chinese company, the Anbang Insurance Group, has for the moment been outbid for Starwood Hotels & Resorts, the owner of the Sheraton and Westin brands, by Marriott International. But that Anbang is even in the running - and may yet win out - is an indication of deal-making gone awry....Anbang is funding this spree by selling high-yield investment products to Chinese citizens. We’ve seen this story many times before, and it typically doesn’t end well."

Craig Smith Comment: "I am reminded of the Japanese buying spree of U.S. properties back in the 1980's. The Exxon tower, major New York landmarks and even the iconic Pebble Beach golf course. Americans grew very concerned over the foreign takeover of their country by an Asian economic giant. Years later the Japanese sold us back U.S. real estate at ten cents on the dollar as their economy fell into a 30-year recession - from which they have not yet recovered. China appears to be headed in the same direction, except this time they may need to liquidate U.S treasuries, which could trigger huge money printing and inflation. The Fed says they want inflation? Well, here it comes. China also holds huge amounts of gold which they hope will eventually be used to back their yuan currency in a bid to replace the U.S. dollar as the world's reserve currency. With purchases like this, China could send the international 'currencies wars' into overdrive." More from Craig ... GOLD’S RISING ROLE IN A GLOBAL ECONOMY.

Fed’s rate hikes become unlikely -Crudele/NY Post
"Like it or not, the Federal Reserve will play a big role in this year’s presidential election. The Fed last week pulled back on its economic outlook for 2016 and beyond. In its view, the US is condemned to a mediocre expansion - or worse - for the foreseeable future....If Trump gets elected, the Fed will almost immediately be hit by audits that will reveal lots of secret, sinister things. So Fed Chair Janet Yellen and her fellow central bankers can’t do anything - like raise the cost of money - that might slow the economy down and give Trump a better shot at winning the presidency."

A Central Bank Heist That Should Have Us Scared -Samuelson/RCM
"It's a big story that has stayed beneath the radar of most American media. Somehow, cyber criminals stole $81 million from Bangladesh's central bank (its Federal Reserve). The theft surely qualifies as one of the biggest cyber heists ever....It's also a reminder that the world's financial systems remain vulnerable to cyberattacks from groups or countries more interested in making war - disrupting societies - than money....What's ultimately at stake is a stable global financial system. Financial networks depend on trust that what's deposited won't vanish, and that transactions are legitimate and not falsified. The loss of trust threatens to undermine payments networks and the reliability of financial record keeping. If criminals could do this to Bangladesh Bank, what could organized terrorists or hostile states do to advanced nations' financial networks? This dilemma defines the Internet Age."

Bangladesh is not the only central bank heist you need to know about. Read The Biggest Bank Heist in History.

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Gold last traded at $1,224 an ounce. Silver at $15.27 an ounce.

NEWS SUMMARY: U.S. stocks closed lower Wednesday as oil prices dropped and investors remained cautious a day after the deadly attacks in Belgium. Precious metal prices dipped on short-term profit-taking following Fedspeak about a possible April rate hike.

Fed Chair Yellen has a mini revolt on her hands -CNBC
"Fed Chair Janet Yellen has something of a mini revolt on her hands. Four of the 17 members of the Federal Open Market Committee have now publicly indicated their disagreement with the dovish guidance in last week's policy statement and in comments from Fed Chair Janet Yellen at her press conference. The latest dissenter is Patrick Harker, the new president of the Philadelphia Fed, who said in a speech Tuesday night that the Fed should "get on with" rate hikes and consider another move in April."

It's 1790 All Over Again -Hugo Salinas Price/Plata
"In 1790, the French Assignat circulated alongside gold coin at par value. But soon enough, the exchange value of the Assignats against gold began to fall....The Assembly created a national network of spies to hunt down the wicked hoarders of gold, confiscate their gold and have them part with their heads with a short, sharp shock on a big, black block....In 1797 Napoleon came to power in France. He put a stop to the very reasonable plans of the highly educated men of the National Assembly, and declared that henceforth, only gold would be money. In the center of the Place Vendome, where today there stands a great column surmounted by a statue of Napoleon, a huge bonfire consumed piles of freshly printed Assignats and the wooden printing machinery which fabricated them....2016: Why is it 1790 all over again? Because just as in France in 1790, today we have a set of conceited men running the world's economic policy on the basis of a flawed intellectual construct. In 1790, the flawed construct was the Assignat. Today, the flawed intellectual construct is the irredeemable dollar and its derivative currencies."

Hedging the Election -Craig Smith/Lowell Ponte Special Report
How You Might Win Big this November By Avoiding a Costly Mistake Now. Sixty-five percent of Americans now tell pollsters that our nation is on the wrong track. Eighty-one percent of us no longer trust our government to do the right thing. But like a deer paralyzed by car headlights, many have decided to let government control their investment decisions. They wait for the Federal Reserve to announce a change in interest rates. Even worse, many have hunkered down to see who wins the November presidential election before making any investment. This could be a costly mistake. Get the new Special Report

Brussels Bombing: The New Normal? -Economist
"Over the coming days Europe will once again pass through terrorism’s stages of grief: despair over innocent lives cut short; anger towards the young men and women (some of them citizens) who kill in the name of jihad; questions about the grip of the police and intelligence services; and eventually, as news bulletins and headlines subside, a weary resignation....Yet even now, immediately after the attack, two lessons are clear. One is that, despite being at the top of the most-wanted list for years, IS remains resourceful enough to mount synchronized bombings in the heart of Europe. The other, which flows from this, is that big cities in Europe and America will have to get used to a long campaign of terror in which all are targets....Many will dread the struggle ahead and regret the never-ending contest between security and liberty. But as long as jihadists threaten the West, there is no escaping the need to act. Welcome to the new normal."

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Gold last traded at $1,248 an ounce. Silver at $15.88 an ounce.

NEWS SUMMARY: U.S. stocks traded mostly lower Tuesday as the terrorist attack on Belgium rattled investors worldwide. Precious metal prices rose on safe haven buying despite a firmer U.S. dollar.

'Shocking level of unpreparedness' in Belgium -CNBC
"Current and former U.S. and European counter-terrorism officials, who are experts on ISIS in Europe, told NBC News that the location and timing of the attacks - just days after the capture of the suspected operational leader of the Bataclan massacre in Paris - suggested a 'shocking' level of unpreparedness by Belgian authorities. They described Brussels, especially the Maelbeek neighborhood near the site of the subway strike, as an explosive mix of highly capable foreign fighters trained by ISIS and sympathetic locals who are unknown to authorities but eager to help in attacks....Clint Watts, a former FBI and U.S. Army counter-terrorism official and expert on how ISIS operates, told NBC News that Belgian authorities should have been more prepared for Tuesday's attacks."

Are Central Bankers Creating a New Housing Bubble? -Bloomberg
"The property market is an animal almost every central banker is worried about and hardly anyone can control. As the Federal Reserve downshifts into go-slow mode while the European Central Bank and other monetary authorities ease, expect to hear a lot of concern about property prices. Here's the dilemma: How do you cut rates to goose too-low inflation and support growth without lighting a fuse under real estate?....The U.S. is still feeling the consequences of a housing-market collapse that is widely blamed for triggering the Great Recession. The world’s largest economy stopped contracting in the second quarter of 2009, but house prices continued to fall over the next three years."

"Deteriorating housing affordability will drive 2016 housing trends," according to Zillow's 2016 housing-market outlook, reports Business Insider. "Is the US economy regressing?" asks Swiss America CEO Dean Heskin. "We are in the midst of the slowest and most lackluster economic recovery since the end of World War II, and it appears to be weakening." Read full story

Are You Still Bullish On U.S. Housing? -Hedgeye
"When the Chief Cheerleader (Economist) of the National Association of Realtors says the data is weak, you know you have a problem. Investors bullish on U.S. housing are setting themselves up for disappointment. 'Existing Home Sales were down -7.1% sequentially and decelerated to +2.2% YoY in February. We’ve known for over a month that February was going to be soft so the print was of little surprise,' Hedgeye Housing analysts Josh Steiner and Christian Drake wrote in a recent institutional research note. Steiner and Drake point out that sales grew +2.2% year over year in February but the extra day in the period provided a +3.5% benefit. Net of the extra leap day, EHS were actually down -1.4% Y/Y."

Americans' economic anxiety persists -MarketPlace.org
"Job growth has averaged more than 250,000 a month since the fall, and in December the Federal Reserve deemed the economy strong enough to withstand its first interest rate hike since the recession. But that hasn't translated to lower levels of economic stress, according to the latest Marketplace Edison-Research Poll. The Marketplace Economic Anxiety Index - a trackable number derived from some of the poll's questions - held steady at a score of 31 on a scale from zero to 100. The higher the number, the more stress someone is feeling. Why didn't the number budge? Because Americans continue to feel anxious about their economic situation and feel worried about meeting monthly expenses....Among the more than 1,000 people surveyed, more than 60 percent reported feeling at least some anxiousness about their financial situations, while 30 percent said concern over their financial situation is causing them to lose sleep."

Owning gold may not help you get rich quick, but it may help you sleep more soundly at night. Why? As we cover in our 2016 Gold Report: Global Edition, "Gold is a tangible alternative to the madness of manipulated markets, rates, valuations, shares, trades and averages. It is a solid and stable alternative to paper wealth, paper money and the entire economic honor system that government violated long ago."

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Gold last traded at $1,254 an ounce. Silver at $15.81 an ounce.

NEWS SUMMARY: U.S. stocks extended gains Friday despite lower oil prices, following the Fed's decision to do nothing. Precious metal prices steadied on a firmer dollar.

US dollar getting crushed in Asia -Business Insider
"Courtesy of a sharply stronger Chinese yuan, the greenback is yet again on the ropes in Asia. The People’s Bank of China 'fixed' Friday’s USD/CNY rate at 6.4628, well below Thursday’s fixing level of 6.4961. The 333 pip decline was the strongest one-day strengthening in yuan’s starting level since November 2015....The USD/CNY is now trading at the strongest level against the US dollar since December 7 last year. Other currencies such as the Australian dollar, euro and yen have all strengthened on the back of the CNY move."

The US has held the world’s international reserve currency for almost 95 years and enjoyed the associated benefits of easy access to capital, monetary power and market stability. But the new global community is increasingly moving away from the dollar which could have a dramatic impact on the price of everyday goods, interest rates, financing and investing. Read our 2016 World Money Report

All That’s Gold Still Glitters -Wall Street Journal
"Stocks may have rallied in recent weeks, but gold – a popular investment during times of market turmoil — doesn’t seem to be losing its shine....Strategists at the Wall Street bank say that the numbers show 'investors are chasing [the] world’s best performing asset as [the U.S. Federal Reserve] continues to talk [the dollar] lower.'....So far this year, as the dollar has fallen more than 7% against Japan’s yen and close to 4% against the euro, gold has surged a staggering 18%....'Gold is one of the few beneficiaries of negative interest rates and deteriorating risk sentiment,' writes HSBC’s chief precious metals analyst, James Steel."

With the uncertainty of a presidential election, further weakening of the global economy, a suddenly dovish Fed, persistent oil price volatility, increased monetary easing across Europe and Asia, world banks on the brink of meltdown, and mounting geopolitical threats - the only reliable haven is one that has been proven safe for centuries. Read our2016 Gold Report

Fed’s Folly Festers Further -David Stockman/ContraCorner
"Listening to even a small portion of Simple Janet’s incoherent babble makes very clear that the nation’s central bank is well and truly impaled on its own petard....After all, the Fed is now 87 months into its grand experiment with the lunacy of zero interest rates. If our monetary central planners still can’t see their way clear to more than 38 bps of normalization, then, apparently, they intend to keep the casino gamblers in free carry trade money until they finally blow themselves up - just like they have already done twice this century....The only valid price of money is that set by the interaction of supply and demand in an honest free market. But that was quashed decades ago when Greenspan inaugurated the present regime of bubble finance."

Public Pension Promises Exceed Ability to Pay -NYTimes
"When Detroit went bankrupt in 2013, investors were shocked to learn that the city had promised pensions worth billions more than anyone knew — creating a financial pileup that ultimately meant big, unexpected losses for Detroit’s bondholders. Now, researchers at Citigroup say the groundwork has been laid for similar conflicts across the developed world: Governments have promised much more than they can most likely pay to current and future retirees, without revealing the disparity to investors who bought government bonds and whose investments could be at risk....One of the report’s recommendations was that governments start disclosing the amounts promised to retirees, 'so that everyone can see them.' ....'Future population and life expectancy trends will exert considerable pressure on public and private sector pension systems,' the report said."

As Swiss America chairman Craig R. Smith and Lowell Ponte wrote in their 2013 book, THE GREAT WITHDRAWAL, "Detroit was to be a workers' paradise, a symbol of Progressive success. Instead, it has become a symbol of Big Government failure, corruption, violence and decay. In 2013, after a great withdrawal of more than a million productive residents, once-great 'Debtroit' became the largest American city ever to declare bankruptcy." Request Smith and Ponte's latest book discussing how Progressives Are Killing The American Dream

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Gold last traded at $1,265 an ounce. Silver at $16.00 an ounce.

NEWS SUMMARY: U.S. stocks rallied Thursday as dovish Fedspeak prompted dollar selling and $40 a barrel oil prices. Precious metal prices held firm as the U.S. dollar fell to fresh 7-year lows.

Fed Inaction Boosts Gold, Crushes Dollar -CNBC
"On Wednesday afternoon in trading immediately after the Fed statement - in which it left rates unchanged and said it expected only two rate hikes this year, not four - gold and the stock market moved higher, while the dollar declined. Gold bugs were not surprised....Axel Merk, president and chief investment officer at Merk Investments, said he still believes the stock market is due for a dip and if that occurs gold is supported as a risk diversifier."

How are you positioned for risk diversification? Find out by taking our new Free Global Risk Test

Fed Can't Fix Broken US Economy -HedgeEye
"Investors waited with bated breath for the FOMC statement and Janet Yellen's testimony. Unfortunately, no matter what the Fed does or Yellen says, the Fed is not omnipotent and cannot arrest economic gravity. Case in point... today's industrial production number which yet again affirms our view that sections of the U.S. economy are already in recession."

US inflation rears its ugly head -Evans-Pritchard/Telegraph
"The Atlanta Federal Reserve's gauge of 'sticky-price' inflation in the US soared to a post-Lehman peak of 3% in February. This index is a 'pure' measure of core inflation - the underlying story once the noise is stripped out. The Cleveland's Fed's 'median consumer price index' jumped to 2.9%, with big rises are in medical services, housing rents, car insurance, restaurants, hotels, women's clothing, jewelry, and car hire. This is the long-feared inflection point we all forgot about in those halcyon days of deflation, now just a fond memory. Every major downturn since the First World War has been caused by the Fed, determined to snuff out inflation as the credit cycle matures."

Stagnant economy + rising inflation = Stagflation. We have not seen this dangerous combination for nearly forty years, but we very well could witness it in 2016. Stagflation is yet another reason to convert falling dollars into tangible assets, such as gold and silver. Get the full story in our our free report, The Timeless Truth About Gold & Silver.

Foreign governments dump U.S. debt at record rate -CNN
"In a bid to raise cash, foreign central banks and government institutions sold $57.2 billion of U.S. Treasury debt and other notes in January, according to figures released on Tuesday. That is up from $48 billion in December and the highest monthly tally on record going back to 1978. It's part of a broader trend that gathered steam last year when central banks sold a record $225 billion of U.S. debt. 'Foreigners have no longer been our BFF when it comes to buying U.S. Treasuries,' Peter Boockvar, chief market analyst at The Lindsey Group, wrote in a client note."

"With foreign governments like China losing their appetite for U.S. debt and even selling a portion; Congress will feel the pressure to show some fiscal restraint. This should be a signal to all Americans that having a gold insurance policy is just as important as having auto, health, life and homeowners' insurance," writes Swiss America chairman Craig R. Smith. Read Craig's 2016 global economic outlook.

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Gold last traded at $1,259 an ounce. Silver at $15.59 an ounce.

NEWS SUMMARY: U.S. stocks rose modestly on higher oil prices after the Fed announcement to hold off on interest rates hikes. Precious metal prices rocketed up nearly 2.5% on a sharply weaker dollar after the Fed back-peddled on 2016 projections.

Fed Downgrades Economic Outlook -Zero Hedge
"Back in December, the overoptimistic Fed predicted 4 rate hikes in 2016. Just a few weeks later, the Fed Funds futures said 'no way', when markets crashed, and said the Fed was dead wrong, expecting zero rate hikes in 2016. Since then the market has picked up modestly and now expects at least one more rate hike in 2016. So what does the Fed say now? Well, as a result of another cut to the economic forecast, one which now sees 2016 GDP at 2.2% vs 2.4% previously, and a drop in inflation from 1.2-1.7% to 1.0-1.6% suggesting just two more rate hikes in 2016."

Rickards: Why Gold Is Going To $10,000 -HedgeEye
"Bestselling author Jim Rickards sits down with Hedgeye CEO Keith McCullough to discuss his new book, 'The New Case for Gold,' and why a cocktail of factors makes it more critical than ever for investors to protect their portfolios with gold. They say John Maynard Keynes called gold a 'barbarous relic.' They say there isn’t enough gold to support finance and commerce. They say the gold supply can’t increase fast enough to support world growth. They’re wrong," according to Rickards. He says the book title reflects the addition of new 21st century arguments to the original case for restoring a Gold Standard in the U.S. explained in the classic 1982 book "The Case For Gold" .

"Gold is neither a commodity nor an investment - it is the world's most trustworthy store of value, time and labor," Swiss America has explained to the public over the last 30 years. Now a new scientific theory and book from George Gilder, with substantial imperative evidence, backs us up our premise. Read The 21st Century Case for Gold book review.

Negative interest rates positive for gold -CNBC
"'It's human nature to ignore diversification until it matters most,' says Dave Mazza, head of ETF and mutual fund research at State Street Global Advisors. Gold's 'fatal flaw' in the thinking of many investors is that it offers no income. But that may not be as big a negative as historically in a market obsessed with negative interest rates around the world. 'People want income wherever they can get it,' Mazza said. But, he added, 'now that we are getting negative interest-rate policies around the world, that is pushing people into gold.'"

Owning physical gold is the smartest way to stabilize your wealth and overcome fears about market volatility for both individuals and nations. As we cover in our 2016 Gold Report: Global Edition, "Where do central banks now turn for stability? In a word ... gold. Fueled by global jitters over the Chinese economy, weak oil prices and the threat of a global recession; central banks have been stockpiling gold."

The Fed needs to move now, but won't -Crudele/NYPost
"The Federal Reserve needs to raise interest rates, it wants to raise them and it has to raise them....because right now without a rate rise, it’s out of moves. With rates as low as they are, Fed Chair Janet Yellen is like those Texans at the Alamo, unable to reload as quickly as needed and helpless....I’ll stick with my prediction that the Fed won’t raise interest rates this week. But I think it will in June. Between now and then there will be additional economic data - particularly in the employment reports - that will make the economy look better than it really is."

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3.15.16 - GOLD RELICS FOUND IN ISRAEL

Gold last traded at $1,231 an ounce. Silver at $15.26 an ounce.

NEWS SUMMARY: U.S. stocks struggled again Tuesday on weaker oil prices and central bank uncertainty. Precious metal prices steadied despite profit-taking and a firmer dollar.

The Top Investment Pick of 2016 -Fortune
"The global volatility that has rocked markets since the start of 2016 has investors fleeing for one well-known though often derided haven: gold. And it has served them well. Since the start of the year, the precious metal has shown returns above equities, Treasuries, investment grade bonds, all currencies, and major stock indexes in both emerging and developing countries, according to Bloomberg....'Last summer, people were calling it a barbaric relic, and nobody could care less about gold. Now, it’s slowly generating more and more buying,' said Dan Denbow, a portfolio manager at the USAA Precious Metals and Minerals Fund to Bloomberg."

Swiss America CEO Dean Heskin writes, "Gold is enjoying the best start to a year since 1974. But in 2016 it has broken many of the established rules about its own valuation trends. It has traditionally been considered a hedge against inflation; yet, global inflation is dangerously low as gold continues to soar. So the rush to gold in 2016 is different, deeper and more seemingly entrenched in globality and an increasingly interconnected marketplace. NEW: Weekly Market Briefing

2,000 year-old gold coin found in Israel -CNN
"The shiny object was just sitting there in the grass, waiting to be found. It was a 2,000-year-old gold coin with the face of a Roman emperor, so rare that only one other such coin is known to exist. Laurie Rimon discovered the gold coin while hiking in eastern Galilee recently, not far from the biblical site where it's written that Jesus walked on water and performed the miracle of the multiplication of the fish and bread. Rimon, from a kibbutz in northern Israel, turned it over to the Israel Antiquities Authority. It was her own little miracle. 'It was not easy parting with the coin,' she said. 'After all, it is not every day one discovers such an amazing object, but I hope I will see it displayed in a museum in the near future.'"

Pat Boone Reaches Out to Israel -RMPNews
Speaking of relics found in Israel, Swiss America's national spokesperson Pat Boone was honored with a standing ovation from a packed crowd of 4,000 during his first ever concert in Tel Aviv recently. Pat, now 81, is well known for his strong support of Israel. Boone performed one of his most famous songs, This Land is Mine at the event, which formed the theme for the Academy Award-winning soundtrack for the movie EXODUS. Boone's performance in Tel Aviv was in support of the Friends of Zion Museum, the newest and most popular attraction in Jerusalem. He is shown greeting Israeli prime minister Benjamin Netanyahu, a close friend of his for many years.

Financial System Faces Titanic Outcome - Charles Hugh-Smith/Zero Hedge
"The 'unsinkable' global financial system is rushing headlong toward its encounter with the iceberg, while the passengers and crew remain supremely confident and unaware of the risks, risks that will only become 'obvious' after the global financial system has broken in half and sunk to the bottom, destroying most of those who believed it unsinkable....The fact that large ships and powerful engines could be built created the illusion of low risk, because the risk factors were invisible until disaster struck....Our financial system is like the Titanic: technologies such as high-frequency trading (HFT) and innovations such as securitization and complex derivatives have enabled major players to construct an enormous, fast-moving financial system that creates the illusion of low risk because the risks are not visible until disaster strikes."

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3.14.16 - GOLD'S NATURAL STABILITY

Gold last traded at $1,234 an ounce. Silver at $15.35 an ounce

NEWS SUMMARY: U.S. stocks traded mixed Monday amid a decline in oil prices and ahead of the Fed's meeting later in the week. Meanwhile, precious metal prices retreated on a firmer dollar as speculators sold metals ahead of Wednesday's statement.

Only One Buyer Keeping S&P 500's Bull Market Alive -Bloomberg
"Demand for U.S. shares among companies and individuals is diverging at a rate that may be without precedent, another sign of how crucial buybacks are in propping up the bull market as it enters its eighth year. Standard & Poor's 500 Index constituents are poised to repurchase as much as $165 billion of stock this quarter, approaching a record reached in 2007. The buying contrasts with rampant selling by clients of mutual and exchange-traded funds, who after pulling $40 billion since January are on pace for one of the biggest quarterly withdrawals ever....'Anytime when you're relying solely on one thing to happen to keep the market going is a dangerous situation,' said Andrew Hopkins, director of equity research at Wilmington Trust Co., which oversees about $70 billion."

Gold is the only sound money -GoldMoney
"A 'golden cross', with the 55-day moving average crossing above the 200-day moving average with both of them on a rising trend, and the share price above both these moving averages, has now occurred. This is generally taken by traders to indicate the bear trend has reversed, and a bull market is now in place....While we can now see reasons emerging for the US dollar's future loss of purchasing power, we can see the same conditions broadly affecting the other major currencies...Gold alone does not suffer the disadvantage of having a government issuer, its above-ground stock increasing at an estimated rate that is similar to global population growth. Gold is not required to rise, as the term bull market suggests. Its purchasing power is likely to be considerably more stable than that of paper currencies over the long term."

As we cover in our 2016 Gold Report: Global Edition "Gold is a tangible alternative to the madness of manipulated markets, rates, valuations, shares, trades and averages. It is a solid and stable alternative to paper wealth, paper money and the entire economic honor system that government violated long ago."

Central banks beat Bitcoin with rival supercurrency -Evans-Prichard/Telegraph
"The proto-currency known as RSCoin has vastly greater scope than Bitcoin, used for peer-to-peer transactions by libertarians across the world, and beyond the control of any political authority. The purpose would be turned upside down. RSCoin would be a tool of state control....Central banks at first saw Bitcoin as a rogue currency and a threat to monetary order, but they are starting to glimpse ways of turning the new technology to their advantage....RSCoin may be irresistible for central banks. It allows them to turn the money tap on and off with calibrated precision, and lets them track the sort of counterparty liabilities that nearly blew up the financial system during the Lehman crisis."

China takes control of global silver prices -USAToday
"China has been an unofficial price-setter for most metals over the past decade. And this week, the country became an official participant in setting prices for one of the world's most important precious metals markets. That's the London Bullion Market silver price. Where one of China's largest banks just became a member of an elite group of players that controls fluctuations in this key metal....This is also a sign that precious metals markets are increasingly going international. Which makes sense, given that the world's top consumers are places like China, India, Russia and Turkey."

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3.11.16 - Worried About Inflation? Buy Gold

Gold last traded at $1,250 an ounce. Silver at $15.62 an ounce.

News Summary: U.S. stocks higher as investors continue to react to the European Central Bank's latest stimulus measures. Precious metals prices stabilize on profit-taking after hitting 13-month high in previous session.

Until this happens, keep buying gold: Gartman - CNBC
"Investors have flocked into the precious metal this year as the market continues to weigh central bank policies and volatility in equities...The precious metal got an even bigger boost Thursday, rallying 1 percent after European Central Bank President Mario Draghi cut interest rates but suggested he did not anticipate the need for rates to go negative any further...'What Draghi said today turned the market,' said Gartman, also a CNBC contributor. 'He has made it abundantly clear that he's going to throw more reserves into the system. The Bank of Japan is going to throw more reserves into the system. And the Fed will have no choice to at least hold monetary policy steady, if not become more expansionary following what the leads are from the ECB.'"

Does a robust stock market affect presidential approval ratings? - Fox Business
Neil Cavuto asks Craig Smith, chairman of Swiss America, if he believes the bump in stocks is responsible for the bump in Obama's approval rating. Find out what Craig had to say as well as how he believes our choice for the next president will affect markets going forward.

The Surge In Gold Isn't The Surprise, The Surprise Is That It Has Taken This Long - Seeking Alpha
"Gold has soared so far in 2016. It seems that the level of faith that people have in Central Bankers around the world has lessened...When Central Banks start instituting negative interest rates, the faith in their ability should come under question. Negative interest rates aren't rare, they are unprecedented. This is a giant experiment, with the only things at stake being the global economy and financial system...With the inability to withdraw large sums of cash, savers would see their savings become held hostage by the banks. For the convenience of having their money held hostage, savers would be charged a negative interest rate and see their hard earned money disappear slowly over time."

Gold has a 4,000-year history of preserving wealth and offering instant liquidity worldwide, while offering you a way to maintain your personal privacy. Read more in our free report, Timeless Truth About Gold & Silver.

Why investors are hedging against inflation as they wait for a rate hike- Market Watch
"Growing demand for assets that typically serve as hedges against inflation suggest that the market is positioning for the Federal Reserve to raise interest rates again, market watchers say...The core consumer-price index, which excludes volatile food and energy prices, in January was up 2.2% over the last 12 months. That marked the biggest increase since the summer of 2012.The price of gold also points to the market’s worries about inflation. Gold has benefited this year from a combination of low interest rates, renewed dollar weakness and a safe-haven demand as equity markets tumbled."

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Gold last traded at $1,272 an ounce. Silver at $15.54 an ounce.

NEWS SUMMARY: U. S. stocks roller-coastered up then down Thursday, cheering fresh EU stimulus and then slipped on lower oil prices. Precious metal prices rose sharply on safe haven buying and a falling dollar as investors smelled panic in Europe.

What's next for gold? - CBSNews
"The yellow metal is up more than 19 percent and has recently tested the $1,280-an-ounce level for the first time since early 2015. In comparison, the Dow Jones industrials index is down 2.7 percent for the year to date. The tech-heavy Nasdaq Composite -- which features one-time momentum favorites like Apple -- fares even worse: It's down 7.2 percent....A number of factors are fueling gold's rise. The recent cooling in the U.S. dollar. Financial volatility at the start of the year. Early evidence of rising inflation. Physical metal shortages in the futures market. And the recent experiment with deepening negative interest rates in Europe and Asia as overseas central banks respond to recent vulnerabilities with even more aggressive monetary policy stimulus. Higher inflation and a dovish Fed? That's a golden recipe for success for precious metals investors."

In 2016 gold has become the quintessential safe harbor and a welcome refuge from risk-ridden global economies, crisis-ripe European banks, tumbling oil prices and a tepid US recovery. To find out what's coming next read Swiss America's brand new 2016 Gold Report: Global Edition.

ECB pulls out all the stops, cuts rates and expands QE -CNBC
"The European Central Bank (ECB) delivered a surprise package of measures to kickstart Europe's economy on Thursday, cutting its main interest rates and expanding its massive bond-buying program....The euro zone's 19 countries are now seen posting average growth of 1.4 percent in 2016, rather than the 1.7 percent forecast in December....'While very low or even negative inflation rates are unavoidable over the next few months as a result of movement in oil prices, it is crucial to avoid second-round effects,' Draghi said in his regular media conference after the ECB statement."

As central bankers, such as Mario Draghi, continue experimenting with negative interest rates and new stimuli schemes their desperation becomes ever clearer. What central bankers are resorting to amounts to "bringing a six-pack to an AA meeting," says Swiss America chairman Craig Smith. This will not end well for debt-based assets. Gold is one of the few assets that insures your money will survive when central bank dreams come crashing down. Gold is one of the only assets that is not somebody else's liability.

Europe risks crisis if leaders mishandle Brexit -Evans-Pritchard/Telegraph
"There is no blueprint for life after Brexit. Nothing like the European Union has ever existed before, and the political chemistry of leaving is so combustible that the consequences cannot easily be calculated....'A UK departure would have repercussions for the whole continent,' says Professor Otmar Issing, the founding chief economist of the European Central Bank....A report this week by Morgan Stanley spells out the grim price Europeans will pay if they mishandle this event. Foreign investors would start to withdraw their $8.3 trillion of investments in the eurozone. There might be a bond run with Spain in the firing line....There is no fiscal union, and no genuine banking union. Little has been done to make monetary union viable. The ECB is running low on ammunition. Populist movements are simmering everywhere."

Economic Growth: Key To Avoiding Class Warfare -Forbes
"Class warfare. Rich versus poor. A Divided Era. Sadly, those words describe America today - but not only America today. They also applied to America just after the Revolution, America during the Great Depression and as far back as the Athenians of 3rd Century BC. What those periods and today, and others like them, have had in common is the underlying corrosive problem of sustained, economic stagnation. In order to avoid the dire results of their time, we need to learn the lessons of their history. We can start by noting that wherever and whenever in history economic stagnation settles in, the politics of envy rises - and in that same train arrives rivalries over inequality. The convergence of those issues is more than a politically toxic and divisive brew. Quite frankly, few, if any, civilizations have avoided serious and destructive social discord, if not rebellion, when their leaders have fanned the flames of inequality. Worse yet, rather than foster economic growth, those same leaders tend to double down on policies that only further stagnate the economy and further increase inequality and strife. America simply cannot continue down that divided path."

To understand the accelerating battle between American Dream and the Progressive Dream, request a free copy of WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE: AMERICAN DREAM VS. PROGRESSIVE DREAM.

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Gold last traded at $1,257 an ounce. Silver at $15.36 an ounce.

NEWS SUMMARY: U.S. stocks closed modestly higher Wednesday as oil prices rebounded over 5%. Precious metal prices eased back on profit-taking.

Gold's Best Start Since 1974 Shows Not Just Inflation Hedge -Bloomberg
"For an asset touted as a hedge against inflation, gold’s doing pretty well right now. The metal is off to its best start to the year since 1974 even as expectations for gains in consumer prices are near their weakest since the global financial crisis seven years ago.

Adding to the allure are fears that policy makers are losing traction over economies....'Gold does well when central bankers appear to be losing control, and in the present environment that means signs that deflation is getting a grip,' said Matthew Turner, a precious metals analyst at Macquarie Group Ltd. in London."

Appraisal Of Central Banker Credibility -HedgeEye
"As faith in global central planners continues to wane, policymakers from the Fed to the BOJ watch as macro markets deteriorate in direct opposition to their optimistic forecasts. This Thursday (drumroll please...) we'll hear from ECB head Mario 'Whatever It Takes' Draghi. Below is an update from our Macro team on what we expect to hear from him in a note sent to subscribers this morning:

'This Thursday the ECB meets and we expect it to announce additional stimulative policy. According to our Big Bang Theory, after 600 rate cuts globally, there’s a new regime of investors that has given up on the belief that central bankers can artificially produce stimulus and weaken their currency for economic benefit. This policy hasn’t worked in Japan, and it isn’t going to work in the Eurozone....No worries right? With bulls placing their faith in omnipotent, gravity-arresting, global central banks to stop the bleeding, what could possibly go wrong?"

7-Year Anniversary Of "The Most Hated Bull Market Ever" -ZeroHedge
"As most financial media will remind you, today is the 7 year anniversary of the market's lows hit on March 9, 2009, a day when the Wall Street Journal wondered "How low can stocks go".... What took place since then has been the most remarkable, central-bank supported rally of risk assets in history, with the S&P rising some 200% to hit all time highs around 2,100 just one year ago, and restoring $14 trillion to stock values. In fact, the move since March 9, 2009 is now the third longest bull market in history, and just days away from being the second longest rally on record. Now, as Bloomberg writes, 'Investors are awash in angst, showing little faith the run can continue. They worry about contracting corporate earnings, slowing Chinese growth and uncertainty over interest rates. And they’re walking the talk by pulling cash from stocks at almost the fastest rate on record. It’s not unwarranted - the S&P 500 has gained just 0.5 percent in the last 18 months.'....Corporations have unleashed the biggest debt-funded stock buyback spree in history, providing the natural offset to wholesale selling by virtually everyone else, and allowing the market to barely dip over the past year."

Big Government = Small Growth -Daily Caller
"In the last decade, America’s economy has stumbled and cannot regain its footing. Simultaneously, in the last decade the federal government has been larger than in any decade of the previous 60 years. America appears to have entered not just a new norm of smaller growth, but also one of bigger government. From 1947 through 2006, the nation’s average annual real GDP growth was 3.4 percent. None of these six decades ever fell below 3 percent. Then came the last ten years. From 2007 through 2016, U.S. GDP will have averaged just 1.4 percent annual real growth....America is closing in on a decade of lost economic growth. It is also beginning another decade of growing an already big government. If the two are indeed connected, then America’s former economic excellence will recede even further into the past."

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Gold last traded at $1,262 an ounce. Silver at $15.39 an ounce.

NEWS SUMMARY: U.S. stocks drifted lower Tuesday after weak China data renewed global growth concerns and oil prices fell. Precious metal prices eased back.

Negative interest rates good news for gold -Business Insider
"The longer the world's central banks continue to experiment with negative interest rates, the better the outlook for gold, according to Britain's biggest bank, HSBC....The imposition of negative rates is a sign of distress, which is gold-bullish. Furthermore, the uncertainty surrounding the long run impact of negative rates as outlined in the BIS report is also supportive of gold. The BIS report seems to say that negative rates have brought uncertainty, especially as regards their impact on financial intermediaries, but have not delivered hoped for gains for households and businesses. This is to gold's benefit."

Swiss America chairman Craig Smith is concerned that the Fed has not taken negative interest rates off the table. Central banks are becoming more desperate daily. Read Mr. Smith's latest commentary: Gold’s Rising Role in a Global Economy.

100% Probability of a U.S. Recession Within a Year -Bloomberg
"Rogers Holdings Chairman Jim Rogers is certain that the U.S. economy will be in recession in the next 12 months. 'It's been seven years, eight years since we had the last recession in the U.S., and normally, historically we have them every four to seven years for whatever reason - at least we always have,' he said. 'It doesn't have to happen in four to seven years, but look at the debt, the debt is staggering. If you look at the … payroll tax figures [in the U.S.], you see they're already flat,' he concluded. 'Don't pay attention to the government numbers, pay attention to the real numbers.'"

Did America ever really recover from the last recession? Let us help you get ahead of the economic curve and next cycle by reading our 2016 World Money Report. Discover how to keep your money safe - even in a down-trending global economy. The report is available free at 2016MoneyReport.com or by calling Swiss America at: 1-800-289-2646.

Reimagining Money -TheAtlantic
"What sorts of money will encourage admirable human behavior? What sorts of money systems will encourage trust, reenergize local commerce, favor peer-to-peer value exchange, and transcend the growth requirement? In short, how can money be less an extractor of value and more a utility for its exchange?....Unlike local discount currencies, cooperative community currencies don’t need to be pegged to the dollar at all. They are not purchased into existence but are worked into circulation. They are best thought of less like money than like exchanges....Time exchanges tend to work best when everybody values their time the same way or is providing the same service. Time dollars are extremely egalitarian, valuing each person’s time the same as anyone else’s. An 'hour' is worth one hour of work, whether it is performed by a plumber or a psychotherapist."

Speaking of restoring moral money, which can function locally or globally, gold has a 4,000-year history of preserving wealth and offering instant liquidity worldwide, while offering you a way to maintain your personal privacy. Read more in our free report, Timeless Truth About Gold & Silver.

Nancy Reagan Brought Alzheimer's 'Into The Public Sphere' -NPR
"Nancy Reagan called Alzheimer's disease a truly long, long goodbye. Her husband, President Ronald Reagan, announced he had the disease in 1994. And at the time, Alzheimer's wasn't talked about openly. The former first lady helped change that. After Nancy Reagan's death yesterday at the age of 94, she's being remembered as a powerful advocate for Alzheimer's research....Nancy Reagan took private conversations and threw them out into the public sphere, and in so doing created a tremendous awareness for Alzheimer's disease that she then leveraged politically."

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Gold last traded at $1,264 an ounce. Silver at $15.63 an ounce.

NEWS SUMMARY: U.S. stocks traded mixed Monday on a convoluted economic outlook despite a 5% rise in oil prices. Precious metal prices traded higher after touching 13-month highs.

Gold rush! The yellow metal is in a bull market -CNN
"Gold is now in a bull market. The yellow metal has soared 20% so far this year. At the beginning of the year, it was easy to understand why gold was glittering. Investors were extremely nervous about China and the global economy. Those were big reasons why oil and stocks fell. Gold benefited since it's universally regarded as a safe haven fear trade in times of turmoil. It's a hard, tangible asset and not pieces of paper like currencies, stocks and bonds. But investors no longer seem to be paralyzed by fear....So why hasn't the gold rush ended? Gold is an alternative form of currency. Rates below zero could make the euro and yen weaker and increase the allure of gold."

Bizarro World of Negative Interest Rates, Saving Costs You -New York Times
"Here’s a proposition for you: Hand over your money. I’ll skim some off the top, hold it for a while and return whatever is left in a year or two. Until a few years ago, that’s the kind of offer a gangster might have made. In the world as we’ve known it, if you lend someone your cash you expect to receive something - typically, interest - in return. But something radically different is afoot today. It’s called negative interest - and it is an inversion of the traditional relationship between lenders and borrowers. 'It’s all upside down,' said Kathy A. Jones, chief fixed-income strategist at Charles Schwab. 'Negative interest is hard to even think about. Our whole financial system is built the other way, on positive interest rates. This is mind-boggling.'"

Author and Swiss America chairman Craig Smith refers to negative interest rates as proof we are living in an age of economic myth vs. math. Since the U.S. abandoned the Gold Standard in 1971, our nation has granted banks the privilege of creating money by loaning it into existence, then charging us interest. According to Smith, that is the equivalent of allowing builders to create homes without wood or concrete, bakers to create bread without flour, or farmers to create a crops without soil. Mr. Smith says an economic 'train wreck' is fast approaching the U.S. and the world; and gold alone represents safe and 'moral money'.

Global fears as markets lose faith in central banks -The Times
"The global economy is heading for a storm as faith in policymakers dwindles, according to a stark warning from one of the world’s most respected financial institutions. The uneasy calm in financial markets last year has given way to turbulence, the Bank for International Settlements, known as the central bank for the world’s central banks, said in its latest quarterly report. Financial markets are losing faith in the healing power of central banks and their latest policy weapon - negative interest rates - to boost the world’s main economies, the bank said."

Craig Smith comments: "The banks have tried Q.E., zero interest rates and now negative rates, yet none of this financial engineering will flush out all the malinvestment and overvalued assets in the market. Until that occurs, expect more concern, which causes a lack of confidence in the world financial system."

Why is faith so important in modern banking and money systems? Because we live in an era of "faith-based" money. There is a clue in the root meaning of the word "credit", which means; "value, worth, a formula of faith". So while today's secular-driven society is running from a "faith-based" lifestyle, we are still embracing our modern "faith-based" money system. Gold is the only universally accepted form of money that is "substance-based" and requires no faith in central banks.

Fed Warns U.S. Inflation Could be Accelerating -Fox Business
"Inflation is showing signs it could accelerate in the United States, a top Federal Reserve policymaker said in comments that back the view that the central bank will hike interest rates again this year. 'We may well at present be seeing the first stirrings of an increase in the inflation rate,' Fed Vice Chairman Stanley Fischer said on Monday in prepared remarks, adding that faster inflation was 'something that we would like to happen.' Fischer did not comment on whether the Fed was likely to raise interest rates this year."

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Gold last traded at $1,270 an ounce. Silver at $15.69 an ounce.

NEWS SUMMARY: U.S. stocks gained ground Friday amid higher oil prices and an upbeat jobs report. Meanwhile, gold prices finished at a 13-month high, ending the week up over 4%.

Gold Could Rally Next Week On Currency Devaluation Fears -Forbes
"With gold breaking out of its consolidation period, momentum is expected to continue next week as a strong majority of retail and market analysts remain bullish in the near-term, according to the Kitco News Wall Street vs Main Street gold survey.... The next push is expected to come later in the week when the ECB is expected to announce more easing measures to try to stimulate its faltering economy and boost falling inflation pressures."

Central Banks Extend Longest Gold-Buying Spree -Bloomberg
"Central banks have been net buyers of gold for eight years, with Russia, China and Kazakhstan among the biggest hoarders, International Monetary Fund data show. Countries purchased almost 590 metric tons last year, accounting for 14 percent of annual global bullion demand, the World Gold Council estimates. Central bankers are using the metal to diversify from currencies, particularly the dollar, said Stefan Wieler, a Toronto-based vice president at GoldMoney Inc., a financial bullion services firm."

Fresh recession will cause eurozone collapse -Telegraph
"A new recession in Europe could lead to the collapse of the eurozone, as the single currency would buckle under the political turmoil unleashed by a fresh downturn, a leading investment bank has warned. In a research note titled 'Close to the edge', economists at Swiss bank Credit Suisse warned the fate of monetary union hangs in the balance if Europe's policymakers are unable to ward off another global slump and quell anti-euro populism....'The viability of the euro is contingent on the current recovery,' said Peter Foley at Credit Suisse. 'If the euro area were to relapse back into recession, it is not clear it would endure.'"

Why Big Government Is Waging War Against Cash -Steve Forbes/Forbes
"Gaining attention these days is the idea of abolishing high denominations of the dollar and the euro. This concept graphically displays the astonishing stupidity – and intellectual bankruptcy – of today’s liberal economic policymakers and the economics profession....Monetary expert Seth Lipsky pithily points out in the New York Post, 'When criminals use guns, the Democrats want to take guns from law-abiding citizens. When terrorists use hundreds, the liberals want to deny the rest of us the Benjamins.'....The real reason for this war on cash – start with the big bills and then work your way down – is an ugly power grab by Big Government. Manipulating the value of money and controlling interest rates, i.e., the price of money, never works."

Steve Forbes is spot on on this issue. Progressive policymakers have been destroying the value of cash for generations and now they want to outlaw it completely. Read The Secret War On Cash for more startling details about the progress that has been made in the U.S. and worldwide.

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Gold last traded at $1,258 an ounce. Silver at $15.14 an ounce.

NEWS SUMMARY: U.S. stocks hovered near flat line Thursday amid volatile oil prices and economic data indicating continued lackluster U.S. growth. Meanwhile, gold prices rose another 1% on a sharply weaker U.S. dollar.

JPMorgan Says To Buy Gold -Zero Hedge
"In a dramatic conversion, after moving to Neutral on equities just a month ago, JPM is as of this moment underweight equities 'for the first time this cycle.' Additionally, JPM is also Underweight such highly correlated to stocks (and China) commodities as gas, oil, and copper, but in a surprising reversal is now, perhaps most importantly, overweight gold....'If the recession starts this year (not our modal view), then the S&P500 would likely fall some 30-35% from last year’s peak of 2,134, to somewhere between 1,400 and 1,500."

When major banking analysts begin recommending gold, it is a sign the other markets are overbought. The list of experts now advising clients to buy gold is rising quickly this year. So, what are you waiting for ... another big price move? The time to buy is before the next panic, not afterward. Want to get up to speed fast? Read Swiss America's free report, Timeless Truth About Gold & Silver.

Silver Lagging Gold in 2016 -CNBC
"Gold is up 17 percent in 2016 and 10 percent in the past month alone. Silver, meanwhile, has risen just 8 percent this year and 5 percent in the past month....'Considering how highly correlated silver is to gold, I find it interesting to see such a divergence over the last two to three weeks,' Cowen head of equity sales trading David Seaburg wrote to CNBC. 'Actually, it's the first time I have ever seen a gap like this.' While silver is often considered a precious metal, it also has industrial uses. A weak global industrial environment, particularly in China, has weighed mightily on purely industrial metals like copper and nickel....'We've had gold lead over the past few years, but now something interesting is happening. At the resistance levels where you typically see that turn, gold has broken out to the upside,' Oppenheimer head of technical analysis Ari Wald said Wednesday on CNBC's 'Power Lunch.'"

Like gold, silver is also considered a monetary metal during times of crisis, but during economic downturns it is not as favored as gold. Swiss America chairman Craig Smith has always recommended gold as the bedrock of a precious metals portfolio because it is considered liquid money worldwide. Read Mr. Smith's latest commentary: Gold’s Rising Role in a Global Economy.

Avoid Bank Stocks in Negative Interest-Rate World -Fox Business
"Bill Gross, the widely followed investor who runs the Janus Global Unconstrained Bond Fund, said on Thursday that investors should not be tempted into purchasing beaten-down bank stocks against the backdrop of interest rates potentially turning negative. Gross warned investors: 'Banking/finance seems to be either a screaming sector ready to be bought or a permanently damaged victim of write-offs, tighter regulation and significantly lower future margins. I'll vote for the latter. A 30-year Treasury at 2.5 percent can wipe out your annual income in one day with a 10 basis point increase,' Gross said."

Stay Away from CoCo Bonds -Handlesblatt
"A new type of financial instrument set up in the wake of the financial crisis may appear attractive, but investors should be wary. Contingent convertible bonds, also known as CoCo bonds, are highly risky convertible bonds that are automatically converted into a bank’s equity capital or are depreciated when their capital buffers fall below a certain threshold. Investors in CoCo bonds are taking a high risk, because they could lose everything. Conversely, if things go well they can receive a lucrative return of about 6 percent. There is a high barrier to entry - a minimum investment volume of $109,000 - and for good reason. It appears that not even professional investors seem to know exactly how the bonds work."

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Gold last traded at $1,241 an ounce. Silver at $15.02

NEWS SUMMARY: U.S. stocks remained stagnant Wednesday despite upbeat ADP jobs data and higher oil prices. Precious metal prices rose nearly 1% on safe haven buying and a weaker dollar.

Service Jobs Boom, March rate hike anyone? -Zero Hedge
"Fed increasingly cornered as ADP reports surprising beat in jobs. After surprisingly jumping in December, ADP's employment report fell back to a more normal 200k level in January and now in Feb it rises once again to 214k.... As ADP reports, Goods-producing employment rose by 5,000 jobs in February, just over a quarter of January’s upwardly revised 19,000....Service-providing employment rose by 208,000 jobs in February, up from a downwardly revised 174,000 in January. Great news!! March rate hike anyone?"

2016 World Money Report Released -PRWeb
"Swiss America’s new 2016 World Money Report is an insightful study of economic globalization with particular emphasis on the US dollar’s diminishing role as the world’s reserve currency. It explores currency manipulation and how paper money is used as a competitive weapon in the world marketplace. 'This is an important read for anyone holding dollars in a savings or retirement account,' states Dean Heskin, CEO of Swiss America. 'It underscores the changing climate of global money and what that means for the average investor.' The 2016 World Money Report is a complimentary publication from Swiss America and part of its ongoing commitment to help investors make informed decisions to keep their money safe in a changing world. The report is available online at 2016MoneyReport.com or by calling Swiss America directly at: 1-800-289-2646."

The Gold Bugs Are Back -Seeking Alpha
"Don't look now, but the Golden child of commodities is creeping back in the limelight - riding a near 20% up move so far this year back into relevance (or at least headlines). We're talking about the so called 'barbarous relic' Gold, of course....What's pushing the favored market for 'the end of world types' higher? Look no further than interest rates, and the Fed's apparent change of heart on raising rates in 2016. The logic goes - if the Fed doesn't raise rates, we're looking at paper money yielding essentially $0, with the real possibility that you would have to pay to have your money held in a bank. For those who view Gold as a store of value, akin to another currency, they would much rather hold Gold than a paper currency at risk of being devalued....And who knows, maybe the onset of negative interest rates is the start of some sort of Gold friendly market debacle."

Even those pundits who are bearish on gold must admit gold is viewed as a store of value compared to negative interest rates and a potential market debacle. Don't put off converting some of your shrinking dollars into the safest form of money on earth. Learn more in Swiss America's free report, Timeless Truth About Gold & Silver.

Clinton, Trump cemented as 2016 leaders -Associated Press
"Democrat Hillary Clinton and Republican Donald Trump seized decisive Super Tuesday victories with math and momentum on their side, leaving rivals scrambling for last-chance, long-shot strategies....Trump's seven victories in states across the country amounted to a GOP establishment collapse with no clear sign of rapid recovery....Clinton also won seven of the nearly a dozen states that weighed in Tuesday. Rival Bernie Sanders won his home state of Vermont, as well as Minnesota, Oklahoma and Colorado....Clinton tried to turn Trump's 'Make America Great Again' slogan on its head, saying the country instead must be made 'whole again.' 'What we need in America today is more love and kindness,' she said. 'Instead of building walls, we're going to break down barriers and build ladders of opportunity and empowerment.'"

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Gold last traded at $1,230 an ounce. Silver at $14.75 an ounce.

NEWS SUMMARY: U.S. stocks rose Tuesday helped by higher oil prices and a better-than-expected ISM manufacturing report. Precious metal prices remain higher.

Gold Shines in 2016 -WallStreetDaily
"To date, 2016 is a year where the reversion to the mean trade is strong. This means Wall Street favorites have been losers and unloved assets like gold have been winners. In fact, gold is having its best start to a year since 1980. The precious metal is up 16% so far this year. That movement has enticed investors who usually wouldn’t be interested in gold to invest in it. So why exactly has gold soared in early 2016? Central banks go negative...a weakening of the U.S. dollar....Let’s not forget too that the fundamentals are supportive for gold....I like gold bullion and coins, too. But I’m not a fan of ETFs like the SPDR Gold Shares (GLD)."

The truth is gold never really lost its shine - despite its steep price correction of 2011-2015 - for those who understand gold's primary role is to preserve wealth. Now that gold prices are back on the rise, pundits and traders alike are recommending it as a "buy". If you don't own any physical gold, it is always a "buy", no matter the price! Learn why by reading Craig R. Smith's latest commentary on gold: Gold’s Rising Role in a Global Economy.

Cash is the currency of freedom -USAToday
"As Fed inflates away dollar's value, government gains more control to manipulate taxpayers and savers. Former Treasury secretary Larry Summers wants to get rid of the $100 bill. But I think he has it exactly backward. I think we need to restore the $500 and $1000 bills. And the reason is that people like Larry Summers have done a horrible job....What is a $100 bill worth now, compared to 1969? According to the U.S. Inflation Calculator online, a $100 bill today has the equivalent purchasing power of $15.49 in 1969 dollars. Likewise, in 1969, a $100 bill had the equivalent purchasing power of $645.55 in today’s dollars. So even if we brought back the discontinued $500 bill, it wouldn’t have the purchasing power today that a $100 bill had in 1969....Of course, as CATO Institute analyst Daniel J. Mitchell writes, to our ruling class this isn’t a bug, but a feature. Governments want to get rid of cash for two reasons. First, it gives them more control over citizens. Second, if you’re stuck putting your money in a bank, they can force you to spend it (and thus 'stimulate' the economy) by subjecting you to negative interest rates, in which money that just sits in the bank shrinks away, providing an incentive to spend....Cash has a lot of virtues. One of them is that it allows people to engage in voluntary transactions without the knowledge or permission of anyone else. Governments call this suspicious, but the rest of us call it something else: Freedom."

This insightful article presents a strong case for holding cash to preserve freedom - even if the value of cash is declining long-term. The "War On Cash" is heating up worldwide and it must be noted that when it comes to preserving your money's buying power, cash has failed miserably compared to gold. For example, in 1969, $100 would buy you 2.5 ounces of gold (at $41/oz.) ... today 2.5 ounces of gold is worth $3,075 in cash. Gold is the only form of money on earth today which maintains an honest store of value. Period.

Can the next President stop the federal debt explosion? -Marketwatch
"The U.S. Congressional Budget Office (CBO) has just delivered the bad news that the national debt is now rising faster than gross domestic product and heading toward ratios that we usually associate with Italy or Spain. That confirms my view that the fiscal deficit is the most serious long-term economic problem facing U.S. policy makers. A decade ago, the federal debt was just 35% of GDP. It is now more than double that and projected to reach 86% in 2026. But that’s just the beginning. The annual budget deficit projected for 2026 is 5% of GDP. If it stays at that level, the debt ratio would eventually rise to 125%."

Progressives Century-Long Love Affair With Wall Street -Investors.com
"Hillary Clinton and Bernie Sanders are trying to prove their progressive credentials to Democratic primary voters by raising their anti-Wall Street rhetoric. But throughout American history, progressives have campaigned against big business and ended up governing for its benefit. The laws that undergird the modern administrative state are either written by, or are interpreted to benefit, their putative targets....The Federal Reserve Act of 1913 was perhaps the greatest progressive gift to Wall Street. Wilson and Brandeis imagined that a New York-based 'money trust' was choking off credit for the rest of the country and abetting industrial concentration....Americans who fear the influence and power of large corporations and banks would be wise to resist the siren call of progressive rhetoric against Wall Street and 'big business.' Historically, progressive policies have had the reverse effect of strengthening the very businesses they’re intended to weaken."

Thank you Investors.com for bringing this to the public's attention. In WE HAVE SEEN THE FUTURE AND IT LOOKS LIKE BALTIMORE: AMERICAN DREAM VS. PROGRESSIVE DREAM Craig and Lowell show how Progressives hijacked the Democratic Party and, through anti-business taxes and regulations, are ruining the American economy through “Donkey Drag;” the fear of expropriation that businesses now feel about investing and hiring more workers.

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