June Blog Archives 2016

Gold last traded at $1,272 an ounce. Silver at $17.31 an ounce.

NEWS SUMMARY: U.S. stocks attempted gains Tuesday amid declining oil prices, mixed Brexit polls and remarks from the Fed chair. Meanwhile, precious metal prices slipped as short-term speculators took profits ahead of UK vote on Thursday.

The next recession is already here—and there isn't much the Fed can do -CNBC
"While investors have been focused on the perennial failed hope for a second half economic recovery, they have been missing the most salient point: the U.S. most likely entered into a recession at the end of last quarter. That's right, when adjusting nominal GDP growth for core consumer price inflation for the average of the past two quarters, the recession is already here....The Fed already has a bloated balance sheet in relation to GDP and only a few basis points to reduce borrowing costs before short-term rates hit zero percent. Therefore, there just isn't much the Fed can do this time around. Therefore, this next recession could last even longer than the previous one. The stock market is pricing in perfection and is ill-prepared for a protracted recession that may already be underway. Prudent investors should hedge their portfolios now from such an unwelcome event."

The Golden Age Of Gold -Seeking Alpha
"These days, no currency around the world is as stable as gold. The lustrous yellow metal has performed like no other asset over recent months. Gold moved from $1046 per ounce last December to over $1300 last week....The thing about gold these days is that it is looking and acting a lot more like a currency than paper currencies as it is revealing the real weakness of central banks and their addiction to free money policies. Gold looks a lot more like money these days than traditional money does, and we could be entering the golden age of gold....Gold is money and in today's environment, it offers a yield that is competitive with all of the major currencies of the world. Moreover, while central banks can print paper currencies to their heart's delight using monetary policy tools, they cannot print more gold.”

"Gold is money, everything else is credit," admitted the infamous banker JP Morgan a century ago and it's still true today. Now is the time to get out of credit and into real money. Buying gold price dips is a wise strategy, before paper wealth returns to its true value; zero. Read more in our 2016 Gold Report - World Edition.

Goodbye, Password. Banks Opt to Scan Fingers and Faces Instead. -New York Times
"The banking password may be about to expire - forever. Some of the nation’s largest banks, acknowledging that traditional passwords are either too cumbersome or no longer secure, are increasingly using fingerprints, facial scans and other types of biometrics to safeguard accounts. Millions of customers at Bank of America, JPMorgan Chase and Wells Fargo routinely use fingerprints to log into their bank accounts through their mobile phones. This feature, which some of the largest banks have introduced in the last few months, is enabling a huge swath of the American banking public to verify their identity with biometrics....Wells Fargo lets some customers scan their eyes with their mobile phones to log into corporate accounts and wire millions of dollars. Citigroup can help verify 800,000 of its credit card customers by their voices....The trade-off, of course, is that in the quest for security and convenience, customers are handing over marks of their unique physical identities."

In 2002 the world got a sneak peak into the future of iris scanning technology, in the blockbuster sci-fi movie "Minority Report". Who can forget the eyeball switch Cruise needed to outsmart the sinister government surveillance cameras located everywhere to maintain 'public safety'. A little over a decade later, banks are anxious to help us all be 'safer' - using fingerprint, facial and iris scanning. Of course the downside is the loss of personal privacy; which millions are now willing to give up for the sake of convenience. A better solution is to move a portion of your savings outside of the banks entirely into a form of money that is safer in your own hands. Read more about how to protect your money in The Secret War on Cash.

Brexit: Global Chaos or Independence? -Lowell Ponte
"On Thursday, June 23, the British people will vote in a national referendum on whether to declare their independence from the European Union. If they vote Yes, our Fourth of July fireworks 11 days later will take on new meaning....In today’s Great Britain, more than 60 percent of its laws and regulations originate not in the Parliament in London but in Brussels, Belgium, from an army of 'Eurocrats' and members of the European Parliament....Historically, politics around the world involve forcing things together under bigger governments, or forcing them apart into smaller nations. An independence vote June 23 in Great Britain could help roll back the global government direction of the European Union." Full story

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Gold last traded at $1,292 an ounce. Silver at $17.51 an ounce.

NEWS SUMMARY: U.S. stocks traded higher Monday amid gains in oil prices. Meanwhile, precious metal prices stabilized.

Never sell your gold - buy more! -YahooFinance
"It’s pretty safe to say that we haven’t seen the end of this period of increased volatility. All markets seem poised to overreact to whatever the outcome of next week’s Brexit vote might be. I’ve seen that if the referendum passes, the target for the exit is actually sometime in 2019. Nevertheless, there will be an oversized collapse in common sense in our immediate future that seems unavoidable. How about gold, gang? The precious metal has skyrocketed to levels well above $1,300 an ounce. The VIX is trading above 22....The US dollar is strong today against a basket of global currencies, despite yen strength. This is putting a further hurt on crude and energy stocks and really puts an exclamation point on gold’s move."

The key to conserving wealth in uncertain times is to own assets that are certain. Rather than playing the speculation game of traders, owning physical gold should be viewed as putting a solid foundation in your portfolio which can withstand the storms of life ... and financial markets. If prices dip, buy more. If prices skyrocket, hold on tight to the world's most trustworthy form of money, gold. Don't wait, discover THE TIMELESS TRUTH ABOUT GOLD & SILVER.

However Brexit vote goes, UK economy is in trouble -CNBC
"Severing ties to Europe may help Britons regain a sense of independence and better control over their nation's destiny. It will do little, though, to help their economy, according to analysts. The U.K. is close to slipping into another recession, and that will likely influence the vote of many who head to polls on Thursday to decide whether the country should stay in the European Union, or leave it. Gross domestic product advanced by just four-tenths of a percent in the first quarter of this year, down from six-tenths of a percent in the fourth quarter of 2015. That's the slowest rate since the fourth quarter of 2012, according to the Office for National Statistics. Some of the blame goes to uncertainty over the outcome of the upcoming referendum, scheduled for Thursday."

Don't Believe the Fed's Stress Tests -Bloomberg
"This week, the Federal Reserve plans to announce the results of stress tests aimed at ensuring that the largest U.S. banks could weather a major crisis. With the exercise in its sixth year, it's worth asking whether the banks are really better prepared. The answer, according to an alternative measure of systemic risk: not so much. For all the Fed's laudable efforts to make the stress tests credible, the exercise still doesn’t bear much relation to what actually happens in a crisis. For one, it assumes that banks could get by with very little equity capital."

Craig R. Smith comment: "The banks have trillions of new debt on their books and are far more leveraged than 2008 so I agree; don't trust the stress tests. These tests are window dressing for debt pigs." Read more in Mr. Smith's book DON'T BANK ON IT!

China Dumping U.S. Stocks & Treasuries -Bloomberg
"The People’s Bank of China, owner of the world’s biggest foreign-exchange reserves, burnt through 20 percent of its war chest since 2014, dumping about $250 billion of U.S. government debt and using the funds to support the yuan and stem capital outflows. While China’s sales of Treasuries have slowed, its holdings of U.S. equities are now showing steep declines. The nation’s stash of American stocks sank about $126 billion, or 38 percent, from the end of July through March, to $201 billion, Treasury Department data show....'It’s a very busy week and but the outstanding thing is the U.K. referendum,' said Christian Gattiker, head of research at Julius Baer Group Ltd. in Zurich."

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Gold last traded at $1,294 an ounce. Silver at $17.41 an ounce.

NEWS SUMMARY: U.S. stocks traded lower Friday amid growing uncertainty ahead of next week's scheduled Brexit vote. Meanwhile, gold prices rose 1.5% for the week on safe haven buying after touching 2-year highs earlier in the week.

In A Perfect Storm Gold Can Only Go Up -Forbes
"A heady mix of financial, political and economic forces are behind the latest gold revival and none of them are short-term events. Credit for this week’s rise in the gold price to a two-year high of $1314.87 an ounce was shared by confirmation that U.S. interest rates will be lower for longer and that British voters might agree with a proposition that their country should quit the European Union....And then there’s the biggest uncertainty of all, the gorilla in the room that no-one is discussing, what will the U.S. economy look like in the first year of President Trump should he be elected in November. Gold loves situations like this....A perfect storm of bad news is brewing, and that’s good news for gold."

The logic for owning gold is so clear that only a central banker could miss it. By this time next week, gold prices could be dramatically higher, based on the rapidly rising level of uncertainty in the world. Why wait? Call Swiss America now at 800-289-2646 to get some wealth insurance, before prices rocket further upward. Not sure? Read our 2016 Gold Report - World Edition.

"The Fed Has Failed" Warns Bank Of America -Zero Hedge
"Following Wednesday's disastrous FOMC statement and Janet Yellen press conference, we predicted that it is only a matter of time before we get a return of the 'Policy Failure' narrative. Sure enough, here is BofA's Michael Hartnett not only validating this forecast just days later, but also laying out the framework for a disturbing new outlook, one which looks at a world in which central banks have lost the 'war against deflation', and what will happen once Quantitative Failure spreads from Europe and Japan to the US....From BofA's Michael Harnett, 'Despite unprecedented central bank policies of QE, ZIRP & NIRP, 655 rate cuts since the Lehman bankruptcy, $12.3tn of central bank financial asset purchases, prospect of a 'one & done' Fed, central banks have lost the 'War against Deflation'. They have failed to stimulate animal spirits depressed by the 4D’s of excess Debt, financial Deleveraging, aging Demographics and technological Disruption."

Gold Has Little Downside, Brexit Or Not -Barrons
"You want a commodity that promises upside and has little downside? Go to the safe-haven gold, says HSBC. As a safe-haven, gold is great if Britain decides to leave the European Union next week. In addition, it will benefit from a flow of funds because there is no central bank that intervenes in the rise of gold, unlike the soaring yen. HSBC’s James Steel thinks gold can rise to $1,400 an oz in the event of Brexit. If Britain chooses to stay, gold is likely to fall to no more than $1,220 an oz,or 7% downside. 'In this [Bremain] scenario, gold would likely be well supported by a number of outside factors. These include the ratcheting down in the number of anticipated Federal Reserve rate hikes, the uneven pace of global economic expansion, uncertainty associated with the US election cycle, and other geopolitical risks not related to the UK vote.'"

A Cashless Society -- Based On Gold -Forbes
"A gold standard system can take on a great many practical manifestations. Before 1800, in most places it meant gold and silver coins exclusively. In the 1950s, it meant paper money whose value was linked to gold, even as owning gold itself had been illegal since 1933. Some time in the future, it might mean various forms of 'e-money,' where neither coins nor banknotes are used. In all of these cases, the core concept is that the value of the medium of exchange is linked to gold...In a gold standard system also, countries have no domestic monetary policy. They trust that gold will serve its role as a stable measure of value, as it has for centuries. They get to participate in a trade network among other gold standard countries, free of the problems of floating exchange rates....Just look around you. Yellen. Draghi. Kuroda. Negative interest rates. Brexit. The collapsing middle class....For now, we have to live with it. But, maybe not too far in the future, we might be able to choose again what kind of system we want. I vote for gold."

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Gold last traded at $1,298 an ounce. Silver at $17.60 an ounce.

NEWS SUMMARY: U.S. stocks whipsawed lower then recovered Thursday amid volatility in the global currency markets. Meanwhile, gold prices jumped over $1,300 an ounce on safe haven buying and later stabilized.

How To Prepare For Increased Volatility -Wayne Root/Craig Smith
Swiss America Chairman Craig R. Smith was a guest on best-selling conservative author Wayne Allyn Root's radio show discussing his economic outlook for 2016. Mr. Root believes we are headed for tough economic times, even if Trump is elected president. The middle class is being crushed says Root, due to spendthrift politicians bent on taxing and regulating small business to death. Mr. Smith discusses several troubling trends including; stagnant economic growth, trillions upon trillions in debt and government seizures of citizens cash without any proof of a crime being committed - all of which is covered in his book DON'T BANK ON IT! Listen link

Helicopter money belongs in central bank toolkit -Marketwatch
“The Federal Reserve ‘might legitimately consider’ using helicopter money in an ‘all-out’ effort to rescue the U.S. economy from a severe downturn, Fed Chairwoman Janet Yellen said Wednesday. 'It is something one might legitimately consider. I would see this as a very abnormal, extreme situation," Yellen said....Helicopter money, a policy that has been taboo for fifty years, calls for a central bank to print money and give it to people, most likely in cooperation with fiscal policy like a tax cut or to fund spending....Former U.K. bank regulator Adair Turner, a leading advocate for use of helicopter money, said that the Fed would likely struggle to raise rates in coming months and should think about the policy if necessary."

Gold Hits 2-Year High, On Easy-Money Fed, Safe-Haven Demand -Forbes
"A feature in the entire world marketplace Thursday is the rally in the gold market that has pushed prices to a two-year high of $1,316.80 an ounce. Gold is being supported by the perceived dovish FOMC statement on Wednesday and on safe-haven demand amid wobbly world stock markets and falling world government bond yields....The Bank of England and the Bank of Japan left their interest rates unchanged, as expected, at their latest monetary policy meetings Thursday. Asian stock markets were lower partly on disappointment the BOJ did not announce further economic stimulus measures at Thursday’s meeting."

The forces driving precious metal prices up this year are so pervasive that even bankers can no longer ignore them. Swiss America has outlined all of these major forces driving metals higher this year in one comprehensive report, 2016 Gold Report - World Edition.

How Brexit Fears Are Shaking the Currency Markets -Newsweek
“There is an old saying about currency markets: ‘The only certainty is that the exchange rate will fluctuate.’ So increased fluctuations in the currency market in the build-up to the U.K.’s referendum on EU membership are not unexpected. The levels of volatility, however, are unprecedented in recent times. As the June 23 referendum approaches, traders have been speculating both on the direction of movement of the British pound against currencies such as the dollar, euro and yen, and also on the amount of volatility that is likely to occur in each of these currency pairs on an hourly, daily, weekly and even monthly basis.”

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Gold last traded at $1,288 an ounce. Silver at $17.50 an ounce.

NEWS SUMMARY: U.S. stocks traded higher Wednesday, after four straight days of declines, following the Fed's decision to do nothing. Meanwhile, precious metal prices rose - with gold nearing $1,300 an ounce - on safe haven buying and a weaker dollar.

US bond yields could soon go negative -CNBC
"It's an inevitable question: Could U.S. 10-year yields turn negative now that German 10-year yields have fallen below zero for the first time ever and Japanese 10-year yields have dipped to record lows of negative 0.17 percent? According to Dennis Davitt, partner at Harvest Volatility Management and a noted options market veteran, it may well happen. 'I think you could see negative rates in the U.S. If Germany and other countries in the world go even further negative, it turns into a number line game. So where zero lies on the number line, who knows?' Davitt said Tuesday on CNBC's 'Trading Nation.'"

Gold rises after Fed statement -CNBC
"Gold prices rose Wednesday as the Federal Reserve announced it would leave interest rates unchanged at its June meeting....The metal has rallied for the last five sessions as assets seen as higher risk, such as shares, saw heavy losses on the back of Brexit fears, while yields on safe-haven German Bunds fell below zero for the first time....The threat of Brexit is a more immediate driver for gold, LBBW analyst Thorsten Proettel said. 'The latest data we got from polls shows the Leave group is getting more support, and nervousness is going up. That has brought the gold price to higher levels,' he said."

US warned over ‘cyber jihad’ attacks -Financial Times
"A top Department of Justice official warned that Islamist extremists were drawing closer to launching lethal 'cyber jihad' attacks on the US. 'You need to prepare because it’s going to come here,' John Carlin, assistant attorney-general for national security, told a conference in Washington, little more than a week after the Brussels bombings....James Comey, the FBI director, last year warned about terrorists using 'destructive malware' while a Homeland Security department official said in October that Isis had launched unsuccessful attacks on the electricity grid."

If you have still have any doubt that your financial assets are at risk in ways we have never before imagined, please read our White Paper: The Secret War on Cash

Adam Smith's Solution to Our Stagnation -RealClearMarkets
"Shockingly weak May and June job reports have revived Americans' anxieties about a stagnant economy and vanishing opportunities....A record 95 million working-age Americans are not participating at all. In effect, they've walked away from the promise of upward mobility. Yet the cure for what ails our economy is the very same prescription that enabled an astounding run of growth and top-to-bottom prosperity for much of our nation's history. Namely, the formula of 'peace, easy taxes, and a tolerable administration of justice' authored by Adam Smith, a great Enlightenment thinker, whose birthday most recognize as June 16....One of Smith's key insights is that in foreign trade and in commercial society at all levels, both sides gain something in the exchange. These mutual gains from voluntary trade make everyone more prosperous....Smith placed his hopes on the genius of the individual - the craftsman, shopkeeper, and early innovators of the Industrial Revolution - who would spur growth and create wealth. To illustrate how these grassroots economic forces could affect such leaps in prosperity, he offered the powerful metaphor of the invisible hand. In this, Smith showed, a business proprietor operating in his or her own niche of the economy could 'promote an end which was no part of his intention' - namely, 'to promote the public interest.'"

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Gold last traded at $1,288 an ounce. Silver at $17.42 an ounce.

NEWS SUMMARY: U.S. stocks fell again Tuesday in choppy trading amid oil price declines, falling bond rates and worry over the Fed meeting and upcoming Brexit vote. Meanwhile, precious metal prices rose on safe haven demand despite a firmer U.S. dollar.

Watch gold jump to $1,400 if U.K. votes to Brexit -Marketwatch
"One of the biggest beneficiaries of disquiet that Briton’s could opt to leave the EU at its June 23 referendum, is gold. Gold futures are set to rise as much as 8.5% from current levels, according to James Butterfill, head of research and investment strategy at ETF Securities. 'Brexit would be very beneficial for shorting sterling and we will probably see a big pick up in gold. In that scenario we think gold could hit $1,400 [an ounce],' he said on the sidelines of the Inside ETFs Europe conference in Amsterdam....That also means a rally to $1,400 an ounce would have legs and not just translate into a short-term shaven trade, Butterfill said."

The sky is the limit for gold prices this year, given all of the potential wild cards which could trump traditional investment vehicles like stocks, bonds and paper currencies. The same could be said about physical silver which, like physical gold, provides critical portfolio diversification and helps protect your money from geopolitical risks. Find out more in our 2016 Silver Report - The Global Metal!

German 10-year bonds turn negative for first time -CNBC
"The yield on the 10-year benchmark German bund fell into negative territory for the first time ever on Tuesday morning, amid global growth concerns and jitters over the U.K.'s upcoming referendum on its European Union membership....The move comes as the European Central Bank has ramped up its bond buying program in recent months as well as investor uncertainty over whether the U.K. will stay in the European Union....'We don't know what is happening with Brexit,' said Gareth Nicholson, an investment manager at Aberdeen Asset Management Asia. 'The thing we can agree on is that the market volatility is going to increase...'"

You don't have to listen hard to hear the increasingly frequent warnings that negative interest rates are headed for the U.S. The truth is, after subtracting inflation and fees, most bank deposits are already forcing Americans to accept negative returns. Negative rates are extremely positive for gold. For 35 years Swiss America has been warning Americans that their best defense is to own some physical gold and silver as wealth insurance. Read THE TIMELESS TRUTH ABOUT GOLD & SILVER Special Report to discover why the future of both gold and silver is so bright.

ECB Pledges To Bailout Markets In Case Of Brexit -Zero Hedge
"With British mood turning sharply negative toward remaining in the Eurozone according to recent polls, and Brexit suddenly looming, the worst case scenario for the scaremongers is starting to play out: with the endless doomsday scenario postulated by pundits, economist and central bankers, among which BOE governor Carney himself warning of a potential recession, a collapse in Sterling and a sharp drop in capital markets and David Cameron going so far as threatening with war, this may be about to play out....However, these ridiculous predictions of fire and brimstone will not happen. The ECB has made sure of that. According to a Reuters report, the European Central Bank would publicly pledge to backstop financial markets in tandem with the Bank of England should Britain vote to leave the European Union."

Gold Is Now Ready For The Next Leg Up -Seeking Alpha
"The monthly gold chart points to a continuation of bullish momentum. Now that gold has purged itself of the speculative froth of over-exuberant longs, it is preparing to move above the May 2 highs. My target on gold is the August 2013 highs of $1428 per ounce in 2016. Gold will not rally in a straight line, however, the fundamentals for gold, precious metals, and other commodities have all improved as central bankers refuse to back off accommodative policy. It is probable that we will see the yellow metal work its way up to above $1400 as it is the one currency that only occurs in the crust of the earth. No one has figured out a way to produce gold using ink and paper. Gold is prepared for its next leg up, buy any price dips and hang on for a wild ride."

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Gold last traded at $1,286 an ounce. Silver at $17.44 an ounce.

NEWS SUMMARY: U.S. stocks traded lower Monday - amid rising volatility - as investors looked ahead to the Fed meeting and upcoming Brexit vote. Meanwhile, precious metal prices rose to 1-month highs on safe haven demand and a weaker dollar.

Gold hits 4-week high as cenbank meets -Reuters
"Gold prices hit its highest since mid-May on Monday, driven higher by a retreat of the dollar and as stocks were knocked by rising risk aversion before key central bank meetings this week and a June 23 vote on whether Britain should leave the European Union. The pound fell to a two-month low against the dollar, pushing gold denominated in sterling to its highest in nearly three years at 909.83 pounds an ounce, up 1.9 percent....Fading expectations for a Federal Reserve rate hike have driven prices sharply higher so far this month. Gold has rallied 6 percent since U.S. payrolls data for May came in weaker than expected on June 3, crushing expectations for an interest rate hike over the summer."

Physical gold is the ultimate safe haven in a world of rising risk. Large investors and hedge fund demand are fueling a growing stampede into tangible assets like gold because it has served as the world's most trustworthy wealth insurance for centuries. Learn more about the solid fundamentals for this 2016 gold rush in our free 2016 Gold Report - World Edition.

Stock Market Growing Jittery Again -Fiscal Times
"And just like that, fear is in the air again. I’m not just talking about the Orlando shooting. After large-cap stocks pushed to levels not seen since November, market bears emerged from hibernation last week thanks to a collection of concerns - including an upcoming Federal Reserve policy meeting, weakness in crude oil as supply concerns ease and growing worries the United Kingdom could really leave the European Union....Whether or not stocks can quickly recover and push the Dow back over the 18,000 level depends, in large part, on how the market responds to the Fed's big day on Wednesday. With an ongoing earnings recession (profits down four quarters in a row), a tightening labor market threatening to boost wage inflation, election uncertainty and a classic supply-vs.-demand response underway in oil, the outlook doesn't look good."

On Inflation, Janet Yellen Always Brings Comedy -Tamny/Forbes
"'Don’t be afraid to say to anything because no matter what you say, no matter how idiotic it is, it has already been said by some eminent economist.' – Ludwig von Mises....Stated very simply, if an economy is growing then prices as a rule are falling....Yet what is logical and historically proven seemingly has no influence inside the Federal Reserve. Consider the recent comments of Janet Yellen, Chairman of the Fed. Speaking at the World Affairs Council in Philadelphia last Monday, Yellen reiterated her belief that economic growth is the source of rising prices. Explaining her rationale for raising the interest rate at which banks lend to one another, 'If incoming data are consistent with labor market conditions and inflation making progress toward our 2% objective, as I expect, further gradual increases in the federal funds rate are likely to be appropriate.' If Yellen is to be believed, economic growth fosters product and labor shortages that push up prices. She’s funny that way in that if there’s a discredited idea in economics, it’s almost certain that Yellen believes it."

Brexit Concerns Bite European Stocks -CNBC
"European stocks closed sharply lower on Monday amid a global selloff, as uncertainty over a possible 'Brexit' and looming central bank meetings shook markets....Several polls published on Friday and the weekend showed a small majority of Britons in favor of leaving the European Union (EU), ahead of a referendum on membership on June 23. This rattled global markets...The U.S. Federal Open Market Committee begins its two-day meeting on Tuesday. Expectations for a June interest rate hike by the Fed have waned following a lower-than-expected May nonfarm payroll number in recent weeks that cast doubts on the health of the U.S. economy."

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Gold last traded at $1,275 an ounce. Silver at $17.22 an ounce.

NEWS SUMMARY: U.S. stocks skidded 1% lower Friday - amid further pullback in oil prices - as global bank yields extended their recent slide. Meanwhile, precious metal prices traded higher despite a stronger U.S. dollar.

Gold is sending a warning signal -CNBC
"The recent action in the gold market is sending out a big warning signal that investors need to heed, veteran industry insider Jack Bouroudjian said Thursday. That 'red flag' is the acceleration of the move higher in gold over the last couple of months, which he believes is telegraphing a loss of confidence in central banks. 'It may have started out as a reinflation trade, but right now it is turning into that flight to quality and flight to safety. It is one of those things that is more than likely going to stop any kind of a move in equities,' the co-founder and director of UCX said in an interview with CNBC's 'Power Lunch.' 'We are one or two headlines away from seeing this market readjust, and you can see 5 percent loss in a week's time,' he predicted."

We agree. Gold prices are warning us trouble lies ahead. Will we listen to gold, or will we stay in our comfort zone? Sadly, most people will wait until prices skyrocket. But smart money is already on the move. Find out why by reading our free 2016 Gold Report - World Edition.

Why big investors think it's time to own gold -CNBC
"Investors believing they need to have gold in their portfolio as a hedge against the outcome of easy central bank policies and for other safety reasons are fueling a run in the metal. Some analysts say gold could easily climb above $1,300 an ounce. In fact, DoubleLine Capital CEO Jeff Gundlach likes it, and he says gold could go to $1,400. Soros has reportedly been buying both gold and gold mining shares, while Drunkenmiller [sic] told investors last month to get out of stocks altogether and buy the yellow metal due to concerns about China's economy and the Fed's easy money policies....One major catalyst for the rush into gold is the June 23 U.K. vote on whether to leave the European Union."

Craig R. Smith comment: It is very important to note the Europeans are buying gold without knowing whether the EU will hold together or not. That possibility alone has many looking to gold for safe haven insurance against currencies which may replace the Euro, i.e.: Greek drachma, Italian lira, etc.

$10 trillion negative yield 'supernova' will 'explode' -CNBC
"Bond guru Bill Gross believes the growing global move toward negative yields will have dire consequences. In a tweet from his firm, Janus Capital, Gross goes back half a millennium to assert that the current situation with the world's debt market is unprecedented and dangerous: Gross: 'Global yields lowest in 500 years of recorded history. $10 trillion of neg. rate bonds. This is a supernova that will explode one day.' The warning comes as yields on Japanese government bonds and German bunds hit record lows."

Four Risks Could Push U.S. Into Recession -Wall Street Journal
“Many economists believe the U.S. faces a non-negligible risk of entering a recession within the next year. Asked to rank the probability of being in recession at some point over the next 12 months, respondents to The Wall Street Journal’s monthly survey of economists, on average, put the odds at 21%. That’s about double what they were a year ago. Not high enough to panic, but high enough to pay attention.” We asked the group of about 70 business, financial and academic economists to list the biggest risk factors they believe could tip the U.S. into recession.

1. China - The single risk getting the most attention in the U.S. economy is not even part of the U.S....

2. Business investment - Many economists have an increasingly nervous eye on the levels of U.S. business investment....

3. U.S. politics - Every presidential election introduces an element of uncertainty into the U.S. economy....

4. Stall speed - The final concern, mentioned by about 15%, is the risk that with the economy growing more slowly and adding fewer jobs, the U.S. is simply more vulnerable to tumbling into recession from small shocks."

Sound Money in Theory and Practice -Alt-m
"The concept evolved in the 19th century as many countries adopted the gold standard. It became associated with commodity money or 'hard currency.'....Money in the 21st century is proving immune to control by central bankers. The relationship between monetary reserves and various monetary aggregates (the money multiplier) has broken down. More precisely, central banks appear to have lost the ability to control inflation....Sound Money was not a rule based on empirical relationships among economic variables. It was not invented, but discovered. It is more analogous to the rule of law. Mises (1971: 414) made this point clearly. 'Ideologically it [sound money] belongs in the same class with political constitutions and bills of rights. The demand for constitutional guarantees and bills of rights was a reaction against arbitrary rule and non-observance of old customs by kings.'"

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Gold last traded at $1,272 an ounce. Silver at $17.26 an ounce.

NEWS SUMMARY: U.S. stocks traded lower Thursday, amid falling oil prices and declining global growth worries. Meanwhile, precious metals rose to 3-week highs on safe haven buying despite a firmer U.S. dollar.

US economy's job pain is 'gold's gain' -CNBC
"The precious metal rallied nearly 3 percent back above $1,245 after a soft jobs number had traders fleeing equities and running toward safe haven assets. The jump has Evercore ISI technical analyst Rich Ross betting that the yellow metal will head even higher for a number of reasons....Gold has been under increasing pressure as a strong dollar and potential for a June hike has rattled investors. But with an interest rate hike later this month looking less and less likely, and the dollar index now trading near three-week lows, Ross believes gold will continue to rally....'To sum it up, job's pain is gold's gain,' he added."

Global risk has never been greater! The economies of the world are slowing down and your savings are not immune. Now is the time to protect your money by owning some wealth insurance. Read our free 2016 Gold Report - World Edition.

New Device To Seize Money During Traffic Stops -News9 Video
"You may have heard of civil asset forfeiture. That's where police can seize your property and cash without first proving you committed a crime; without a warrant and without arresting you, as long as they suspect that your property is somehow tied to a crime. Now, the Oklahoma Highway Patrol has a device that also allows them to seize money in your bank account or on prepaid cards. It's called an ERAD, or Electronic Recovery and Access to Data machine, and state police began using 16 of them last month. Here's how it works. If a trooper suspects you may have money tied to some type of crime, the highway patrol can scan any cards you have and seize the money."

This news story is Orwellian. If you have still have any doubt that your financial assets are at risk in ways we have never before imagined, please read our White Paper: The Secret War on Cash

Goldman warns of 20% stock retracement -Fox Business Video
"Tom Lydon, ETFTrends.com publisher and Global Trends Investments president, said investors need to pay very close attention to the next 30 days, filled with second-quarter earnings, a Brexit vote, and two more Federal Reserve meetings before the end of July." According to Lydon, "Just in the last week over $4.5 billion has come out of the largest ETFs...". Meanwhile, Goldman Saks is warning of a possible 20% decline in the S&P stock index. "If we see more slow growth in the next 30 days we could see more money coming out of EFTs," warned Mr. Lydon.

George Soros has made big bets on gold -CNBC
"Billionaire investor George Soros recently directed a series of 'big, bearish investments' after a long break from trading, the Wall Street Journal reported, citing people close to the matter. Soros Fund Management, which manages around $30 billion for the Soros family, sold stocks and bought gold and shares in gold miners, amid a 'gloomier' view of the global economic outlook and the potential for large market moves, the WSJ reported."

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Gold last traded at $1,262 an ounce. Silver at $16.99 an ounce.

News Summary: Gold hit a three-week high Wednesday as rate hike fears have faded. Stock up, oil up, dollar slumps.

Gold: The Ultimate Insurance - Daily Reckoning
"Most wealth today is in digital form, recorded on hard drives and transferred through routers and servers in dispersed locations. What if those servers were hacked and your electronic wealth were erased? Where would you go to get it back?"

"...the most secure financial message traffic system in the world and the safest bank in the world were both hacked, and US$81 million disappeared into thin air. If it can happen to them, it can happen to you. The solution is to own physical gold. It’s one asset that can’t be hacked, erased or made to disappear. That’s not to say you should call up your broker and tell him to sell all your stocks. Not at all. Stocks form an important part of a well-balanced portfolio. But you should also have physical gold as insurance."

Do you have faith in our government to protect your savings and retirement? In today's world of digital money, your life savings could be wiped out in the blink of an eye. Get a copy of The Secret War on Cash and find out how to protect your wealth.

World Bank Downgrades Its Forecast for 2016 Global Economy - ABC News
"The World Bank is reducing its forecast for the global economy this year — again. The aid agency predicted Tuesday that the world economy will expand 2.4 percent this year, down from the 2.9 percent it expected in January and unchanged from a tepid 2015."

"'The global economy is fragile,' said World Bank economist Ayhan Kose, who helped produce the forecast. 'Growth is weak.' In the years since the world began recovering from the 2008 financial crisis, the World Bank and the International Monetary Fund have repeatedly proved too optimistic about the world economy and have had to downgrade their previous forecasts."

US unemployed have quit looking for jobs at a 'frightening' level: Survey - CNBC
"Nearly half of unemployed Americans have quit looking for work, and the numbers are even worse for the long-term jobless, according to a poll released Wednesday.... Some 59 percent of those who have been out of work for two years or more say they have stopped looking, the Harris Poll of unemployed Americans showed. Overall, 43 percent of the jobless said they have given up, according to the poll released in conjunction with Express Employment Professionals, a job placement service. "

"'This is a tale of two economies,' Express CEO Bob Funk said in a statement. 'It's frightening to see this many people who could work say they have given up.' The results come just a few days after a government report showed that the unemployment rate fell to 4.7 percent in May, but the drop came primarily because of a sharp decline in the labor force participation rate."

Royal Mint to sell gold bars for pensions - BBC News
"The Royal Mint is to offer savers the chance to own gold bars within their pension funds for the first time. Investors will be able to buy 100g or 1kg bars - or even a fractional amount of a larger 400oz bar - and have it stored at the Royal Mint."

"Physical gold has been eligible for inclusion in Self-Invested Personal Pensions (SIPPs) since 2014....Previously it was possible to buy gold bullion from the Royal Mint, but not as part of pension savings. Within a pension wrapper, gold is free from Capital Gains Tax - although withdrawals are taxable at the usual rates."

Concerned about your retirement nest egg? Learn more about precious metals retirement accounts.

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Gold last traded at $1,247 an ounce. Silver at $16.39 an ounce.

News Summary: US stocks consolidated gains Tuesday as the markets digested the implications of the Fed's status quo. Gold holds steady on its recent gains, dollar falls on rate hike postponement.

Why U.S. interest rates will stay low forever - Market Watch
Market Watch contributor Jeff Reeves stated, "Investors are now acting like another rate hike is nigh impossible. After an ugly May jobs report, the probability of a June rate hike is now in the low single digits, according to the CME’s FedWatch measure of Fed Fund futures — down dramatically from about 30% just a few weeks ago....Such inertia has plagued the Fed since the early days of the recovery, and yet investors still haven’t gotten the memo: Get used to low rates."

Reeves concluded, "The sad reality is that until and unless the U.S. posts employment metrics that are consistently strong, or inflation rises significantly and stays elevated, there simply isn’t a case for hiking interest rates this month, this year — and even next year."

American Silver Eagle Sales on Pace for Another Record Breaking Year - CoinWeek
"United States Mint sales figures for the 2016 30th Anniversary American Silver Eagle bullion coin continue to demonstrate momentum towards yet another record-breaking year. If Silver Eagle sales exceed last year’s total of 47 million ounces, then 2016 will be the fourth consecutive record year in recent memory."

"In January 2016, the U.S. Mint sold almost eight percent more (424,500 ounces) of the 1 oz silver bullion coin than it did in 2015. A solid increase but nothing like the 1,760,000 additional ounces sold in February 2016 as opposed to 2015 – an increase in sales of over 58%."

Owning physical silver provides critical portfolio diversification and helps protect your money from geopolitical risks. Find out more in our 2016 Silver Report - The Global Metal!

U.S. worker productivity sags again in the first quarter - Market Watch
"The productivity of American businesses and workers fell in the first quarter at a slower pace than previously reported, though the weak long-term trend remains a nagging problem for the U.S. economy."

"Extremely weak productivity growth since a U.S. recovery began has confounded economists and helps explain why growth has not been as strong as is usually the case after a recession. Productivity has risen a scant 1.2% annually since 2007, compared with a 2.6% rate from 2000-2007. 'Over time, productivity growth is the key determinant of improvements in living standards, supporting higher pay for workers without increased costs for employers,' noted Federal Reserve Chairwoman Janet Yellen in a major speech Monday."

The truth about retiring by 70 - CNBC
"About one in four U.S. workers expects to keep working through age 70, according to a survey conducted by Willis Towers Watson in summer 2015. Even worse, about 25 percent of Americans age 50 and older surveyed in March by The Associated Press-NORC Center for Public Affairs Research said they never plan to retire. Respondents in the latter study named 'financial needs' as the top factor behind retirement timing."

"'Research suggests average retirement ages are moving in an upward direction,' said Steve Nyce, a senior economist at Willis Towers Watson....'Rising health-care premiums and flat pay increases have also widened the gap between what Americans can save and what they will actually need in retirement', Nyce said."

Concerned about your retirement nest egg? Learn more about precious metals retirement accounts.

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Gold last traded at $1,247 an ounce. Silver at $16.44 an ounce.

NEWS SUMMARY: Wall Street turned higher Monday, led by energy stocks and a rebound in financial shares following Friday’s losses. Gold held steady and maintained Friday’s 2.5% gains.

Yellen: No Rate Rise Until Economic Outlook Clears - Wall Street Journal
"Federal Reserve Chairwoman Janet Yellen affirmed Monday that the central bank won’t be raising short-term interest rates until new uncertainties about the economic outlook are resolved.Ms. Yellen and other officials still believe they will be gradually lifting rates because they expect the economy to improve. However, a rate increase at the Fed’s policy meeting next week is now effectively off the table. An increase in July is possible but has become less likely, and a September move is possible if economic data show the economy is rebounding by then.

Her comments represented a shift from less than two weeks ago, when she confidently said a strengthening economy meant the Fed likely would move rates up again in the 'coming months.' She dropped that time frame reference Monday."

Gold at ‘critical juncture’ and set to go higher: Trader -CNBC
"'Gold is reflecting the Fed's complacency here going into these summer months. I don't see a Fed rate hike,' Todd Gordon, founder of TradingAnalysis.com said Friday on CNBC's 'Power Lunch.' 'That should put a top on the dollar and push gold higher.'

'Even if the dollar does rise, even if the Fed does raise rates a little bit, I think it's going to create turbulence in the equity market and the sell-off in the equity market, the risk aversion, is going to help gold,' he said"

If the Economy Is Sinking, Policy Makers Are Far From Prepared -The New York Times/Justin Wolfers
"It’s possible that the economy is slowing significantly — that Friday’s jobs report is the canary in the coal mine. Perhaps employment is slowing because of election-related anxiety, or Fed-induced fears of higher interest rates, or concerns about the world economy. Maybe the recovery has run its course.

Whatever it is, I find it hard to think of a time in recent American history when policy makers are as ill-prepared to respond. The Federal Reserve still has interest rates set nearly as low as they will go. This means it can’t use its standard tool of cutting rates to stimulate the economy....When investors are confident that the authorities will counter any recessionary forces, they don’t need to respond to every disappointment in the data. But when they expect inaction, even a minor slowdown might snowball into something bigger, raising the prospect of a rapid sell-off that might itself undermine confidence.

Even if the economy is doing well, there’s no guarantee that will persist: History teaches us that downturns are rarely expected. Even a healthy economy can suddenly slow if an earthquake in Japan disrupts global trade, strife in the Middle East causes oil prices to rise, or financial trouble in Europe becomes contagious. We rarely see where the next downturn is coming from.Good economic management doesn’t focus on today’s success but rather on the possibility of tomorrow’s failures. By that metric, at least, we seem in danger of underperforming."

Read our special Report: The Great Withdrawal and learn how to protect your investments from OUT OF CONTROL Government! The Great Withdrawal explains why America's future could spell bankruptcy!

The economic recovery just turned 7, and here's why it feels so weak -Los Angeles Times
“'We’ve come a long way from the bottom of 2009,' said David Shulman, senior economist at the UCLA Anderson Forecast. 'But compared to the historical growth track, we’re so far below it that it’s staggering, and that’s the unease the public feels about the economy.'....Problems cyclical in nature, like excess commodity supplies, may pass with time, but not so with structural challenges. They include an aging population and declining labor force growth, and issues involving infrastructure and education -- all of which, unless dealt with, will keep the U.S. and global economies from reaching their full potential."

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Gold last traded at $1,242 an ounce. Silver at $16.44 an ounce.

NEWS SUMMARY: U.S. stocks traded lower Friday after a sharp miss on the May jobs report renewed concern about U.S. economic growth. Meanwhile, precious metal prices traded sharply higher on a faltering dollar and the unlikelihood of a Fed rate hike this month.

Payrolls Huge Miss: Worst Since September 2010 -Zero Hedge
"If anyone was 'worried' about the Verizon strike taking away 35,000 jobs from the pro forma whisper number of 200,000 with consensus expecting 160,000 jobs, or worried about a rate hike by the Fed any time soon, you can sweep all worries away: moments ago the BLS reported that in May a paltry 38,000 jobs were added, a plunge from last month's downward revised 123K (was 160K). There is no way to spin this number as anything but atrocious."

Jobs Bomb = Fed Dovish? = December Rate Hike? -Hedge Eye
"The #JobsBomb (a.k.a. the May Non-Farm Payroll number of 38,000) just shocked Old Wall consensus. Take a look at investor's most recent expectations for a Fed rate hike. Yesterday, markets were predicting a more than 50% chance of a July rate hike. Now, rate hike expectations don't get above 50% until December. What a difference a day can make...We're not surprised. We've been saying #EmploymentSlowing for a while now."

Gold Surges Following Downbeat U.S. Jobs Report -Forbes
"Gold traded solidly higher Friday, following a big miss to the downside on the non-farm jobs component of the just-released U.S. employment report. August Comex gold was last up $23.10 an ounce at $1,236.00. July Comex silver was last up $0.33 at $16.345 an ounce....The 'outside markets' find the U.S. dollar index selling off sharply in the aftermath of the jobs report, which is an underlying positive for the precious metals markets. Crude oil prices are slightly lower early today, but still in a near-term uptrend and are hovering just under $49.00 a barrel."

The Structure of Collapse: 2016-2019 -Daily Reckoning
"The end-state of unsustainable systems is collapse. Though collapse may appear to be sudden and chaotic, we can discern key structures that guide the processes of collapse. Though the subject is complex enough to justify an entire shelf of books, these six dynamics are sufficient to illuminate the inevitable collapse of the status quo. 1. Doing more of what has failed spectacularly....2. Emergency measures become permanent policies....3. Diminishing returns on status quo solutions....4. Declining social mobility....5. The social order loses cohesion and shared purpose as the social-economic classes pull apart....6. Strapped for cash as tax revenues decline, the state borrows more money and devalues its currency as a means of maintaining the illusion that it can fulfill all its promises....Leaders face a no-win dilemma: any change of course will crash the system, but maintaining the current course will also crash the system. Welcome to 2016-2019."

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Gold last traded at $1,209 an ounce. Silver at $16.03 an ounce.

NEWS SUMMARY: U.S. stocks traded in a narrow range Thursday, ahead of the employment report due Friday morning. Meanwhile, precious metal prices were steady despite a firmer dollar.

Gold: "A Buyable Opportunity" -CNBC
"'Tactically, gold is certainly overbought - it has come quite a long way so far this year, and all this hawkishness coming out of the Fed recently gives it the perfect excuse for a pullback,' Mark Tepper, the president of Strategic Wealth Partners said Wednesday on CNBC's 'Trading Nation.' 'However, we do like gold cyclically,' due to the possibility that easy-money policies around the world cause inflation, as well as his perception that a rate hike could actually lead the U.S. dollar to drop and yields to rise due to 'credit stress,' Tepper added. When it comes to the charts, Strategas Research Partners technical analyst Chris Verrone said he 'would look to use this current weakness as a buyable opportunity,' given his perception that there is support at $1,200 per troy ounce, which is only a bit below where gold settled Wednesday."

Smart money is always prepared to buy asset price dips, knowing the fundamentals remain strong for ongoing price increases. This is the secret of how the rich get richer - by taking small risks now for bigger rewards in the future. If you are still not sure about gold's strong fundamentals this year, we recommend reading our free 2016 Gold Report - World Edition.

Book Review: Who Needs the Fed? -Benko/American Spectator
"John Tamny’s latest book, Who Needs the Fed? might have been even more aptly titled The Emperor Has No Clothes....Economics has fallen into the hands of technocrats. The modern economics profession imprudently forgets its roots in 'moral philosophy.' Once severed from these roots economics begins to wither and die. Tamny rejoins economics and moral philosophy. This is big....Tamny, like Hayek, has a deeply jaundiced view of the competence and benevolence of government. He takes it, a la Hayek, a step further: Perhaps an even better solution [to the problem of dollar policy] would be for Congress, once again, per the Constitution, to simply define the dollar (let’s again assume at 1/1000th of an ounce of gold), only to leave the creation of actual money to the private sector."

We are happy to see the idea of linking the U.S. dollar back with physical gold is gaining traction among conservative economists like John Tamny of Real Clear Markets. We view the Fed's ZIRP policy as the biggest blunder of the decade, as Craig Smith and Lowell Ponte cover in The Biggest Bank Heist in History.

The Federal Insurance Fund Running Out of Cash -Washington Post
"One of the nation’s largest multi-employer pension funds said that it is out of ideas for ways to save itself from an impending failure. After the Treasury Department rejected its Hail Mary proposal, which would have substantially cut benefits for some retirees, the Central States Pension Fund has little choice but to turn to a federal insurance program that is supposed to offer a lifeline to troubled pension funds. But there’s one major problem - that program is expected to run out of money, too....The fund’s deterioration could pose a threat to the 10 million people in multi-employer plans who could soon be left without a safety net for their pensions."

Puerto Rico’s Rescue Won’t Come Soon Enough to Halt Default -Bloomberg
"Even if U.S. lawmakers return next week and push through their Puerto Rico rescue with unusual speed, it may not come fast enough to save the island from its biggest default yet. The legislation would put Puerto Rico’s budget and, potentially, a restructuring of its debt in the hands of a federal oversight board appointed by congressional Republicans and President Barack Obama - a body that’s virtually impossible to set up before $2 billion of debt payments come due on July 1. And the bill doesn’t provide any additional federal money to the U.S. territory, whose government says it’s simply too broke to pay....With $805 million due on those securities, Governor Alejandro Garcia Padilla has said the commonwealth can’t cover what it owes without shutting off services crucial to the island’s 3.5 million residents, nearly half of whom live in poverty."

In the book The Great Withdrawal authors Craig R. Smith and Lowell Ponte examine how Progressive politics were responsible for Detroit's bankruptcy. This trend toward insolvent U.S. cities, counties and even territories like Puerto Rico all have this common denominator.

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Gold last traded at $1,211 an ounce. Silver at $15.92 an ounce.

NEWS SUMMARY: U.S. stocks traded mostly lower Wednesday as concerns about sluggish global growth weighed on investors. Meanwhile, precious metal prices traded within a tight range amid dollar weakness.

Historic Trend Shows Gold Headed to $4,500/oz. -Daily Reckoning
"It is a great time to look at gold. With the Midas metal just having its best quarterly performance in 30 years (up 17%), there are some indications that $3,000 per ounce (or more) may yet see the light of day. Gold prices peaked in September 2011 at just under $1,900 an ounce. That peak marked the commencement of a pretty nasty bear market that lopped the price of gold in half....A bull run that equals the median of the past five (451%) would see gold prices up around $4,500 per ounce in the next three or four years....Negative interest rates, a flip-flopping Fed and a near decade of financial experimentation would seem to be the perfect recipe for a huge burst in demand for gold, wouldn’t it? Markets can do funny things for longer than we expect, but ultimately, actions do have consequences."

Long-term gold price trends are a reflection of the overall global economic outlook, which is looking darker by the day. Could gold prices run to new historic highs in today's unstable financial climate? Most certainly. Learn more about gold's bigger picture by reading our free 2016 Gold Report - World Edition.

Jim Rogers Warning: The Three Most Likely Economic Outcomes -AMTV Video
Alternative Media TV (AMTV) host Christopher Greene examines famed investor Jim Roger's recent call for an imminent economic collapse based on the additional trillions of dollars in debt the Fed has amassed since the last market collapse in 2008. Mr. Greene explores the three most likely outcomes following a decade of failed Fed policy and why this is creating a 'great withdrawal' both in the U.S. and worldwide. According to Greene, Americans' savings and retirement funds are at risk of being devalued by an out-of-control government and Federal Reserve. A complimentary copy of The Great Withdrawal by Craig R. Smith and Lowell Ponte is offered in the program.

Where have all the bulls gone? -Wall Street Journal
"Expectations that stocks will rise in the next six months fell to 17.8% on the American Association of Individual Investors’ sentiment survey last week. That’s the fewest bulls since 2005. Investors have pulled a net $35.3 billion from equity mutual funds in 2016, according to Lipper data. Some analysts said investors were still shaken from the steep drop that opened the year and concerned about everything from rising interest rates to the vote over the U.K.’s membership in the European Union to the U.S. presidential election. 'Now that we’re back at the highs, I think there’s less of a catalyst to push this market higher, especially with some of those uncertainties out there,' said David Lefkowitz, senior equity strategist at UBS Wealth Management Americas."

Silver fundamentals look solid -News Markets
"Silver prices are well supported by fundamentals even if market positioning argues for some short-term chop. That’s the view of analysts at Commerzbank, who reaffirmed their end-year forecast of $18 per ounce on Wednesday....The good news for silver bulls is that the market’s fundamentals remain very sound, Demand achieved a ten-year high of 62.9 million ounces in 2015, the bank’s analysts write and 'as things currently stand, the global silver market looks set to show another supply deficit in 2016,' they continue. 'This is suggested for example by the robust Chinese silver imports so far this year, which were 20% up on the previous year’s level in the first quarter.'"

Learn how owning physical silver provides critical portfolio diversification and helps to protect your money from geopolitical risks in our new 2016 Silver Report - The Global Metal!

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