Swiss America Blog Archive

7.22.16 - One Very Scary Chart

Gold last traded at $1,323 an ounce. Silver at $19.68 an ounce.

NEWS SUMMARY: Precious metal prices ended the week slightly lower Friday amid speculation of a possible Fed rate hike. Meanwhile, U.S. stocks traded slightly higher as investors weighed mixed earnings reports.

Trump (or Hillary) Could Spark Gold Rally -Marketwatch
"The notion that stocks are enjoying a Donald Trump-inspired rally doesn’t pass the sniff test. Gold, however, might be another matter, if the Republican nominee ends up winning the White House, analysts say. Trump’s pledge to tear up trade agreements and a rise in overall uncertainty over the policy outlook would likely dent the U.S. economy while spurring a rise in demand for gold, said Georgette Boele, a currency and precious-metals analyst at ABN Amro...Weaker U.S. growth would help push gold toward $1,850 an ounce 'over the coming years,' she said....Boele is bullish on gold overall, forecasting a smaller rise toward $1,650 an ounce if presumptive Democratic nominee Hillary Clinton wins in November. Gold would find support due to inflation outpacing growth, forecasts for interest rates to remain negative (though less negative than at present), and a longer-term downtrend for the U.S. dollar."

We agree! Gold is the biggest winner, no matter who is elected president in November. As we said yesterday; 'Trump loves gold and gold loves Hillary'. This summer is the best time to buy on price dips and prepare your portfolio for what promises to be the muddiest political battle of the decade over the next three months. Call Swiss America at 800.289.2646 before the next hand plays out.

"That's A Scary Graph" Former Fed Economist Warns -Zero Hedge
"The problem, warns 33-year St.Louis Fed veteran Daniel Thornton, is that 'the financial cycle is way ahead of the economic cycle.' As Bloomberg notes, that's a worry given that the past two downturns were driven by asset-price deflation....Thornton, who spent 33 years at the Federal Reserve Bank of St. Louis before retiring in 2014, says in effect that we've seen this picture before. Household net worth ballooned in the late 1990's and the early 2000's; in the first instance pumped up by rising stock prices, in the second by expanding home values. Both cases ended badly, with the economy falling into recession after the bubbles burst....'Nobody knows what's going to happen,' Thornton said. 'But there's plenty of reason to think that’s a scary graph.'"


"Cash On The Sidelines" - A Wall Street Myth -Real Investment Advice
"Here is a myth that just won’t seem to die: 'Cash On The Sidelines.' This is the age old excuse why the current 'bull market' rally is set to continue into the indefinite future. The ongoing belief is that at any moment investors are suddenly going to empty bank accounts and pour it into the markets. However, the reality is if they haven’t done it by now after 3-consecutive rounds of Q.E. in the U.S., a 200% advance in the markets, and now global Q.E., exactly what will that catalyst be?....Furthermore, a look at the stock-to-cash ratios also suggest there is very little available buying power for investors current....With complacency extremely high, a very crowded trade in 'yieldy stuff,' and little liquidity in the markets, the potential for a very nasty mean reversion in the areas perceived to be 'safe' could readily occur."

If you are sitting on cash, now is the time to put it to work in the best performing assets of the 21st century and in 2016; gold and silver. If you are still not sure, you need to read our 2016 Gold Report - World Edition.

Fake Culture Wars Distract Us From Our Economic Decline -Real Clear Politics (transcript)
"Good evening. I'm Peter Thiel. I build companies and I support people who are building new things, from social networks to rocket ships....Across the country, wages are flat. Americans get paid less today than 10 years ago. But healthcare and college tuition cost more every year....Our economy is broken. If you're watching me right now, you understand this better than any politician in Washington. And you know this isn't the dream we looked forward to. Back when my parents came to America looking for that dream, they found it - right here in Cleveland....I don't pretend to agree with every plank in our party's platform. But fake culture wars only distract us from our economic decline."

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7.21.16 - What a Trump Presidency means for Gold

Gold last traded at $1,331 an ounce. Silver at $19.81 an ounce.

NEWS SUMMARY: Precious metal prices rose over 1% Thursday on renewed uncertainty and safe-haven demand by investors. Meanwhile, U.S. stocks moved lower Thursday as Wall Street digested mixed earnings.

Trump presidency could spur gold prices -Sidney Morning Herald
“Gold prices will surge if Donald Trump is successful in winning his way to the White House, says one of Australia's fastest growing goldminers. While he didn't explicitly name Mr. Trump, there was little doubt who Northern Star boss Bill Beament was talking about when discussing the outlook for gold prices on Wednesday. Fresh from reporting a stellar set of production results, Mr. Beament said the recent Brexit vote had little lasting impact on the gold price. But he noted that another democratic event could have an impact. ‘Obviously the next big catalyst is who wins the presidential election in America and that has got more of an impact on the gold price than what Brexit will have so it will be interesting,’ he said. ‘We all know if someone gets in it will quite positive for gold.’....Of course, the US Federal Reserve's decision to raise interest rates slower than expected has been the main driver of a rally that has seen prices for the precious metal soar almost 30 per cent since December.”

Trump loves Gold ... and Gold loves Hillary. No matter which direction the political wind blows our nation in November, owning gold in today's uncertain world has never been a wiser move. No other asset class offers as many fundamental reasons to propel prices upward with so little risk, as we discuss in our 2016 Gold Report - World Edition.

Trump Why gold’s bond with the dollar has broken -Marketwatch
"Think of it as the breakup. Gold’s historical relationship with the U.S. dollar has been going through a bit of a separation....'You can trace the shift to positive correlation between gold and the [dollar] back to the Brexit vote,' Paul Wong, senior portfolio manager at Sprott Asset Management, told MarketWatch. During the financial crisis of 2008, gold and U.S. dollar traded 'hand in hand,' said Nico Pantelis, head of research at Secular Investor. 'Today, the U.S. dollar is trading relatively high, but gold is getting a [bid] as investors are buying gold again in large amounts,' he said....Central banks ‘through their ever more aggressive monetary policies, are causing cross asset class correlation to become more volatile,’ said Paul Wong, analyst at Sprott Asset Management."

The GOP Convention's Gaping Hole: Jobs And Growth -Investors
"Trump and the convention organizers cleverly labeled each night of the convention. Tuesday's was supposed to be about 'Making America Work Again.' You'd think Trump would have plenty of say about this, and would be able to line up an array of top-flight speakers who could explain what wrong with the economy and how he's going to go about fixing it. There's plenty of material to work with. Under President Obama, wages have flatlined, economic optimism is still under water, the poverty rate is up, and millions have given up looking for work and have become newly dependent on federal programs....In fact, it wasn't until the last speaker on Tuesday night when anyone meaningfully brought up the struggles of running a small business against an increasingly imperious central government. Kimberlin Brown, a former soap opera star and now a small-business owner, talked about how 'out-of-control unreasonable government regulations ... needlessly add costs to doing business and tie us up in red tape' and made the case that it will take someone like Trump to get the country out of the doldrums. There are a few more business leaders scheduled to talk at during the GOP convention's final two days. But if the contentless trend continues, it will be a huge lost opportunity for Republicans to articulate a vision for robust economic growth at a time when millions are tuning in."

Italy’s bank crisis could be ‘ticking time bomb’ -Marketwatch
"The looming threat this year comes from Italy and its long-suffering banking sector....In coming weeks, the situation has the potential to create at least near-term global market turmoil as financial and political risks collide. Italy’s banks are neck-deep in nonperforming loans. Official data puts the total amount of nonperforming loans, or NPLs, at around 200 billion euros ($220.5 billion), or around 8% of total loans. But some analysts argue that another €160 billion worth of loans could soon be pushed into NPL status, according to Wells Fargo, which would put the NPL ratio at an 'eye-popping' 15% of their loan portfolios."

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7.20.16 - S&P Issues "Crexit" Warning

Gold last traded at $1,319 an ounce. Silver at $19.61 an ounce.

NEWS SUMMARY: Precious metal prices backpedaled Wednesday as the dollar touched 4-month highs. Meanwhile, the NASDAQ composite led U.S. stocks higher on better-than-expected Microsoft earnings.

Time to Stash Some Gold Coins Under Your Mattress? -US News & World Report
"Some investors have turned to gold as a safe haven amid stock market jitters and as global central banks turn to negative interest-rate policies. More recently, the surprise Brexit vote, in which the UK chose to leave the European Union, spurred another round of gold buying....Gold is viewed as a safety play and a hard asset that investors turn to during financial, political or even military uncertainty or conflict. It is considered by some as an alternative currency that is not vulnerable to manipulation or devaluation by global central banks...Some investment analysts are anti-gold, saying it offers no returns or dividends and should be avoided....Investing in physical gold is easy, and any investor can do it. The first step is to find a reputable gold dealer. Check out any company you're considering doing business with through the Better Business Bureau."

While some people are stashing cash in the mattress as protection from an uncertain banking and financial world, many are instead stashing gold and silver. Why? Because they are the most trustworthy and liquid form of universally accepted money worldwide. Discover more good reasons to own gold in our 2016 Gold Report - World Edition.

expectations How Big Banks "Beat" Earnings Estimates -HedgeEye
In a Wall Street (and America for that matter) of lowered expectations ... Everybody Beats. That's the long and short of it. The news this morning is Morgan Stanley (MS) beat consensus earnings estimates, sending its shares higher....The first thing to note? In order to manufacture these earnings beats, Wall Street's downward revisions are sometimes massive. Over the past year, big bank consensus earnings estimates dropped anywhere between -9% and -29%....Another way to beat on earnings is to reduce the share count via stock buybacks.... Takeaway: Reality check. Over the past year, Wall Street earnings estimates for big banks typically fell over -20%."

'Crexit' warning: Corporate debt ballooning to $75 trillion -CNBC
"Corporate debt is projected to swell over the next several years, thanks to cheap money from global central banks, according to a report Wednesday that warns of a potential downside from all that new, borrowed cash floating around. By 2020, business debt likely will climb to $75 trillion from its current $51-trillion level, according to S&P Global Ratings. Under normal conditions, that wouldn't be a major problem so long as credit quality stays high, interest rates and inflation remain low and there are no significant economic disruptions....a 'Crexit,' or withdrawal by lenders from the credit markets, could occur and lead to a sudden tightening of conditions that could trigger another financial scare. 'A worst-case scenario would be a series of major negative surprises sparking a crisis of confidence around the globe,' S&P said in the report."

Fewer People Are Starting Their Own Businesses -CNNMoney
"Reversing growth in small business activity for the first time in four years. Bad news for aspiring entrepreneurs: Now might not be the best time to launch your own business. Total entrepreneurial activity in the U.S. - measured by the number of people starting and operating new businesses - fell to 12% in 2015, from 14% in 2014, according to a report released Tuesday by Babson College. The drop reverses upward growth in small business activity during the previous four years....The Small Business Optimism Index, a metric from the National Federation of Independent Business, has remained below its 42-year average since the recession."

This is a good example of how Progressive politicians and manipulative central banks are crushing the American Dream. Optimism is dying a slow death under the current regime. Learn more about how to restore the American Dream in our latest book, We Have Seen The Future and It Looks Like Baltimore- (Free Summary!)

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7.19.16 - 'Hope and Change' have produced Fear and Anger

Gold last traded at $1,332 an ounce. Silver at $20.01 an ounce.

NEWS SUMMARY: Gold prices rose Tuesday on safe haven buying despite a sharply higher U.S. dollar. Meanwhile, U.S. stock prices fell on earnings disappointment as investors questioned whether earnings can sustain a rally.

Gold tiptoes higher -Marketwatch
"Gold prices tiptoed higher in subdued action Tuesday for a second session in a row, finding some support as weakness in U.S. equities helped to boost investment demand for the metal....Recent positive economic data out of the U.S. 'have lured investors back in to the equity markets and trimmed the rally in gold,' said Mark O’Byrne, research director at Dubline-based GoldCore. 'However, this recent positive economic news needs to be viewed against the backdrop of it being an election year in the U.S. and the desire of the White House to create a connection between positive economic sentiment and the democratic administration,' he said....For now, 'gold is waiting for the next round of easing from Japan and then the EU,' said Keith Springer, president of Sacramento, Calif.-based Springer Financial Advisors. 'Low worldwide rates will keep U.S. rates at bay.'"

In a free market, asset prices fluctuate based on the public's perception of future trends. Gold prices have been on an upward trend as confidence in the U.S. and global economy falls. Why? Because gold is one of the only assets that has no counter-party risk, that is, it is owned outright without any risk of default. Gold alone creates confidence, while all other assets depend on confidence. Read more in The Timeless Truth About Gold & Silver.

chart Economic Confidence Slumps To Multi-Year Lows: Gallup -Zero Hedge
"When we reported yesterday that 'After Eight Years Of Hope And Change, Voters Are Angry' we pointed out one of the counterpoints presented by AP, according to which it is confusing why the US population would be angry when 'the economy is growing, jobs are being created and unemployment is low.' We countered by observing that unemployment is low only because 94 million Americans are out of the labor force for reasons of their own choosing, while the jobs being created are mostly all in the minimum wage space, with an emphasis on waiters and bartenders....Americans' confidence in the economy remains weak, with Gallup's U.S. Economic Confidence Index at -17 last week, consistent with levels seen since mid-June....At -17, this reading is tied for the worst economic confidence reading recorded in the last few years, and suggests that Americans' take on the economy is getting worse, not better."

To the mattresses: Cash levels highest in nearly 15 years -CNBC
"Despite the post-Brexit market rally, fund managers have gotten even more wary of taking risks....Cash levels are now at 5.8 percent of portfolios, up a notch from June and at the highest levels since November 2001, according to the latest Bank of America Merrill Lynch Fund Manager Survey. In addition to putting money under the mattress, investors also are looking for protection, with equity hedging at its highest level in the survey's history....Indeed, fear is running high as investors believe that global financial conditions are tightening, despite nearly $12 trillion of negative-yielding debt around the world and the U.S. central bank on hold perhaps until 2017....Fund managers believe that so-called helicopter money will become a reality, with 39 percent now anticipating the move compared to 27 percent in June."

In The Secret War on Cash we explain why cash withdrawals are under increased scrutiny and restrictions both in the U.S. and abroad. Now is the time to convert a portion of your liquid assets into tangible assets before the dash for cash accelerates further.

The Money Printing Drug -Seeking Alpha
"Since 2008, all major Central Banks started an era of unprecedented monetary stimulus by purchasing massive amounts of securities. They are buying gold, sovereign debt, corporate debt and even stocks and ETFs. How much have they purchased so far? The Fed balance sheet increased by 5.3 times since 2008....There are 3 alternatives. All of them are bad. But something has to be done to clean the excess debt from the Public and Private sector balance sheets, because the world economy cannot sustain such a huge debt burden....In fact, the first solution is to restructure debt....The second alternative is to pay back the debt....The third and the chosen alternative every place in the world is to increase the money supply, quantitative easing or monetary stimulus, but those are just fancy words for money printing....So, the best protection you can get is to own gold."

Debt is just like any other drug - the withdrawal process can be very painful. In The Great Withdrawal Craig R. Smith and Lowell Ponte explain the coming great withdrawal from banks - which is the result of failed Progressive economic policies forced on the public by both political leaders and the Federal Reserve.

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7.18.16 - Who will join The Sub Zero Club next?

Gold last traded at $1,329 an ounce. Silver at $20.07 an ounce.

NEWS SUMMARY: Precious metal prices consolidated Monday as investors digested rapidly changing geopolitical events. Meanwhile, U.S. stocks traded slightly higher despite weaker oil prices and rising crude stockpiles.

Rising Gold And Oil Prices Are Flashing Economic Slowdown -Forbes
"Politicians and economists incapable of understanding how very simple economic growth is frequently call for devalued money as an expression of their eternal confusion. Full of the cruelly incorrect belief that a devalued currency is the path to easy exports, they regularly cheer for a falling dollar....One year ago gold sold for $1,130/ounce, but today it sells for $1,327. What requires attention is that gold hasn’t become more expensive or scarcer since the summer of 2015; rather the dollar in which gold is priced has declined in value. Alongside gold’s revival, the price of oil has similarly crept back into the $45-50/barrel range. Both prices signal a slowdown..."

Gold prices serve as a barometer of global uncertainty - which has been rising all year. Now is the time to position your portfolio with a foundation of gold before the next crisis hits. This report explains it all in detail: 2016 Gold Report - World Edition.

Pisa The Sub-Zero Club: Getting Used to the Upside-Down World Economy -Bloomberg
"In the new reality of negative rates, borrowers get paid and savers get penalized. Japanese families seem to have a sudden affinity for home safes. According to the Tokyo-based manufacturer Eiko, shipments have doubled since last fall. And in Germany, insurer Munich Re has stashed some 10 million euros ($11.4 million) worth of its own cash into vaults. Why the squirreling? One possible reason is the creeping imposition of negative interest rates across the world, which could make it more rewarding to bypass banks—and a safe or vault is, well, more secure than a mattress. Welcome to the upside-down world of modern monetary policy....The policy isn’t without risks. Bank profits could be squeezed, money markets may freeze, and consumers could end up with bulging mattresses to avoid paying to keep money in a bank account."

"An astonishing 23 countries, comprising a quarter of the world’s GDP, now have interest rates of zero or less," writes Swiss America CEO Dean Heskin. "The irony of a recovering economy in this age of monetary manipulation and stimulus is that it can be a potential quagmire of unintended consequences." This helps explain why billionaires are buying gold. Full story

Italy’s bank crisis will dwarf Brexit shock -Telegraph
"If you think Britain’s banks are in bad shape, spare a thought for the Italians, where the country’s battered lenders are rapidly crumbling under an astonishing €360bn of bad loans. While most people fret about the fallout from Brexit, some experts believe Italy’s banking crisis represents a far greater threat to the eurozone. The problem is that Italy's financial system needs a substantial bailout, but EU 'bail-in' laws prevent prime minister Matteo Renzi from undertaking one without first wiping out the banks’ shareholders and bondholders....Also, by setting a precedent for bank bailouts, it paves the way for countries such as Portugal, where the financial system is also under strain, to suddenly do the same, therefore undermining the EU’s entire credibility. Forget the Greek crisis – this is Europe’s biggest test yet."

A banking crisis in any one nation can turn into a global banking crisis overnight. For this reason we suggest moving a portion of your savings outside of the banks entirely. Read more about how to protect your money in The Secret War on Cash.

Negative Mainstream Media Articles on Gold and Silver Don’t Tell the Truth -The Daily Bell
"Silver and gold have had terrific weeks but as we’ve been showing, the mainstream media, especially the business media, often focuses on the negatives. Meanwhile, the news queues are filled with anti-metals propaganda....The mainstream media is a bankers’ medium and bankers control economies via fiat money and central banking. This is inevitable and endless reason why gold and silver in particular receive negative coverage. When fiat money is finally so debased it won’t buy anything (see Venezuela), people will suddenly realize they have been misled....We are in a golden bull market as we have explained many times. The mainstream media will not recognize this."

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7.15.16 - Markets Oblivious to Danger Ahead

Gold last traded at $1,327 an ounce. Silver at $20.16 an ounce.

Daily Summary: Gold prices ease back after six straight weeks of gains. Stocks traded lower as individuals shifted their focus to attack in France.

Economic Unrest Continues Helping Gold - Market Realist
"It seems that global fears have resurfaced, as the Federal Reserve appears to be in no rush to raise the interest rate. The Brexit vote conundrum is likely stifling US growth and economic policy prospects. Confidence in the financial performance of the major world economies could be wavering.

Despite the rise in hiring in June and low inflation levels, the rate liftoff seems to be far off. As the prospects of a rate hike remain in the distance, precious metals have found room to rise further. A delayed liftoff means that gold and other metals could have comparative strength, as they pay no interest. Higher equity yields often curb the appeal of gold."

Owning physical gold is the simplest way to hedge yourself against the economic realities we are facing in 2016. Please, don't wait any longer to discover The Timeless Truth About Gold & Silver.

bullvsbear World's Top Investors "Ring Alarm" At All Time Market Highs - Zero Hedge
"First it was bond gurus Bill Gross and Jeff Gundlach; then yesterday equity titan, Blackrock's Larry Fink joined in; now add Oaktree's Howard Marks. As Bloomberg puts it, the big rally in stocks and bonds has some of the world’s top money managers "ringing the alarm" just as the S&P hits all time highs day after day after day....The global market rally, underpinned by low interest rates around the world, carries dangers, Marks, co-chairman of Oaktree Capital Group LLC, said in a telephone interview with Bloomberg.

'We are living in a difficult, low-return world that has been ignoring risk incidents,' Marks said. 'When the market shrugs off its problems, it is not a plus, as that permits problems to accumulate. Up-cycles don’t go on forever.' Marks said investors who insist on jumping into less-liquid assets need to be willing to ride out the rough times. 'When you go into risk assets and they go through a tough period, there will be heartburn and price declines,' he said. 'If you are going to need the money in the short term, you shouldn’t put it into potentially illiquid assets.'"

Consumer sentiment hits 89.5 in July vs. 93 estimate - CNBC
"A key measure of consumers' attitudes was lower so far this month, as high-income consumers digested Britain's surprise vote to leave the European Union....'Prior to the Brexit vote, virtually no consumer thought the issue would have the slightest impact on the U.S. economy,' said Richard Curtin, the survey's chief economist. 'Following the Brexit vote, it was mentioned by record numbers of consumers, especially high-income consumers.'...Attitudes toward present and future economic conditions both dimmed in early July, the survey showed."

Hackers steal millions from ATMs Without using a card - CNN Money
"Police said several people wearing masks attacked dozens of ATMs operated by Taiwan's First Bank on Sunday. They spent a few minutes at each of the machines before making off with the equivalent of $2 million stashed in a backpack. They didn't use bank cards but rather appeared to gain control of the machines with a "connected device," possibly a smartphone, the police said in a statement Thursday. Authorities are now hunting the thieves, who they say came from Russia and eastern Europe."

Do you know where your money is right now? I bet you thought it was safely deposited in your local bank. Not so. Over 98% of your savings exists only in a bank's computer system, which is hackable, trackable and taxable. In fact, "the bank we trust to safeguard our money now may be one of the riskiest places to put it," says author Craig R. Smith.

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7.14.16 - The US Stock Market: A Bear in Bull's Clothing

Gold last traded at $1,332 an ounce. Silver at $20.32 an ounce.

News Summary: Gold prices ease back on increased investor risk appetite but remains at high levels on some bargain-hunting buying interest. Stocks remain stable as investors digest latest economic reports.

Stocks shouldn't be this high: World's largest asset manager - CNN Money
"Even as the Dow eclipsed the 18,500 mark on Thursday and the rally gains momentum, some influential figures in finance remain skeptical. 'I don't think we should be at new highs,' Larry Fink, CEO of BlackRock, the world's largest asset manager, told CNBC....Speaking just before the S&P 500 hit a record for the fourth day in a row, the BlackRock CEO said he believes there simply isn't enough 'evidence to justify these levels.'

Another money manager, Jeff Gundlach, dubbed 'king' of the bond market, is cautious on stocks as well as bonds. Gundlach blamed the recent moves on a 'a mass psychosis going on related to the so-called starvation for yield,' according to news reports. Despite those words of caution, the Dow is now sitting nearly 1,500 points above its post-Brexit low and the Nasdaq is just 4% away from shattering records of its own."

bull market Cramer's warning: How the market's hot streak will end - CNBC
"It is very rare that the averages can sustain an endlessly bullish move, and Jim Cramer says rallies only end in two ways: with a big ugly decline or if stocks become exhausted. 'Let's stay vigilant. Take off some obvious gains, because no one ever got hurt taking a profit. But then let the rest ride, wagering that if the market really gets hit, the buyers who have been patiently waiting will finally decide to pull the trigger,' the "Mad Money" host said.... So, while there will certainly be profit-takers, Cramer doesn't think there is enough new money coming in or fearful retail money left to really blast out the market and cause a decline. The key is to let positions ride, and be ready when investors pull the trigger."

China hacked the FDIC - and US officials covered it up, report says - CNN Money
"China's spies hacked into computers at the Federal Deposit Insurance Corporation from 2010 until 2013 -- and American government officials tried to cover it up, according to a Congressional report....According to congressional investigators, the Chinese government hacked into 12 computers and 10 backroom servers at the FDIC, including the incredibly sensitive personal computers of the agency's top officials: the FDIC chairman, his chief of staff, and the general counsel....

The FDIC refused to comment; however, in a recent interview, the agency admits that it 'did not accurately portray the extent of risk' to Congress and recordkeeping 'needs improvement.' The FDIC claims it's now updating its policies. Given the FDIC's role as a national banking regulator, the revelation of this hack poses serious concern."

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

Why the sky is the limit for gold - Nasdaq
"The best reason not to buy gold is gone....For generations, the better bet was to buy bonds. In terms of safety, they could almost match gold and they produced steady income...Fixed income, in many cases, are now worse than gold. Bonds now yield next-to-nothing. Fully 20% of the bond universe has a negative yield, meaning that you have to pay just to own them. Somewhere around 80% of the bond universe yields less than 2%, which is below the rate of inflation that central banks target....

Central banks are the factor that could drive gold much higher. Naturally, markets shuddered after the Brexit vote but what was telling was how jittery central banks were as well. It was similar earlier this year when worries about China and commodities led the Fed to reverse its hawkish bias...Combine that with aging demographics in the Western world and a raging currency war and gold could double from here."

Learn why all of the fundamentals are in alignment to send gold prices surging further this year in our 2016 Gold Report - World Edition.

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7.13.16 - Gold's Rally Has Only Just Begun

Gold last traded at $1,343 an ounce. Silver at $20.41 an ounce.

News Summary: Gold prices moderately higher while silver prices test two-year highs on falling U.S. dollar and bargain hunting. Meanwhile, stocks struggle for momentum as traders await bath of U.S. economic reports due out later this week.

Fed's Mester Says Helicopter Money "The Next Step" In US Monetary Policy- Zero Hedge
"Speaking overnight in Australia, the Fed's Loretta Mester said 'helicopter money' could be considered to stimulate America's economy if conventional monetary policy fails. As Australia's ABC reports, Mester, president of the Federal Reserve Bank of Cleveland and a member of the rate-setting Federal Open Market Committee (FOMC), signalled direct payments to households and businesses to stoke spending was an option if interest rate cuts and quantitative easing fail.

'We're always assessing tools that we could use,' Mester told the ABC's AM program. 'In the US we've done quantitative easing and I think that's proven to be useful. So it's my view that [helicopter money] would be sort of the next step if we ever found ourselves in a situation where we wanted to be more accommodative.'"

Gold Rally Just Getting Warmed Up According To UBS, Credit Suisse - Forbes
"The yellow metal has surged 28 percent year-to-date, its best first half of the year since 1974, and there are signs that the rally is just getting started. That’s the assessment of analysts from UBS and Credit Suisse, who see gold entering a new bull run. According to UBS analyst Joni Teves, gold could climb to $1,400 an ounce in the short term on macroeconomic uncertainty, dovish monetary policy and lower yields."

"About $10 trillion worth of global government debt now carry historically low or negative yields, which are 'creating negative growth' in the world economy, according to billionaire 'bond king' Bill Gross in his recent Investment Outlook. Anemic yields are also contributing to gold’s attractiveness right now. Since Britain’s June 23 referendum, the precious metal has rallied more than 8 percent, helping it achieve its best first half of the year in more than a generation."

Don't wait to buy gold, buy gold and wait! This report explains it all in detail: 2016 Gold Report - World Edition.

interest rates Fed's Kashkari says no urgency to raise US interest rates - CNBC
"The Federal Reserve should not be in any hurry to raise U.S. interest rates because inflation is so low and the economy is still short of full employment, a top Fed official said on Tuesday. 'We feel like we can be patient to let the economy continue to heal before we start moving aggressively to raise rates,' Minneapolis Fed President Neel Kashkari said at a Town Hall in Marquette, Michigan. 'We should take our time when we go ahead and start raising rates again. There's not a huge urgency to raise rates because inflation is coming up low.'... Traders see zero chance of a rate hike this month and are betting the Fed will wait to raise rates until mid-2017."

Job Openings Declined in May, a Month of Weak Job Market Performance - The Wall Street Journal
"The number of job openings slid in May to the lowest level of the year, underscoring that month’s weakness in the labor market...The number of job openings fell to 5.5 million in May from 5.85 million in April, according to the Labor Department. The new data from the Job Openings and Labor Turnover Survey, known as JOLTS, tracks the millions of Americans who start a new job, quit or get laid off each month."

"The availability of jobs is far from even across sectors.....The Jolts report continues to present a picture of a mixed jobs market, with uneven outcomes across industries and some signs of spluttering so far this year."

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Gold last traded at $1,335 an ounce. Silver at $20.17 an ounce.

Gold boom will keep going, says ETF's Graham Tuckwell - Financial Review
"Negative interest rates in many major economies and ongoing global political turmoil will push the gold price much higher than it is today, says ETF Securities chair Graham Tuckwell...'I do think that it [the gold price] has got a long way to go,' he said....'One reason people are putting money into gold is because, as you look around the world, there's enormous uncertainty, politically in particular, and you've got negative interest rates,' Mr Tuckwell said. 'The whole economic and political cycle is going to go into very turbulent times. It's tough to get yield out of anywhere.'"

Global economic risk has never been greater! Now is the time to protect your wealth by owning gold, the wisest form of wealth insurance. Read our free 2016 Gold Report - World Edition.

book THE ONLY GAME IN TOWN - Book Review -Kirkus Reviews
"Mohamed El-Erian (When Markets Collide, 2008) charts the changing role of central banks in national economies and the global economy at large. Their overarching mission is to provide their home nations with a stable currency and, beyond that, stable monetary and financial operations — macro goals that are defined by government but then effected by bankers. The bankers have lately exercised more and more autonomy, though, without much direct political control and with ever expanding responsibilities to govern the 'fate of the global economy.'....Consequently, central banks are experimenting, even making things up as they go along, in order to jump-start economies, for instance, by putting into place negative interest rates and other 'unconventional monetary policies' without any precedent or historical examples to follow. The natural result is instability from above and below, from the supply side and the demand side, and a 'new normal' that the author wishes could be seen as a 'new abnormal.'"

Swiss America Chairman Craig Smith's comment: This important new book explains why growth has slowed to stall speed worldwide. Ever since the 2008 crisis - and the growing era of uncertainty over the last eight years - major corporations have been sidelined, content to buy back their own stock as they await the next wave of central bank stimulus instead of expanding their businesses. El-Erain sees major crises ahead unless central banks begin to normalize interest rates. El Erain also views having a stable global currency as the solution; a role gold has served for thousands of years.

Stimulus is coming no matter if Clinton or Trump win, Morgan Stanley argues - MarketWatch
"Markets can look forward to fiscal stimulus after the 2016 elections — but they shouldn’t get terribly excited, according to a Morgan Stanley note on Tuesday....The analysts say both Clinton and Trump have 'implicitly proposed fiscal stimulus of some kind that would go above and beyond the current, incremental growth in fiscal stimulus that has recently been enacted.'...What’s more, they say that 'barring an outright recession, our economists expect only incremental fiscal stimulus, which does not meaningfully boost the U.S.’s currently sluggish growth profile.'"

Could Washington really go broke? - Money And Markets
"At least six major nations are now in danger of following Greece into default and bankruptcy — and the United States of America is one of them. So says Larry Edelson, Senior Analyst at Weiss Research, an independent financial research firm....America's official national debt plus Washington's off-budget obligations now stand at $117 trillion. That gives the U.S.A. a total debt to GDP ratio of 101%: 330 times greater than the debt that broke the back of the Greek economy. 'These debts are patently unpayable,' says Edelson. 'That means they cannot, will not ever be repaid. That means default is inevitable.'"

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7.11.16 - Global Currency War Heats Up

Gold last traded at $1,356 an ounce. Silver at $20.30 an ounce.

NEWS SUMMARY: Precious metal prices eased slightly Monday on mild profit-taking after touching 2-year highs last week. Meanwhile, U.S. stocks extended gains lifting the S&P index into record territory as investors cheered an election in Japan and extended a jobs-report rally.

Gold has 'unlimited upside' because of Fed's 'confused' policy -CNBC
"Gold just posted its longest weekly winning streak since July 2011, but if investors missed out on the recent rally, fear not. One trader says the commodity has 'unlimited upside,' and investors have the Federal Reserve to thank for it. On CNBC's 'Futures Now', Tom Colvin said that gold will remain in a bull market that will only come to an end 'when central banks take their hands out of the cookie jar.' The Federal Reserve is unlikely to hike rates in the foreseeable future, despite a blockbuster June employment report on Friday. 'The year-to-date rally in gold has been nothing short of spectacular, benefiting from what we have seen as a confused Fed or a Fed lacking action,' the senior vice president of global institutional sales at Ambrosino Brothers explained.

Every day another mainstream financial pundit raises the bar on gold's future ... this time to infinity! What are you waiting for? Now is the time to diversify a portion of your assets into the world's most trustworthy currency, gold. Read more in our 2016 Gold Report.

bang Crash! Boom! Bang! (The Currency War Heats Up) -HedgeEye
"Here's analysis from Hedgeye CEO Keith McCullough in a note sent to subscribers earlier this morning: 'With most US beta chasers talking SP500 today, let’s stay focused on the bigger macro picture which is highly correlated to what USD is doing in the FX War. UK 10yr Yield dives to 0.71% this morning and the Pound’s crash are to lower-lows -0.7% at $1.28.'....The yen weakened as Japanese Prime Minister Shinzo Abe 'ordered a new round of fiscal stimulus spending after a crushing election victory over the weekend,' Reuters reports.... Takeaway: Central planners are stepping up in an attempt to arrest economic gravity. Don't bet on their success."

Imagine a world without a privileged dollar. What will your assets be worth if a currency war shoots the dollar down? Find out how the ongoing currency wars are about to impact the buck in our 2016 World Money Report.

Wall Street’s safest bets are now in bubble territory -Marketwatch
"Buying the stocks that Wall Street calls boring has paid off over the past six months - but now this 'defensive' strategy is starting to look pretty risky. Utilities, a sector traditionally viewed as a safety play in times of market turmoil, have risen 21.2% in the first half of 2016 - the sector’s best first-half performance in over 25 years. But if you ask some analysts, the run-up in prices leaves the sector extremely overextended and valuations dangerously high; some analysts believe the sector is in bubble territory....Even as utility-stock prices have risen over 20%, expected earnings growth for the sector in 2016 is only 4.4%, according to FactSet."

Michael Savage wins National Radio Hall of Fame award -WND
"Michael Savage, the host of the nationally syndicated 'The Savage Nation,' will be inducted into the National Radio Hall of Fame. Savage told WND he will be inducted Nov. 17 at a ceremony in Chicago in the category of Spoken Word On-Air Personality. 'To me, this is the capstone of my life,' Savage said, 'all my writing, all my speaking. This is it.'....Notably, Savage’s message of borders, language and culture has been a fixture in the success of Donald Trump, who is expected officially to become the Republican Party’s nominee for president next week in Cleveland."

Big congratulations to Dr. Savage! Swiss America has been a proud sponsor of The Savage Nation since 2001. Check out our free Savage listener information kit.

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7.8.16 - Gold Pounds World Currencies

Gold last traded at $1,355 an ounce. Silver at $19.93 an ounce.

NEWS SUMMARY: Precious metal prices rose to 2-year highs this week on global uncertainty. Meanwhile, U.S. stocks rallied over 1% Friday following a surprisingly strong June jobs report.

What's the real unemployment rate? -CNBC
"The national unemployment rate rose slightly more than expected in June, to 4.9 percent, according to data released Friday by the Bureau of Labor Statistics. But does that tell the whole story?....A broader figure is the U-6 rate, which many economists rely on as a more accurate portrayal of employment in the country. The U-6 rate dropped one-tenth of a point to 9.6 percent in June....The U-6 rate is defined as all unemployed as well as 'persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the labor force.' That means the unemployed, the underemployed and the discouraged. While the U-6 rate has made substantial gains in the past years, it remains stubbornly at pre-recession levels."

gold chart Currencies Are Collapsing Against Gold -Huffington Post
"2016 has been an economic outlier of a year, and many Western currencies appear to be steadily failing against the silent $8 trillion beast that is the gold market....Against the mighty US Dollar, gold is up 17.68% over the past year. You’d be hard pressed to find any premium online savings accounts that pay near 1% per year these days, for comparison’s sake. (And gold being up 116% over the past ten years against the US Dollar paints an even darker, if gradual, economic story.)...And against the beleaguered Pound Sterling, gold is up 41%, and up a troubling 209% over a ten year span. Against the euro, gold is up 17% over the past year, and up about 150% over the past ten years....It doesn’t feel too painful yet to fiat holders, but the math is clear: it just may be gold’s world again, sooner rather than later."

"Gold: $1,500 by year end?" reports CNBC. "More people are looking to buy gold amid shrinking supply, which should spark a price rally, explains Barry Dawes of Paradigm Securities." Mr. Dawes sees $1,500 to $1,900 an ounce gold possible by year's end. Don't miss the gold bull of 2016, read our free 2016 Gold Report - World Edition.

A World Gripped By Fear And Crisis: A Tipping Point For Gold -Kitco
"The world is lurching from crisis to crisis and that appears unlikely to change anytime soon. The surprise Brexit vote has generated increased populist discussion on the perils of globalization....One thing appears certain: market volatility is here to stay. 5 Triggers for On-Going Market Volatility; Massive government debt, Stagnant global economic growth, Wealth distribution concerns, Immigration issues and Anti-globalization movement.... As global investors attempt to make sense of the new world order, gold has been surging throughout 2016. After several years of cyclical declines in the gold market, a tipping point has emerged. The gold cycle is shifting back to a bull....'We believe gold prices could rise to $1,500/oz near-term,' according to a new BofA Merrill Lynch Global Research report."

World faces China-induced deflation shock -Evans-Pritchard/Telegraph
"China has abandoned a solemn pledge to keep its exchange rate stable and is carrying out a systematic devaluation of the yuan, sending a powerful deflationary impulse through a global economy already caught in a 1930s trap....China’s attempt to export its problems though devaluation is a key reason why inflation expectations are crashing to record lows across the developed world. This in turn is driving bond yields to historic lows almost daily, with 10-year borrowing costs down to -0.58% in Switzerland, -0.28% in Japan, -0.16% in Germany, 0.14% in France, 0.78% in Britain, and 1.4& in the US....Yet a fragile world economy cannot cope with a falling yuan....There is enough juice in the pipeline to keep the economy rolling along for a few more months: before the latest property boomlet fizzles. The closer we move to this tipping point, the more tense it will become, for China and for the world."

China, Russia and other powerful nations are now in a race to dethrone the U.S. dollar as the world's exclusive reserve currency. Now they are floating ideas of backing their currency with gold. Get up to speed fast by reading our 2016 World Money Report.

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7.7.16 - Last-Ditch Helicopter Money to the Rescue?

Gold last traded at $1,362 an ounce. Silver at $19.83 an ounce.

NEWS SUMMARY: Precious metal prices consolidated gains Thursday after rushing to 2-year highs earlier this week. Meanwhile, U.S. stocks traded mostly lower as investors eyed falling oil prices ahead of the highly anticipated U.S. jobs report due Friday.

Gold and silver: the last 'currencies' standing -Boockvar/CNBC
"The era of modern day monetary omniscience is coming to an end. Look no further than the near 30-percent year-to-date rally in gold that has it sitting at 28-month highs and the almost 50-percent rise in silver this year to near two-year highs. Look at gold as the anti-fiat currency. The one that can't be manipulated, debased, and conjured up electronically at one's whim. One has to actually dig it out from the ground. Thus, it is referred to as 'precious' as there is a limited supply....We are witnessing the culmination and likely end of the post 1971 global monetary regime when fiat currencies shed any and all ties to the price of gold. I am most confident that gold and silver will be the last currencies standing."

Mr. Boockvar is spot on. Precious metals are the world's currency of last resort. CNBC also reports, "If you missed out on gold's recent rally, fear not, because one savvy trader is betting more than $6 million that the bullion breakout is far from over." The best strategy is to buy the price dips and hold metals for the long-term, as we explain in THE TIMELESS TRUTH ABOUT MONEY DVD and TIMELESS TRUTH ABOUT GOLD & SILVER Special Report.

helicopter money Money-Laden Helicopters Hovering on the Horizon -Wall Street Journal
"An infelicitous term - 'helicopter money' - keeps popping up in the financial press. Federal Reserve Chair Janet Yellen told a reporter last month that it is 'something that one might legitimately consider' in 'a very abnormal, extreme situation.' Brexit has given the idea new life....In the real world, 'printing money' means creating new bank reserves, which the Fed normally does by purchasing government bonds and paying for them with newly created bank reserves....But doesn’t the estimable Mr. Bernanke want to keep 'helicopter money' in the Fed’s arsenal for use as a last resort? Well, sort of. In a blog post this April he said 'it’s not immediately obvious how the idea . . . can be made operational' in a world in which the Fed conducts monetary policy by setting short-term interest rates, rather than by setting the money supply."

As Swiss America Chairman Craig Smith said in his recent commentary on Brexit ... "It is time to allow markets to do what they always do; to reset at real prices, not by using pumped-up central bank manipulations. I expect the Fed WILL intervene, but they shouldn't."

Bernanke To "Secretly" Meet With Kuroda; "Helicopter Money" On The Agenda -Zero Hedge
"Former Federal Reserve Chairman Ben Bernanke will have talks in Tokyo next week with officials including Prime Minister Shinzo Abe, government sources said. Bernanke, who led the Fed through the global financial crisis in 2008, will be in Japan next week. It has been arranged for him to meet officials including Abe and Bank of Japan Governor Haruhiko Kuroda, according to a government official speaking on condition of anonymity....Some market players speculate Kuroda might decide, in a surprise, to provide 'helicopter money'....So is it time? Is Bernanke about to unleash the next, and final, monetary policy evolutionary step, one which launches 'helicopter money' in Japan, and if successful, brings it across the Pacific to the US?"

Why Nationalism is Surging -Wall Street Journal
"In this year of Brexit and Donald Trump and ethno-nationalism rising across Europe, it is time to take stock of what we have learned. Even in an era when globalization is thought to be an inexorable force, national sovereignty still matters. It was national political decisions that created the European Union and may end up dismantling it. Political leaders reached the trade treaties that allow goods and services and capital to flow more freely. Many countries welcome these flows yet seek control over the movement of people across their borders. It was the EU’s unwillingness to decouple population movement from other liberties that crystallized the U.K.’s pro-Brexit majority."

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7.6.16 - Dark Clouds with Silver Linings

Gold last traded at $1,367 an ounce. Silver at $20.20 an ounce.

NEWS SUMMARY: Precious metal prices powered higher again Wednesday on global safe haven buying. Meanwhile, U.S. stocks traded in a narrow range amid pressure from the global flight to safety.

Precious Metals: A Rush to Safety -Marketwatch
"Gold prices extended recent gains to strike a fresh two-year high Wednesday, extending the rush to haven assets that’s been the norm since the U.K. voted late last month to leave the European Union....Silver prices hit a nearly two-year high, gaining over 10% just in the handful of trading days since the Brexit vote and they remain elevated, driven by huge demand from Chinese and other investors....'Right now, it is the safe-haven demand for gold that is dominating. The feeling among investors is there is a lot of risk, so let us pile into gold,' said Gnanasekar Thiagarajan, director of Commtrendz Risk Management."

Global economic risk has never been greater! Now is the time to protect your wealth by owning gold, the wisest form of wealth insurance. Read our free 2016 Gold Report - World Edition.

silver report Silver Outshines Gold in Brexit Rally -Wall Street Journal
"When it comes to post-Brexit havens, silver has outshone gold. After Britain voted to leave the European Union last Thursday, investors dumped shares and riskier debt and jumped into haven assets such as government bonds, the yen and precious metals. But while gold got all the media attention, it was silver seeing more of the investors. Since the Brexit vote on June 23, gold is up 7% on the New York Mercantile Exchange and silver is up 17%. Historically, silver has generally outperformed gold both on the up and downside. It moves higher than gold when both prices climb and sinks further when they fall. 'It is more volatile. it tends to swing around a lot more' than gold, said Simona Gambarini, an economist at Capital Economics."

It’s an exciting time for silver - which in on track to become the best performing asset of the year! WHY SILVER? ... WHY NOW? Thanks to sound technicals, good timing and brisk tempo we think SILVER is a solid choice for 2016! Get the full story, read our 2016 SILVER REPORT - The Global Metal.

Falling U.S. bond yields "captured by Europe" -CNBC
"Bond yields are falling, with no end in sight - yet. The question of just how low U.S. Treasury bonds could go was once met with the expectation of 'zero,' but now it's not even clear they would stop there. 'I think what these yields are telling you is [there are] worries about the global situation and a re-pricing of monetary policy,' Joshua Feinman, Deutsche Asset and Wealth Management chief global economist, said on CNBC's 'Squawk Box' Wednesday morning....Allianz chief economic adviser Mohamed El-Erian believes the U.S. 10-year Treasury yield could slip below the 1 percent mark internationally, in part thanks to the abundance of cheap funds from various central banks. 'We no longer control our yield curve, it has been captured by Europe,' says El-Erian."

Europe's Banking Panic: "People Are Starting To Withdraw From The Market" -Zero Hedge
"The latest red flag about the solvency and viability of the European banking sector came this morning from none other than the chairman of Societe General and former ECB executive board member, Lorenzo Bini Smaghi who warned that Italy’s banking crisis could spread to the rest of Europe. 'The whole banking market is under pressure,' the former ECB executive board member said in an interview with Bloomberg Television on Wednesday....But what is most concerning is that one can make the argument that the former central banker was almost doing all he can to stoke panic: 'There is no rationality in the market, it's all very emotional. People are starting to withdraw from the market and to go to very liquid and safe assets.'"

In The Great Withdrawal we explained the coming great withdrawal from banks - which is the result of failed Progressive economic policies forced on the public by both political leaders and the Federal Reserve. Learn how easy it is to protect your wealth before the next market panic strikes.

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7.5.16 - How Low Can Bond Yields Go?

Gold last traded at $1,358 an ounce. Silver at $20.09 an ounce.

NEWS SUMMARY: Precious metal prices reached for new highs this week on safe haven buying amid global economic uncertainty and dashed Fed rate hike hopes. Meanwhile, U.S. stocks traded lower Tuesday, amid record lows in the benchmark 10-year Treasury yield.

Gold prices will hit record high in next 18 months -CNBC
"Gold prices may hit all-time highs in the next 18 months amid low to negative global bond yields, said a fund manager on Monday, joining a chorus of bullish calls on the safe haven commodity. Despite being a non-interest bearing asset with holding costs, gold was attractive in the current climate where there was little trust in the establishment and its policies as demonstrated by the June 23 referendum in the U.K. when voters chose to leave the European Union, said Swiss Asia Capital's Singapore managing director and chief investment officer, Juerg Kiener. The continued cratering of bond yields has also blunted the advantage fixed income instruments held over their shiny counterpart....'The more important issue is that you can't print gold. You've got falling production, falling inventory and a demand cycle which is picking up,' he said."

yields U.S. Treasury Yields Fall to Records as Economic Outlook Darkens - Bloomberg
"Treasuries rallied, with yields resuming a descent to record lows, as the growing pool of negative-yielding debt worldwide boosted the appeal of U.S. securities. Benchmark 10- and 30-year yields fell to unprecedented levels, extending gains in Treasuries for a third trading session, as signs of slowing growth in Europe ended a five-day rally in global stocks. A U.S. jobs report July 8 may offer clues to the direction of the Federal Reserve’s next interest-rate move....In addition to experimenting with negative rates, some monetary authorities abroad are buying government debt, reducing the supply for investors who count on fixed-income assets....'It’s quite difficult to judge how low is too low for yields amid a slower outlook for global growth and recent demand for haven assets.'"

Brexit Is Lehman Moment for European Banks -Bloomberg
"European banks are undergoing a real-life stress test in the wake of Britain's vote to leave the European Union. Their share prices were already down 20 percent this year; since the referendum result was announced, they've doubled that decline. If the rot isn't stopped soon, Europe will have found a novel solution to the too-big-to-fail problem -- by allowing its banks to shrink until they're too small to be fit for purpose. The answer is found in the adage never let a good crisis go to waste....Rather than risk a messy fight at a time when the EU needs to at least pretend to be united, Europe's regulators should acknowledge that the region needs a functioning banking system more than it needs the hobgoblin of regulatory consistency. Otherwise, all of the European Central Bank's efforts to stimulate growth using monetary policy are doomed to failure."

The global monetary and banking system is based on trust and - as we have warned for many years - this trust is in a sharp decline today. A banking crisis in any one nation can turn into a global banking crisis overnight. For this reason we suggest moving a portion of your savings outside of the banks entirely. Read more about how to protect your money in The Secret War on Cash.

Italian banks the next weak spot in Europe -CNBC
"The Brexit vote immediately sparked speculation about which country may be the next weak spot in Europe. And increasingly, it's clear the answer may be Italy. Seventeen percent of bank loans in Italy are bad, according to a Monday report in the Wall Street Journal....The Financial Times reported Sunday that Italy might 'defy the EU (European Union) and unilaterally pump billions of euros into its troubled banking system if it comes under severe systemic distress … despite warnings from Brussels and Berlin over the need to respect rules that make creditors rather than taxpayers fund bank rescues.'"

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7.1.16 - Is 2016 the Year of Gold and Silver?

Gold last traded at $1,339 an ounce. Silver at $19.60 an ounce.

NEWS SUMMARY: Precious metal prices lurched higher Friday on safe haven buying and a weaker dollar. U.S. stocks higher, after upbeat manufacturing data.

Brexit Stimulus Hopes Propel Stocks, Bonds & Gold -Bloomberg
"Statements from the European Central Bank and the Bank of England that they stand ready to loosen policy to deal with the aftermath of Brexit helped halt a two-day rout in markets. Odds that the Federal Reserve will raise borrowing costs this year as planned have fallen to less than 10 percent....'Central banks coming out and reinforcing that they were a backstop gave investors the confidence that they would have enough support to keep making moves,' said Walter Todd, chief investment officer for Greenwood Capital Associates LLC in South Carolina."

Last week we said to expect central bank stimulus in reaction to Brexit. “Government regulators and central banks such as the Federal Reserve might ‘step in,’ in the wake of the Brexit vote, to manipulate markets and protect the old order,” says Swiss America chairman Craig R. Smith. “They did this in 2008 and created the longest recession in American history. They should let the free market work without political interference to restore genuine health and growth to our economy.” Stimulus promises are now artificially boosting stock prices. Don't wait to buy gold, buy gold and wait! This report explains in detail: 2016 Gold Report - World Edition.

gold vs dow Is 2016 the Year of Gold and Silver? -Livemint
"Global instability has prompted investors to resort to safe haven assets, and bullion has emerged as the most preferred investment instrument. The flight to safe haven assets triggered by global political and economic uncertainty has made bullion the year’s most preferred investment, with gold and silver beating other asset classes by a mile. Gold is now the best performing asset of 2016, emerging from a three-year bear market. The yellow metal has gained almost 26% since 1 January, the best half-year performance since 1980, Bloomberg data showed. Silver, following gold, rose 30% in the first six months....Analysts said the shock result of UK’s EU referendum vote last week further strengthens bullion’s appeal as a safe haven asset. The past four sessions following the Brexit vote saw gold prices spike about 6%, while silver advanced about 5%."

Gold Set for Longest Run of Gains in Two Years on Stimulus Bets -Bloomberg
"Gold headed for the longest run of weekly gains in almost two years and silver surged to the highest since 2014 as Britain’s vote to quit the European Union fueled speculation that central banks will boost economic stimulus....Gold and silver posted the biggest first half gains in about four decades amid mounting speculation that interest rates in the U.S. will remain low, which is a boon to precious metals because they don’t offer interest....'Every hint at lower interest rates and at uncertainty is propelling gold and silver higher, whether that is rational or not,' Thorsten Proettel, a commodity analyst at Landesbank Baden-Wuerttemberg in Stuttgart, said by phone."

*Swiss America will be closed Monday, July 4 in observance of Independence Day. We wish our readers, and their families, a happy and safe holiday.*

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