Trump’s OPEC tweets have Putin preparing for oil talks

By ILYA ARKHIPOV AND ELENA MAZNEVA on 7/11/2018 WorldOil.com

Published in Oil Industry News on Friday, 13 July 2018

The Kremlin sees Trump as likely to raise the issue of adding crude supplies to the market in a bid to lower gasoline prices before the U.S. elections in November, according to one of the people. While Putin’s spokesman said last week that oil isn’t at the top of the list for the July 16 summit in Helsinki, officials are preparing extensive briefing notes for Putin, the people said, speaking on condition of anonymity.

Crude prices have jumped about 14% since April on supply concerns following Trump’s promised renewal of sanctions against Iran and outages at fields in Libya and Venezuela. OPEC and its partners in production cuts, including Russia, have agreed to boost output to alleviate tightness, but concerns remain that it won’t be enough.

Russia has blamed U.S. policy — especially in Iran — for creating the risks of a deficit in the oil market. The Finance Ministry earlier this week called it “the decisive factor” pushing up crude prices now, echoing comments from Iran. Ali Akbar Velayati, foreign policy adviser to Iran’s supreme leader, will meet Putin and Russian Energy Minister Alexander Novak this week, the person said.

White House national security spokesman Vincent Picard said he couldn’t “comment or speculate on what they will talk about” when asked if the president planned to raise energy issues in his meeting with Putin.

While Russia says tweets don’t define the policy of the so-called OPEC+ group, Trump’s Twitter post led Novak and his Saudi counterpart Khalid Al-Falih last week to reaffirm an agreement reached in June to restore 1 MMbpd of oil supply. Trump said Saudi Arabia assured him it could increase oil output by double that amount, though the White House subsequently backpedaled from that assertion.

The question is what Russia could offer Trump. Under the June agreement, Russia plans to raise output by 200,000 bpd. It may not be able to do much more than that. While the country doesn’t share data on spare production capacity, analysts estimate it at no more than 500,000 bpd for now.

Compared with Saudi Arabia, Russia’s oil exports to the U.S. are insignificant. Still, Moscow is a pivotal player in the OPEC+ decision-making process and could use that to win political points with the U.S., according to Ehsan Khoman, head of Middle East and North African research at Mitsubishi UFJ Financial Group.

Blockchain: The End of Gold Price Suppression

Contributed Opinion

Source: Tom Beck for Streetwise Reports  (7/11/17)

With so many rumors and complaints over the years about flash crashes, overleveraging, taking advantage of clients and overcharging, blockchain could signal the end of big banks having their way on the Comex and paper metals markets, says Tom Beck, founder of Portfolio Wealth Global.

I bought my first gold and silver coins in 2003. I was 21, and well on my way to becoming a proponent of free markets and commodity-based money.

CPI Formula Shows Gold Is Near All-Time Lows

John Williams, of Shadowstats.com, and the brilliant analyst Jeff Clark, of GoldSilver.com, have published this important chart that, if you understand it correctly, would mean to never sell one ounce of your gold.

Today, the metal only covers 6% of the global currency supply, and that is a century low. Not since the Federal Reserve was created has that much of our global payment system been based on credit, without any tangible commodity backing it.

I’m personally not of the opinion that the gold standard is coming back soon, but Portfolio Wealth Global does see gold covering more than 15% of the currency supply, which translates to $3,000 per ounce using today’s prices.

Since I bought my coins, I’ve been hearing about manipulation by big banks, to which I always reply that all markets are rigged in some way or another, but what JP Morgan and Barclays have done with the silver market is shameful, and there’s now a way to truly stop it.

Inflation Adjusted Silver Price

Silver might be the world’s cheapest commodity of all time. Its price is less than 1% of what it was just 37 years ago using the same inflation metrics.

This wouldn’t be possible if complete transparency existed. The fact is the COMEX in London and New York is leveraged to about 247:1. For every 247 paper ounces, there’s only 1 physical ounce. This allows leveraged swings and smash-downs to occur, almost without repercussions.

The blockchain technology that drives the Bitcoin network has one great advantage: it is immutable, which means that past data can never be changed.

It is a point of reference that can be trusted, and it has meaningful impacts for gold. Using blockchain, state-of-the-art communications enable gold to be redistributed across the globe with the snap of a finger, without ever leaving vaults.

China’s gold market is now the largest in the world, and it is increasingly moving online. The Precious Metals Department of leading Chinese bank ICBC explains is leveraging the Internet to drive gold investments among savers, from the young millennials to professional and seasoned investors.

Chinese Gold Imports

The dream of a decentralized precious metals market is ever closer.

Though millennials have no clue what the historical roles of gold and silver are, their purchasing power is insignificant compared with the rapidly growing middle classes of China and India.

Gold is becoming part of financial technology—it’s turning more modern and becoming easier to store and own.

Over the summer, I’ll show great ways to own it.

When the market becomes more sophisticated and price discovery occurs, the price of silver could easily be $64 per ounce.

Remember, most Asians don’t see a huge difference between silver and gold with regards to their role as a store of value, therefore they’ll buy what’s cheaper, and silver is literally dirt cheap.

Tom Beck is the founder of Portfolio Wealth Global. Known as one of the first millennial millionaires in the United States, Beck is a relentless idea machine. After retiring two years ago at age 33, he’s officially come out of retirement to head up Portfolio Wealth Global. He brings a vision of setting a new record for millionaires with his seven-year plan to accelerate any subscribers’ net worth who will commit to the income lifestyle. Beck delivers new ideas on the marketplace that were once only available to the rich. Traveling the world, he’s invested in over a dozen countries, including real estate.

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Disclosures:
1) Statements and opinions expressed are the opinions of Tom Beck and not of Streetwise Reports or its officers. Tom Beck is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Tom Beck was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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Goldman Sachs: You Must Own Oil, Aluminum in These Tense Times

9770e566-fea1-4559-ab90-687c7c7ba019

 (Roman Romaniuk/Dreamstime)

Friday, 13 April 2018 09:19 AM

Read more: Goldman Sachs Says You Must Own Commodities in These Tense Times | Newsmax.com

 

Central banks manipulating & suppressing gold prices – industry expert to RT

By: Ronan Manly is a precious metals expert at BullionStar based in Singapore

Read Article Here: https://on.rt.com/91bm

8 Reasons To Own Gold

Unlike paper currency, coins or other assets, gold has maintained its value throughout the ages. People see gold as a way to pass on and preserve their wealth from one generation to the next.

Weakness of the U.S. Dollar

Although the U.S. dollar is one of the world’s most important reserve currencies, when the value of the dollar falls against other currencies as it did between 1998 and 2008, this often prompts people to flock to the security of gold, which raises gold prices . The price of gold nearly tripled between 1998 and 2008, reaching the $1,000-an-ounce milestone in early 2008 and nearly doubling between 2008 and 2012, hitting around the $1800-$1900 mark. The decline in the U.S. dollar occurred for a number of reasons, including the country’s large budget and trade deficits and a large increase in the money supply.

Inflation

Gold has historically been an excellent hedge against inflation, because its price tends to rise when the cost of living increases. Over the past 50 years investors have seen gold prices soar and the stock market plunge during high-inflation years.

Deflation

Deflation, a period in which prices decrease, business activity slows and the economy is burdened by excessive debt, has not been seen globally since the Great Depression of the 1930s. During that time, the relative purchasing power of gold soared while other prices dropped sharply.

Geopolitical Uncertainty

Gold retains its value not only in times of financial uncertainty, but in times of geopolitical uncertainty. It is often called the “crisis commodity,” because people flee to its relative safety when world tensions rise; during such times, it often outperforms other investments. For example, gold prices experienced some major price movements this year in response to the crisis occurring in the European Union. Its price often rises the most when confidence in governments is low.

Supply Constraints

Much of the supply of gold in the market since the 1990s has come from sales of gold bullion from the vaults of global central banks. This selling by global central banks slowed greatly in 2008. At the same time, production of new gold from mines had been declining since 2000. According to BullionVault.com, annual gold-mining output fell from 2,573 metric tons in 2000 to 2,444 metric tons in 2007 (however, according to Goldsheetlinks.com, gold saw a rebound in production with output hitting nearly 2,700 metric tons in 2011.) It can take from five to 10 years to bring a new mine into production. As a general rule, reduction in the supply of gold increases gold prices.

Increasing Demand

In previous years, increased wealth of emerging market economies boosted demand for gold. In many of these countries, gold is intertwined into the culture. India is one of the largest gold-consuming nations in the world; it has many uses there, including jewelry. As such, the Indian wedding season in October is traditionally the time of the year that sees the highest global demand for gold (though it has taken a tumble in 2012.) In China, where gold bars are a traditional form of saving, the demand for gold has been steadfast.

Demand for gold has also grown among investors. Many are beginning to see commodities, particularly gold, as an investment class into which funds should be allocated. In fact, SPDR Gold Trust, became one of the largest ETFs in the U.S., as well as one of the world’s largest holders of gold bullion in 2008, only four years after its inception.

Portfolio Diversification

The key to diversification is finding investments that are not closely correlated to one another; gold has historically had a negative correlation to stocks and other financial instruments. Recent history bears this out:

  • The 1970s was great for gold, but terrible for stocks.
  • The 1980s and 1990s were wonderful for stocks, but horrible for gold.
  • 2008 saw stocks drop substantially as consumers migrated to gold.

Properly diversified investors combine gold with stocks and bonds in a portfolio to reduce the overall volatility and risk.

The Bottom Line

Gold should be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. Although the price of gold can be volatile in the short term, it has always maintained its value over the long term. Through the years, it has served as a hedge against inflation and the erosion of major currencies, and thus is an investment well worth considering.

Read more: 8 Reasons To Own Gold https://www.investopedia.com/articles/basics/08/reasons-to-own-gold.asp#ixzz58EwIV3B1
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