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This Could Finally Be The Time To Buy Gold – BAML Survey

Anna Golubova mailto:agolubova@kitco.com
Tuesday July 17, 2018 22:09

Kitco News

(Kitco News) – With gold trading below $1,230 an ounce, this could finally be the time to be buying the precious metal, with a record number of fund managers in the Bank of America Merrill Lynch’s (BAML) monthly survey saying that the metal is undervalued.

At least 17% of fund managers surveyed by BAML stated that gold was trading below its actual market worth, marking the highest level of votes on record for the survey, CNBC reported on Tuesday.

After analyzing survey results, BAML strategist said that investors who are looking for a “contrarian” position from the popular market trends should be paying attention to gold.“We cyclically advise contrarian bears to position for ‘peak profit, peak policy stimulus’ theme via long gold, short U.S. tech,” BAML said in a note to clients.

The BAML survey also revealed that more than half of the 178 fund managers interviewed believe that the most popular space in the marketplace right now is the FAANG stocks — Facebook, Apple, Amazon, Netflix and Alphabet’s Google.

The bank’s comments come as gold continues to struggle, dropping more than 4% in the last 30 days alone.
On Tuesday, August Comex gold futures went through another major sell-off, plunging 1% following Federal Reserve Chair Jerome Powell’s upbeat comments about the U.S. economy.

August gold touched a fresh one-year low of $1,226.40 on Tuesday and then traded around $1,228, keeping all of the losses into Wednesday’s Asia market open.

When speaking in front of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Powell signaled that the central bank will continue to gradually raise interest rates while normalizing its monetary policy and reducing its balance sheet.

“The latest data suggest that economic growth in the second quarter was considerably stronger than in the first,” Powell said. “The solid pace of growth so far this year is based on several factors. Robust job gains, rising after-tax incomes, and optimism among households have lifted consumer spending in recent months.”

By Anna Golubova
For Kitco News
agolubova@kitco.com

www.kitco.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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.

Charts provided by Portfolio Wealth Global

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

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 (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