Record high stock and bond prices are flashing danger signs to former Reagan White House Budget Director David Stockman.
“I don’t think we are going to have a liquidity crisis. I think it’s going to be a value reset. I think there is going to be a jarring downward price adjustment both in the stock market and in the bond market.
This phantom or phony wealth that has been created since the last crisis is going to basically evaporate.”
So, what asset is safe? Stockman says gold and goes onto explain,
Earlier this week, former Congressman Ron Paul posted a Twitter poll asking his followers to choose between four different assets for a long-term investment, with the stipulation that the bearer would need to keep their money locked up for ten years.
A wealthy person wants to gift you $10,000. You get to choose in which form you’ll take the gift. But there’s a catch: You must keep the gift in the form that you choose, and you can’t touch it for 10 years.
Paul admitted he was surprised when he saw that a majority of respondents – 54% – selected bitcoin over gold, dollars and a 10-year Treasury bond.
During an interview with the Street, a reporter asked Paul if he was surprised that his followers prefer bitcoin to gold.
Yea a little bit. I was a little bit – of course I wasn’t surprised that only 2% would store it in Federal Reserve notes, nor do they think they should buy Treasury bills. Gold has 36% but bitcoin has 54%…it’s the sort of information that tells me where my viewers are and what they’re thinking. Most of my viewers know how supportive I am of gold, and they know I’m tolerant of digital currencies.
Still, Paul believes cryptocurrencies are an interesting experiment and is generally supportive of their development and increasing popularity. But when asked for his thoughts on where bitcoin might be in ten years, he demurred.
The BRICS counties are considering starting an internal gold trading platform, according to Russian officials. When this happens, the global economy will be significantly reshaped, and the West will lose its dominance, predicts a precious metals expert.
In 2016, 24,338 tons of physical gold were traded, which was 43 percent more than in 2015, according to Claudio Grass, of Precious Metal Advisory Switzerland.
Gold moving from the West to the East
“We have to put the BRICS initiative into a broader context. It is just part of a geopolitical tectonic shift which started decades ago. We have seen a constant outflow of physical gold from the West to the East. At the same time, the West has lost the economic war, and as a consequence, the focus now turns to the financial system. China dominates the world economy and has displaced the US as the world’s most formidable economic powerhouse,” he told RT.
The creation of a new gold standard by BRICS is also a step to end the US dollar’s domination of the global economy
One of the most notable events in Russia’s precious metals market calendar is the annual “Russian Bullion Market” conference. Formerly known as the Russian Bullion Awards, this conference, now in its 10th year, took place this year on Friday 24 November in Moscow. Among the speakers lined up, the most notable inclusion was probably Sergey Shvetsov, First Deputy Chairman of Russia’s central bank, the Bank of Russia.
In his speech, Shvetsov provided an update on an important development involving the Russian central bank in the worldwide gold market, and gave further insight into the continued importance of physical gold to the long term economic and strategic interests of the Russian Federation.
In a surprising, and unexpected warning – which seemingly came out of nowhere – Russia’s Finance Minister Anton Siluanov cautioned Washington yesterday that “If our gold and currency reserves can be arrested, even if such a thought exists, it would be financial terrorism.”
The comment appears to have been prompted by consideration of escalating US/EU sanctions which could ultimately impact Russia’s offshore held gold and reserves. If sanctions include the freezing of foreign accounts of the central bank, it would be equal to declaring financial war on Russia, Siluanov said, although he added that he considers such a scenario unlikely (for now).
After making the point that Russia’s budget is prepared for the possibility of tougher US/EU sanctions, RT reports that Siluanov warned if the west include the seizure of Russia’s foreign exchange reserves, it would be regarded as a “declaration of a financial war.”
Texas officials have officially announced the location of the Texas Bullion Depository, bringing the Lone Star State one step closer to making the facility fully operational. Once the Texas Bullion Depository is finished, it will represent a significant departure from the federal government, leading many to believe that this could be not only the end of the Federal Reserve’s monopoly on money, but also the first step towards secession.
In June of 2015, Texas Governor Greg Abbot signed legislation for the state gold bullion and precious metal depository. In addition to proving a secure place for people and businesses to store their gold and other precious metals, the depository will also allow people to use gold and silver in business transactions, meaning that they will be able to deport their precious metals in the depository and pay others either electronically or via a written check.
A prolonged period of cheap money and the shift of investor focus to gold as a haven from geopolitical and financial risk could boost the price of the precious metal to over $5,000 an ounce in five years, McEwen Mining CEO Rob McEwen says.
If that happens, “there is going to be a tsunami of money looking for a place to go,” he told Bloomberg at a mining industry conference in San Francisco.
After surging above its 50-day moving-average on Friday, it appears someone is keen for that key technical level not to hold as they dumped almost $2 billion notional in seconds this morning, testing down to the 50DMA (but holding for now).
There seems to be a real trading market in gold and silver bullion and coins, presumably because more and more people have more confidence in the real market price as against the knocked down, fixed Bankster nonsensical figures set twice daily by a group of Rothschild Banksters, regardless of supply and demand….the only true factors in economics.”
– German gold demand surges from 17 ton-a-year to a 100 ton-plus per year
– €6.8 Bln spent on German gold investment products in 2016, more per person than India and China
– Germans turned to gold during financial crises and ongoing euro debasement – Evidence of latent retail demand on increased economic concerns – “Gold fulfils an important long-term, wealth preservation role in German investors’ portfolios”