Commodities

Glenn Beck: ‘Something Bad Is Coming Our Way… Here’s What I Would Suggest You Do’

Echoing what Damian McBride, a former special adviser to British Prime Minister Gordon Brown, tweeted Monday was Glenn Beck. The American television/radio host and producer, political commentator, author, and entrepreneur told listeners yesterday on his radio program:

I believe there is something in our collective conscience, I believe there is something that is telling people all around, all around the globe, something bad is coming our way. And I think everybody feels it. So here’s what I would suggest you do. I would suggest that you have, you pay attention to what is in your 401(k). You make sure that there is some sort of stop on your 401(k) so you can’t just lose everything on your 401(k). That if you do have stocks you call your broker today and make sure that you have some sort of stop at 5 percent or 10 percent or whatever else you’re ready to risk. I would highly suggest that you have enough cash for a week. This is not the big crash. I just don’t believe that. Maybe it is- I don’t believe that. I’m always bad on timing, so seeing that I feel like it’s not, it probably is. However, there is going to come a time when things just stop working and they shut everything down. And they stop a run on the bank and everything else. And I don’t think we’re there. But, I would suggest that you have a week’s worth of cash on hand. And the only reason why you should have a week’s worth of cash on hand is in case they do at some point close the banks just to be able to stabilize the situation. Because that will happen at some point. I don’t think it’s happening today, but that will happen at some point. So you should have a week’s worth because what happens is, we have seen this happening now recently in other countries where they just limit the amount that you can take out. And so everybody just gets $200, you know, every couple of days you can have $200, but that’s it. I would just make sure that you have looked at your food storage, and your 72-hour food storage. If you’ve had gold or silver or whatever it is that you feel good about, you have those things on hand. Have you replenished your ammunition in your guns? How are you doing with God? Those are all the doomsday things to do, but if you have any of those unchecked on your list, I would make a point to start doing them today, because we are headed for trouble.


“Something Bad Is Coming | “The Glenn Beck Radio Program”
YouTube Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , , , , , , , , , , , ,

Peter Schiff: Sell Dollars, Buy Gold, Gold Stocks, Chinese Stocks

The second “crash prophet” I’ll be blogging about this weekend is Peter Schiff, the CEO and chief global strategist of Euro Pacific Capital. Schiff, who correctly called the housing bust and 2008 economic crisis, appeared on CNBC Asia last Wednesday and shared the following with viewers:

The dollar has had a huge rally based on the anticipation of a normalization of interest rates, of a shrinking of the Fed’s $4.5 trillion balance sheet. All this is wrong. None of this is going to happen. It’s all fantasy. That balance sheet is going to explode when they launch QE 4. So the dollar is a bubble. You should sell dollars. Gold has been suppressed because people have been buying dollars and selling gold. Gold’s a great buy. Gold stocks. And you’ve had a nice correction I think in your part of the world, in Hong Kong. Some of these Chinese shares, I think there’s a lot of opportunities there to look to protect yourself in the equity markets. Because when the Fed unleashes QE 4, that’s going to send a lot of money into the emerging markets. A lot of money is going to leave the U.S. in search of safe havens.


“The Last Thing That Fed Wants is a Rate Hike”
YouTube Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , , , , ,

Must-Read Marc Faber Interview

Regular readers of Survival And Prosperity know on Sundays I try and blog about the latest investment activities/recommendations of the “crash prophets”- Marc Faber, Jeremy Grantham, Jim Rogers, and Peter Schiff. This week, three of the “prophets” are sounding off. First up is Marc Faber. An interview of the Swiss-born investment advisor/money manager was published Friday on the website of MarcoPolis, a Paris-based international online publishing company. Johnnes Maierhofer and Peter Matay conducted one of the most comprehensive interviews of Dr. Faber I’ve ever come across, writing on MarcoPolis.net:

In this exclusive interview with Marcopolis.net Marc Faber covers it all: from commodities and China to the outlook on inflation, the Euro and gold. According to him the global economy is not healing. To the contrary, we might find ourselves back into recession within six months or a year. In that case he expects more money printing by central banks, which eventually could lead to high inflation rates and renewed strength in commodity prices.

On the bright side, he sees great economic potential in Vietnam. Also, the Iraqi stock market has good potential now that a deal with Iran has been reached. While mining stocks are extremely depressed we might see defaults before any meaningful recovery…

Followers of Faber know he’s been a gold bull for years now. The publisher of the monthly investment newsletter The Gloom Boom & Doom Report said this about the precious metal (and other investments of his) during the exchange:

I own gold and it doesn’t worry me that it went down because as I mentioned to you I have this diversification, the bonds in US dollars and the cash in US dollars has been a good investment essentially over the last twelve months. Then I own equities and I own properties in Asia that have been reasonably good investments so the fact that gold is going down doesn’t worry me and I buy every month a little bit but I think on this weakness I will increase the position substantially because I had maybe say 25% in gold but because equities and properties went up, the dollar went up and gold went down, the allocation to gold is no longer 25% but maybe only 10 or 15%.

So then I have to stock it up again. But I would say an individual should definitely own some physical gold…

“Doctor Doom” believes gold confiscation is a possibility, and added later in the discussion:

I think they will take the gold away and go back to some gold standard by revaluing the gold say from now 1000 dollars an oz. to say 10,000 dollars an oz…

A “must-read” interview for Faber followers, which you can access in its entirety on MarcoPolis.net here.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , , , , , , , , , , , , , ,

Barron’s: Wall Street Analysts See Gold Price Rising 10% Over Next 5 Months

Here’s an interesting snippet I came across tonight on the Barron’s website. Chris Dieterich wrote about Wall Street analysts’ gold price forecasts on the Focus on Funds blog this afternoon, noting:

The consensus quarter-end price forecast for gold stands at $1,184.84 per troy ounce, according to FactSet, which compiles forecasts across Wall Street. The hive thinks that gold will hit $1,198.18 by the end of the year. That means that commodity gurus see gold rising about 9% over the next two months and 10% over the next five.

Analysts have revised their estimates to take into account July’s 6.5% drop, the worst for gold in two years. But only just barely…

(Editor’s note: Bold added for emphasis)

A short, interesting read, which you view in its entirety on the Barron’s website here.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , ,

Jeremy Grantham Identifies 10 ‘Potential Threats To Our Well-Being’

Jeremy Grantham, the British-born investment strategist and founder/former chairman of Grantham, Mayo, Van Otterloo & Co. (oversees $117 billion in client assets as of June 30, 2015), just released his latest investment letter on the GMO website. Writing about the second quarter of 2015, Grantham, whose individual clients have included current Secretary of State John Kerry and former Vice President Dick Cheney, focused on ten “potential threats to our well-being” (echoing a Morningstar piece I blogged about on July 14). These threats are (in his own words):

1. Pressure on GDP growth in the U.S. and the balance of the developed world: count on 1.5% U.S. growth, not the old 3%
2. The age of plentiful, cheap resources is gone forever
3. Oil
4. Climate problems
5. Global food shortages
6. Income inequality
7. Trying to understand deficiencies in democracy and capitalism
8. Deficiencies in the Fed
9. Investment bubbles in a world that is, this time, interestingly different
10. Limitations of homo sapiens

Grantham talked about each threat in detail. I’ll be focusing on those items I think would interest Survival And Prosperity readers.

Regarding pressure on U.S./developed world GDP growth, Grantham wrote:

Factors potentially slowing long-term growth:
a) Slowing growth rate of the working population
b) Aging of the working population
c) Resource constraints, especially the lack of cheap $20/barrel oil
d) Rising income inequality
e) Disappointing and sub-average capital spending, notably in the U.S.
f) Loss of low-hanging fruit: Facebook is not the new steam engine
g) Steadily increasing climate difficulties
h) Partially dysfunctional government, particularly in economic matters that fail to maximize growth opportunities, especially in the E.U. and the U.S…

On “plentiful, cheap resources” being gone:

All in all I am still very confident, unfortunately, that the old regime of irregularly falling commodity prices is gone forever…

On oil:

Oil has been king and still is. For a while longer… Now, as we are running out of oil that is cheap to recover, the economic system is becoming stressed and growth is slowing…

Grantham added:

The good news is that with slower global growth and more emphasis on energy efficiency and a probability of some carbon tax increases, global oil demand may settle down to around 1% a year for the next 10 to 15 years. At that level of increase in demand, even modest continued increases in recovery rates will keep us in oil even if no new oil is found for the next 15 years.

Beyond 15 years, the resource and environmental news gets better because cheaper electric vehicles and changes in environmental policy will enable steady decreases in oil demand…

On global food shortages, Grantham referred to some recent research. He wrote:

I was completely gruntled by a report last month from the Global Sustainability Institute of Anglia Ruskin University in the U.K. This unit is backed by Lloyds of London, the U.K. Foreign Office, the Institute of Actuaries, and the Development Banks of both Africa and Asia – a grouping with a very serious interest in the topic of food scarcity and societal disruptions to say the least. The team of scientists used system dynamic modeling, which uses feedbacks and delays, to run the business-as-usual world forward 25 years. Without any new and improved responses from us, the results are dismaying: Prices of wheat, corn, soybeans, and rice were all predicted to be at least four times the levels of 2000. (They are currently about double.) The team concluded, “The results show that based on plausible climate trends and a total failure to change course, the global food supply system would face catastrophic losses and an unprecedented epidemic of food riots. In this scenario, global society essentially collapses as food production falls permanently short of consumption.” And you thought my argument on food problems of the last three years was way over the top!

Grantham is still not impressed with the Federal Reserve. He predicted:

And what of the current Fed regime – the Greenspan-Bernanke-Yellen Regime – that promotes higher asset prices and lower borrowing costs, which facilitate stock buybacks amongst other speculative forces? Well, this regime, too, will change. Regression of regime, if ou will. Painfully, politicians, the public, businessmen, and possibly even some economists will recognize the current regime as a failed experiment.

And on the “limitations of homo sapiens”? Grantham observed:

Not only does our species have a strong predisposition to be optimistic (or bullish) – it is probably a useful survival characteristic – but we are particularly good at listening to agreeable data and avoiding unpleasant data that does not jibe with our beliefs or philosophies. Facts, whether backed by 97% of scientists as is the case with man-made climate change, or 99.9% as is the case with evolution, do not count for nearly as much as we used to believe. For that matter, we do a terrible job of planning for the long term, particularly in postponing gratification, and we are wickedly bad at dealing with the implications of compound math. All of this makes it easy for us to forget about the previously painful market busts; facilitates our pushing stocks and markets on occasion to levels that make no mathematical sense; and allows us, regrettably, to ignore the logic of finite resources and a deteriorating climate until the consequences are pushed up our short-term noses.

The take-away from all of the above?

• Grantham forecasts U.S./developed world GDP growth to slow to 1.5 percent
• Investment opportunities may exist in commodities, agriculture, and other things food-related
• The outcome of the Fed’s current monetary policies will be painful
• Human nature- in particular, our unbridled optimism and focus on short-term gratification- will continue to result in asset bubbles and longer-term problems outside of the financial markets/economy/larger financial system

You can read Grantham’s latest investment newsletter on the GMO site here.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , ,

Mike Maloney On Latest Gold, Silver Action

Back on January 20, I blogged about a discussion on YouTube.com between “crash prophets” Peter Schiff and Mike Maloney concerning the state of the U.S. economy/larger financial system and where gold fits into the equation. Well, Maloney- a precious metals expert, advisor, and author who runs GoldSilver.com- is back on YouTube with a new video about his thoughts on what’s going on with silver and gold right now, and what’s to come for these precious metals. In the July 21 upload, Maloney said:

What we’re going through right now – this huge pullback that we’ve been going through for the past few years- is something that I’ve been predicting and waiting for because- and I knew that the pullback of 2008 was not the capitulation pullback. There was a panic, people were trying to get into it, into gold and silver, badly. And this time around, there has been some capitulation. We are seeing some people selling. And it’s a shame. I think they’re going to be selling it at lows. I do expect that gold will bottom in here sometime soon. It will probably break 1,000 and go lower. I encourage you to read that Clive Maund article. But remember, that is the spot price. As shortages develop, the physical will diverge from spot. So if you’re going to buy futures contracts and stuff, go ahead and wait for that bottom. But if you wait for that bottom to buy physical, you may end up paying a whole lot more, not less. But there will also be, when that bottoms, some tremendous values in mining stocks available.


“Silver & Gold Price: The Breakdown with Mike Maloney”
YouTube Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , , , , ,

Rich Dad Author Robert Kiyosaki: ‘I’d Rather Have Gold And Silver And Guns And Bullets’

“Gold futures settled near a five-and-a-half week low on Friday, with expectations that the U.S. Federal Reserve will soon lift interest rates helping to send prices down for a fifth straight week…”

-MarketWatch website, July 24, 2015

“Gold is doomed”

The Washington Post website, July 25, 2015

Back in February, I blogged about Robert Kiyosaki, an American entrepreneur, educator, investor, and author of the New York Times best-selling book Rich Dad Poor Dad. Kiyosaki appeared on the Alex Jones Show on February 17, 2015, and warned viewers:

It doesn’t make me happy that I’m getting richer and richer, and I see my friends getting poorer and poorer. I’m very concerned right now about my generation- the Baby Boom generation, the biggest generation in history. And they bought that program of put all your money in a 401(k) and invest for the long term. Now, I wrote a book called Rich Dad’s Prophecy back in 2002. That was 13 years ago. And I said the biggest stock market crash in the history of the world was coming in 2016. I was kind of guessing. But unfortunately, I didn’t write it to be right. I wrote it out of concern. If I’m correct that in 2002 what I said the biggest market crash was coming in 2016, that means millions and millions of Baby Boomers, their kids, their grandkids, will feel the effect of that when their retirement savings are wiped out. I hope I’m wrong. But so far, my numbers look accurate and it’s holding course right now. So I don’t write because I want to be rich or poke fun or want to be righteous. I am rather concerned about my fellow citizens.

Kiyosaki revealed one way he was preparing for the crash while discussing his new book, Second Chance: for Your Money, Your Life and Our World. From the exchange:

I like silver personally. I love gold. I have a lot of gold and silver.

While there’s no shortage of precious metals bears these days, Kiyosaki remains bullish on gold and silver- in addition to two other “metals.” In a Palisade Radio interview uploaded onto YouTube on June 28, he told viewers:

You should buy gold and silver because eventually the tug of war between deflation and inflation, somebody’s going to quit, and I think it’s going to be hyperinflation. So that’s why gold and silver make sense to me…

So I’m pretty optimistic. I’m going to make even more money when the crash comes. But unfortunately, like I said, for those who are not prepared, gold and silver are probably the best investments. But you have gold and silver, two other precious metals, guns and bullets (laughing). The reason for that, I laugh about it, but my friend reminds me of this. He says you rich guys can buy gold and silver. Poor guys buy guns and bullets. So I can understand that mentality is this gap between the 1 percent and the 99 percent. I’d rather have gold and silver and guns and bullets. This is why I don’t live in California (laughing). I live in Arizona, where they already respect guns and bullets.


“Robert Kiyosaki: Biggest Stock Market Crash in History Coming in 2016 – June 28, 2015”
YouTube Video

According to Kiyosaki, 2016 to 2030 is “going to be very tumultuous.”

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , , , , , , ,

Marc Faber Identifies Investment Opportunities

Swiss-born investment advisor/money manager Marc Faber was in Chicago Thursday giving a presentation at the CFA Analyst Seminar. The publisher of the monthly investment newsletter The Gloom Boom & Doom Report warned his audience that all asset markets are overvalued- just like he did late last month when he said “everything is in a bubble” on the Fox Business Network (blogged about here).

That being said, “Doctor Doom” does see opportunities in real estate and emerging markets stocks, and likes cash to be able to acquire assets when bubbles pop.

There’s also gold. Timothy Pollard, covering Dr. Faber’s Chicago visit, reported on the Pensions & Investments website Thursday afternoon:

And of course, given his bearish stance, Mr. Faber recommended holding gold in a portfolio — his recommended allocation is 25%.

“Gold is insurance if the banking system fails,” he said. “As an investor I’d like to own something outside the banking system, and that includes real estate, art and gold.”

(Editor’s note: Bold added for emphasis)

Just last Tuesday, I noted that fellow “crash prophet” Peter Schiff tells people to have ten to fifteen percent of their portfolio in gold.

Pollard went into more detail about Dr. Faber’s presentation- and the investment opportunities he’s identified- on the Pensions & Investments website here. It’s an insightful read.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , ,

Peter Schiff: ‘Gold’s Going To Take Off’ When Fed Doesn’t Raise Interest Rates, Starts QE 4

Economist, financial broker/dealer, and author Peter Schiff appeared on the Fox Business Network yesterday. As the price of gold hit a 5-year low, the noted gold bull was asked his thoughts. Referring back to the dot-com bust and gold’s subsequent lift-off into the 2000s, Schiff told viewers:

I think people are making the same mistake again. They have faith in the Fed. They have faith in Yellen. This is the biggest bubble ever. And I think people should be buying gold, but they don’t know enough to do it.

Schiff, who correctly called the housing bust and 2008 economic crisis, added later:

The dollar has been rising on the idea that the Fed is going to raise rates. But I don’t think that it’s actually going to happen. I don’t think the Fed can raise rates. That’s why they’ve been at zero for seven years. This bubble is so big that even a small rate hike will prick it. So I think all the Fed can do is talk about raising rates. They know that they can’t do it. Now, could they do a 25-basis point hike just symbolically to pretend that they’re going to do more? Maybe. But I don’t even think they’re going to do that. I think they’re going to do QE 4, and when the market comes to terms with reality, gold’s going to take off. But when people are going to wake up? I can’t tell you. It’s amazing that they’re so clueless for so long.


“Gold Will Take Off Once Market Comes to Terms With Reality”
YouTube Video

The CEO and chief global strategist of Euro Pacific Capital remarked that he tells people to have ten to fifteen percent of their portfolio in gold, and still stands by the recommendation.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , , , , , , ,

Mike Maloney, Peter Schiff Discuss Next Economic Crisis, Gold

The gold price has fallen to its lowest level in more than five years as talk of a US interest rate rise has led investors to sell the precious metal.

Gold closed 2.5% lower at $1,104.60 an ounce in London, having earlier fallen below $1,100 an ounce for the first time since March 2010.

The gold price is now more than 40% below its August 2011 peak…”

-BBC News website, July 20, 2015

I had to chuckle when I read the above.

“Talk of a US interest rate rise…”

How many months, no, years now has the Federal Reserve been talking about hiking the federal funds rate?

“But Chris, the economy is in recovery mode…”

If the U.S. economy was truly in a recovery, rates wouldn’t still be close to zero.

The Fed knows if they start raising interest rates at this point in the game, the “recovery” is toast and we’re heading back into recession.

So what’s Janet Yellen and the Federal Reserve going to do? If the pressure builds on them to raise rates but there’s no excuses around for not doing so, I suspect we’re looking at a miniscule hike in the near future. Maybe even a few (but not too close together).

At which point, the Fed will proclaim:

We told you we were going to raise rates.

Yeah, right.

Earlier today, I watched a discussion on YouTube.com between two well-known “crash prophets” concerning the state of the U.S. economy/larger financial system and where gold fits into the equation. From the SchiffGold.com website on June 2:

For the first time ever, renowned investment gurus Mike Maloney and Peter Schiff sat down to a frank discussion about the future of the American economy. Together, they analyzed detailed charts and data to show why an even bigger crash than the 2008 crisis is in the making…

Schiff (an economist, financial broker/dealer, and author who heads up Euro Pacific Capital) and Maloney (a precious metals expert, advisor, and author who runs GoldSilver.com) predicted the U.S. economic crisis that reared its ugly head in the fall of 2008, and both are now warning of a more dire situation dead-ahead.

Their observations and arguments make sense to me, as opposed to the position staked out by the economic Pollyannas.

If you have the time, check out the following YouTube playlist of their exchange released last month:

• “Economic Crisis 2015- Peter Schiff & Mike Maloney (Part 1)” (run time 41:40)
• “Is Gold Overvalued? Peter Schiff & Mike Maloney (Part 2)” (run time 4:43)
• “Your Government Will Break Your Legs- Peter Schiff & Mike Maloney” (Part 3) (run time 7:18)
• “Inflation Or Deflation? Peter Schiff & Mike Maloney (Part 4)” (run time 3:43)
• “Gold Vs Debt Default- Peter Schiff & Mike Maloney (Part 5)” (run time 6:27)


YouTube Video Playlist

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , ,

Peter Schiff: China Attempting To ‘Back Their Currency By Gold’

Reason magazine recently interviewed well-known economist, financial broker/dealer, and author Peter Schiff. The chief global strategist/CEO of Euro Pacific Capital discussed gold (as it relates to China) with ReasonTV viewers right before last weekend. Schiff claimed China is attempting to back its currency with the precious metal. From the exchange:

I do think that, quietly, they have been increasing their ownership of gold. We don’t really know how much gold they have. But I think it’s significant. They haven’t reported their numbers in years. I think it’s because they don’t want the sellers of gold to know how much their buying, because they obviously want to buy it as cheaply as they can. But I think they’re doing this for a reason. I do believe that they do want to untether their currency from the dollar. But they don’t want it to just be backed by nothing. So rather than have it be backed by dollars- which really is tantamount to backed by nothing because the dollar’s backed by nothing- but to back their currency by gold. And at one point, all paper currencies were backed by gold, right? And if the Chinese were to back the RMB by gold, they would have the only gold backed currency on the planet, and it would probably be the most desirable and the strongest currency, and will replace the dollar as a world reserve currency were they to accomplish this.


“Is China Moving Toward a Gold Standard? Peter Schiff on the Chinese Market Crash”
YouTube Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Ironically, The Wall Street Journal reported this morning that Chinese gold holdings now amount to 53.32 million troy ounces, behind the U.S., Germany, Italy, and France (in that order); I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , , , ,

Jim Rogers Predicts Crude Oil, Russian Ruble Comeback But Warns On U.S. Dollar

On Tuesday, The Economic Times (India) released an interview of well-known investor, author, and financial commentator Jim Rogers on its website. Discussing weakness in the crude oil market in light of the recent nuclear “deal” with Iran, the former investing partner of George Soros said:

Not here to stay, but certainly when you have a big collapse in anything, it hits a bottom, then there is a big rebound. We call it in America a dead-cat bounce. Then you have a test, a second test to the low.

This is going to lead to the second test to the low. There is always a reason for the second test and now we are having it, but is oil going to stay down forever? No. Remember that known reserves around the world are in decline, except for fracking. This is good news for people who consume, bad news for people who produce. But it is not the end of the story…

(Editor’s note: Bold added for emphasis)

Rogers thinks the Russian ruble, a currency he’s been bullish about for some time now, will benefit from a crude oil comeback. Sputnik, the international news service owned and operated by the Russian government, referenced a recent interview of the Singapore-based investor on Gazeta.ru. From the news outlet Tuesday:

Concerning the current rouble situation Rogers said, “Russia has low debt, unlike Greece, as well as convertible currency, which is quite unique for the new markets. So fundamentally its position can be called normal. It is being pressured by lower oil prices, but as soon as the black gold finds the stable point the situation will improve for the rouble.”

(Editor’s note: Bold added for emphasis)

Sputnik added:

He also mentioned the dollar saying that the US currency is in a terrible situation as the US national debt and trade deficit are huge.

“If we simply write out on paper the facts that lie behind the ruble and the dollar, without naming the currency, then everyone will want to buy rubles and no one will buy dollars. But as soon as you name them then, of course, people buy dollars.”

He added that he hopes he will be smart enough to get rid of dollars before the collapse happens. “Everything seems perfect, until one day it ceases to be so. It was the same with Britain, France, Spain and Greece. Often stocks manage to go up for a few years before hitting bankruptcy.”

(Editor’s note: Bold added for emphasis)

Last I heard, Rogers still owned greenbacks. I blogged back on November 11, 2014:

Despite the above warning, Rogers shared with Reuters back on October 23 that he still owned the U.S. dollar. He explained:

I have no confidence in the long-term strength of the U.S. dollar. I only own it because I expect all this turmoil to happen. And in times of turmoil, people flee to the safe-haven of the U.S. dollar. It’s not a safe-haven, but they think it’s a safe-haven, so people will own it. That’s why I own it.

Now what I expect to happen is, the dollar will go up stronger and stronger over the next year or two, at which point- some point- I’ll have to sell it. I have no idea what I’ll do with my money then because the world has got this terrible, terrible unsound foundation in all assets.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Sources:

“Crude prices may sink on more Iran oil, but will rebound as known reserves are declining: Jim Rogers.” The Economic Times. 14 July 2015. (http://economictimes.indiatimes.com/opinion/interviews/crude-prices-may-sink-on-more-iran-oil-but-will-rebound-as-known-reserves-are-declining-jim-rogers/articleshow/48066869.cms). 17 July 2015.

“US ‘Shot Itself in the Foot’ by Pushing Russia Toward China – Jim Rogers” Sputnik. 14 July 2015. (http://sputniknews.com/business/20150714/1024625814.html). 17 July 2015.

Tags: , , , , , , , , ,

Gold Taxation Issues

I have a feeling that a number of Survival And Prosperity readers either own gold or might be thinking about acquiring the precious metal in the future.

Tonight, I happened to come across an article on MarketWatch.com entitled “The tax implications of owning gold.” Bill Bischoff wrote yesterday:

In this environment, the idea of investing some taxable money in gold and other precious metal assets could be appealing. But read this to make sure you understand the tax angles…

It’s an insightful read. For example, I thought the sale of physical gold (both bullion and collectible) was subject to the maximum federal income tax rate of 28 percent- at a minimum. However, Bischoff explained:

Here’s how the 28% maximum rate deal works. If you are in the 28%, 33%, 35%, or 39.6% federal income tax bracket, net long-term gains from collectibles, including precious metal assets, are taxed at 28%. However, higher-income folks may also owe the dreaded 3.8% net investment income tax. If so, the maximum effective federal rate on long-term gains from precious metals can be 43.4% (39.6% + 3.8%).

If you are in the 10%, 15%, or 25% bracket, your net long-term gains from collectibles, including precious metal assets, are taxed at your regular rate of 10%, 15%, or 25%. In these brackets, you don’t have to worry about owing the 3.8% net investment income tax…

Interesting. You can read the entire piece over on the MarketWatch website here.

Just remember to consult a competent tax professional regarding such matters rather than relying on something you read on the Internet.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , ,

Marc Faber Warns Of Massive Deflation In Asset Prices, Shares Buy Recommendations

Monday, Swiss-born investment advisor/money manager Marc Faber was on the phone with Trish Regan of the FOX Business Network show The Intelligence Report. The publisher of the monthly investment newsletter The Gloom Boom & Doom Report warned viewers that:

Everything is in a bubble.

Dr. Faber subsequently predicted massive deflation in asset prices was coming. When Regan asked him what he would recommend people buy, the man famous for advising clients to get out of the U.S. stock market one week before the October 1987 crash offered up:

I tell you it will be very difficult to hide, because even bank deposits may not be safe. But, relatively inexpensive are gold mining shares, silver mining shares, and physical gold and silver. But you have to hold it physically and preferably outside the U.S.

(Editor’s note: Bold added for emphasis)

Regan asked Faber why outside the United States. He replied:

Because in the U.S., and even in Europe and Switzerland, there is a threat that one day when things really will go bad, central bankers will blame the gold holders for the disaster, and they will say, “We’ll have to take the gold away,” and so forth. This is less likely to happen in Asia.

(Editor’s note: Bold added for emphasis)


“Marc Faber warns of ‘colossal systemic risk’ in markets”
FOX Business Network Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Tags: , , , , , , , , , , , ,

JM Bullion Having Silver Super Sale This Week

Memorial Day Weekend is almost here- along with the big sales. Affiliate marketing partner JM Bullion (reviewed here) is having a Silver Bullion Blitz this week. From an e-mail I received from the Dallas, Texas-based precious metals dealer yesterday:

Silver Bullion Blitz Starts Now!

On sale now at JMBullion.com are a variety of popular silver bullion products at amazingly low prices…

The full list of sale products include:

1 oz Sunshine Silver Round – 89¢ over spot any quantity
1 Kilo RMC Silver Bar – 79¢/oz over spot
100 oz Sunshine Silver Bar – 55¢/oz over spot
2014 1 oz Armenian Silver Noahs Ark Coin – $1.99 over spot any quantity
1 oz RMC Silver Round – 85¢ over spot any quantity
1 Kilo RMC Silver Bar – 79¢/oz over spot
1 oz A-Mark Silver Round – 89¢ over spot any quantity
10 oz A-Mark Silver Bar – 85¢/oz over spot
100 oz Johnson Matthey Silver Bar – 65¢/oz over spot

JM Bullion offers free shipping on all orders which includes full tracking and insurance. Our pricing contains no hidden fees the prices you see is your delivered price…

Interested in any of these offerings? Keep in mind the following from the e-mail:

Please note that we have limited quantities of each product available, and this special pricing is only good while supplies last.

Click on the banner ad below, where you’ll be taken to the JM Bullion site. Please note that by clicking on the ad and purchasing a product, I receive a commission from the sale.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Tags: , , , , , , , , , ,



Survival And Prosperity
Christopher E. Hill, Editor
Est. 2010, Chicagoland, USA

Successor to Boom2Bust.com
"The Most Hated Blog On Wall Street" (Memorial Day 2007-2010)

Please Rate this Blog HERE

Limited Time Offers

Via Banner Ads Below (navigate to vendor home page if necessary); Updated 8/31/15:
ANY CHARACTER HERE
>CHIEF Buy 2 Pants Get 1 Free Thru 8/31 11:59PM ET (code needed)
ANY CHARACTER HERE
>BUDK 30% Off Sale ($29 min. order; code needed)
ANY CHARACTER HERE
>Pyramyd Air Get 20% Cash Back On All Purchases 8/15/15-8/31/15 If It Rains 9/12/15; Overstock Sale
ANY CHARACTER HERE
>Nitro-Pak Labor Dale Sale Save Up To 40% Off
ANY CHARACTER HERE
>Food Insurance Bonus Bucks Are Back!; Save Up To 43% On Freeze-Dried Seasoned Ground Turkey Pieces
ANY CHARACTER HERE
>Airsoft Megastore Free Shipping On All Orders (no code required)
ANY CHARACTER HERE
>BulletSafe Bulletproof Baseball Cap $119 Pre-Order Price; Ballistic Plate Only $169
ANY CHARACTER HERE
>Tractor Supply Co. Free UPS Ship To Store
NEW! Advertising Disclosure HERE
ANY CHARACTER HERE
Buy Gold And Silver Coins BGASC Review Coming Soon
ANY CHARACTER HERE
Free UPS ship to store on all Tractor Supply Company orders! Shop now! Tractor Supply Co. Review Coming Soon
ANY CHARACTER HERE
Nitro-Pak--The Emergency Preparedness Leader Nitro-Pak Reviewed HERE
ANY CHARACTER HERE
MyPatriotSupply.com Reviewed HERE
ANY CHARACTER HERE
Food Insurance Reviewed HERE
BullionVault BullionVault.com Reviewed HERE
ANY CHARACTER HERE
CHIEF Supply Reviewed HERE
ANY CHARACTER HERE
BulletSafe Reviewed HERE
ANY CHARACTER HERE
BUDK bowie knife BUDK Reviewed HERE
ANY CHARACTER HERE
Pyramyd Air is your one-stop shop for everything airgun related. PyramydAir.com Reviewed HERE
ANY CHARACTER HERE
Airsoft Megastore Reviewed HERE
ANY CHARACTER HERE
Survival Titles Save 20% Paladin Press Reviewed HERE
 

Categories

Archives

Prepper Website
  • Observation, Theory About Greek Bank Safe Deposit Box Restrictions

    Continuing “Greek Week” on Offshore Safe Deposit Boxes, Greek state television has announced Greek banks will remain closed for the remainder of this week. Both Reuters and the Associated Press have reported cash withdrawals from Greek bank safe deposit boxes have been prohibited. Reuters ran its story Sunday while the Associated Press revealed Monday: No […] ...
  • Safe Deposit Boxes In Private Vaults See ‘Huge Increase In Demand’ By Wealthy Greeks

    While pouring over the latest news of Greece’s sovereign debt crisis tonight, I spotted the following snippet on the Daily Mail (UK) website. Nick Fagge reported Wednesday: Safety-box deposit firms have reported a huge increase in demand with wealthy Greeks storing their cash and other valuables anywhere other than their bank… (Editor’s note: Bold added […] ...
  • Confusion Over Accessing Cash In Greek Bank Safe Deposit Boxes

    Yesterday, I blogged about a Reuters piece from Sunday which said cash withdrawals from Greek bank safe deposit boxes were now prohibited. Monday, the Associated Press reported that accessing currency from these containers might be left to the legislative process. From the Fox News website: There was confusion Sunday night over the fate of bank […] ...
  • Cash Withdrawals From Greek Bank Safe Deposit Boxes Forbidden

    Something tells me confidence in bank safe deposit boxes is going to plummet as word of the following gets out. Reuters’ Lefteris Papadimas and George Georgiopoulos reported Sunday: Greeks cannot withdraw cash left in safe deposit boxes at Greek banks as long as capital restrictions remain in place, a deputy finance minister told Greek television […] ...
  • Happy Independence Day!

    Just wanted to wish readers of Offshore Safe Deposit Boxes a happy Independence Day. Christopher E. Hill Editor ...