dollar diversification

Peter Schiff: ‘The Day Of Reckoning Is Getting Closer And Closer’

Economist, financial broker/dealer, and author Peter Schiff appeared on the Alex Jones Show last Friday. Schiff, who correctly-called last decade’s housing crash and recent global economic crisis, warned viewers of rising inflation, a U.S. dollar collapse, and civil unrest. The CEO of Euro Pacific Capital said:

Most people know there’s inflation. They don’t believe the government numbers or they don’t even know about the government numbers. All they know is that the cost of living is going up. Food is more expensive. Their utility bills are higher. Rent is going up. Health insurance premiums are going up. But Alex, we ain’t seen nothing yet. When it comes to inflation- this is just the beginning. The price increases that Americans have been enduring are only going to get much, much worse… But nobody is going to welcome a higher cost of living, and your best defense against that, as I said, is to protect yourself. To get out of your dollars. To diversify internationally

More and more people- mainstreaming people- I’m hearing people talk who now realize that this is the 9th inning of this thing, this whole experiment with Keynesianism and fiat money. It is very, very late in the game. Time is running out, right? The clock has been ticking and ticking. It is going to stop, and you can see that. The day of reckoning is getting closer and closer

The real drop is not just going to be in the pound, but in all the world’s fiat currencies. In particular, the U.S. dollar, which is at the center of this whole Frankenstein’s monster when it comes to a monetary system. And it is going to implode. And this dollar crisis is going to make the financial crisis of 2008 look like a Sunday school picnic, especially in the way it impacts people’s standards of living…

There is going to be, I think, rioting and looting. Especially when we have a currency collapse. Because I think then you’re going to have shortages. I think the government is going to impose price controls. And I think there is going to be a problem for people to get goods and services that are in short supply…

(Editor’s note: Bold added for emphasis)


“Bubble Ready to Implode. Massive QE Coming!”
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(Editor’s notes: Info added to “Crash Prophets” page. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

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

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Wednesday, July 13th, 2016 Civil Strife, Crash Prophets, Currencies, Government, Inflation, Investing, Main Street, Monetary Policy Comments Off on Peter Schiff: ‘The Day Of Reckoning Is Getting Closer And Closer’

Gold Entering Annual Sweet Spot?

This is the time of year gold traders get excited about. Don Vialoux wrote on The Globe and Mail (Canada) website yesterday:

The period of seasonal strength for gold bullion is approaching.

Thackray’s 2012 Investor’s Guideicon notes that the optimal time to invest in gold bullion for a seasonal trade is from July 12 to Oct. 9. The trade has been profitable during 11 of the past 14 periods. During the past 25 periods, gold bullion has outperformed the S&P 500 Index by 4.7 per cent per period.

Demand and supply factors seem to be in gold’s favor. Vialoux pointed out:

Despite reduced demand for gold in India, prospects for the seasonal trade this year are higher than average. Demand for gold is increasing. Chinese consumer purchases of jewellery continue to increase.

Of greater importance, central banks including Russia, China and India are rumoured to be significant buyers. China continues to take action to diversify its reserves outside of U.S. dollar investments by adding to its gold holdings. China and India are rumoured to be buyers of gold for use in a gold-for-oil arrangement with Iran.

On the supply side, production from China, the world’s largest gold producer, is believed to be declining as older mines reduce production. Meanwhile, investor demand is increasing due to concerns that central banks are trying to stimulate their economies by essentially printing more money.

The United Kingdom and Europe and China announced additional monetary stimulus last week and a third quantitative easing program by the Federal Reserve during this summer is widely anticipated. More money chasing a relatively stable amount of gold will lead to higher gold prices.

Speaking of the United Kingdom, the London-based World Gold Council, the gold industry’s market development organization, released a research report yesterday entitled, “Gold as a strategic asset for UK investors.” From a press release:

The World Gold Council has today launched its latest research entitled “Gold as a strategic asset for UK investors”, which examines gold’s role within a sterling-denominated investment portfolio. Using data spanning over 25 years, the report demonstrates that an allocation to gold helps investors obtain equal or better average returns, while incurring less volatility and reducing the maximum monthly losses.

Against a backdrop of sustained market turmoil and wealth erosion, investors are seeking a trusted source of security for their holdings. The report shows how gold can fulfil this role by acting as a consistent portfolio diversifier – managing risk and mitigating potential losses in the portfolios of UK investors, an imperative in the prevailing environment…

Juan Carlos Artigas, Global Head of Investment Research commented:

“There is robust evidence for adding gold as a foundation to investors’ portfolios; risk-adjusted returns increase, losses diminish and capital is preserved. The optimal strategic allocation to gold for sterling-based investors ranges between 2.6% and 9.5% depending on their specific risk tolerance and assets they hold. This potential for investors to avoid a significant loss or increase portfolio gains, by adding gold, is especially important during extreme market events.”

And this morning, the World Gold Council issued a similar report for Japanese investors entitled, “Optimal Allocations to Gold for Japanese Investors.”

You can access both WGC reports on their website here.

(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)

Source:

Vialoux, Don. “Get ready for gold bullion’s season of strength.” The Globe and Mail. 10 July 2012. (http://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/season-of-gold-bullion-strength-nearly-here/article4403228/?cmpid=rss1). 11 July 2012.

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Wednesday, July 11th, 2012 Asia, Banking, Commodities, Credit, Currencies, Europe, Federal Reserve, Middle East, Monetary Policy, Money Supply, Precious Metals, Stimulus Comments Off on Gold Entering Annual Sweet Spot?
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