Craig then talks about the Central Bank on how they are robbing the people as the currency devalues. There will be a time where gold is going to be revalued.
Monday, August 31, 2020
Craig Hemke: Central Banks Are Robbing The People? Revaluation Gold On The Horizon
Thursday, August 27, 2020
Eric Sprott: The Latest Surge in Precious Metals and the Many Gains Yet to Come
- Source, Sprott Money
Sunday, August 23, 2020
Eric Sprott: Volatile Week in Precious Metals, Specific Miners Set to Gain
- Source, Sprott Money
Friday, August 21, 2020
Rick Rule: Gold and Silver Bullion Are Only Just Getting Started
- Source, Liberty and Finance
Tuesday, August 18, 2020
Don't Get Shaken Off the Raging Gold & Silver Bull Market
Craig Hemke sat down with Paul 'Half Dollar' Eberhart on Tuesday, August 4th, 2020, for a robust discussion on gold, silver, the US dollar, and more.
Some of the topics discussed in today's interview include: People have been looking for a correction in gold since $1800, since $1900, and since $2000, with many technical analysts screaming "overbought" or "way too bullish" - what does Craig think about the gold market right now?
What are the latest shenanigans in the silver market, and are the silver market riggers in a bind? What is yield curve control, and why should stackers and other smart investors be paying attention to it?
What's going on with the currencies and the debt markets in general, and the US Dollar specifically?
The food supply has seen several shocks over the past year or so with natural disasters and supply chain disruptions, but now there's a potential catastrophic problem brewing at the 3 Gorges Dam?
For discussion on all of those topics and a more, tune-in to the interview in its entirety!
- Source, Silver Doctors, Craig Hemke via Eric Sprott's, Sprott Money
Friday, August 14, 2020
Fed Not Fighting Inflation Equals $18,000 Gold Price
If that happens again, that would put the gold price at nearly $18,000 per ounce. Hemke says, “This whole system is hyper-leveraged by the central banks.
So, we have no idea how many owners there are for each ounce of gold. The amount of gold with clear title, we have no idea.
What happens when everybody shows up for their gold? If I don’t know how many ounces of gold there are, how am I supposed to know what the right price is?”
What Hemke can predicted with certainty is “more inflation” and that the Fed will not raise rates to fight inflation until at least after 2022.
I asked Hemke for his year-end predictions for the price of gold, and he said “$2,300 to $2,400 per ounce.”
For silver, Hemke predicts, “Silver will be $34 to $36 per ounce.” What the premiums will be on top of that is another story.
- Source, USA Watchdog, Craig Hemke of Eric Sprott's, Sprott Money
Friday, August 7, 2020
Real Rates Push Gold Higher
We've been writing about this for months, but with so many generalists still pushing the opinion that gold only moves as an inverse to the U.S. dollar, it's time to write about it again.
As we often do, let's start with links to past articles on this topic so that you can get caught up and/or re-acquainted with the subject:
• https://www.sprottmoney.com/Blog/real-rates-drive-...
• https://www.sprottmoney.com/Blog/real-interest-rat...
Real interest rates in the U.S. turned sharply lower on June 5 and the trend in COMEX gold has been toward higher highs ever since. These inflation-adjusted interest rates are now at all-time lows, so it's no coincidence that COMEX gold is at all-time highs. (Chart courtesy of ZeroHedge:)
Again, real interest rates are THE KEY DRIVER of gold prices over time. This has always been the case, and it will continue to be the case. Do not fall for the simplistic, generalist view that the price of gold simply moves inversely to the U.S. dollar. If that were the case, then the price of COMEX gold should be significantly lower.
The U.S. Dollar Index is currently trading at about 93.50, which is the lowest level since June of 2018. If the gold price was simply an inverse of the dollar, then why is it not trading at $1300...which is where it was trading in June of 2018?
The answer: Because changes to the relative value of the dollar only provide a tail or head wind for the gold price. See the chart below and look for any evidence of an everyday direct 1:1 correlation:
Instead, let's look for a correlation with real interest rates. The best available proxy for real interest rates on a daily basis is the ETF with the ticker symbol "TIP". This fund is a portfolio of U.S. Treasury Inflation Protected Securities or "TIPS". Simply put, when real rates are rising, the share price of the fund falls. When real rates are falling, the share price rises. Note that the share price has risen consistently since Friday, June 5. Note, too, that the price of COMEX gold has risen with it.
But the correlation is not something that just appeared over the past sixty days. Let's look at the same, five-year time horizon where we compared COMEX gold with the dollar. What do we find?
OK, so having proven that point, here's where it gets interesting...
The U.S. is about to plunge into a period of significant stagflation—like the 1970s, a time of low economic growth and significant price inflation. At the same time, the U.S. Federal Reserve is about to announce a major policy change of "allowing" inflation to exceed 2% while at the same time instituting a program of "Yield Curve Control" to keep interest rates low. See this most recent post of two weeks ago for more details:
• https://www.sprottmoney.com/Blog/a-major-fed-policy-shift-craig-hemke-july-21-2020.html
Putting this all together, you can be assured that real interest rates are going to move even deeper into negative territory. In this podcast with Grant Williams, the respected analyst Russell Napier projects that the U.S. inflation rate is soon headed to 4%. Combine that with a 0.50% nominal rate on a 10-year U.S. treasury and you get a real rate of -3.5%!
• https://podcasts.apple.com/us/podcast/the-grant-williams-podcast/id1508585135
Now scroll back up and notice that the current ALL-TIME LOWS for real rates in the U.S. are just below -1.0%...and COMEX gold is approaching $2000. Given the obvious and direct correlation with real rates, where do you think the gold price may be at -3.5%?
My point is this...
DO NOT let the know-nothing generalists and stock jobbers talk you out of your long-term positions. Of course prices will fluctuate, ebb, and flow as they always do...but the value of the U.S. dollar relative to other fiat currencies will only have a very small impact. Instead, sharply lower real interest rates will provide incentive for physical gold accumulation worldwide. THIS will drive prices higher in the weeks and months ahead. Failure to understand this CRITICAL point will cost you dearly as this bull market in the precious metals continues.
As we often do, let's start with links to past articles on this topic so that you can get caught up and/or re-acquainted with the subject:
• https://www.sprottmoney.com/Blog/real-rates-drive-...
• https://www.sprottmoney.com/Blog/real-interest-rat...
Real interest rates in the U.S. turned sharply lower on June 5 and the trend in COMEX gold has been toward higher highs ever since. These inflation-adjusted interest rates are now at all-time lows, so it's no coincidence that COMEX gold is at all-time highs. (Chart courtesy of ZeroHedge:)
Again, real interest rates are THE KEY DRIVER of gold prices over time. This has always been the case, and it will continue to be the case. Do not fall for the simplistic, generalist view that the price of gold simply moves inversely to the U.S. dollar. If that were the case, then the price of COMEX gold should be significantly lower.
The U.S. Dollar Index is currently trading at about 93.50, which is the lowest level since June of 2018. If the gold price was simply an inverse of the dollar, then why is it not trading at $1300...which is where it was trading in June of 2018?
The answer: Because changes to the relative value of the dollar only provide a tail or head wind for the gold price. See the chart below and look for any evidence of an everyday direct 1:1 correlation:
Instead, let's look for a correlation with real interest rates. The best available proxy for real interest rates on a daily basis is the ETF with the ticker symbol "TIP". This fund is a portfolio of U.S. Treasury Inflation Protected Securities or "TIPS". Simply put, when real rates are rising, the share price of the fund falls. When real rates are falling, the share price rises. Note that the share price has risen consistently since Friday, June 5. Note, too, that the price of COMEX gold has risen with it.
But the correlation is not something that just appeared over the past sixty days. Let's look at the same, five-year time horizon where we compared COMEX gold with the dollar. What do we find?
OK, so having proven that point, here's where it gets interesting...
The U.S. is about to plunge into a period of significant stagflation—like the 1970s, a time of low economic growth and significant price inflation. At the same time, the U.S. Federal Reserve is about to announce a major policy change of "allowing" inflation to exceed 2% while at the same time instituting a program of "Yield Curve Control" to keep interest rates low. See this most recent post of two weeks ago for more details:
• https://www.sprottmoney.com/Blog/a-major-fed-policy-shift-craig-hemke-july-21-2020.html
Putting this all together, you can be assured that real interest rates are going to move even deeper into negative territory. In this podcast with Grant Williams, the respected analyst Russell Napier projects that the U.S. inflation rate is soon headed to 4%. Combine that with a 0.50% nominal rate on a 10-year U.S. treasury and you get a real rate of -3.5%!
• https://podcasts.apple.com/us/podcast/the-grant-williams-podcast/id1508585135
Now scroll back up and notice that the current ALL-TIME LOWS for real rates in the U.S. are just below -1.0%...and COMEX gold is approaching $2000. Given the obvious and direct correlation with real rates, where do you think the gold price may be at -3.5%?
My point is this...
DO NOT let the know-nothing generalists and stock jobbers talk you out of your long-term positions. Of course prices will fluctuate, ebb, and flow as they always do...but the value of the U.S. dollar relative to other fiat currencies will only have a very small impact. Instead, sharply lower real interest rates will provide incentive for physical gold accumulation worldwide. THIS will drive prices higher in the weeks and months ahead. Failure to understand this CRITICAL point will cost you dearly as this bull market in the precious metals continues.
- Source, Craig Hemke via Eric Sprott's, Sprott Money
Saturday, August 1, 2020
Eric Sprott: The Upcoming Miners Earning Season, How Will They Fare?
- Source, Sprott Money