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Samuel Bryan

Samuel Bryan



Articles by Samuel Bryan

Beware of Impending Gold Production Cliff

July 29, 2016

Last week, we reported on an oft-ignored fundamental in the gold market – the shrinking supply.
Mining.com analyzed the data and concluded there are no more easy gold discoveries. In fact, the number of major gold discoveries is shrinking. This week we have further evidence that the supply of gold is being squeezed. In fact, MarketWatch asserted that we’re heading for “an impending gold production cliff” based on analysis by Sprott Asset Management.

Analysts say gold discoveries peaked in 2007, and a production peak will soon follow. Since that high-point in ’07, discoveries have collapsed, this “despite exploration budgets increasing by 250% from 2009 to 2012,” Sprott’s gold team said in a recent note.
Mining companies have begun to consider upping exploration budges with the price of gold on the rise, but there’s a “lead time to transition a discovery to production,” Sprott analysts said. As a result, “production is forecasted to decline over the next number of years.”
Last year may well have been the peak production year at around 95 million ounces. Sprott analysts expect production in 2024 to fall to 78 million ounces. That represents about a 2.2% decline per year.

Charles Jeannes, former CEO of Goldcorp, echoed Sprott’s findings in an interview with :
There are just not that many new mines being found and developed.

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The Fed: We Came, We Saw, We Did Nothing – The Mainstream Is Catching On to the Game

July 29, 2016

Once again, the Federal Reserve came, saw, and did nothing.

This has become modus operandi for the Fed over the last two years. As each FOMC meeting approaches, speculation about a possible rate hike ramps up and then the Janet Yellen does…nothing. The one exception was last December, and that turned out to be a complete disaster.
The pundits and analysts are already talking about the possibility of a September hike. Odds are, we’ll witness a repeat performance – or should I say non-performance.
Interestingly, the mainstream is starting to catch on to the game.In many ways, Peter Schiff has served as the voice calling out in the wilderness. He’s repeatedly said the Fed will not raise rates, and in fact, a cut and more quantitative easing are more likely in our future. This week, he appeared on CNBC’s and reiterated that message:
I still believe – and I said this in December of last year – that the next move by the Fed is going to be a cut in rates…It’s the opposite of Teddy Roosevelt. He used to say ‘speak softly but carry a big stick,’ but when it comes to rate hikes the Fed has no stick. So, all they can do is speak loudly and hope nobody notices the absence of a stick. They want to keep talking about all the rate hikes and how they’re going to raise interest rates.

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Silver Is All Around Us (Video)

July 28, 2016

Sunny Pannu, director of corporate development for Defiance Silver, a silver explorer and developer, recently sat down with Silver Institute executive director Michael DiRienzo for a wide-ranging discussion about the fantastic world of silver.
The discussion focused on the present state of the silver market and its future. Topics ranged from an explanation of how the silver price-fix works to the dynamics of supply and demand.
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DiRienzo emphasized the dual nature of silver, noting that it serves as both an industrial metal and a precious metal for investment. He echoed the same themes as a prominent mining CEO did in a recent interview with Kitco News, saying both investor and industrial demand for the white metal is strong.
DiRienzo  said silver coin sales are on a record pace, as are inflows of silver into ETFs. On the industrial side, it’s interesting to note that the demand for silver has been steady despite general sluggishness in the global economy. DiReinzo said this was due in part to the expanding and diversifying uses for the metal.
Silver is basically all around you. It’s contained in your automobile, your cell phone, your computer, solar panels, PDP televisions, and many, many, many medical uses. So, on the industrial side, you’ll find silver’s use not only a mainstay, but also its growing in many other areas as well.

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The World Is Awash in Record Levels of Quantitative Easing

July 28, 2016

The Federal Reserve stayed pat on interest rates in its most recent meeting, but speculation continues to percolate that the central bank will possibly raise rates in September.
Peter Schiff has been saying for months that the Fed won’t raise rates. He reiterated this on his most recent podcast. (Scroll down to listen to the full podcast.)
The Fed continued to say that they believe the economy is evolving in a way that will warrant gradual rate hikes. And of course, by gradual they mean no more rate hikes…So they raised rates once in December and they haven’t raised rates since. That’s about as gradual as you can possibly get. I mean, if a snail was raising rates they would have blown past Janet Yellen…I think, again, the rate-hiking cycle ended when they raised rates. It began when they started talking about tapering. That was the whole rate cycle, and whether people want to admit it or not, we are now in the easing cycle.”
In fact, Peter has said on numerous occasions the next move for the Fed will be lowering rates back to zero and launching another round of quantitative easing.

If the actions of central banks in the rest of the world serve as any example, Peter will certainly be proven right because the world is awash in QE.

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Thomson Reuters Raises Gold Price Forecast as Westerners Buy Gold

July 27, 2016

Over the last year, we’ve reported extensively on the growing influence of China on the world gold market, and the flow of gold from the West to the East. But with uncertainty created by Brexit, economic stagnation, and the proliferation of negative yielding bonds, it appears investors in the West have rediscovered the beauty of gold.

Western gold demand hit unprecedented levels through the first half of 2016, and according to a major precious metals research firm, that trend will continue through the second half of the year.Thomson Reuters released its second quarter GFMS Gold Survey and Outlook report this week, upgrading its average gold price for 2016 based on the prospect of continued high demand:
The revision is a mark to market of the impressive gains that gold has posted so far this year, and reflecting the changed sentiment stemming from increased uncertainty from economic and political outlooks.”
Thomson Reuters upped its average gold price for 2016 to $1,279 an ounce, up from the previous forecast of $1,184 an ounce.
Analysts said the Brexit vote provided the spark that ignited gold demand in the West, but noted a foundation was already in place.

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Mining CEO: Silver in a Sweet Spot

July 26, 2016

Between Jan. 1 and July 11, the price of silver increased 44.7%. But can the white metal maintain its bull run?
A prominent mining CEO thinks it can – and will.

Mining, Inc. CEO Mitchell Krebs told Kitco News that he expects the precious metals sector to attract even more investor interest through the second half of this year. Krebs, who also serves as president of the Silver Institute, went on to say he thinks silver sits in a unique position to outperform as it benefits both as a monetary metal and an investment metal:
I think, right now, silver is in this sweet spot and I think this trend can continue.”
The growth in solar power is helping drive the demand for silver upward. Krebs said solar panel production could potentially gobble up to as much as 25% of the global silver market in the near future:
You look back a decade ago and around 5 million ounces of silver was used in solar panels. This last year, I think it was 75 million ounces. Every new gigawatt of photovoltaic capacity that is installed consumes almost 3 million ounces of silver.”
Krebs also noted that the industrial market for silver has grown much more balanced compared to a few years ago when photography served as the primary driver.

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China and Russia Still on Gold Buying Spree

July 25, 2016

After a brief pause in May, the Chinese and Russian central banks resumed their gold buying spree in June.

The People’s Bank of China added about 15 tons of gold to its stash last month. The Chinese central bank now officially holds about 58.62 million ounces of gold. China has bought gold in 11 of the past 12 months and has increased its hoard about 165 tons over the past year.
A year ago this month, the Chinese central bank announced its gold holdings had grown by 57% to about 1,658 tons. It was the first official update to China’s gold reserves since 2009. Many analysts believe the Chinese actually own more gold than the official numbers indicate – possibly a lot more.

The Chinese resumed their gold buying last month despite surging prices. Zhang Yanxin, an analyst at Shanghai Flow International Trade Co., told Bloomberg he thinks the June numbers signal the country plans to continue growing its gold reserves into the future:
China renewed purchases despite a spike in prices, signaling that the nation is still looking to diversify its foreign exchange reserves in a steady manner.”
Last year, Ken Hoffman, Global Head of Metals & Mining Research with Bloomberg Intelligence, made the case that the Chinese are setting the stage to put the yuan on a gold standard:
They’ve already started to do just that [back the yuan with gold].

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How Can You Reject the Government’s Fiat Money and Reclaim Honest Money? (Video)

July 22, 2016

Peter Schiff recently participated in a panel discussion in Las Vegas with Goldmoney co-founder, Josh Crumb and CEO Darrell MacMullin, along with best-selling author George Gilder.
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During the discussion, Peter got down to the very basics, answering the question: what is money? He explained the important distinction between currency and money, pointing out that gold is money. Paper backed by gold is true currency. The government prints fiat currency – which is nothing but paper backed by nothing.
Peter said the time to return to gold has arrived:
Today, in the 21st century, this is going to be the real century of gold. And it’s not going to be because governments decide to go back to the gold standard…but because the public rebelled against fiat money and reclaimed honest money – money that holds its value and in fact gains value.”
Peter went on to explain how the technology behind Goldmoney will enable everyday people to simply reject the government system of fiat money and use sound money in their day-to-day transactions:
This is where the public can just throw it back at the government and reject their money. ‘Look, we’re not going to use it. I’m not going to use your money in commerce. I’m not going to save it. I don’t want to earn it…I’m just going to go back to real money.

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Plan to Solve Puerto Rican Debt Crisis Already Off the Rails

July 21, 2016

Efforts to solve the Puerto Rican debt crisis have already run off the rails.
Late last month, Congress passed a bill allowing Puerto Rico to restructure its debt. Under the plan, the US territory essentially declared bankruptcy. The US government won’t expend funds to bail out Puerto Rico, but will allow the island’s government to pay back debtors at less than 100%. Although the bill doesn’t say so explicitly, for all practical purposes it created a bankruptcy process for the island.

Even with the agreement, Puerto Rico still defaulted on a $1.9 billion payment in principle and interest that was due July 1. Under the Puerto Rican constitution, bondholders were supposed to get first claim on government funds. At the time, Puerto Rico Governor Alejandro Garcia Padilla said the commonwealth could not raise enough money to cover the payment even if he completely shut down the government.
Fast forward to today and we find the Congressional fix has already started to unravel. The congressional plan put Puerto Rico under the guidance of a federal oversight board. But the law featured a built-in lag of at least two months before the board is put in place. Meanwhile a group of hedge funds have sued the country. They claim Gov.

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Focus on Fundamentals: No More Easy Gold

July 21, 2016

When we talk about gold and its future prospects, we tend to focus on the latest event, economic news, or central bank pronouncement. We debate whether the Fed will raise or lower rates. We try to project the impact of Brexit on the price of gold. And we pour over the latest job numbers and other economic data to gauge the health of the economy.

Of course, all of these things do affect the price of gold, but oftentimes these factors only have short-term impacts. There are fundamentals that affect the price of gold in the long-term that often get drowned out by the noise of squawking talking-heads.
The gold supply is one of those fundamentals often lost in the shuffle. Every indication is that it’s poised to shrink, and that could be more significant for the future price of gold than whatever latest news we’re obsessing over.Supply and demand dynamics are one of many reasons to buy gold. Download SchiffGold’s Free White Paper: Why Buy Gold Now?
Last month, we reported that the CEO of one of the world’s largest gold mining companies said he expects the gold supply to shrink over the next five years. He predicted a 7% slide by the year 2021. Even more significantly, some analysts believe we are close to, or have already reached, what is known as “peak gold.”
Since the 1970s, the amount of gold mined each year has steadily increased.

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Meet Your Third Option for President: Libertarian Gary Johnson

July 20, 2016

It’s hard to remember a time when the press wasn’t talking about Hilary Clinton or Donald Trump. The US two-party system is sustained by one-sided media coverage. However, Presidential candidate and Libertarian Party nominee, Gary Johnson may be forcing his way onto the political stage.

Also a candidate in the 2012 election, the former New Mexico governor saw few opportunities for sharing his views via public debate. However, recently he and running mate, Massachusetts Governor Bill Weld had made significant gains. A CNN/ORC national survey puts Johnson at 13%, just shy of the 15% that would secure him a podium at the national debates.
Peter Schiff has supported Johnson since his 2012 run and recently endorsed him at Freedom Fest 2016:
I think if people really want change that makes sense, they might support Gary Johnson who has the Libertarian Party nomination, who really embraces more of the philosophy that I stand for.”
Some are seeing Johnson’s popularity as a sign of voter dissatisfaction with Clinton and Trump. One could also say not enough people have been given the chance to hear Johnson’s platform, which emphasizes economic policies like lower taxes, banking deregulation, and balanced budgets.

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ETFs vs. Physical Precious Metals: The Complete Guide

July 20, 2016

As precious metals resume their long-term bull market in 2016, investors are once again asking the perennial question – should I buy ETFs or physical metals?
With the gold price on the rise, gold funds and stocks recently experienced the largest one-week inflows on record. Mainstream investors seem to prefer “paper gold” in times of uncertainty. But are these assets the right choice for your portfolio?

SchiffGold now has the definitive guide to precious metals ETFs like GLD and SLV. In , we get to the bottom of the debate. This FREE white paper will teach you:
The misunderstood costs of gold and silver ETFs.
The potential effects of economic crises on various assets.
Which asset offers no counterparty risk and financial privacy.

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Jim Rickards: Dynamics in Place for $10,000 Gold (Video)

July 20, 2016

Jim Rickards has been predicting $10,000 gold. Recently, he appeared on CNBC’s Squawk Box and stuck to that prediction, saying the dynamics are in place for gold to reach that $10,000 mark.
Rickards said he thinks we are at the beginning of an extended gold bull market, possibly similar to the late 1990s when the price of the yellow metal went up 615% over a 12-year period. He conceded gold can be volatile, so he doesn’t pay as much attention to short-term fluctuations in price. But he did note an interesting fact in the wake of the recent price jumps after some major world events:

What impresses me is that gold going up immediately after the Brexit vote, or gold going up a little bit after the Turkey coup, that you can understand. Those are kind of flight to quality, fear-trade reactions. But gold didn’t go down a lot when those things were over…It’s got a very good foundation – kind of around the $1,330 level, so it seems poised to go up a lot from here.”
Rickards went on to explain that the Fed has backed itself into a corner, and no matter what it does, it will likely bode well for gold. When asked if $1,450 is a possibility for this year Rickards focused longer-term, once again making his case for $10,000 gold.
I’ve got gold going to $10,000 now. So, I’m the guy with the highest price target out there…It could be a matter of weeks or a matter of years.

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Gold Gets $1,500 Vote this Presidential Election

July 19, 2016

Many political and social upheavals this year have contributed to gold’s continued bullish run. From the Fed’s quarterly passes on rate hikes to Britain’s exit from the EU, the year’s turmoil has helped keep the yellow metal at a 25% increase for 2016.

The upcoming presidential election may prove to be one of the biggest unknowns that keep gold prices headed north. DBS Group Holdings Ltd.’s foreign exchange strategist, Benjamin Wong stated:
The market has yet to deal with the political uncertainty going into the Nov. 8 presidential election … We remain bullish and gold carries an overweight rating.”
To their credit, DBS Group Holdings Ltd. called gold’s rally this year. Last October, the fund bet on gold gaining in 2016 based on its prediction the Fed would raise rates very slowly. Recently, it’s been actively advising investors to buy during any downturns in the price of gold.

According to Bloomberg, Bank of America Merrill Lynch also “listed the US vote among factors that may lift bullion to $1,500 over the course of 12 months.” Wong agrees, stating, “Any dips to $1,296 to $1,300 would be opportunities to accumulate.”
Long-term interest rates are sure to remain steady or unchanged for the remainder of the year, or at least until after the election.

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British Pouring Up to Half of Their Net-Worth Into Gold Post-Brexit

July 19, 2016

The Japanese economy is a mess.
The Japanese are buying gold.
The Chinese economy is a mess.
The Chinese are buying gold.

And the United Kingdom has been thrown into a sea of uncertainty in the wake of the Brexit vote. So what are the British people doing?
Buying gold.
According to a Reuters report, gold dealers in the UK report an extraordinary interest in gold post-Brexit – much of it from first-time buyers. The Pure Gold Company CEO Joshua Saul said British customers are pouring large portions of their wealth into the precious metal:
The speed at which people are purchasing gold is unprecedented. We are seeing people convert as much as 40 to 50% of their net worth into physical gold, (compared to) 5 to 10% in the past.”
The British Royal Mint also reports a surge in business with a 7-fold increase in the sale of 100-gram bars. A spokesperson for the mint said “This shows little sign of declining,” noting that half of the buyers opted to store their purchased metal in its vaults.
London-based trading platform Bullionvault.com said some 4 million pounds ($5.5 million) in gold and silver were traded in the weekend after the Brexit vote. The number of first-time buyers on the site increased 170% in late June and into the first week of July.It’s not just gold. British investors are also buying silver.

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Former Fed Governor: Fed Is Not Data Dependent; It Is Propping Up Asset Markets (Video)

July 19, 2016

Earlier this year, Peter Schiff picked up on something few reported on when a former Federal Reserve president admitted the central bank created a phony wealth effect by pumping up stocks and other asset markets through its monetary policy. Several months later, analysis proved this was true, showing that 93% of the entire stock market move since 2008 was caused by Federal Reserve policy.
Today, the Fed continues to focus on propping up asset markets. Even a former Federal Reserve governor admits this is the case. Kevin Warsh appeared CNBC’s Squawk Box on Thursday and said the Fed isn’t really “data dependent” in the sense that it is looking at the overall economy. It is really market dependent.
They look to me asset price dependent more than they look data dependent. When the stock market falls like it did in the beginning of this year, they say, ‘Oh, we better not do anything.’ Stock markets are now at career highs. I suspect when they meet over the course of the next 10 days they will suggest, ‘Oh, now they look like they can be somewhat more responsible.’ I don’t like changing policy meeting to meeting based on data, or even with what the S&P 500 is doing. I like making it based on what’s happening on the real side of the economy, and that has not been very convenient over the last six to nine months.

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New CPI Numbers Reveal Investment Window for Gold

July 18, 2016

The Bureau of Labor released its Consumer Price Index report last Friday, which showed an increase in all consumer items by 0.2 %. The CPI measures the change in price Americans pay for all goods and services. According to the Wall Street Journal, the latest numbers indicate that the “effects of low energy prices and a strong dollar are fading.”

In short, prices are continuing to rise because of the ultra-low interest rates and quantitative easing. This is not only bad news for consumers, it’s worse news for the nation’s economy in general. That’s because the reported CPI is only a small peek into the actual effects of the Fed’s monetary policies. As Peter Schiff has said many times:
The methodology for computing the CPI has deliberately been designed to hide the effects inflation has on consumer prices.”
What’s hidden within the government-created CPI reports is the fact that most Americans are feeling the pinch. Gas price stabilization is also beginning to affect the overall increase.
Even though inflationary pressures might prompt the Fed to raise interest rates, the chances are good they still won’t. Raising rates means US debt becomes even more impossible to pay off as more and more borrowing is needed to service debt interest. The Fed has gotten itself into a quandary by keeping interest rates artificially low.

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Little Old Ladies in China Buying Gold

July 18, 2016

Little old Chinese ladies are buying gold.

The South China Morning News (a Hong Kong paper) reported that mainland China imported five times more gold from Hong Kong in May. Recently released customs data showed imports from Hong Kong primarily grew due to cross border shipments to meet mainland customer demand.
Many of those customers are little old ladies, according to the paper:
Jasper Lo, chief executive of King International, said many mainlanders, especially ‘Big Mother’ investors – elderly ladies who like to invest in the metal – were major buyers of gold, which has risen in price by 28% this year, up 6% in the last three weeks.”
Gold traders say they expect the Chinese investors will continue to buy gold as the year goes on. According to Lo, economic volatility and uncertainty are driving gold demand on mainland China:
The gold rally started in the beginning of this year due to the many uncertainties about US interest rate rises, the Brexit and the dispute over South China Sea sovereignty between mainland China and the Philippines. These uncertainties have seen gold become a safe haven for investors…Mainland Big Mother investors…have one more reason to invest in gold – it is a good hedge for the falling value of yuan. When many expected the yuan would continue to devaluate further this year, this led the Big Mothers to invest in gold instead.

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Building a Ghost City Out of Helicopter Money

July 15, 2016

There has been a lot of talk about helicopter money lately.
Last May, Janus Capital’s Bill Gross said structural changes currently occurring in the US economy will ultimately lead the Federal Reserve to adopt this extreme form of monetary policy. Last week, Federal Reserve Bank of Cleveland president Loretta Mester revealed helicopter money is indeed a possibility during an interview on ABC’s AM program:
We’re always assessing tools that we could use. In the US we’ve done quantitative easing and I think that’s proven to be useful. So it’s my view that [helicopter money] would be sort of the next step if we ever found ourselves in a situation where we wanted to be more accommodative.”

Japanese officials have been seriously considering helicopter money. It now appears they won’t go all the way, but according to a Reuters report, Japan may try a “soft” form of helicopter money:
Japanese policymakers, who won’t go as far as funding government spending through direct debt monetization, might pursue a mix of aggressive fiscal and monetary expansion to battle deflation, say sources familiar with the matter. In the past week, Japanese markets have seen hyped-up speculation that the government will resort to using what’s called ‘helicopter money,’ where a central bank directly finances budget stimulus through programs such as perpetual bonds.

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Peter Schiff: We’ve Entered a New Leg of a Gold Bull Market (Video)

July 15, 2016

During an interview with Kitco News at FreedomFest, Peter Schiff said gold has entered a new leg of a bull market, and he expects the yellow metal to eclipse the highs reached in 2011:
I think this is a new leg of the gold bull market. I mean, gold’s been in a secular bull market since 2000…We had a cyclical bear market that I believe ended when the Fed hiked rates in December. And now we have the new leg of this bull market, which I think potentially could be an even bigger leg than the first leg, which saw gold go from sub-300 to close to 2,000. So, if this leg is bigger than that you can just imagine how high the price might go.”
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Peter also reiterated his assertion that the Fed will not raise interest rates, and will in fact cut rates, most likely taking them below zero this time around. He also predicted another round of quantitative easing bigger than QE1, 2, and 3 combined.
At the end of the interview, Peter gets into some presidential politics, noting that even if the next president takes steps to address the problems in the economy, we still have to deal with the consequences of past policies.
We still have a tremendous price that needs to be paid for the mistakes of the past. Even if we correct those mistakes in the future, we still are going to have a day of reckoning.

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Government Student Loan Policies Have Perverse Incentives

July 14, 2016

Millions of Americans are saddled with student loan payments. And that’s just considering those who can actually repay their debt. Data released in March revealed that 46% of student loans are not currently being repaid.
But despite the squeeze student loan repayment puts on American budgets, few choose to refinance their debt at lower interest rates. A recent poll of American student debtors reported by Bloomberg reveals some interesting reasons why:

There’s no overarching reason why they don’t refinance, though 20.1% pointed to the federal loan option that ties payment amounts to what they’re earning, and they didn’t want to risk losing it. About a quarter of those who answered the poll…said they simply weren’t aware of how to refinance. And 8.4% said they planned to seek forgiveness for their loans. (A third didn’t specify why they weren’t interested in refinancing; only 2% had been rejected when they attempted to refinance.)”
It’s revealing that many with student loan debt spurn the benefits of lowering their interest rates due to government incentives. In other words, we once again have a situation where US policy is creating an unsustainable bubble. The intentions might be good, but the unintended consequences are perverse.

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Silver Up 44.7% in First Half of 2016

July 14, 2016

While investors have primarily focused on gold’s bull run, silver has quietly outperformed the yellow metal.
Between Jan. 1 and July 11, the price of silver increased 44.7%, according to the Silver Institute. The price of gold increased 27.7% in that same time period.
The Silver Institute said the surge in the price of silver was “fueled by increased investor interest in silver as a safe haven asset and as leveraged exposure to gold’s price rally.”

Demand for silver has been robust in both paper and physical markets. Exchange traded holdings of the white metal increased by 44.3 million ounces through the first half of 2016, hitting a record high of 662.2 million ounces.
Silver coin sales set a record in 2015 and kept up the pace through the early months of 2016, according to the Silver Institute:
Silver coin sales increased in the first quarter of 2016 by 29% globally, according to the GFMS Thomson Reuters Quarterly Coin Sales Survey.  Regionally, North America has continued to be the bright spot in silver investment product demand. In the coin market, coin sales grew at double digit paces in all the major regions (North America, Europe, Japan, Asia, Africa, & Other), as coin demand has remained elevated since the second half of last year.”
You can buy gold and silver in complete privacy if you know the rules.

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Japanese Turning to Gold as Their Economy Spirals into Central Bank Oblivion

July 13, 2016

The Japanese economy is sliding into oblivion pulled along by central bank policy. In response, the Japanese people are buying gold.

Economic growth has languished in Japan for nearly two decades despite extraordinary monetary policy including negative interest rates and round after round of stimulus. The government even flirted with the idea of helicopter money, although that appears to be off the table, at least for the time being.
Factory output is down and stocks are slumping. The Japanese government just cut its GDP estimate from 1.7% to 0.4%, and Prime Minister Shinzo Abe urged more central bank intervention. He called for coordinated stimulus from the government and the central bank in yet another attempt to revive the ailing economy.
Meanwhile Japanese people are doing what people have done for centuries when faced with economic uncertainty. They are plunging into gold.According to a Bloomberg report, gold sales at Tanaka Holdings Co. surged 60% in June. Tetsushi Kudo was one of the recent customers at Japan’s largest bullion dealer. He bought a 1-ounce gold coin, and said he plans to buy more:
I want to buy gold every year as a birthday present for my daughter. She will thank me for the gift when she grows up because gold will have value wherever she goes.

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As Bond Yields Plunge, More Mainstream Investors Jump on Gold Bandwagon

July 13, 2016

Over the last few months, a number of big-name, mainstream investors have said buy gold. Stanley Druckenmiller publicly advised investors to sell US stocks and buy gold. Legendary hedge fund manager Paul Singer said “it makes sense to own gold.”

With Brexit now a reality, and bond yields slipping lower and lower, the gold bulls continue to charge. This week, Joe Foster, gold strategist at VanEck, jumped on the bandwagon, saying he expects $1,400 gold this year, and he doesn’t believe it will end there:
Many are seeing the looming potential for another financial crisis and making a strategic allocation to bullion as a hedge against systemic risk.”
TD Securities also predicts $1,400 gold and said $1,500 is possible if the Federal Reserve further cools market expectations for an interest rate hike:
Given that there are likely to be significant flows into gold and other precious metals seeking protection from the current turmoil, the record amount of net-long exposure should not impede the yellow metal from trending toward $1,400 per ounce. If we see the Fed downgrade its rate forecast in the not-too-distant future, a move toward $1,500 per ounce is also very possible, particularly if the negative yield narrative grows even louder.”
Meanwhile, on Tuesday the yield on a 10-year US Treasury hit the lowest level since 1790, falling below 1.

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An Old Dog Rediscovers an Old Trick: Greenspan on the Gold Standard (Video)

July 12, 2016

An old dog may not be able to learn new tricks, but he can apparently rediscover those that are long forgotten.
In a recent interview with Bloomberg, former Federal Reserve chairman Alan Greenspan warned of impending inflation.
His prescription?
A return to a gold standard.
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Greenspan noted that growth in productivity has ground to a halt in the US. He described the current economic malaise as stagnation. Greenspan pointed out that the money supply measured by M2 is steadily increasing and has tilted up in the last several months. This is a leading indicator of inflation:
The thing that we should be worrying about now, which we have actually given no thought to whatsoever, is that this type of economic environment ends with inflation. Historically fiat money has always ended up that way.”

Of course, all of the mainstream pundits insist there is no inflation. They even argue deflation is the real boogeyman on the horizon. They will almost certainly dismiss Greenspan as old and maybe even getting a touch senile. The interviewer even seemed taken aback by his comments.

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Peter Schiff: We’re In the Ninth Inning of This Thing (Video)

July 12, 2016

Peter Schiff recently appeared on Info Wars with Alex Jones and offered a dire warning:
The world sits atop a house of cards erected by central banks…unfortunately it’s not going to end well for most people.”
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Peter said the aftermath of Brexit shows just how fragile the world financial system is, pointing out that in a healthy economy Brexit wouldn’t really matter. But we don’t have a healthy economy and the post-Brexit turmoil is a sign of things to come:
More and more people, mainstream people…now realize that this is the ninth inning of this thing – this whole experiment with Keynesianism and fiat money. It is very, very late in the game. Time is running out. The clock has been ticking and ticking and it’s going to stop. The day of reckoning is getting closer.”
So, what lies ahead? Peter reiterated a prediction he made on CNBC last month – the Fed will sacrifice the dollar on the altar of the stock market, we are rapidly heading toward a currency crisis, and we can expect more Federal Reserve intervention:
They have nothing left. I think all they’re going to do now is try to change their rhetoric and try to talk about not raising rates, then they’ll talking about cutting rates, then they’ll eventually cut them, and then they’ll take them negative. But I think also somewhere along the way they’re going to restart their QE campaign.

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“Real” Unemployment Rate Still Above Pre-Recession Levels

July 11, 2016

The June jobs report with its 287,000 new jobs lifted both spirits and markets drug down by the recent Brexit vote and other economic bad news. But the oft-reported numbers – jobs added and the unemployment rate – obscure the truth. In fact, the “real” unemployment rate remains above pre-recession levels.

As Peter Schiff pointed out in his most recent podcast, the numbers buried in the numbers tell a different story – a jobs market still struggling mightily even though the mainstream is in celebratory mode:
Overall, a mixed picture, but the headline number, the 287 versus 180 consensus, that’s normally the number the market trades off and that is exactly what happened.”
Scroll down to listen to the full podcast.
Peter is not the only one saying the markets and the mainstream media are missing the bigger picture. Recent analysis by MarketWatch shows the “real” unemployment rate is still up around 10%:
The 287,000 surge in new jobs in June and low 4.9% unemployment point to a US labor market that on the surface appears fully healed. Yet, those numbers don’t tell the full story about an economic recovery in which millions in the US have been left behind. Uncounted in the official US jobless rate are several million people who still want a full-time job but can’t find one.

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Trapped in a Loop of Central Banking Policy and Bad Decisions (Video)

July 11, 2016

In a recent episode of the Santilli Exchange, Pete Santilli talked with Hoover Institution Fellow Tim Kane about the June jobs report and the overall state of the US economy.
Despite all of the giddiness about the recent jump in the number of jobs created, Kane said this jobs report wasn’t as positive as advertised:
The thing that really shocked me was if we compare this year to last year, 850,000 people are not in the labor force. You have unemployed, you have employed, and you have people who are not in the labor force. That’s gone up. It’s not a good report.”

Kane went on to discuss the overall performance of the US economy in light of recent Hoover Institution research showing that the recovery after each subsequent recession is getting weaker and weaker. He pointed out that we should be in boom right now. But as Peter Schiff has put it, we are actually in a “phony recovery.”
In fact, if you look at the recovery quarters over the last five recessions, the trend is down. The current average growth rate stands around 2.1%. During the last recovery, it was 2.8. In the one before that it was 3.8. During the recovery prior to that, the growth rate was 4.5%:
This is not a healthy trend. We’re seeing a great deceleration, even during the boom times.”
Keep abreast of the latest news and its impact on the gold market.

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Schiff Gold Announces Joint Venture with Gold Money!

July 9, 2016

SchiffGold, LLC is excited to announce they are merging with Gold Money (formerly BitGold).  SchiffGold will continue to provide fantastic service as knowledgeable Peter Schiff trained precious metals brokers – while offering extremely low pricing on physical gold/silver bullion coins and bars.
In this video Peter Schiff explains the details of the merger and touches on the exciting enhancements of Gold Money’s offerings.  Peter Schiff speaks with Gold Money’s co-founder and commodity king Josh Crumb.  This fun and highly educational video is a must watch!
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“Governments choose paper as money to help advance their agenda-so they can play Santa Clause.  Gold has been declared money by the free market, the people choose Gold as money.  Forget about BREXIT and countries leaving big government, its central banking that we ALL need to EXIT from.  Goldmoney and SchiffGold provide the vehicles to put ourselves on our personal gold standards.” – Peter Schiff
“Although our approaches have been different, both companies are 100% aligned in the following.  1.) We understand that Gold is money and 2.) We have an absolute commitment to our clients and to our customers. “
-Josh Crumb Co-Founder GoldMoney.

BitGold (Gold Money) is a publicly traded company.  To view Friday’s full press release announcing the exciting news click below.

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Paper & Physical Gold Rush from West to East; $1500 by Year End?

July 8, 2016

The week began with a surge in the price of silver, giving the white metal its biggest two-day gain since 2011. Now this morning, Bank of America Merrill Lynch reported the largest one-week inflow into precious metals funds on record – $4.1 billion in the week ending Wednesday.

The combination of the Brexit and the realization that the Federal Reserve isn’t going to continue raising interest rates has investors scrambling for safe havens. With gold and silver suddenly returning to the limelight, Bank of America Merrill Lynch is now forecasting the gold price to hit $1,500 by the end of the year.
Barry Dawes, Head of Resources for Paradigm Securities, told CNBC:You’ve got to look at the long-term in gold, and out of the last few years we’ve seen really strong demand out of Asia. And that’s really sucked all the readily available gold out of the West and it has tightened the market up. The Brexit, to me, is a sideshow. Some people think it’s a lot more important. I just see it as a short-term thing. It basically means more people are coming into the market looking for gold, and they’re finding there’s not much there.
“So gold has got the potential to rally quite strongly. I think we’re certainly going to see $1400 quite soon. I think we’ll certainly see $1500 by year end, and maybe even that $1900 – test that previous high.

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