The Man Who Picked The Gold and Crypto Bottoms on Where They Go Next

Topics include: Ed's great track record of recommendations, central banks and keynsianism, inflationism, the dollar is collapsing every day, asset inflation, corporate profits, the real Trump effect, a looming bear market in stocks, debt and interest rates, the Fed inflates real estate, gold and cryptocurrencies, reflation, signs of recession will drive crypto adoption, the bitcoin and crypto markets, Bakkt exchange, The Crypto Vigilante team.

- Source, The Dollar Vigilante

New rule would let US companies sue foreign rivals over currency weakness

U.S. companies would be able to seek penalties against foreign competitors they say benefit from artificially weak currencies, under a new rule proposed by the Trump administration.

The proposal -- on which the Commerce Department is now seeking public comment -- would treat an undervalued currency as a subsidy that allows foreign businesses to export their goods more cheaply. The rule would allow U.S. companies to file a complaint with the U.S. International Trade Commission, the first stop in arguing for countervailing duties that could lead to additional tariffs on certain imports.

Currently, companies can’t cite currency weakness in claims of improper foreign subsidization of their competitors.

Commerce Secretary Wilbur Ross said the measure adds to the administration’s arsenal in fighting foreign-currency manipulation, which the Trump administration says hurts American industry.

- Source, Market Watch

The Fed's Tragic Plan For Long Term Rates Revealed

Here comes QE on steroids. Join Mike Maloney as he explains the Fed's latest plan to manipulate and distort the markets, and what the results are likely to be.

- Source, Gold Silver

Gold Silver Ratio Highest In 25 Years

The Gold To Silver Ratio is the highest it has been since 1993. We cover the price movements of gold, silver, platinum, palladium, the U.S. Dollar Index, Equities markets, and more.

- Source, Golden Rule Radio

This Is How The Patriots Have Full Control Over The Economy & China

The housing market is imploding, the [CB] will need another jolt of stimulus to keep it going. The [CB] economy has been declining at an accelerated speed since the financial crisis, manipulation made it look great. 

Farmers will be getting aid from the government. China pegs its currency to the Fed debt note, this is not a position of strength. Trump is using all tools of the [CB] against them.

- Source, X22 Report

Why China Is the World's Largest Gold Consumer

Gold has long enjoyed deep cultural significance in China, which holds the title for being both the world's largest gold consumer and its largest producer. Demand for the yellow metal in China looks like it will continue to rise, driven by a combination of increasing levels of wealth, global economic uncertainty and changing central bank policy.

Momentum Drivers

We typically see four key drivers for gold demand in any market: jewelry purchases, industrial use, central bank purchases and retail investment. China's market is no exception.

Jewelry Sales: Gold plays a strong role in traditional celebrations in China, and is typically gifted at weddings and births, while ornamental gold sales also spike around the Lunar New Year and during Golden Week in October. At a time when gold jewelry sales are static or falling in many markets, they rose by 3 percent in China in 2018 to reach a three-year high of 23.7 million ounces accounting for 30 percent of the world's total, according to the World Gold Council (WGC). The rising wealth of China's growing middle class is expected to continue to support this trend going forward.

Industrials: China also continues to be a significant purchaser of gold for industrial use, particularly for high-end consumer electronics, electric cars, LEDs and printed circuit boards. That said, the U.S.-China trade tensions have contributed to slowing demand in this area as some industrial production has been shifted out of China. The LED sector has been particularly hard hit, with tariffs imposed on more than 30 lighting applications. WGC figures show the consumption of gold for industrial purposes fell by 9.6 percent year-on-year in China during the fourth quarter of 2018.

Central Bank Purchases: As industrial demand for gold is falling, purchases by China's central bank are rising, with the People's Bank of China (PBoC) increasing its gold reserves in December 2018 for the first time since October 2016. It purchased 351,000 ounces of the yellow metal during December, followed by a further 1.16 million ounces during the first quarter of 2019, according to the WGC. The PBoC held just 2.4 percent of its $3.1 trillion forex reserves in gold at the end of 2018. Some speculate it may look to increase its reserves to more closely resemble levels held by other central banks. For example, the U.S. Federal Reserve holds 74 percent of its reserves in gold, while Germany's Bundesbank holds 70 percent. If the PBoC continues to buy gold at this rate, it could become the world's largest central bank gold purchaser in 2019.

Retail Investors: Another major source of gold demand in China comes from investors. WGC figures show retail investors purchased 10.7 million ounces of gold bars and coins in 2018 on the back of the slowing economy, weakening renminbi (RMB), stock market volatility and the ongoing U.S.-China trade tensions. As global economic uncertainty persists, this trend looks set to continue in 2019.

A Safe Haven Asset

Alongside these drivers, gold continues to play an important role as a safe haven investment in a changing economic environment. The gold price hit a four-week high of $1,319.55/oz in late March, driven by concerns of a global economic slowdown, as the U.S. economy showed signs of faltering.

Economic uncertainty due to a number of factors including Brexit, the U.S.-China trade tensionsand slowing global growth, is also leading to equity market volatility. Gold traditionally has a low and sometimes negative correlation to other asset classes, increasing its appeal in the current climate. The metal is also attractive as a currency hedge. The RMB has lost one-third of its value against gold since June 2007. If the strength of the U.S. dollar declines based on lower interest rate expectations, the RMB will follow it lower due to its currency peg, further increasing the appeal of gold.

Gold Futures

Another option for investors who want exposure to gold is to invest in gold futures. Gold futures offer the same advantages of physical gold in terms of portfolio diversification, without investors having to take delivery of the metal or bear the cost of storing it. They also enable investors to hedge against future price volatility, as the gold price can be very responsive to political and economic events.

The gold futures market is typically more liquid than the physical gold market. For example, a total of 9.28 billion notional ounces of COMEX Gold futures and options were traded in 2018, 12 percent more than in 2017, with the equivalent of nearly 37 million ounces being traded every day.

There is also flexibility in the contract sizes for investors trading gold futures, starting at just 10 ounces, all the way to 100 ounces enabling investors to tailor the contracts to their risk management programs. At CME Group, with our Gold futures and options volume accounting for more than one-third of the global total volume traded during the Asian trading hours (Beijing 8 a.m. to 8 p.m.), investors can also be assured of the deep liquidity on their contracts when it comes to managing risks during their trading day.

- Source, The Street

Russian central bank lowers US dollars share in reserves due to possible risks

Russia’s central bank has lowered the share of dollars in its reserves because of the external risks the country could face, First Deputy Governor Ksenia Yudayeva said on Monday.

The United States has imposed several rounds of sanctions against Russia since its annexation of Crimea from Ukraine in 2014, including for interfering in the 2016 U.S. presidential election. Moscow denies the U.S. accusation of interference.

The Russian central bank has said that it would consider economic, financial and geopolitical risks when assessing the country’s reserves.

“We have tried to bring this (reserves) structure into accordance with the risks we believe we may face,” Yudayeva told members of lower house of parliament, presenting the central bank’s results for 2018.

“This is why we significantly lowered the share of the dollar,” she said, adding that Russia had increased the share of euro, Chinese yuan and gold in its state reserves.

Last month the central bank said that dollars made up 22.6 percent of its foreign currency reserves at the end of September 2018, down from 46.2 percent a year earlier.

The bank, which reports changes in reserves with a delay of six months, said Chinese yuan accounted for 14.4 percent of its foreign currency reserves as of Sept. 30, 2018, up from 1.0 percent on Sept. 30, 2017.

- Source, Reuters

Problems In China's Economy & Escalating Trade War Causing Large Bitcoin Rally the Last Few Months?

Jason talks about how China's economy getting worse plus the US vs China trade war escalating means that many CCP elites in China and rich Chinese businessmen are getting around capital controls and getting their savings out via Bitcoin.

- Source, Wall St for Main St

The Rats Begin To Turn On Each Other, The Cover Up Always Gets You In The End

Don Jr makes a deal he will testify in front of the Senate. Matt Gaetz says transcripts will be released very soon. Gowdy says that this is much worse than people think. Papadopoulos says Brennan lies, he spied on me. 

Joe D, it all leads back to Brennan. The dossier was used as the cover-up. NY is being challenged about the gun rules. DOJ reports 43% offenders are illegal immigrants, wall being built in California. The push is now in Iran, the patriots are going after the [DS].

- Source, X22 Report

Precious Metals Are Setting Up For A Major Rally While The Broader Markets Are Primed For A Crash

While many precious metals investors are concerned about the current low prices, I believe gold and silver are setting up for a major rally while the market is primed for a crash. Why? Because the broader market technical indicators versus the precious metal have been pushed to opposite extremes. Thus, when one goes down, the other will rise. And, we also must remember, gold and silver act as a FEAR TRADE when the conditions get ugly in the market.

And if you don’t think the markets are getting ugly, you should see the intra-day volatile price action of some of the more well-known stocks. I continue to be amazed at the INSANE price movements taking place in the various stocks in the market. While the fundamentals haven’t played much of a role in determining the “PRICE” of stocks for a while, it seems to me that there is no rhyme or reason for the way the stocks are trading today.

So, before I compare the analysis of the overall markets versus the precious metals, I wanted to provide two examples of company stock price movements over the past two days and why investors today are TOTALLY INSANE and IRRATIONAL.
ROKU Stock Jumps 28% In One Day On Lousy Financials

Those who aren’t familiar with the company called ROKU, they are one of the new streaming content providers to compete with Cable and Satellite. It seems as if many cable and satellite customers are growing tired of the high costs of $150-$200 a month for their TV entertainment, so they are replacing them with ROKU via YouTube TV, Hulu, Netflix, etc.

On Thursday, ROKU came out with their Q1 2019 earnings, and according to several analysts, it was a BLOCKBUSTER quarter. I watched that day as ROKU started trading $5 higher before the market opened, and then shot up another $13 by the end of the day:

In just one day, not only did ROKU’s stock rally by more than $18, it’s market cap also increased $2.1 billion. How many stocks go up 28% in a day? Well, I don’t remember XEROX ever going up 28% in a single day in the 1980s, 1990s, or 2000s. I haven’t look at XEROX’s stock that closely, but even during the massive tech boom in the late 1990s, I didn’t see any $18 single day moves in XEROX.

Regardless, some of the analysts stated that ROKU’s huge stock move that day was due to a “BLOCKBUSTER” and “FLAWLESS” quarter:

Roku Soars to All-Time High on Blockbuster Earnings

Roku stock soars more than 20% after ‘flawless quarter’ and big subscription opportunity

As I watched in disbelief how a stock could go up 28% in one day just on earnings, I decided to read the analysts’ articles and the company’s Q1 2019 report. The first “supposed” analyst stated that ROKU’s stock jumped due to “Blockbuster Earnings.” For those who don’t read many financial reports, earnings represent the company’s profit or loss.

Well, according to ROKU’s Q1 2019 financial statement, the company lost $10.7 million in the quarter, shown in the red highlighted area. However, the analysts stated that it was LESS OF A LOSS than forecasted. Really? Give me a break. Here is ROKU’s financial statement:

Then the second analyst claims that ROKU had a flawless quarter with a big subscription opportunity. The analyst is referring to the new active accounts shown at the top in the yellow highlighted area. While ROKU did indeed add another 2 million active accounts, it was less than the 3.3 million added in Q4 2018.

Furthermore, if we look at the bottom of the financial table, you will see ROKU’s guidance for 2019. ROKU forecasts a loss of $25-30 million in Q2 2019 and $65-$75 million for the entire year. So, how is this GOOD NEWS??

While it is true that ROKU is adding a good bunch of new subscribers and their revenues are going up, but shouldn’t analysts care about PROFITS? Yes, I have heard plenty of times that investors realize a company can suffer losses for years before making a profit, but to see ROKU’s net income loss increase to $65-$75 million, up from the $0.6 million loss in 2018, doesn’t seem like grounds for a 28% increase in the stock price...

- Source, SRS Rocco

No Deal Between China & USA While Tariffs Have Increased

The Entire House Of Cards Is About To Come Down...

Roger Stone wants the information on DNC hack, discover is a wonderful thing. JW reports Schiff to the ethics board. JW shows Obama was the gatekeeper in the WH. 

Guilianni not going to Ukraine. JB worried about the IG report. Comey tries to cover up everything with a tweet. Lindsey Graham goes after Kavelic. 

Carson says that illegals can not get free housing anymore. Training camp found in Alabama. The house of cards is not coming down.

- Source, X22 Report

Pieces Are in Place For The Economic Crisis and It’s Not What You Think

The Central Bank housing market is imploding, prices are coming down, mortgage applications are declining, the Fed will now need to cut rates to keep the housing market from collapsing. 

GM sells manufacturing plant and Workhorse group purchases it and it will employee hundreds of people. 

Trump outlines plans for the medical billing. Another piece to the puzzle and new bill calling for the audit of the US gold reserve.

- Source, X22 Report

The Absurdity of Taxes on Precious Metals

Ohio, the latest state to try and tax precious metals (again). Silver Fortunate breaks down just how absurd this is and why precious metals should always remain tax free.

- Source, Silver Fortune

Banks tighten standards on commercial real estate, credit card loans

U.S. banks tightened standards on commercial real estate loans and on credit card borrowing during the first quarter, according to a survey of bank officers published on Monday.

The U.S. Federal Reserve’s quarterly survey of senior loan officers also showed banks were taking steps to curb potential losses from loans to firms that are exposed to the risks of economic trouble in Asia and Europe, the Fed said.

Europe and China are major U.S. trading partners and the economies of both have recently appeared to soften.

“A moderate net fraction of banks reported that they expect the quality of loans to exposed firms to deteriorate,” the Fed said.

The report appeared to show some rising concerns over the economic outlook despite the many signs of a strong U.S. labor market and healthy economic growth.

“A significant net share of banks reported weaker demand for construction and land development loans,” according to the report.

Still, banks kept standards for auto loans and for commercial and industrial lending “basically unchanged” during the period although terms eased for some commercial and industrial loans, according to the Fed survey.

- Source, Reuters

Gold Price Not Going Back To $1,900, It’s Going To $3,000 Or Higher

Amidst market pessimism, one expert sees gold prices climbing to record heights of $3000-$4000 an ounce in the future. 

“When gold launches higher, they’re all going to be winners,” said Daniel Oliver, founder and managing director of Myrmikan Capital, referring to gold investors. 

“It’s just about the degree which one is going to win more, and which one is going to win less.”

- Source, Kitco News

More Pressure In The System As Defaults Rise And Dividends Are Cut

We review the NAB results today and look in detail at their current lending standards, which are significantly tighter now, despite rising mortgage delinquency and a cut in dividends.

- Source, Walk the World

Peak Gold? We’re In It Already Says Expert

Gold has already peaked in terms of production, but it may be years before prices reflect this reality, this according to Jorge Ramiro Monroy, managing director of Emerging Markets Capital. 

“We’re all waiting for that scenario to really unfold,” Monroy told Kitco News on the sidelines of the Mines and Money New York conference. 

“We’re in it already. The trick is that it could still be years before there is a break in the system. 

You already saw it with palladium this year where actual physical constraints made prices shoot up. Silver is looking like it could have something similar.”

- Source, Kitco News

Chart shows glaring economic risk that could wipe out record highs

Economic forecaster Lakshman Achuthan is warning Wall Street that the market’s new highs don’t signal a revitalized growth cycle.

Achuthan, co-founder of the Economic Cycle Research Institute, believes it’s not an ideal environment for sustainable gains.


“All the optimism is really in these risk-on assets,” he said Wednesday on CNBC’s “Trading Nation. ” “When we look to the hard data, we see the slowdown. There is a deceleration in growth that has been going on. It’s continuing actually to occur, and that’s the disconnect here. ”

He takes his case a step further by highlighting a chart that shows industrial output and consumption slowdowns. It illustrates that their growth rates turned down in the second half of last year and never materially recovered.

“They both topped out,” said Achuthan. “Retail sales haven’t been this low for the past two years with the exception of the last few months where in December it went to its lowest reading since 2009.”

That decade low coincided with the historic plunge in the stock market.

Since then, the major stock indexes are up 22% to 25%. The Dow and S&P 500 closed at all-time highs on Tuesday, and the Nasdaq hit an intraday record high on Wednesday. However, the industrial production and retail sales failed to follow suit.

“Is it all of the sudden going to reaccelerate back up to where the market hopes it will be or not?” he asked. “It’s pretty low at this moment because this hard data and this stuff weigh from the risk-on kind of feeling hasn’t shown up.”

According to Achuthan, the Street is largely making a faith-based forecast that economic growth will rebound in the year’s second half. It’s an assumption that could generate a lot of pain, he suggests. He contends the market isn’t in the clear from another sharp pullback.

“Corrections happen during growth-rate cycle slowdowns,” Achuthan said. “They don’t require a recession."

- Source, CNBC

Kim & Putin Summit: Another Neocon Policy "Success"

After the neocons blew up President Trump's February meeting with North Korean leader Kim Jong-Un by actually proposing the "Libya scenario," Kim finds himself meeting tomorrow for the first time with Russian president Vladimir Putin. 

Instead of being pushed around and given a list of demands, Kim is expected to sign trade deals and improve relations. Is this the end of hope for a US/North Korea deal? 

If so... who is to blame?

- Source, Ron Paul