Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

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Gold Holds Above $1,300 as Investors Weigh Shutdown, Stimulus

Gold held above $ 1,300 an ounce after gaining the most in two weeks as investors assessed the U.S. government shutdown and its impact on the outlook for monetary stimulus from the U.S. Federal Reserve. Bullion for immediate delivery fell as much as 0.5 percent to $ 1,309.47 an ounce, and traded at $ 1,312.28 at 2:15 p.m. in Singapore. Prices climbed 2.2 percent yesterday, rebounding from an eight-week low of $ 1,277.15, after a private report showed U.S. companies added fewer workers than forecast in September, supporting the case for the Fed to maintain its $ 85 billion-a-month of bond buying. The first government shutdown in 17 years, which IHS Inc. (IHS) estimates may cost the U.S. at least $ 300 million a day in lost economic output, extended into a second day yesterday as President Barack Obama refused to negotiate in a meeting with top congressional leaders, said House Speaker John Boehner. Gold dropped 22 percent this year on speculation the U.S. central bank may scale back asset purchases as the economy recovers. “The market expects a short shutdown that will have a minimal impact on the broader economy and doesn’t change the Fed’s timetable on tapering,” said Mark To, head of research at Wing Fung Financial Group, a Hong Kong-based precious metals trader and refiner. “If the budget standoff stretches into next week, it could begin to negatively impact the economy, and the demand for a safe haven will support gold.” Gold for December delivery dropped 0.7 percent to $ 1,311.30 an ounce on the Comex in New York after climbing 2.7 percent yesterday and falling 3.1 percent on Oct. 1. Trading was 57 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg show. Silver for immediate delivery rose and fell at least 0.5 percent, before trading 0.3 percent lower at $ 21.67 an ounce. Platinum was little changed at $ 1,387.20 an ounce and palladium lost 0.2 percent to $ 716.98 an ounce. Gold Holds Above ,300 as Investors Weigh Shutdown,...

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Simon Black – Five reasons why gold prices will decline

This morning I received a research note from a private bank I work with occasionally.Buried in the text was a call for lower gold prices, and the analysts listed five reasons why they think gold prices will decline. Here’s what they had to say: 1) “We expect the scaling back of [the Fed’s] stimulus to happen this year at the December meeting. A reduction in monetary stimulus . . . shall reduce the attractiveness of gold as a zero-income asset.” 2) “Inflation pressures in the developed world should remain subdued, lowering demand for gold as an inflation-hedge.” 3) “We expect the US recovery to accelerate, reducing the attractiveness for gold as a safe-haven asset.” 4) “A subsequent improvement in investor sentiment shall also reduce demand for gold as safe-haven asset.” 5) “Physical demand from India should be discouraged by the gold import duty increases and other measures that aim to reduce the current account deficit.” My analysis? These guys are completely missing the point. The reality is that today’s financial markets are controlled and manipulated by central bankers who are destructively expanding their balance sheets to the point of insolvency. Many central banks are already insolvent. Most “rich” countries are bankrupt. And the “richest” country in the world has entered yet another sad, farcical episode public fiscal humiliation. The US government is so broke that they fail to collect enough tax revenue to cover mandatory entitlement spending (like Social Security) and interest on the debt. And that’s with interest rates at all-time lows. The debt is growing by the day. The US government reached its statutory debt limit back in May, and as soon as they raise the debt ceiling, they’ll quickly reach the new limit again. The US government cannot even afford the 1.968% average interest that it is currently paying. (This is compared to 6.620% back in January 2001, and 3.665% in September 2008 when Lehman collapsed…) Politicians are seizing pension funds, raiding bank accounts, and raising taxes. They’ve imposed capital controls, and even restricted gold importation and ownership. Investors are addicted to cheap money like meth junkies. Stock markets are at all-time highs. Bond markets are near all-time highs. Many other asset classes (US farmland) and commodities (cattle) are also near all-time highs. There’s very little in this world that makes sense. I own farmland in South America as the ultimate hedge against inflation, system disruptions, and economic decline. Plus it generates great cashflow. But farmland isn’t terribly portable or liquid. And that’s why gold is such a great option. Precious metals are like an insurance policy. It’s a policy you hope you’ll never need to cash in. But if the need ever...

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Glenn Beck sits down with Robert Kiyosaki

Glenn Beck sits down with Robert Kiyosaki, of Rich Dad Poor Dad, and many other mega financial book best sellers. They talk about cash flow, the 5 G’s, Gold, Guns, Grub, Ground, Gas. They also discussed the future of America if the Constitution will survive, possibility of a 2nd Civil War…Very uplifting! But very...

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Is China Ready to REPLACE the US DOLLAR – Interview with David Morgan

BREAKING Is China Ready to REPLACE the US DOLLAR David Morgan, Part...

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Silver & Gold – Hidden Secrets Of Money 3 – From Dollar Crisis To Golden Opportunity

Welcome to the third Episode of Michael Maloney’s Hidden Secrets of Money. Mike was asked to speak at an event in Singapore and to give his opinion on the future for the U.S. Dollar. His presentation was titled ‘Death Of The Dollar Standard’ and showed very clearly that the Dollar Standard is developing serious cracks, and will likely split at the seams during this decade. How will this affect you? It’s not all doom and gloom, as you’ll learn from watching the video...

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Jim Rickards Interview: No Tapering, What it Means for Gold (9.23.2013)

In this interview Jim covers the implications of the recent Fed announcement, as well as what it means for gold moving forward. Jim Rickards is an investment banker and investment adviser based in New York, and the author of the best-selling book, Currency Wars: The Making of the Next Global Crisis. Mr. Rickards has held senior positions at Citibank, Long-Term Capital Management and Caxton Associates. In 1998, he was the principal negotiator of the rescue of LTCM sponsored by the Federal Reserve. His clients include institutional investors and government directorates. He is an adviser on capital markets to the Director of National Intelligence and the Office of the Secretary of...

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Gold Backed Money: The Choice of a Free Society

Is there a connection between human freedom and a gold-redeemable money? At first glance, it would seem that money belongs to the world of economics and human freedom to the political sphere. But when you recall that one of the first moves by Lenin, Mussolini and Hitler was to outlaw individual ownership of gold, you begin to sense that there may be some connection between money, redeemable in gold, and the rare prize known as human liberty. I hold here what is called a $ 20 gold piece… But today the ownership of such gold pieces as money… is outlawed. Also, when you find that Lenin declared and demonstrated that a sure way to overturn the existing social order and bring about communism was by printing-press paper money, then again you are impressed with the possibility of a relationship between a gold-backed money and human freedom. In that case, then certainly you and I as Americans should know the connection. We must find it even if money is a difficult and tricky subject. I suppose that if most people were asked for their views on money, the almost universal answer would be that they didn’t have enough of it. In a free country, the monetary unit rests upon a fixed foundation of gold or gold and silver independent of the ruling politicians. Our dollar was that kind of money before 1933. Under that system, paper currency is redeemable for a certain weight of gold, at the free option and choice of the holder of paper money. That redemption right gives money a large degree of stability. The owner of such gold-redeemable currency has economic independence. He can move around either within or without his country, because his money holdings have accepted value anywhere. For example, I hold here what is called a $ 20 gold piece. Before 1933, if you possessed paper money, you could exchange it at your option for gold coin. This gold coin had a recognizable and definite value all over the world. It does so today. In most countries of the world this gold piece, if you have enough of them, will give you much independence. But today, the ownership of such gold pieces as money in this country, Russia and all divers other places is outlawed. The subject of a Hitler or a Stalin is a serf by the mere fact that his money can be called in and depreciated at the whim of his rulers. That actually happened in Russia a few months ago, when the Russian people, holding cash, had to turn it in — 10 old rubles and receive back one...

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Crash Course by Chris Martenson – 38 minute condensed version

Join Dr. Chris Martenson as he explains the three E’s of the economy, energy, and the environment and how they are interrelated in this condensed version of his three hour Crash Course. As Chris often reminds us in the Crash Course, “The next twenty years are going to be completely unlike the last twenty...

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Fed QE Tapering: Quanticlimax for Gold & Silver Bears?

Gold and silver rose on QE. So tapering must drive precious metal prices lower again, right…? Ben Bernanke, head of the US central bank, will announce the beginning of the end for quantitative easing at this month’s policy meeting in Washington. Everyone thinks so. Gold and silver prices seem to agree, drifting to new multi-week lows Wednesday morning in a reversal of their pattern when QE was ramped up from 2009 to 2012. And Bernanke pretty much said in June that QE’s end would start this month. Policy-makers have been talking about it since April. Those two months loom large for anyone trading gold or silver. But looking at this week’s 4% drop so far, traders have to ask: Is it a case of sell the rumour, buy the news? It was always the reverse when QE was growing. Acting in what we christened “quanticipation”, gold and silver prices tended to rise ahead of the US Fed’s various QE launches (you remember – QE1, QE2, and so on). They then fell back once the announcement was made, only to resume their longer-term rise. So the outlook today? The aim of QE is to juice assets which might help boost the economy, or at least make it look that way. So since March 2009, the very depths of the post-Lehmans’ banking collapse, the Fed’s QE program has created and spent some $ 2.735 trillion by our maths. That’s greater than the sum total of all US cash and household savings in existence only 25 years ago. It’s equal to one Dollar in every four held by US savers today. This flood of money, you’ll recall, has been used primarily to buy US Treasury bonds. The stated plan was to push up the price of “risk free” government debt investments, pushing down the interest rate they offer. That way, investors would be forced to make riskier bets if they wanted any hope of a decent return. Borrowers could then raise loans at cheaper rates, greasing the wheels of the economy. Did it work? US consumer debt is lower today by 12% from the peak of end-2008, just before QE began. That fall has been driven entirely by a drop in mortgage debt, despite a good chunk of the Fed’s electronic cash also going to buy mortgage-backed bonds as well as Treasury debt. Wall Street’s own debt has meantime shrunk by one fifth, while corporate borrowing by non-financial firms has risen, but not by much when you account for inflation. What has soared, of course, is the stock market, with the S&P rising to all-time record highs as QE has been piled...

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US Gold rises above $1368 after stimulus concerns ease

MUMBAI (Commodity Online): US gold recorded a recovery from its recent bearish rally and recorded a jump on Thursday after US Federal Reserve said that it would maintain its ‘bullion friendly’ monthly bond purchases at $ 85 bn levels. The yellow metal jumped most in 15 months. Comex gold futures on electronic platform jumped 3.9% to $ 1358.9 per troy ounce for December delivery as of 09.27 IST on Thursday. The Federal Open Market Committee (FOMC) “decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” according to a statement from the FOMC on Wednesday after a two day meeting. On Wednesday, gold prices recorded decline and fell below $ 1300 before the release of FOMC statement on concerns that US Central Bank would start curbing its monetary stimulus later this month on improving economic conditions in the US and around the world. The Central Bank has stated yesterday, that it requires further evidence that economic conditions in the US have been improving to reduce its monetary stimulus. Gold recorded a rise of 70% from the end of December 2008 to June 2011 after US Central Bank started its monetary stimulus. Firm gold demand would determine the yellow metal’s price trend in 2013 and 2014 as investment demand would be declined, said HSBC in its recent report. HSBC has raised its 2013 average price estimate for gold to $ 1,446 an ounce, up $ 50 from its previous estimate, based on the rise in physical demand. HSBC left its 2014 and 2015 estimates unchanged at $ 1,435 and $ 1,395, respectively. Weak data releases from the United States released on Wednesday may have supported the yellow metal prices further in the global market to certain extent today. Silver futures for December delivery on Globex platform of Comex was seen trading with a gain of $ 1.51 at $ 23.07 per troy ounce as of 09.53 IST on Thursday. US Gold rises above 68 after stimulus concerns...

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