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Thanks to the Fed and Central bank intervention, sales of Gold and Silver Eagle sales declined sharply over the past year. Yes, it’s true… precious metals investors have lost interest in gold and silver as the stocks, real estate, and crypto markets reached new highs in 2017. So, who wants to continue purchasing gold and silver when many cryptocurrencies were experiencing 10% increases in a day.
H/t reader squodgy:
“Another sign that the herd is being herded…….
Paper money and electronic money have a questionable and thus insecure lifespan.”
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Will physical gold and silver prices ever break free of manipulation and price suppression?
Renowned gold expert Andrew Maguire with Tom Coughlin, who is CEO of Kinesis that will be rolling out a gold backed currency in the fall, both say yes. So, what is it about? Coughlin explains, “It’s actually classified as a monetary system, and it’s called Kinesis. The reason we call it Kinesis is that it actually stimulates the flow of money. We see this as reintroducing the gold and silver standard through this monetary system.”
Maguire says there will be actual precious metal backing it up. Maguire says,
Justin’s note: Volatility has come storming back.
Just look at the CBOE Volatility Index (VIX), which measures how volatile investors expect the market to be over the next 30 days.
It’s up 89% since the start of the year. Last week, it hit the highest level since 2016.
Investors aren’t used to this. After all, last year was the least volatile year ever for U.S. stocks. That lulled many investors to sleep. It led them to take risks they would normally never take.
Now, those same people are wondering what to do. They aren’t sure if this is just a run-of-the-mill pullback…or the start of something much worse.
To help answer this question, I called up Doug Casey. I knew he would have an interesting take on this matter…
Justin: Doug, U.S. stocks took a beating recently. Where do you see things going from here?
Doug: Well, I hate to make a firm prediction of timing. The fact that things have held together, against all odds, since 2009, has underlined the old saying about just because something is inevitable doesn’t mean it’s imminent. Predictions of disaster, and all these things unwinding, have been wrong over the last half a decade. And the smart bet is always for muddling through, in the direction of progress. But it seems that we’ve finally reached a peak, a major turning point.
Justin: So, what have you done to protect your wealth?
Doug: At the beginning of the year, I took all my original capital out of cryptos, plus 150% profits. I also took profits on crypto stocks. I got in late, and out a bit late. But it was a happy experience.
The world’s two largest silver mines have seen their productivity decline substantially due to falling ore grades and rising costs. Gone are the days when silver mines could produce silver at 15-20 ounces per ton. Today, the Primary Silver Mining Industry is likely producing silver at an average yield of 4-5 ounces per ton.
In my newest video, I discuss the changes that have taken place in the world’s two largest silver mines, the Cannington Mine in Australia and the Fresnillo Mine in Mexico. Falling ore grades and rising energy costs have contributed to the doubling and tripling of production costs at many silver mining companies. Investors who believe it still only costs $5 an ounce to produce silver, as it did in 1999, fail to grasp what is taking place in the silver mining industry:
A big problem that has confused investors is the reporting of the “CASH COST” metric by the mining industry. Some silver mining companies can brag that they have a very low cast cost of $5 an ounce, but they arrive at that figure by deducting their “by-product credits.” By-product credits are the revenues they receive from producing copper, zinc, lead, and gold along with their silver.
LONDON — Big Four consulting firm Ernst & Young (E&Y) has been accused of “unlawful, unprofessional, and unethical” behaviour relating to its audit of a Dubai gold company accused of money laundering and buying gold from conflict zones.
The allegations were made in documents, seen by the Guardian, filed in the high court by lawyers acting for Amjad Rihan, a former E&Y partner who blew the whistle on the alleged scandal in 2014.