Here’s an interesting Kitco interview of the author of “Precious Metals Investing for Dummies” author Paul Mladjenovic. In this interview that took place last year, Mr. Mladjenovic argues that the strength of the economy under Trump will boost inflation, leading to a rise in precious metals prices. In this interview, he predicted gold might surpass $1,300, which proved to be correct. His prediction of $25 silver was not borne out, given that silver has lagged behind gold in this new leg of the bull market. However, this can present a good opportunity for silver investors. Mr. Mladjenovic is also optimistic about gold mining companies that are well-run and have good reserves. It is worth noting that some economists believe the U.S. will actually be heading into a recession in the near-future given the long stretch of economic growth lasting almost a decade and the cyclical nature of recessions.
For the first time ever, the bitcoin price — that is, for a full unit of bitcoin — is now worth more in U.S. dollars than an ounce of gold. This is big news for proponents of digital currencies. Of course, not everyone is convinced that bitcoin is a safe or savvy investment, despite increasing digitization of money. Here is a video on bitcoin’s recent surge.
Many investors in bitcoin and other cryptocurrencies believe that digital money is a way to diversify away from the risks of fiat money.
Jim Rickards asserts the next major financial crisis is around the corner, which will usher in the use of Special Drawing Rights (SDRs) as the next global reserve currency to bail out bankrupt nations such as the U.S. He asserts the next crisis could cause the closure or restricted use of banks and other financial institutions for several weeks. He also believes any deflation will be countered by inflation by the world’s central banks — in this respect, his outlook is similar to Michael Pento‘s. Rickards believe tangible assets such as gold, fine art, and real estate will maintain their value during this financial storm.
Here is the interview with Greg Hunter.
In an interview with Greg Hunter of USAWatchDog.com, Michael Pento, a financial analyst with Pento Portfolio Strategies, suggests the jig will be up for the bond market and the dollar once the Federal Reserve admits it cannot raise interest rates without cratering the financial markets. He believes the negative rates on European and other corporate bonds are unsustainable, and that the global nature and depth of the bond markets mean that bonds can skyrocket from negative or zero percent to two, three, or even four percent, or higher, in a matter of days. Such a shift in the bond market will signal a major loss of confidence in them by investors and traders.
He believes that the U.S. is in or about to enter into a recession, thus making continuous rate hikes impractical. He also believes once the world figures out that the U.S. markets are no different from Europe or Japan, and the Federal Reserve starts easing again, that gold can easily rocket near or to its all-time highs. Along these lines, Pento has published his book The Coming Bond Market Collapse that elaborates on these ideas.
Jim Rickards and Egon von Greyerz both agree that gold should be valued at $10,000 based on today’s money supply in the video below. They also believe gold is a hedge and form of insurance to economic instability and potential hyperinflation. They also discuss the 1,000 ozt silver bars traded in the bullion markets, along with their unique features, such as their assay marks and serial numbers.
Here is an interesting interview of Andy Hoffman, a silver analyst for Miles Franklin, by FutureMoneyTrends.com. Andy believes that economic turmoil globally will push more people into precious metals and silver in particular, making the shorts in the market unable to cover without significant losses. He believes precious metals shortages are imminent.
According to FutureMoneyTrends, China is preparing for a new global monetary arrangement by not only buying above-ground gold but also by acquiring gold mines.
If true, this is an interesting and seemingly very effective strategy given that gold reserves throughout the world are getting depleted due to demand and given the difficulty of extracting gold from the earth’s crust.