money

Blog

Zacarias Pereira da Mata/Shutterstock

The Great Market Tide Has Now Shifted To Risk-Off Assets

A global sea-change in risk appetite & sentiment
Friday, July 8, 2016, 3:03 PM

In the conventional investment perspective, risk-on assets (i.e. investments with higher risks and higher potential returns) such as stocks are on a see-saw with risk-off assets (investments with lower returns and lower risk, such as Treasury bonds). When risk appetites are high, institutional managers and speculators move money into stocks and high-yield junk bonds, and move money out of safe-haven assets such as gold and U.S. Treasuries.

But recently, markets are no longer following this convention. Safe haven assets such as precious metals and Treasuries are soaring at the same time that stock markets bounced strongly off the post-Brexit lows.

Risk-on assets (stocks) rising at the same time as safe-haven assets is akin to dogs marrying cats and living happily ever after. 

What the heck is going on? » Read more

Blog

3Dsculptor/Shutterstock

An Everyman's Guide To Understanding Cryptocurrencies

What are they exactly? Why consider owning them?
Friday, June 10, 2016, 5:51 PM

When an asset rises by almost 30% in a few weeks, it tends to attract attention.  Recently, that asset was bitcoin (BTC). The price of BTC in dollars rose from $454 on May 23 to $590 on June 6th.

When an asset doubles in a matter of months, it tends to attract attention.  The cryptocurrency Ether (part of the Ethereum platform) doubled from around $7 in April to roughly $14 in early June.

Are these cryptocurrencies mere fads? Or are they potentially game-changing alternatives to the conventional currencies such as the U.S. dollar, Chinese RMB, Japanese yen or European Union euro? » Read more

Insider

M. Primakov/Shutterstock

Will Cryptocurrencies Soar as the Global Economy Falters?

The reasons why they very well may
Friday, June 10, 2016, 5:50 PM

Executive Summary

  • How will increasing capital controls around the world affect demand for cryptocurrencies?
  • The big banks and corporations are embracing the blockchain. Will that make it harder to ban cryptocurrencies?
  • With far less than 1% of the population holding cryptocurrencies, how large is the remaining updside?
  • What the future may hold for bitcoin and its digital brethren

If you have not yet read An Everyman's Guide To Understanding Cryptocurrencies, available free to all readers, please click here to read it first.

In Part 1, we sketched a brief overview of cryptocurrencies and their potential role as a means of transferring and thus preserving capital from depreciating currencies in destabilized economies to more secure currencies/assets elsewhere in the world.

The Rise of Capital Controls Fuels the Use of Cryptocurrencies

As governments actively devalue their currencies (thereby making everyone using the currency poorer), their citizenry with financial capital are forced to seek ways to move their at-risk wealth into other currencies or assets.

China is a prime example of this trend. As the U.S. dollar has soared 20+%, China’s currency has strengthened along with the USD due to the yuan being pegged to the USD. In response, China must devalue its currency to maintain the global competitiveness of its export sector.

Faced with a massive loss of purchasing power, China’s wealthy class has moved their wealth and their families out of China. This flood of capital has pushed up housing prices in favored markets such as Vancouver B.C. and west coast cities in the U.S.

The sums being transferred abroad are non-trivial. Estimates range into the trillions of dollars. Many observers see the rise of capital controls as... » Read more

Insider

wikimedia

Why The Fed’s Efforts Will End Badly

We've been down this road before. Quite recently, in fact
Wednesday, June 1, 2016, 2:26 PM

It’s no secret that I've taken the contrarian position for seven long (and frequently frustrating) years.

Look, we’ve been down this road before, and the sheer stupidity of our current situation is that we’ve been down it recently enough to know better.  It worked out poorly for us in 2000, again in 2008, and will soon enough again. That's why I'm currently short the US stock market and plan to increase that short position as time goes on.

I'm quite familiar with, and even sympathetic to, the idea that the central banks will not... » Read more

Insider

CHOATphotographer/Shutterstock

Off The Cuff: We Need Money We Can Trust

A case for a new type of money system
Thursday, May 12, 2016, 9:49 PM

In this week's Off The Cuff podcast, Chris and Charles Hugh Smith discuss:

  • The Death Of The Status Quo
    • The establishment is in a doomed fight to keep change at bay
  • The Importance Of Free Pricing
    • When we can't trust the signals prices are sending us, we're blind
  • The Need For Sound Money
    • When money is manipulated, mal-investment ensues
  • The CLIME Model
    • Charles walks us through his proposal for a labor-backed currency system

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today. » Read more

Podcast

Peak Prosperity

Adam Trexler: A New Way to Hold Gold (2016 Update)

Right alongside the bills in your wallet
Sunday, April 10, 2016, 8:03 PM

What if you could carry and exchange gold in the exact same manner as you do with the dollar bills in your wallet?

Two years ago, we introduced the precious metals community to a company called Valaurum, which has developed a technology that's making this possible. » Read more

Podcast

Jim Rickards: The New Case For Gold

A powerful set of arguments for owning the yellow metal
Monday, April 4, 2016, 12:32 AM

Monetary expert Jim Rickards returns this week to share the insights from his latest work The New Case For Gold, a detailed and highly-researched study of the fundamentals likely to drive the price of gold bullion in the years to come.

Rickards is quite confident that the price is going higher -- much higher in fact -- as the current world fit currency regimes falter, to be replaced by ones backed (at least in part) by bullion.

On the way to that outcome, expect the price to be subject to the geopolitical interests and aims of the largest players on the chessboard. » Read more

Insider

gopixa/Shutterstock

Off The Cuff: The Coming Capital Controls

Dan Amerman lists the many ways we will get fleeced
Friday, February 19, 2016, 5:52 PM

In this week's Off The Cuff podcast, Chris and Daniel Amerman discuss:

  • The Wide Extent Of Central Bank Intervention
    • And the resulting Franken""markets""
  • The Coming Era Of Capital Controls
    • The war on our money is just getting started
  • Don't Underestimate The Incompetence Of Our Leaders
    • Central banks are more stupid than evil
  • Political Risk To The Markets Is Greater Than We Realize
    • It's the trigger everyone is discounting
Podcast

Scott E Read/Shutterstock

New Harbor: A Time For Staying Out Of Harms Way

Preserving your financial capital
Sunday, January 24, 2016, 1:16 PM

Given the brutal start to the markets in the first three weeks of 2016, we thought it a good time to check in with the team at New Harbor Financial. We have had them on our podcast periodically over the past years as the market churned to ever new highs, and have always appreciated their skepticism of these liquidity-driven ""markets"" as well as their unwavering commitment to risk management should the party in stocks end suddenly.

So, how is their risk-managed approach faring now that the S&P 500 has suddenly dropped 8% since Christmas? Quite well. Their general portfolio is flat for the year so far -- evidence that caution, prudence and hedging can indeed preserve capital during market downdrafts.

We've invited the New Harbor team back on this week to hear their latest assessment on the markets, as well as how they're approaching their portfolio positioning moving forward. » Read more

Blog

Phonlamai Photo/Shutterstock

The Screaming Fundamentals For Owning Gold

We're at a moment of historic opportunity
Tuesday, December 8, 2015, 12:53 PM

Every year or two we update this report, which lays out the investment thesis for gold. Here is this year's version.

Silver is touched upon only as necessary; as a separate report of equal scope is required for that precious metal.

Gold is one of the few investments that every investor should have in their portfolio. We are now at the dangerous end-game period of a very bold but very reckless & disappointing experiment with the world's fiat (unbacked) currencies. If this experiment fails -- and we observe it's in the process of failing -- gold will provide one of the best forms of wealth insurance. But like all insurance products, it only works if you buy it before you need to rely on it. » Read more