• Gold: 1,283.57 -2.68
  • Silver: 16.91 -0.11
  • Euro: 1.176 -0.001
  • USDX: 93.434 -0.217
  • Oil: 48.91 1.97

The fiscal benefits of free trade

Western governments have an overriding problem, and that is they have reached or exceeded the bounds of taxation, at a time when legally mandated welfare costs are accelerating. Treasury departments in all the welfare nations are acutely aware of this problem, to which there’s no apparent solution. The economic recovery, so consistently forecast since the great financial crisis, has hardly materialised and has added to the problem.

Silver Cycles and War Cycles

Wars are usually financed with debt – borrowed currency. The extra currency in circulation creates price inflation. Silver prices, along with most other commodities, rise due to currency devaluation. Silver is used in war materials and war production, so demand rises, which also causes prices to rise. Conclusion: We expect silver prices to rise at the beginning of new wars or the escalation of major and costly wars. There is little doubt that both World Wars and the Vietnam War were costly and important to the U.S. economy.

Silver Market Morning: August-18-2017: Gold and...

The dollar is falling once more, but not precipitously. It will lead to higher gold prices if it continues. This is being reflected in today’s prices. There is strength to the rise in gold price that we had not seen before in the previous attacks on $1,300. The causes are solid too. These are; an overvaluation of the dollar, a resuscitation of U.S. demand for physical gold, a dearth of sellers of gold, Shanghai’s demand for gold remains strong as it does in London!

Silver Market Morning: August-17-2017: Gold and...

All three global gold centers are reacting to the falling dollar today. What is of great interest is that the concept of Shanghai having a “premium” over London is just about dead. We are seeing a truly global gold price now, both ways. We have no doubt now that global gold prices are here to stay and that the impact of COMEX ‘paper’ gold prices has almost been removed as the significance of New York’s gold prices has diminished, in favour of the global gold price. This is a significant point in the evolution of the gold price!

August 16: Gold and Silver Reverse Morning Losses...

Gold dipped to $1267.60 by a little after 9AM EST, but it then jumped to as high as $1283.80 in afternoon trade and ended with a gain of 0.72%. Silver slipped to $16.634 in Asia, but it then climbed to as high as $17.112 in late trade and ended with a gain of 2.64%.

Silver Market Morning: August-16-2017: Gold and...

New York closed $5.00 higher than Shanghai’s close yesterday. Then today sees Shanghai dropping the gold price once again just before London opened, which lead to London’s prices being lower for the same reason as yesterday, as the dollar continued higher, in its falling pattern.

Debt, Dollars, DOW, War, Silver and Shirts

Wars are costly, kill people and produce little. Governments like wars because they create demand for production of war materials. More production means a higher GDP (even if the concept means little). Politicians point to higher GDP and claim it is good. More production creates employment. Everyone wins, unless the bomb fell on you. Unless the drone targeted you. Unless you live on a fixed income and prices continue to rise. Unless you are a soldier and were injured or killed.

Silver Market Morning: August-15-2017: Gold and...

New York closed $4.53 higher than Shanghai’s close yesterday. Then today sees Shanghai dropping the gold price just before London opened, which lead to London’s prices being lower as the dollar corrected higher, in its falling pattern. Shanghai is leading the way down, but following a stronger dollar as it adjusts to dollar gold prices.

Silver Boom Time?

Previously, I have shown how conditions in the financial markets are very similar to that of the early 80s (circa 1983). Basically, the Dow was at a start of a long-term rally around 1983, and silver just broke down and entered a long-term bear market.

Silver Market Morning: August-11-2017

With the gold price continuing to rise we are torn between New York’s exuberant paper gold trading and Shanghai’s solid gains on the back of physical trading. Today and next week become important days for the gold price. It is also the time when North Korea said they would fire a missile towards Guam!