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7.29.16 - GDP TANKS: Economy Trudging Along at Best

Gold last traded at $1,350 an ounce. Silver at $20.34 an ounce.

NEWS SUMMARY: Precious metal prices traded higher Friday following stagnant U.S. growth data - further tying the Fed's hands. U.S. stocks traded mixed on lackluster corporate earnings and growth worries.

Gold rebounds after U.S. GDP disappoints -Reuters
"Gold hit a near three-week high on Friday after much slower-than-expected U.S. economic growth weighed on the dollar, and was on track for a second monthly gain in a row....'The Fed's decision to lift rates is data dependent and if figures continue to disappoint, like second-quarter GDP growth today, gold will push higher,' Commerzbank analyst Carsten Fritsch said....The dollar fell 1.1% on Friday against a basket of six currencies. The U.S. currency's decline was also due to the strength of the yen, after the Bank of Japan underwhelmed investors..."

Gold prices have been decoupling from the U.S. dollar this year. Why? Because the dollar has been artificially pumped up by other nations' currency weakness. Gold is the most trustworthy long-term store of value on earth. Period. Take action now before the masses discover this secret.

GDPblastdown GDP Falls, Consumption Rises -Bloomberg
"The U.S. economy expanded less than forecast in the second quarter after a weaker start to the year than previously estimated as companies slimmed down inventories and remained wary of investing amid shaky global demand. Gross domestic product rose at a 1.2% annualized rate after a 0.8% advance the prior quarter, Commerce Department figures showed Friday in Washington. The median forecast of economists surveyed by Bloomberg called for a 2.5% second-quarter increase....Household consumption, which accounts for about 70% of the economy, grew at a 4.2% annualized rate, the biggest jump since the end of 2014 and adding 2.83 percentage points to growth."

Currency Intended to Unite Europe Divides It -New York Times
"It was supposed to enhance commercial ties, erode borders and foster a spirit of collective interest, furthering the evolution of former wartime combatants into fellow nations of a united Europe. But the euro, in the 17 years since the common currency came into existence, has instead reinvigorated conflicts, yielding new crises, fresh grievances and a spirit of distrust. So argues the Nobel laureate economist Joseph E. Stiglitz in a timely new book, 'The Euro: How a Common Currency Threatens the Future of Europe.' Italy's banks teeter on the brink of crisis while the euro has become the subject of ceaseless bickering over economic policy. By Mr. Stiglitz’s reckoning, the common currency has made economic inequality worse while dividing Europe into two adversarial camps — debtor and creditor."

Two Conventions, Two Distinct World Views -Wall Street Journal
"In the Trump view, the American economy is weak and underperforming and working-class Americans are sliding backward. In the Clinton view, the economy 'is so much stronger' than when President Barack Obama took office while the auto industry just had 'its best year ever.' In short, the back-to-back convention weeks, and back-to-back acceptance speeches they contained, should eliminate any of those assertions heard in past campaigns that there is no real difference between the two parties and their leading candidates."

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7.28.16 - Faith in the Fed is Gone

Gold last traded at $1,341 an ounce. Silver at $20.19 an ounce.

NEWS SUMMARY: Precious metal prices consolidated recent gains Thursday following the Fed's widely anticipated inaction. Meanwhile, U.S. stocks traded near flat-line on lackluster earnings and declining oil prices.

'Gold production cliff’ may jolt prices -Marketwatch
"Gold discoveries peaked in 2007 and production will soon follow, strengthening the value of the yellow metal and possibly fueling a boom in mergers and acquisitions in the gold-mining sector, according to Sprott Asset Management. Discoveries of gold has collapses since then, 'despite exploration budgets increasing by 250% from 2009 to 2012.'....Companies have only recently begun considering increases in exploration budgets on the back of the increased gold prices, but there’s a '10-12 year lead time to transition a discovery to production,' says Sprott. That is a key reason why 'production is forecasted to decline over the next number of years.'....M&A will 'drive valuations higher,' the Sprott gold team said. 'There is a scarcity value in gold that is increasing.'"

As Will Rogers and Mark Twain agreed, "Buy land, they aren't making any more of it." The same is true of gold. Rising demand and shrinking supply equal rising prices. Now is the time to stake your claim on the best asset class of this century - before news of gold's shortage is reflected in gold's price. Buy what's scarce, sell what's common; that's good advice from the past worth heeding today. Get ahead of the financial curve today by reading our 2016 Gold Report - World Edition.

Fed rate Investors Are Losing Faith in the Fed -Bloomberg
"Investors have pushed inflation expectations close to their lowest levels on record, even as consumer-price readings show signs of rising. For only the second time in data going back to 1999, a Federal Reserve gauge of expectations for the inflation rate dipped below current measures. The trend shows investors are losing faith in the central bank’s long-term ability to spur price growth, according to analysts including Joachim Fels, a global economic adviser for Pacific Investment Management Co."

Our entire $50 trillion credit system is dangerously close to the biggest confidence meltdown in history - which could bring the entire nation to its knees with scarcely moments to prepare. The word "credit" means "faith". The day is coming when the U.S. credit system will fail, no money will be available from ATMs and only the real money you own will see you through the crisis. Call Swiss America at 800.289.2646 before the next confidence crisis strikes. Don't allow your best laid financial and retirement plans to blow-up overnight.

When Cash Is Outlawed... Only Outlaws Will Have Cash -Bonner/Moneywise
"The government wants you to use money it can easily control, tax, and confiscate. And paper currency is getting in its way....The biggest banks in Norway and Sweden urge the outright abolition of cash. And there are plans at the highest levels of government in Israel, India, and China to remove cash from circulation. Deutsche Bank CEO John Cryan predicts that cash 'probably won’t exist' 10 years from now....Banks are not really storing 'your' money at all. A bank deposit is an IOU from your bank. There is no vault of cash backing it up… just ones and zeros in a database somewhere. If the bank decides not to give you 'your' money, you’re out of luck....When cash is outlawed... only outlaws will have cash. And we intend to be among them."

Bill Bonner, the founder of Agora Financial, is a man two million paid subscribers have been listening to carefully for over three decades. Today he is convinced the government's "War on cash" will strike fellow citizens. We agree. That is why it is so vital for everyone of our readers to get a free copy of our 12-page White Paper: The Secret War on Cash.

US Homeownership Rate Crashes To Lowest Since 1965 -Zero Hedge
"In hopes of promoting the narrative of a US housing recovery, one recurring thesis has been that as Millennials get older and start families, they will eventually leave their parents' basement and buy a house or shift from renting to owning. So far the facts have refused to corroborate this, and according to the latest 'Housing Vacancies and Homeownership' report released on Thursday, the dream of owning a home just became even more distant. The reason: after staging a feeble rebound in late 2015, the US homeownership rate just tumbled from 63.5% to 62.9%, tied for the lowest print going back more than 50 years, to 1965....Cited by Bloomberg, Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina said that 'one of the biggest hurdles now is affordability. Home prices are rising so much faster than incomes, so it’s hard for buyers to save for a down payment.'"

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7.27.16 - Voters, Clinton and the Economy

Gold last traded at $1,334 an ounce. Silver at $19.99 an ounce.

NEWS SUMMARY: Precious metal prices rose Wednesday on bargain hunting and anticipated Fed inaction. Meanwhile, U.S. stocks traded mixed on upbeat Apple earnings and downbeat Coca-Cola earnings while yawning at the Fed statement.

Gold Should Comprise 25% of Your Portfolio -NewsMax
"Marc Faber, author of the Gloom, Boom & Doom Report, urged investment professionals at a recent Chicago conference that 25 percent of a portfolio should be dedicated to gold....Faber said rates are so low that investors can't make money in bonds so they keep buying stocks even though the prices are inflated. Central banks want rising stock prices to make people feel wealthy and therefore spend their money, but the end result is income inequality and investor resentment, he said....Faber said that is all the fault of central banks. 'It's ludicrous to think that slashing rates will get people to spend.' When rates are low, you feel more financially insecure even though your savings earn nothing. 'You save more,' Faber said."

As expected, the Fed is paralyzed on interest rates in the near future; but Fedspeak is a bit more upbeat than the statement in early June. Bottom line: We will look back at $20 silver and $1,325 gold as a real bargain, just as we did back in 2000 at $6 silver and $300 gold. Still not sure? Please read our 2016 Gold Report - World Edition.

Obama’s Economy Left Behind Voters Clinton Needs To Win -Bloomberg
"The young people and minorities who propelled President Barack Obama into office have lagged behind the economic recovery he’s shepherded, with blacks and Hispanics continuing to lose wealth even as whites gained after the recession. That’s posing a special challenge for Hillary Clinton, who’s vowing to largely continue Obama’s fiscal policies even as she counts on his coalition to keep the White House in Democratic hands. Economic data suggest these voters could be ripe for the picking by Republicans....The median net worth for black households fell to $11,000 in 2013, a 33.7 percent drop from $16,600 in 2010, as the racial wealth gap continued to widen even after the recession, according to the most recent Federal Reserve data."

Here is a chart showing how Progressive political and economic policies have impacted nine major U.S. economic measurements in recent years, courtesy of Zero Hedge.


Silver Surges Over $20 After Dismal Durable Goods Data -Zero Hedge
"After 21 straight days of economic improvements, today's dismal durable goods orders appears enough to prompt 'the QE trade' as bonds, stocks, and bullion surge (and dollar drops). Silver just spiked to $20/oz. breaking a major downtrend. And Gold is surging on heavy volume..."

It’s an exciting time for SILVER - which in on track to become the best performing asset of the year! Take Advantage of the silver window of 2016! Read our free 2016 SILVER REPORT - The Global Metal.

Restaurants Predicting U.S. Recession -The Reformed Broker
"The catalyst for the current weak pre-recessionary restaurant spending trend is likely multi-faceted (US Politics; Terrorism; Social Unrest; Global Geo-Politics; Economic Uncertainty) but, if history is a guide, we warn investors that restaurant industry sales tend to be the 'Canary that Lays the Recessionary Egg' (i.e. the current -2% cut-back in dining out sales is a possible harbinger of a -2%-plus cut-back in the US consumers’ entire spending basket within 3-to-9 months (which accounts for 70% of the US Economy).... To note, most of us are unaware that a recession has begun until several months after economists go back and pick a start-date."

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7.26.16 - Gold Up Again on Fed Chatter

Gold last traded at $1,320 an ounce. Silver at $19.68 an ounce.

NEWS SUMMARY: Precious metal prices rose Tuesday on safe haven buying, a weaker dollar and a trapped Fed. Meanwhile, U.S. stocks traded mostly lower amid a slew of earnings reports and further declines in oil prices.

Gold climbs, dollar retreats ahead of Fedspeak -Reuters
"Gold prices rose on Tuesday as the dollar fell, but remained hemmed into a range ahead of a two-day Federal Reserve policy meeting this week, which will be closely watched for clues on the outlook for U.S. interest rates....The Fed is expected to leave policy unchanged at its meeting starting later in the day, but investors are watching for any signs that the U.S. central bank may move back to tightening later this year....A scaling back of expectations for further increases in U.S. interest rates, which rose for the first time in nearly a decade in December, has helped push gold up 24 percent this year."

What will the remainder of 2016 bring? More uncertainty seems a wise presumption given the political and economic shocks we've witnessed so far. One asset class is set to benefit - no matter what the future brings - precious metals. Don't wait for the next crisis to strike, take action now to discover The Timeless Truth About Gold & Silver.

chart Is China About to Shock the Market? -Stockman/Daily Reckoning
"Did the U.S. just double-cross China under the Shanghai Accord? If so, China will act on its own to devalue the Chinese yuan. In that case, the DJIA could plunge to 16,450, and the S&P 500 could plunge to 1,925 in a matter of weeks, wiping out trillions of dollars of investor wealth....What do all of the currency wars moves have to do with U.S. stocks? The answer is the USD/CNY cross-rate may be a more powerful determinant of stock prices than traditional barometers such as earnings, stock multiples or economic growth....As the chart shows, that process of a new crash had already started in early June, but the crash was 'saved by Brexit.' The Brexit vote caused an immediate collapse in sterling and the euro and led to a 'risk off' flight to quality in dollars, gold and U.S. stocks. Now that the Brexit bounce is over and stocks are at nosebleed levels, the question is will history repeat itself, or will this time be different?"

The global impact of China’s busts and booms indicates exactly how much economic clout they now wield. Today China is making every attempt to fix their currency to gold in order to undermine the value and power of the US dollar and potentially mark the last days of American economic supremacy. Prepare now for more economic shocks in 2016 by reading our three Special Reports on Gold, Silver and Money.

U.S. corporations hoarding cash -Marketwatch
"U.S. companies returned to hoarding cash with vigor in the second quarter as compared with the first, pressured in part by the uncertainty created by the U.K. vote to leave the European Union, known as Brexit, according to a new study. The vote on Brexit, a sluggish domestic economy and a weak global economy combined to lead companies to hold on to their cash and defer investment decisions, according to the Association for Financial Professionals....‘Any likelihood of organizations deploying their cash has been curtailed with the outcome of the Brexit referendum, a tepid domestic economy and continued sluggishness in the global economy,’ the association said in a statement.”

If U.S. major companies are hoarding cash based on rising uncertainty, a stagnant economy and zero bank returns; should you be doing the same? Yes and no. Yes you should have a reserve of liquid cash for emergencies and the unexpected, but beyond that you should consider converting paper money into the only form of money that fears no crisis; real gold!

Public Pensions: Much Worse Than Appears -Manhattan Institute
"When financial markets slumped in 2008, the assets in government-worker pension funds plunged and public sector retirement debt soared. Although pension officials rushed to assure the public that their funds would recover as soon as stocks rebounded, the long bull market that began the following year didn't do much to cut states steep retirement debt....The nation's largest pension fund, the California Public Employees’ Retirement System, earned a mere 0.6% in the last year, significantly below its 7.5% target. Its sister fund, the California State Teachers Retirement system, which also aims for a 7.5% annual return, instead notched a 1.4% gain for the year....The news illustrates a fundamental problem with these systems: recovering from market turmoil is more difficult than pension officials concede....Some owe so much that asking taxpayers to foot the rest of the bill would be an enormous burden."

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