3 Min. Gold News – Jim Rickards – CNBC World – May 12, 2015

3 Minute Gold News

A Quick Read for Busy People

A 3 minute synopsis of an interview with Jim Rickards, Chief Global Strategist at West Shore Funds, and New York Times bestselling author of The Death of Money and Currency Wars, by Susan Li and Bernie Lo from CNBC World.

Topics:


Russia
Fed and Interest Rates
Strategies

 

 Rickards - Brisbane

Jim Rickards

Interview link

RUSSIA

Russia is no different than any other investment — getting the entry point and the exit point is important.

Russia was beaten down last year with US sanctions and what was going on with the Ukraine, but it’s the eighth largest economy in the world, the first or second largest natural resource exporter, has a pretty educated workforce and close ties to Germany.

The Russian market has performed very well so far this year and there’s more to go.

FED AND INTEREST RATES

The whole world is going to pivot on what the Federal Reserve does later this year.

They continue to speak as though they want to raise interest rates but June is off the table now so some people think they’ll raise rates in September.

Jim believes they won’t be raised until 2016.

If the Fed raises interest rates and the market doesn’t expect it then it could be a shock and take the markets down.

On the other hand, if they ‘blink’ and say they can’t raise them and in fact they’re going to do QE4 then markets could soar.

So what do you do?

STRATEGIES

Have some cash.

Cash reduces volatility and gives you options like jumping into Russia when you see an opportunity.

Jim has a slug of cash, but also equities, hard assets, some gold, fine art and other things that are less liquid but he is expecting will have good long term returns.

You don’t need $120 million to buy a Picasso. There are well managed art funds out there. Jim’s mutual fund invests in an art fund whose predecessor was his best performing asset for the last five years.

Here’s the barbell approach when you don’t know if inflation or deflation is coming:

At one end of the barbell have a deflationary hedge like 10 Year treasury notes. At the other end of the barbell have an inflationary hedge like physical gold and fine art.

In between have cash.

If we knew for sure whether inflation or deflation was coming then we could load the portfolio on one side or the other but the world is on the knife edge — it could go either way.

In the short run deflation has the upper hand.

Jim is doing what Warren Buffett is doing. Buffet has hard assets but also more cash right now than he’s ever had.

 

Jim Rickards can be found on Twitter and at James Rickards Project.

 

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I’m back for a brief time from the woods where I’m staying along the Canadian Gold Rush Trail.

I hiked last week up a mountain overlooking the waterfall where I’ve been writing, and spied wild strawberries flowering. I’m soooo looking forward to when they’re ready.

A mama bear with babies has been seen in the twilight on the beach where I sit in the late morning. I’d love to get a photograph when I’m back next week.

Here’s the side of the road I came home on.

 

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AlbumCover.PreparingfortheFall

 

 

 

 

 

Preparing for the Fall is a boutique live solo album available on iTunes — including the singles Wag the Dog, Black Swan Dive, Miss American Pie and Gods of the Copybook Headings. Definitely not a studio recording — this one is a mic in the livingroom and all that wonderful live sound.

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Wag the Dog (Drums of War and Backroom Banker Passes)
words and music Elaine Diane Taylor
© 2014 Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Preparing for the Fall available on iTunes

Beating Beating
I can hear drums beating, beating
I can see there’s blood on the street
There’s marching fiat soldier feet
waving flags / false / friends / hands / shaking / earth / harps (HAARPs) / singing
God God God

There’s opium for masses
Mideast oil and gas and backroom banker passes
Tongues and tails wag the dog if all else fails
While they beg and borrow and steal
They want steel
So they’re beating, beating
I can hear their drums
Beating Beating

Currencies and empires all fall down

Beating Beating
I can hear drums beating, beating
I can see there’s blood on the street
There’s marching angry peasant feet
waving flags / false / friends / fists / shaking / earth / leaders / singing
Bomb Bomb Bomb

There’s opium for masses
Mideast oil and gas and backroom banker passes
Tongues and tails wag the dog if all else fails
While they beg, borrow and steal
They want steel
I can hear them beating beating
I can hear the drums
Beating Beating Beating

Currencies and empires all fall down

 

Coins and Crowns
words and music Elaine Diane Taylor
© Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Coins and Crowns available on iTunes

Single featured in Episode 1 of Mike Maloney’s documentary series Hidden Secrets of Money.

 


The Gods of the Copybook Headings
words by Rudyard Kipling and music by Elaine Diane Taylor
©2014 Intelligentsia Media Inc.
SOCAN/ASCAP
from the album Preparing for the Fall available on iTunes

 

 

Another Week on Wall Street (Naked Short Selling and Fiat Currency)
words and music Elaine Diane Taylor
© 2013 Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Coins and Crowns available on iTunes

 

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Nothing on this site is personal investment advice. We’re all watching how the wind is blowing.

 

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