3 Minute Gold News – Jim Rickards – CNBC – July 19, 2016

3 Minute Gold News

A Quick Read for Busy People

A synopsis of an interview with Jim Rickards, New York Times bestselling author of The Death of Money, Currency Wars, and the newly released bestseller The New Case for Gold by Jackie DeAngelis of CNBC.

Jim is the editor of Strategic Intelligence, Chief Global Strategist for West Shore Funds, former general counsel for Long Term Capital Management, and a consultant to the U.S. Intelligence community and U.S. Department of Defense.

by: Elaine Diane Taylor

 

Topics:

Gold
Stronger Dollar
Gold Target

 

Jim Rickards

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Interview Link

 

GOLD

This is the beginning of an extended bull market.

We could be looking at something like 1999 where it went up 615% over a 12 year period. On a single day it can be volatile, and it could go down tomorrow, so I’m not thinking about the day-to-day volatility.

Sentiment was lousy and gold had a terrible five year period from 2011 – 2015. It looks like we’re off the bottom.

Gold going up immediately after the Brexit vote or gold going up after the Turkey coup you can understand — that’s flight to safety.

But gold didn’t go down a lot after those things were over.

When the shock was over and the market repriced gold didn’t go down a lot. It’s got a very good foundation around the $1,330 U.S. level.

It’s poised to go up a lot from here.

The key thing is that central banks, and the Federal Reserve in particular, are in a corner. If they ease, which Jim believes they are leaning towards, then sooner or later you’re going to get some inflation. You are at least going to get some lower real rates which is bullish for gold.

If they tighten, which they might do, then it will be a blunder and they’ll burst the bubbles of the stock market, housing, commercial real estate. You really can’t tighten without bursting bubbles.

The bursting bubbles will create a fear trade.

Gold wins either way — easing or tighening.

STRONGER DOLLAR

In general a stronger dollar is a lower dollar price for gold and a weaker dollar is a higher dollar price for gold.

But there are exceptions for every rule.

One exception is that when there is a liquidity crisis or a fear trade people will go to the dollar and to gold.

Normally they would just go to the dollar — U.S. Treasuries and U.S. dollar denominated assets. But gold has gone from the commodity space to the money space.

Today gold competes as a form of money.

So if you want to get out of euros or sterling or yuan (lots of money coming out of the China as well as South America), then you want to look at dollars and gold.

It’s possible for both gold and the dollar to get stronger in this horse race for what’s the most desirable form of money.

GOLD TARGET

The target is $10,000 per ounce, as explained in The New Case for Gold, but that target could be weeks or could be years. It’s just like an avalanche, the snowpack is unsteady but you don’t know when the snowflake that sets off the avalanche is going to hit.

There will be a change in psychology and a panic reaction, which happens very, very quickly.

It could happen because of the Fed ordering it in order to create inflation if they get desperate enough.

It could be a 5 year play or it could be a 1 year play depending on the circumstances, but the dynamic in it is set up for $10,000 gold.

Gold will pass $1,450 on the way to $10,000. Is that possible by the end of the year?

It’s possible. Sure.

The New Case for Gold is available at Amazon.

 

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

 

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Gold is $1,332.20 U.S. per ounce.

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Holding steadyish it seems to have found a bottom.

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It’s lizard world in the deserts of Red Rock Canyon, Nevada and Death Valley, California.

One environment is freaking hot and other is screaming crazy hot. Same creatures with different armour.

Best to be prepared for the environment you find yourself in.

Red Rock Canyon:

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And the lizards playing warming on a rock in the early morning sunshine:

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In Death Valley it was a little bit different. Extreme heat beating down even in the morning.

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I was traveling with my brothers and nephew.

And I met this little guy:

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He had spikes on his head and was armoured from the heat like this:

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In our macro world, it’s best to know what’s out there and to get a little armour for the elements.

We’re all in Red Rock Canyon at the moment…but it’s that Death Valley extreme weather that I see coming.

Looked around in the smoldering sand of Death Valley but unfortunately didn’t see this little guy:

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Elaine Diane~

 

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Not Much of a Holiday
words and music Elaine Diane Taylor
© 2015 Intelligentsia Media, Inc. All rights reserved.
SOCAN/ASCAP
Single available on iTunes

The Greek bank holiday and long lines to get a few euros for the day. Debt deals behind closed doors. The media telling us what opinions to have. China building islands in the South China Sea and claiming all the international waves. More dealing to come. More standing in line for those who owe. Who owes? There’s a long line of nations in debt and this is far from done.

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Preparing for the Fall live boutique album available on iTunes — featuring Wag the Dog, Black Swan Dive,  American Pie and Gods of the Copybook Headings.

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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.

When a nation leaves the gold standard and sound money, and borrows to go to war, then hunger goes up, hope goes down, anger goes up, then it all goes down.


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

The copybooks of the early 1900s gave us all the wisdom we need. The sayings that were copied are the truths, the gods, of our world. All the empires who followed the gods of the marketplace instead have fallen, and there’s terror and slaughter when the gods of the copybook headings return. The lyrics are by Rudyard Kipling. One of my gurus.

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

See the bankers wave their Wall Street wands and conjure piles of paper green. Naked short selling is like betting that your neighbour’s house will burn down. But in this scenario it happens to burn down. If the bankers win then we lose the whole world as we know it. I wrote this in 2009, with a lyric “A little grease (Greece) is floating out to sea, and little pigs (Portugal, Italy, Greece and Spain) are bobbing up and down, they’ll send a storm and we’ll see, when the tide goes out who’s naked on the beach“, and it’s coming on now. The world is changing as we know it.

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Nothing on this site is intended as individual investment advice. We’re all watching which way the wind is blowing.

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