3 Minute Gold News – Jim Rickards – Aug. 15, 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 Bernie Lo 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



Central Banks
Gold is Not a Fringe Investment Anymore


Jim Rickards

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Interview Link



Gold is volatile — it can go up and down — but it’s an asymmetrical trade in that the odds of it going up are far greater than the odds of it going down.

That’s because every central bank around the world says they want inflation. For example, the U.S. Fed has a 2% target and the Bank of England has a 2% target.

They’ve come nowhere close to their targets and we haven’t seen much inflation.

That just means they’re going to keep trying.

Central banks cannot allow deflation because it increases the real value of their debt.

(Real-time debt each country owes from nationaldebtclocks.org.

By increasing inflation the payback amount is actually less because each $1 repaid is the same numerical amount but is now worth less in value.

Great if you need to repay debt but lousy if you want to save in that currency.)

So, if every central bank in the world is trying to create inflation and they’re not going to rest until they get it then gold has nowhere to go but up.

It may go down a little bit but it’s not going to go down much while they’re trying to create inflation.

(It may go down and up in small swings while it’s rising, as people feel little bursts of confidence and then uncertainty, but overall it’s going to rise as the central banks are going for inflation.)

It could go up a lot once the psychology changes. (If people as a large group feel uncertain and panic then it will rise really fast.)

The gold price increase (26% so far this year) is anticipating the ultimate success of the central banks.

The central banks have tried everything — QE1, QE2, QE3, Operation Twist, currency wars, forward guidance.

(They’ve printed more and more fiat currency backed by nothing making each dollar worth less. They’ve lowered interest rates to try to get people to borrow and spend, and they’ve tried to pursuade people to purchase things instead of saving or paying debts.)

Central banks haven’t got the inflation they need yet.

They’re going to keep trying.

The next thing they’re going to do is create ‘helicopter money’. That means combining fiscal policy and monetary policy.

So countries will run larger deficits. They’ll have the Treasury borrow the money and have the central bank buy the bonds.

And the central banks will not only buy the bonds but they’ll hold them on their balance sheets forever and never sell them. They’re even talking about perpetual bonds.

Eventually it will work and we’ll have inflation.

Central banks are not going to give up trying.



Gold isn’t a fringe investment anymore.

Look who’s in it: Bill Gross, Stanley Druckenmiller, Kyle Bass , and George Soros .

This is the smart money.

There’s a physical shortage of gold.

Jim returned from Switzerland recently where he was involved in the physical side of gold, dealing with the refiners and vaults. They’re saying that gold is very scarce.

When the price breaks upwards, which we expect, you’re not going to be able to get it.

The time to get it is now.


The New Case for Gold is available at Amazon.


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




Gold is $1,339.40 U.S. per ounce

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From Technews: Gold in technology and biology. MIT has developed a way to have temporary tattoos of gold leaf on your body that can be used as a trackpad and controller for your tech devices.



Elaine Diane~

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Not Much of a Holiday
words and music Elaine Diane Taylor
© 2015 Intelligentsia Media, Inc. All rights reserved.
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.



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.


Coins and Crowns
words and music Elaine Diane Taylor
© Intelligentsia Media Inc. All rights reserved.
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.
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.
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.


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

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