3 Minute Gold News – Jim Rickards – Kitco – Jan. 25, 2018

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 New Case for Gold, The Death of Money, Currency Wars and The Road to Ruin, with Editor-in-Chief Daniela Cambone at Kitco News.

Jim is the Editor of Strategic Intelligence, Chief Global Strategist for Meraglim Inc., 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:

Breakout Year?
World Events Affecting Gold
A World of $10,000 Gold

 

Jim Rickards

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Kitco News interview link

Daniela Cambone and Jim Rickards at the 2018 Vancouver Resource Investment Conference in Vancouver, Canada.

 

Daniela – Is 2018 gold’s breakout year?

Jim believes it is and that we’re now in gold’s third bull market of his lifetime.

From 1971 – 1980 gold went up over 2,000% and from 1999 – 2011 it went up 655%.

We’re in a new bull market that started in December 2015. Gold is up 27% since then.

Gold was up in 2016 and up in 2017, first back-to-back years of gold gains since 2011-2012, and now it’s up so far in 2018.

So 2018 will be a breakout year. But, in context, it’s not that gold is just going to have a good year and then a bad year. We’re now in the third year of a bull market.

With a very long way to run.

 

Daniela – What are the most important news items out there that could impact the gold price?

There are several important things, but the fundamentals of gold are very positive even without looking at geopolitical issues.

The U.S. is probably going to have a war with North Korea. As well, the U.S. is probably going to have a trade war as well as a currency war with China.

On top of that, if the Democrats in the U.S. take the House of Representatives in the November 2018 elections they will go right to impeachment proceedings, and try to remove President Trump.

These are all big things.

A trade war with the biggest economy in the world, a shooting war with a nuclear power, and an impeachment proceeding of a President.

Any kind of uncertainty and fear factor is going to drive the price of gold higher.

But Jim stresses that the fundamentals for gold are good even if none of these things happen.

 

Daniela – You’ve made a bold $10,000 U.S. per ounce gold prediction. Not for this year necessarily, but over a forty year timeline.

Jim believes his prediction of $10,000 will happen much sooner and points out it isn’t a made up number for headlines. It’s the result of an analysis he backs up. (Here’s a more in-depth article on the data from Daily Reckoning. – Elaine~)

Gold at $10,000 is approximately the implied non-deflationary price of gold in a gold-backed monetary system.

(Meaning, if the system has a crisis, which it does every seven years or so, then given the amount of gold and a 40% gold backing the price would have to be $10,000 in order to restore confidence. – Elaine~)

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Illustration by John Tenniel.

If there’s a liquidity crisis or a financial panic like we had in 2008, or worse, which we expect, then the global elite (the IMF, the central bankers, the G20 heads of state and finance ministers) have got to put Humpty Dumpty back together again.

(Interesting that Lewis Carroll‘s Through the Looking-Glass (1872), has Humpty Dumpty telling Alice that the question is the control over words. The global elite will try to control words. They’ll use all the king’s horses and all the king’s men to try to put Humpty (a financial system they control) together again. – Elaine~)

    “I don’t know what you mean by ‘glory,’ ” Alice said.
Humpty Dumpty smiled contemptuously. “Of course you don’t—till I tell you. I meant ‘there’s a nice knock-down argument for you!’ ”
“But ‘glory’ doesn’t mean ‘a nice knock-down argument’,” Alice objected.
“When I use a word,” Humpty Dumpty said, in rather a scornful tone, “it means just what I choose it to mean—neither more nor less.”
“The question is,” said Alice, “whether you can make words mean so many different things.”
“The question is,” said Humpty Dumpty, “which is to be master—that’s all.”

They’ll have to restore confidence in the international monetary system.

How are they going to to do it?

They don’t necessarily have to go to gold, but they might.

And if they do go to gold they’ve got to get the price right.

They’ve got to have a non-deflationary price.

With the money supply and the amount of gold that price is $10,000 U.S. per ounce.

That’s where you’d have to go to regain confidence.

 

Daniela: But is $10,000 gold a world we would want to live in?

Jim says that’s a good point. He tells people who say they want gold to go to $5,000 or $10,000 to be careful what they wish for.

All gold really does is preserve your purchasing power – it makes sure you don’t get wiped out.

If gold is $5,000 then oil is probably $400 and the price of everything is double or triple.

So you’re not necessarily ahead of the game with gold, but more importantly you’re not behind the game.

When everyone else is getting wiped out your wealth is still intact.

 

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

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Gold is at $1,346.40 U.S. per ounce.

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The Vancouver Resource Investment Conference was a flurry of investors, resource sector pros and media. I’ve watched it grow over the past five years, and every year it VRIC2018expands and is more exciting. Jim’s comment about this being the beginning of a gold bull market could be felt at the conference. The entrance of cryptos into the market brought a new group of people. The debate of gold vs. crypto was packed.

Cambridge House will post the speeches and seminars on their site. I’ll post a link to the Screen Shot 2018-01-25 at 12.52.15 PMGold Panel, moderated by Daniela Cambone and featuring Jim Rickards, Rick Rule and Peter Hug, when it’s available.

Jim and I took a walk on the Stanley Park Sea Wall to chat gold and the world (the Grouse Grind is closed in the winter), and he introduced me to Daniela just before their Gold Panel. Daniela is fun, beautiful, smart and kind. She’s an excellent moderator. Great to meet her. I hope she’s back with Kitco for the summer conference.

Screen Shot 2018-01-25 at 1.16.38 PMIt was nice to visit with silver guru David Morgan of the Morgan Report and to catch the big debate of cryptocurrency vs. gold with Marin Katusa, Jim Rickards, Teeka Tiwari and Peter Schiff.

The debated was heated but fun, and there was no one anti-crypto, but definitely anti-bitcoin and other major cryptos by Jim and Peter. Jim is pro blockchain aka distributed ledged but sees major problems with bitcoin. He’s looking at the tech as developing, and sees newer coins/tokens being here to stay. He has a coin he recommends but didn’t cover it in the debate.

The conference was a huge success. Perhaps they’ll be looking for some live music inside the event next time. It’s evolving to where that would add for the attendees.

The weather in Vancouver is wet and dark. I usually love it but a little quiet at the moment. I’ll be in town for another week or so to check on the branding and packaging design work for the jewelry. When that’s done this whole site will change.

A little rain is good for guitar and songwriting. A muse of sorts.

Elaine Diane Taylor~

January 25, 2018

 

Elaine Diane Taylor Pendant 18Kchain - 5

Raw_Gold_Bullion_Pendant

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Coins and Crowns

words and music Elaine Diane Taylor

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.

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A Terrible Breeze    (North Korea and Nuclear War)

The news comes down
A little bluebird sings
Words of war
Of fire and furious things
Of testing might
‘Til no patience knows
If keeping still
Still keeps you safe at home

It’s a terrible breeze
They speak of today
Of threats that used to live a world away
We all know wind
Can blow both ways
And a terrible breeze can blow it all away

A worldwide net
Sees our village grow
Until we all forget
What each one used to know
How a blind bird’s wings
Can reach the shore
And turn that wheel of peace and war

Village fools sinking down, down, down
Debt and gold wound in numbered shrouds
Deal of a life it’s bread and clowns
Can we afford another go around?
The news comes down.

It’s a terrible breeze. The news comes down.

words and music Elaine Diane Taylor
©2017 Elaine Art & Media SOCAN/ASCAP

 

Single available on iTunes

 

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Not Much of a Holiday (Greek Debt and Media Persuasion)

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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AlbumCover.PreparingfortheFall

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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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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