3 Minute Gold News – Synopsis of Jim Rickards with Daniela Cambone at Stansberry – May 28, 2021

 

3 Minute Gold News

 

A synopsis of Jim Rickards, New York Times bestselling author of The New Case for Gold, The Death of Money, Currency Wars, The Road to Ruin, Aftermath and The New Great Depression with Daniela Cambone  , Editor-At-Large and Anchor at Stansberry Research.

 

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 Defence.

 

Topics:

LBMA Silver Miscount
Gold and Silver
Pension Funds
Mining
Post-Pandemic Recovery
Central Banks

 

 

 

 

LBMA SILVER MISCOUNT

The London Bullion Market Association (LBMA) overstated their silver holdings in April by 3,300 tonnes.

They said it was a data submission error and corrected the amount.

Some of the largest banks in the world are members of the LBMA, and while their hands aren’t always entirely clean, mistakes like miscounting do happen.

The gold and silver bullion in the vaults of the LBMA isn’t enough to deliver physical metals on all of the futures and options contracts.

But that’s always true.

They aren’t supposed to all settle out in the transfer of physical bullion.

Blythe Masters is the former head of JPMorgan’s Global Commodities Group, and she once said, “Gold never settles.”

The COMEX rule book states they aren’t a source of supply for gold.

That rule book also says that they can change the rules.

Plus, the LBMA can always get more gold and silver if they need it.

So the error was probably just an accounting error.


PRECIOUS METALS MARKETS

Jim has been saying that gold and silver prices are going to go a lot higher.

There are really, really serious fundamental things afoot in the precious metals market.

There is definitely manipulation in the gold and silver market.

Jim explains how the manipulation is done in his New York Times bestselling book The New Case for Gold.


PENSION FUNDS

Pension funds are starting to add more gold to their portfolios, which is a good thing, but pension funds move very slowly.

They take two years or more to make decisions so they’ll add when the price is higher.


MINING

Global mining output is flat and has been flat for about five years.

Output isn’t zero and we’re not at peak gold, but it’s getting harder and harder to find.

Jim travels and has hands-on dealings with mines and miners, mills, refiners, dealers and other professionals in the gold industry. What he hears is that gold is in short supply and that the professionals he speaks with can’t get it.

This means the price will keep going up.

Jim has also visited one of the world’s largest private vault operators in the world, hidden in the side of the mountains in Switzerland.

The vaults are private and secure.

The operator says gold is moving from the banks to private vaults every day, and that his company is adding vault capacity as fast as they can.

That means the gold they’re moving is not available.

The supply of gold for sale is extremely tight.

Jim has put in orders that can’t get filled. He works with good dealers who call him right back and let him know it’s not available right now, and that they’ll work on filling his order.

There is more demand for gold than available supply and so the price goes up.

 

POST-PANDEMIC RECOVERY

The economy is recovering, but right now in May 2021 the U.S. hasn’t even reached pre-pandemic 2019 levels of output.

There’s growth but there’s no boom or V-shaped recovery.

The unemployment rate is lower than it was last year, which is good, but it’s still double what it was before the pandemic started.

Plus, they don’t even count people who’ve stopped looking for work.

Bartenders, for example, aren’t looking for work because all the bars are closed, but they’re not even counted in the official unemployment number.

 

CENTRAL BANKS

The Fed is irrelevant.

They have no role to play.

Interest rates will be zero… until further notice. Maybe another two or three years. Or longer.

The Fed is buying assets and printing money but it has no impact because they’re buying assets from the banks with money the Fed prints out of thin air.

The banks take that money and give it back to the Fed as the bank’s “excess reserves” (the bank’s savings account to save themselves if there’s a downturn or crash).

The cash they print doesn’t get lent out and doesn’t get spent into the economy, so it doesn’t help at all.

It’s all a show to make people think that what central banks are doing makes a difference.

It does nothing.

Jay Powell puts on a show.

Mario Draghi puts on the best show.

Janet Yellen has never known what she’s doing.

The Fed has no options.

They can’t cut rates and they’re not going to negative interest rates.

Central banks can buy all the assets they want but if no one is using the money what good is it?

The only central banker who knows what they’re doing is Elvira Nabiullina from Russia, who is holding 20% of Russia’s reserves (savings) in physical gold.

 

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

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Thank you to Jim Rickards for including me in his bestselling book The New Case for Gold.

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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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I cannot wait to travel back into the woods!

Here is an example of the handmade boxes being created for the Raw Gold Luxury jewellery line. The resin “river” is made with small stones from my favourite hidden waterfall along British Columbia’s famous Gold Rush Trail. Each presentation tile has a piece of gold right in the “water”. :)  I hike in to the waterfall myself. I am soooo looking forward to being back in the wild.

Please see my thoughts below:

Screen Shot 2021-05-28 at 3.12.25 PM

From last year’s Cariboo Gold Rush Trail trip:

IMG_1675IMG_1634IMG_1335

 

My thoughts…

The world is getting closer to flipping its value exchange system from mechanical to electronic.

With this change comes a shift in not only the way we trade goods and services for “money”, but in the way we think. The way we communicate. The way we order our lives.

The medium itself is what orders how we think, process and create experiences. Some types of media are hot, like radio, and some are cool, like TV, but it’s the prevalent medium itself that frames what we think about and how we exist.

Societies shift from linear thought to symbolic thought in repeating cycles. With the advent of electricity we moved from reading in long sentences, learning in step-by-step processes, and breaking jobs into tiny repeated activities in a production line. We have moved into an instant on/off world.

Light floods an area and we longer have to wait for the sun to rise.  The tortoise no longer wins the race against the rabbit.

We live with “eureka” moments of insight built by connecting non-linear smudges of information.

Newspapers became little frames of information instead of long paragraphs of prose. Then more photos were included, using symbols to create meaning.

It’s like we’re back to hieroglyphs with layered meaning, instead of the phonetic sounding out of multi-used non-tied-in squiggles that represent a sound.

The media world is now digitally driven. Books, games, music and movies.

And the financial world is switching last as it’s the biggest communication avenue of power and value.

All the money.

The world is switching from the core, the root, below-the-ground up. And those with the money at the moment don’t want to lose it in the process.

So the centralized kids and the decentralized kids are all rushing to make the biggest toys in the game so they can rule the new playground.

Is Bitcoin the new gold? Is that even the right question?

I suspect it’s not. (But the debate between Michael Saylor and Frank Giustra was fun to watch. Would you like to read a synopsis? I’m thinking it might be of value to make a 3 Minute Gold News synopsis. Please let me know in the comments or in an email if you’d like to read that.)

I’ve been quiet on social media and on this blog while the anger phase of the mourning period passes.

The old world has gone.  Some know it, some are being blindsided with it, and most are going to be absolutely floored when it hits. It’s coming, and when it does there will be the experience of chugging along like a slow train coming, and instantly metamorphosing into a rocket ship blasting off. So much power. So little time.

I suspect we’ll have an uptick in “cyber hacks”. We’ll have chaos in finances and supply chains. Then we’ll have regulations to save us all from the feeling of “what-the-hell-is-happening?”.

Inflation was the central banks only saviour and it won’t be enough. Even hyperinflation won’t be enough to pay off all the debt. They know it. It’s just a stall for time game now until the pieces are in place.

I hope you’re all able to do some research. I hope you can see a bit of the game unfolding and you’re making a plan.

I hope you’re able to find excellent, radiant peace in the change.

I believe in a digital future and a material foundation. 

There is an unfolding universe of slow gold, steady silver and the wild west of crypto and defi.

We’ll value handmade individual goods that are sold through digital means using blockchain technology.

It’s not a future of one or the other. It’s not a future of none of it. The structures for the resetting of the global system have been worked on for many years. People are in place and they’ve been tied together for years. Walled gardens are being planted.

In order for a global trade of value to work it must be inexpensive and fast. The domestic payment systems will become digital and the big kids already have that wrapped up. The bigger institutions are catching up. Things like SWIFT and FOREX are quickly digitizing.

The bigger issue for defi has been everyone else – not the US dollar and the Japanese yen. All the currencies that are smaller and all the unbanked in the smaller economies only had slow and expensive options to send money across borders. The new system will let them trade and transfer value across borders and currencies in near instant time, and at a very low cost.  Global and out into the universe.

That will open the world economy. That will bring a new spring.

It’s coming.

I believe the foundation at the bottom of it will still be physical gold.

But that’s not this moment.

There’s winter before spring.

At this moment it’s a world without an anchor.

You are fed with cake and follies. You are tethered to the shell.

They were bailing out the breeches. They’ll be bailing in the hell.

from A World Without an Anchor

But then comes spring.

I’m smiling and thinking of that glorious new golden age.

Elaine~

 

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Coins and Crowns

words and music Elaine Diane Taylor
SOCAN/ASCAP
from the album Coins and Crowns

Coins and Crowns is featured in Episode 1 of Mike Maloney’s documentary series Hidden Secrets of Money.

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Not Much of a Holiday (Bank Holidays and Media Persuasion)

words and music Elaine Diane Taylor

Single available on iTunes

 

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A Terrible Breeze    (War and Social Media)

The news comes down
A little bluebird sings
Words of war
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 the 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

Single available on iTunes

 

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AlbumCover.PreparingfortheFall

Preparing for the Fall is a live boutique album available for digital download  — featuring Wag the Dog, Black Swan Dive,  American Pie and Gods of the Copybook Headings. Also available on iTunes, Google Music, Amazon Music and major digital distributors.

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The Gods of the Copybook Headings

words by Rudyard Kipling and music by Elaine Diane Taylor

from the album Preparing for the Fall.

 

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 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

from the album Coins and Crowns.

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“. 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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Gold, Silver and Bitcoin:

 

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via Gold Price

 

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