This Signals The End Of Central Banks: Epic Warning Shot

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inthemoneystocks
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This Signals The End Of Central Banks: Epic Warning Shot

Post by inthemoneystocks »

Gold and silver have spiked dramatically higher in 2016. Just in the last week we have seen silver squeeze higher by 20%. It is extremely rare to see both gold and silver surging together. Why? The basics of it revolve around gold being a store of safety, while silver is mainly an industrial metal. The idea being, if there is panic gold surges but usually silver stalls or falls because the panic is due to something economic. Negative economic issues can hurt demand for silver.

This mega spike price action on gold and silver tells of something absolutely scary. It screams to the world that investors have lost all confidence in the central banks. Whether it is the Bank of England, European Central Bank, Bank of Japan or the Federal Reserve, currencies are looked at as being far too risky. Remember, interest rates in Japan and some places in Europe are now negative. It is not normal to pay a bank to hold your money. Central banks have created this artificially. Investors now prefer to hold gold, which is normal in fearful times...but also silver. That is the more shocking part. Central bank printing presses and monetary policy have gotten so out of control that investors are willing to buy anything but currencies. Look at the price of Bitcoin as well. It is up over 200% in 2016. Again, Bitcoin (BTC) is something the central banks around the globe have no power over. It cannot be printed at will.

Keep an eye on other metals to see if they start getting the same play. An even more economic dependent metal is Copper. If gold and silver continue higher, look to buy Copper. This could be the next store of safety from the out of control central banks. Pretty scary for investors if you hold lots of Dollars, Yen, Euro or Pound. Diversifying into other assets that cannot be printed is extremely important in this day and age.

The end game is simple yet horrifying. There will be another epic global collapse, far worse than the financial catastrophe in 2008-2009. It will spur a global depression. All of it caused by central bank policy. As the world emerges, the central banks will be dissolved. You read it here first. This will happen in the next 10 years.


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farco
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by farco »

The Sky is Falling, the sky is falling... It's a ZH level post.

Sorry for the sarcasm, physical gold & silver are parts of my portfolio, but this gloom & doom is naive in my POV.

Crisis there will be for sure, as there were in the past.
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Descartes
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by Descartes »

inthemoneystocks wrote:It is extremely rare to see both gold and silver surging together. Why?
More people taking up jewelry-making as a hobby?
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farco
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Re: This Signals The End Of Central Banks: Epic Warning Shot

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Or too much werewolves unleashed, who knows... :lol:
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by Wallace »

I wouldn't dismiss the OP so easily. At least one of the arguments against owning gold - that it pays no interest - has now been significantly invalidated, since so many sovereign bonds also pay no interest, or are even negative. There is no question that trust in the banking system has been eroded and I think that what we are seeing may be the beginning of a new rush on gold.

In the last few days I've been thinking of increasing my exposure to gold and may make a decision before the end of the week.
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patriot1
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by patriot1 »

inthemoneystocks wrote: Whether it is the Bank of England, European Central Bank, Bank of Japan or the Federal Reserve, currencies are looked at as being far too risky.
Interest rates, that is the yield which investors expect for holding currency, are at all time lows, which tells me that in fact investors regard holding currencies as very low risk.
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by AltaRed »

It may be true that cash pays nothing, and it may be true that gold is back in vogue, but that is always short lived. To me, it is nothing more than perhaps a 'sleep at night' factor.

There is too much at stake in the global economy for fiat currency not to be managed 'no matter what' by central banks. The alternatives to a global economic breakdown, namely anarchy, simply are unacceptable.
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OnlyMyOpinion
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Re: This Signals The End Of Central Banks: Epic Warning Shot

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Slow month for new accounts.
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by bpither »

You read it here first
maybe for some but I remember my cousin sitting at our dining room table preaching the same end of the world scenario in 1979. At the time his logic was ironclad, just as the global cooling factual indicated a new forthcoming ice age. Too bad he lost his shirt when US interest rates hit the roof.

That's the thing about age ... you really do get some perspective and realize that nobody really knows anything :roll:
Last edited by bpither on 07 Jul 2016 15:05, edited 2 times in total.
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by SkaSka »

I thought the big moves in silver was due to the hedgies and Chinese speculators driving up the silver price?

Not that I particularly care nor think much of it.

*Edit to add: I wonder if this was just a terrific troll by inthemoneystocks? If so, my hats off to the poster for such a wonderful doomer narrative :thumbsup:
Last edited by SkaSka on 07 Jul 2016 17:55, edited 1 time in total.
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by SoninlawofGus »

bpither wrote:At the time his logic was ironclad
As it was for Gorilla Gamers buying up Qualcomm around 2000. No shortage of brain cells went into justifying the absolute, can't miss, "it's crossed the chasm" arguments at that time.
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by bolt »

Theres a new movie out folks, "Bitcoin Gospel" , a documentary by Hans Busstra. This movie shines a positive light on bitcoins. I'd recommend watching it. All things change, the stock market is not the same today as it was 25 yrs ago, nor will it be the same 25 years from now. :thumbsup:
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by SkaSka »

I think it would be prudent to diversify into a basket of cryptocurrencies, holding not only Bitcoin but Ethereum, Ripple, Litecoin.... actually, probably best just to buy a Vaanguard Total Cyrptocurrency Market Index Fund™ that holds all the cryptocurrencies based on their market weight. Of course, the fund should have the lowest MER possible! :wink:

All kidding aside, I imagine cryptocurrency and its accompanying technologies will be very important in the future, it's just too early in the game to know who the winners are going to be (kinda like the dot com bubble).

This was a nice article that gave the basics on blockchain technology.
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by adrian2 »

I think it's worth re-reading the opening post of the thread, written less than a year ago. :)
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by ghariton »

adrian2 wrote: 25 May 2017 12:13 I think it's worth re-reading the opening post of the thread, written less than a year ago. :)
It could have been written any time in the last forty years. I remember Joe Granville saying the same thing in the early 1980s.

Maybe it's just that all these forecasters are a bit too early. We should review their accuracy in, oh, say 2067.

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bpither
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Re: This Signals The End Of Central Banks: Epic Warning Shot

Post by bpither »

A beautiful heuristic argument and the Vatican Library has the dust of centuries on every one ever made ...

Frankly, I never understood why anyone would own gold as "insurance" in a portfolio. I heard somewhat the same arguments from my cousin in the late seventies and for years he was right ... until the nasty central bankers raised rates and the price of gold plummeted - he lost his shirt. Prophecy comes cheap so I'll make one - Next year the income will be higher from my dividend growth portfolio, an array of companies I've been accumulating for the past thirty years, Nothing fancy - Emera, Fortis, TD Bank, JNJ, Enbridge, CN Rail, BCE, Brookfield Infrastructure ,,, about 20 in total.

I suggest that every pension fund is probably doing the same beyond the usual mandated portion of fixed income as in bonds - and thank god I don't hold any of those, or CDN resource stocks, or ... gold.

And if I'm wrong, horribly wrong and markets collapse I'll survive because unlike so many in this country I wasn't so horny for a house, or gotta have this and that number of vehicles in the driveway to the point where I ended up in debt peonage to bankers.

I still shop at the Salvation Army. I take the bus, bike or walk everywhere and drive my 10 year old Honda Civic sparingly. This advice is the best of them all which no investing letter, advisor or goldbug will ever tell you.
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