Pure Gold likely to soar as much as 500% if gold enters a new bull market

Sjuggerud: This chart is great news for gold…
From Dr. Steve Sjuggerud, Editor, True Wealth Systems:

When the U.S. dollar is going down, the price of gold goes up.

The reason is simple… It’s basic math.

Gold is priced in U.S. dollars… so if the U.S. dollar is weakening, it takes more dollars to buy the same ounce of gold.

That’s the logic, anyway. But does the logic actually work in the financial markets?

Sometimes it doesn’t… As the economist John Maynard Keynes famously said, “The market can remain irrational longer than you can remain solvent.”

But as it turns out, the logic works with gold and the dollar…

Gold’s compound annual return since the early 1970s has been about 6.9% a year. But when the dollar is weakening, gold goes up at 12.2% a year. And when the dollar is strengthening, gold only goes up 1.8% a year.

This table shows it simply…


To identify uptrends and downtrends, we looked at whether the dollar was above or below its 10-month moving average at the end of a month. Then, starting at the date of that signal, we measured gold’s performance over the following month.

You can see dollar downtrends led to strong gains in gold…hu-688315_8HYCZGCU6F

So… why is this important today?

Because we are now in one of those times when gold has historically delivered double-digit compound annual gains.

“The dollar could be starting a multiyear bear market,” my colleague Brett Eversole wrote yesterday…

The greenback recently hit its lowest level since early 2015. It has now clearly broken down from a multiyear uptrend…

Major currencies tend to move glacially. They have slow, long-term moves higher or lower… not drastic crashes or spikes.

So this year’s decline isn’t something that happens often. The dollar is down 9% in just the first eight months of the year – a massive fall for a major currency.

His conclusion was that the dollar could decline for the next two years.

If that’s true, then gold could be starting a multiyear bull market.

Don’t be too worried about the short-term fluctuations… We actually think the dollar could go up a bit more before it resumes its fall. But the dollar’s long-term trend is clearly down. And we are finally on board with gold again.

Gold could be starting a multiyear bull market. You want to be on board.

Good investing,

Crux note: Steve just recommended his favorite gold investment to his True Wealth Systems subscribers. According to him, it is likely to soar as much as 500% if gold enters a new bull market. You learn how to get a subscription right here.
Source: http://thecrux.com/sjuggerud-why-the-falling-dollar-is-good-news-for-this-asset/

The end of BitCoin?

Will China’s stance on Crypto Currencies bring about the end of bitcoin? I’ve no idea but perhaps this is an indication to diversify and also buy Karatbars pure gold.

As Bill Bonner states:

But the biggest win-lose deals are those forced upon us by the federales.

This week, for example, the Chinese authorities actepd on their much-anticipated crackdown on cryptocurrencies by banning “initial coin offerings,” or ICOs.
s this is an indication
These are the cryptocurrency equivalent of stock market initial public offerings, or IPOs. But instead of selling shares to the public to raise money like regular companies, crypto startups raise money by selling cryptocurrencies. Investors buy them because they believe they’ll go up in price if the crypto startup is a success.

Reports Bloomberg:

Bitcoin tumbled the most since July after China’s central bank said initial coin offerings are illegal and asked all related fundraising activity to be halted immediately, issuing the strongest regulatory challenge so far to the burgeoning market for digital token sales.

The People’s Bank of China said on its website Monday that it had completed investigations into ICOs, and will strictly punish offerings in the future while penalizing legal violations in ones already completed. The regulator said that those who have already raised money must provide refunds, though it didn’t specify how the money would be paid back to investors.

It also said digital token financing and trading platforms are prohibited from doing conversions of coins with fiat currencies. Digital tokens can’t be used as currency on the market and banks are forbidden from offering services to initial coin offerings.

Will this be the end of bitcoin?

In 1933, the U.S. government successfully banned private ownership of gold when President Roosevelt signed Executive Order 6102, “forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States.”

For 40 years, the yellow metal was out of circulation.

What if you can’t use bitcoin without risking jail time? What if you can’t convert your cryptocurrencies into regular, government-issued paper? What good is a better form of money if you can’t use it?

Again, nobody knows anything.

Bill Bonner http://thecrux.com/bill-bonner-the-end-of-bitcoin/

Stop Apologizing for Network Marketing

Stop Apologizing for Network Marketing

If you’re involved in Network Marketing, we need to have a conversation because some of you have an inferiority complex about this profession. Let me be as clear as I can possibly be…

If you have an entrepreneurial bone in your body, Network Marketing is not perfect, but it’s better than any other form of entrepreneurship for the average person.

And that is not just my opinion. I can back it up with these eight points:

  1. The initial investment is low compared to traditional business.
  2. Network Marketing has the potential for unlimited upside.
  3. The product is already created for you.
  4. Incredible leverage with your time and your team.
  5. The support is already there for you.
  6. You can start with almost no skills, and learn as you grow.
  7. You have the flexibility to work in your own time.
  8. There is a safety net. If it doesn’t work out for you, most companies will give 90% of your money back within the first year.

So, if you’ve ever thought about being an entrepreneur, where else can you flex your muscles to see if you got the chops? Network Marketing is low risk and high reward.

Does everybody win? No, but not everybody wins in every aspect of life. However, for those who choose to grow, learn, get better, develop the skills, grow their networks, and improve the productivity of their networks, they win big time. They get all the benefits of traditional business ownership without the risk typically associated with business ownership.

If you’re in Network Marketing, put your chin up and shoulders back because we have a better way. The world might not understand right now. But don’t feel bad about something that is better than any other form of entrepreneurship for the average person.

If you’re a skeptic, I’ve just given you my case for Network Marketing. Can you beat it?

Network Marketing isn’t perfect…but if you have an entrepreneurial bone in your body, it’s better!

Learn more about Eric Worre here

Government Cash Ban

Escape the Government Cash Ban

A few weeks ago I went to a meeting about Bitcoin in Perth, Australia. A very old friend – he’s 81 – asked me to do a write up about the event.

I’m not that fascinated by Bitcoin. But the internationally famous Bitcoin Girl was attending, so I decided to go for other reasons.

Something happened during the event I need to tell you about. (It has nothing to do with her.)

Sitting next to me was a former Australian intelligence officer. He’d recently been shot in the knee by the Taliban and still wore the leg brace. The gun and bullet that did the damage was paid for in Bitcoin. The officer knew because that was his job – to examine the use of Bitcoin in arms deals.

Now I think the guy was a libertarian like me. Despite being shot in the leg, he didn’t want to ban Bitcoin. Instead he asked a nuanced question about how the Bitcoin community could combat the wrong type of person from using it.

It was a good question. But the attendees still threw in his face the usual go-to arguments that we libertarians have ready for the doubters:

“If they didn’t use Bitcoin, they’d just use something else – like cash.”

That’s why I’m writing to you today.

During the meeting I suddenly realised how governments are going to stage the move on their biggest enemy.

It’s a source of power that lets citizens defy almost every government power in almost every country. You can evade government surveillance, tracking and repression using it. It doesn’t matter what they ban, you can still get it, do it and sell it, as long as you have access to this simple thing.

And no, it’s not Bitcoin. It’s cash.

Cash is far better than Bitcoin if you want to evade the government’s grasp. It’s anonymous, everyone accepts it all around the world and there’s no trace of any transactions.

That’s why the government is going to ban cash.

Cash is the ultimate tool in the fight against government control.

But it’s also a basic part of day to day life. And that means the government needs a damn good reason to ban it.

Their answer is terrorism.

Cash is rather popular amongst terrorists. They use it to fund and carry out their operations. Because security services can’t trace it, they can’t monitor terrorists or prevent attacks. So we must ban it.

Of course banning cash won’t stop terrorism at all. But the argument is persuasive enough to those of us who just use our plastic cards to do the work anyway.

Without cash we can track any evildoers and provide proof of their evildoings using electronic banking records. That proof holds up very well in court as it shows how much was sent from whom to whom and when. (The same goes for the record of Bitcoin transactions if you can link them to the perpetrator, by the way.)

The problem is, once they do ban cash, we are all well and truly in the government’s power. Everything we do can be traced back to us. If all transactions are electronic, it will become extremely difficult to evade any law, no matter how stupid it is.

Do you want the government to have that power over you? If your answer, like mine, is a resounding “no”, then you need to take a look at what my friend and publisher Nick O’Connor has prepared for you.

Remember, once they’ve banned cash it’s too late to hide whatever they choose to make illegal. You’ll be at their mercy.


Nick Hubble
Editor, Capital & Conflict

Dollar’s Decline in 2017

Next to Donald Trump’s economic policies, one of the most spirited economic debates at the moment involves which direction the dollar will move in the coming months. While Goldman Sachs is predicting the dollar and euro will reach a value equivalency by Q4 of 2017, other analysts see the greenback trending downward next year.dollar wall crumbling
The dollar has risen 4.4% against the euro and 2% against a basket of world currencies since Trump’s win on November 8, according to Fortune. Big moves within securities and bonds markets since Trump’s victory are creating a general sense of uncertainty, making predicting anything a difficult task.
But for market veterans like Jim Paulsen of Wells Capital Management and Peter Schiff of Euro Pacific Capital, the dollar’s demise is clear given inflationary anticipations mixed with short and long-term interest rate increases.
Paulsen recently described the weakening dollar as “the big wild card in 2017,” according to CNBC, and stating, “As inflation expectations go north, that’s a deterrent and a negative for the US dollar,” he said. Underpinning Paulsen’s theory are historical trends in funds rate increases. “There been five major increases in the funds rates since the 1970s, and every one of them, when the Fed raised rates, the dollar came down.”
Schiff said he sees higher interest rates, stemming from inflationary pressures, as detrimental to the dollar. Despite the spike in bond yields, investors seem to be looking to Trump’s fiscal stimulus and tax cuts to provide demand side pressure, increasing consumer spending. Schiff explains:
” So far the stock market is remaining oblivious to the spike in bond yields because they think the stimulus that might result from tax cuts and spending increases will be enough to offset the drag of higher interest rates. I think they are woefully mistaken.”
Paulsen also sees at a weak dollar providing a good opportunity for international investments. A weak dollar means US exports will be less competitive. Overseas markets could benefit as a result. Paulsen provides his analysis:
” I think those markets are under-owned, they’ve under-performed for several years … They’re better relative values,” Paulsen said. “They have younger earnings cycles than the more mature cycle in the United States. They’re going to have longer policy support than the United States will.”
A weak dollar will mean gold is likely to grow in value. Some Economists believe the recent drop of bullion’s price is only a head fake, stating: “people who are betting on the dollar and betting against gold have no idea the impact of higher interest rates. Buying gold in the coming weeks could put investors looking to diversify their portfolio ahead of the curve.