When you watch mainstream media or listen to central bankers, gold is constantly deemed to be the redheaded stepchild of the investment industry.
Just that alone, is unbelievable, considering that gold has been one of the best performing investments of the 21st century. On December 31st, 1999, gold closed at $290.25. As of today it is trading at $1327.80.
That is a percentage gain in the last 16 years of 357%! Compare that to the Dow Jones, which closed the 20th century at 11497 and currently is at 18085 for a gain of only 57.3%.
If there is a business sector or financial asset class that has outperformed gold in the last 16 years, I can't think of one... yet, aside from your crazy neighbor with a bomb shelter or a few people who read The Dollar Vigilante, how many people do you know who not only are aware of what a fabulous investment gold has been and also own some?
Meanwhile, central banksters like Alan Greenspan call gold a "barbarous relic" and Ben Bernanke has opined that gold is not money and the only reason central banks hold it is because of “long-term tradition. ”
And so, it was with great interest... shock actually... that I came across this headline, "Switzerland and Norway Begin to Massively Accumulate Precious Metals Mining Shares".
It outlines how the central banks of both Norway and Switzerland have been buying up nearly $1 billion worth of gold mining stocks!
Well, isn't that interesting!
The moves of these banks are noteworthy not for their strategies, but because they are indicative of the perilous state of the world’s financial and monetary systems.
Central banks have sold gold regularly over the years, probably as part of a larger propaganda campaign to convince the public that gold and silver don’t matter anymore. (And there’s another reason I will get to in a moment.)
If central banks are starting to become so worried about the state of the world economy that they are willing to reverse an obvious manipulative meme, that’s something to take quite seriously.
For central banks to buy gold in 2016 is akin to what we have often called a Jubilee Jolt – a surprise move that emphasizes the seriousness of the crisis that is now upon us.
Certainly, these purchases go against the grain of traditional – modern – central bank investment activism. The Swiss central bank, for instance, campaigned against a Swiss referendum to back the franc with gold, but now seems to be far more supportive of the yellow metal.
Throughout the latter stages of the 20th century and into the 21st, central banks have disgorged gold with varying degrees of enthusiasm.
Britain managed to sell a good deal of gold at the turn of the century near gold’s all-time low against the dollar.
And much more recently, Canada managed to sell the remnants of its gold stock.
Of course, other central bank gold transactions are shrouded in mystery. Both France and Germany recently wanted to repatriate gold from the US and ran into a good deal of difficulty doing so.
And when it comes to the US itself, the size of the nation’s gold stock remains similarly mysterious. In fact, for decades, there has been speculation that US gold supposedly doesn’t exist, or that what remains is gold of a most inferior kind.
It is impossible to say with any surety what resides in Fort Knox because no audit has taken place for more than half-a-century. But now pressure may rise on the US government to confirm gold holdings.
Here, from ZeroHedge:
Both banks are being reported to have printed close to $1 billion dollars of fiat money as of recently. This should come as no shock to anyone, as this is all Central Banks know how to do – print money. What is more stunning, however, is where they immediately moved these funds. You guessed it right – into precious metals.They know that the physical precious metals market is limited, tight, and scarce. They also know that if they simply printed $1 billion worth of fiat money out of thin air and moved it into physical, then they would risk blowing the market apart, sending prices potentially catapulting higher.
Since they are not yet willing to face the wrath of the other Central Bankers around the world, they did the next best thing. They bought shares in the gold mines themselves.
The article points out what we have mentioned before, that central bank disgorgement of gold never seemed to make much sense. But not trusting anything that central banks do, I wonder if gold sales were in part aimed at building up the BRICS stores of gold and silver.
Russia and China in particular have been aggressive buyers of gold and it is certainly possible that sales were engineered to provide liquidity to the market and to ensure additional economic leverage accrued to BRICS countries.
In addition to China buying physical bullion, they have also made strategic moves to supersede western commodities exchanges. Back in April, the Shanghai gold exchange launched a new benchmark price fix for the metal to challenge the long established, Rothschild created, benchmark in London as well as the COMEX exchange in New York.
China isn't the only country in Asia leveling the playing field. In July, Japan's TOCOM exchange announce a new physical market for gold where market participants can trade gold in futures and physical at more transparent prices.
As we’ve pointed out numerous times, Western elites are working overtime to “even out” the economies of developing and developed countries. In fact, this is one of the reasons for the creation of the BRICS – to make clear that there is a formalized alternative to Western economies.
It should be clear to anyone who examines the position of the BRICS closely – especially China – that Western powers have played an extraordinary role in elevating the industrial might of these countries.
The idea of course is to facilitate further globalism and eventually world government. But presumably not all central banks are eager to support this strategy at the expense of their own solvency.
In other words, central banks may have been content to sell gold in the past, but now faced with an oncoming financial hurricane they are having second thoughts – as well they should.
In fact it may have occurred to central bankers that the solvency of their own institutions has been purposefully jeopardized because a global central bank will likely have little need for local and regional ones.
As usual, we've been ahead of the curve and owned gold and gold stocks since 2001.
TDV's Senior Analyst, Ed Bugos, is one of the most highly respected analysts in the entire sector. Some of the gold stocks that the central banks have been buying are the same gold stocks which Ed Bugos has been recommending, in various forms, since 2001 (when he recognized the gold bull market began before almost anyone else).
Ed is up 200% in the last year in the TDV Premium portfolio (click here to subscribe to get access to this info) and many of his mining picks have generated extraordinary returns as well.
It is getting to be VERY interesting times when central banks are counterfeiting their own currencies and buying gold mining stocks with the proceeds! We've been buying gold and gold stocks for years because we knew we'd arrive at this point in time when things started to get crazy. The craziness has just begun, by the way, and there is still a long way to go and we expect gold and gold stocks to be much, much higher in the next few years.
But, now you know, even the central bankers seem to think that things will get so crazy that they are buying gold mining stocks for the same reasons as us... to try to survive through the coming collapse and to also profit from it.
It's great that you include the fact that the globalists have propped up the BRICS alliance to eventually play both sides off against each other in classic ordo-ab-chao fashion. I feel dissappointed when I read stuff from veterans in this field actually getting all orgasmic over BRICS and Russia. Great work Jeff :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great article! We have some interesting years ahead!
Let's see in what kind of Shmitah we are in ;)
Also, noticed you are powering up big time! Good for you! Wish I had the resources to do so as well at these prices!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Funny dudes, these central bankers. Alan Greenspan was a goldbug prior to heading the Fed and now that he's out, he's advocating for gold again.
http://www.zerohedge.com/news/2016-06-27/greenspan-warns-crisis-imminent-he-urges-return-gold-standard
And former Bank of England president Mervyn King has become cozy with gold as well:
http://www.marketoracle.co.uk/Article55451.html
What is obvious to me is that these guys will say and do things while in official capacity that they may or may not necessarily personally agree with. Could you imagine these guys recommending gold while they were still in power?
And Bernanke, when asked by Ron Paul during a congressional hearing why the Fed is keeping gold in its reserves, paused and then said it's because of "tradition." HAHAHAHAHAHA! Very Funny, indeed.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
You (greenspan) must be f ing kidding me....
It looks like he's far from an Objectivist these days; Pretty much all over the place with his economic and political positions.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
These type of assets are the only sector in the market that aren't totally overvalued currently. Agree with Jeff completely
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
@dollarviglante love what you're doing on Steemit but I urge you to post more real content that you can't find anywhere else. The platform can only get so far with content like this that can be found elsewhere -- we need #realness that can't be found anywhere else: https://steemit.com/protocols/@ntomaino/the-real-opportunity-for-a-social-network-with-monetary-incentives-built-in
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I disagree. @dollarvigilante is referencing stories (citing his information) and putting it together for his own conclusion. That alone becomes "real content". He's not C&P from other locations and calling it his own. I found it a unique take on information found elsewhere.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
he is providing us his interpretation of it, providing further analysis, which may be valuable...shit, I think he's cute! <3
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
@notmaino You can't offend me, it's impossible. So, don't worry. Only libtards and weak men get "offended". ;)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
if you say so :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I can see you have skill in the marketing of "what people want to read" @dollarvigilante. Yes it may be searchable content...but I feel that you are providing further analysis in well-written form. If I want to know about #money...I keep @dollarvigilante on my feed...also I love a good debate. I think your ideas on anarchism are revolutionary in a good way, however, I do feel you lack in originality...not in work, presentation, nor value. I do not think that the spirit of steemit is to keep pure originality. Literally, a market-based environment dictates that if people like you, you will get a following of votes....
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
@dollarvigilante A idiot will always try and bring you down to there level and beat you with experience! Thanks for the article very interest and much appreciated!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
100,000+ people care about my real content with my thoughts/opinions... So, in that sense, this is quite "real" content... no one else can offer the opinions I offer (simply because they are not me).
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
i hear you. i view the potential of a social network with monetary incentives as much more than just a platform where you post your standard content though. and in order for it to be succesful, it needs to be more than that imho
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Well, I have, by far, the most followers on the site... doesn't that indicate I am providing wanted content? http://steemwhales.com/?p=1&s=followers
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I'm not arguing that you're not providing wanted content. In fact, I started my comment by saying I love what you're doing on Steemit.
I'm just suggesting this feels like content directly from your newsletter and in order for this community to really grow we need truly unique, real content you can't find elsewhere.
My intention wasn't to offend you. Carry on.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
humblebrag 😊
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
@ntomaino Oh, I misunderstood then... you are saying because I also post this on my site that is an issue... well, I thought about that and I post it first on Steem and don't even promote my own website anywhere... so, in essence, I've really moved the TDV blog to Steem. I even advertise my Steem posts on FB (to bring more people to Steemit). I also post a lot of extra and other content as well that I don't post anywhere else.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
A new day, the same story.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
after reading further down, I see your larger point here...like I said, I love a good debate, I could go either way on this :D
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Bullion over the past 5 years is really not that impressive!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
As an actual red-headed stepchild, I should let you know that the marijuana industry is doing quite well. Maybe the price per gram has dropped, but volume is at an all time high. (Hehe)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks Jeff for another really interesting post. I don't always agree with you, but you always get me thinking. You actually inspired my latest post!
Maybe (just maybe at this point, because I don’t yet take to this idea like a duck to water just yet) the idea that we are on the brink of giant financial collapse is not fixed in stone, it’s just one of the options. Either way, worrying about it is not going to prevent any economic collapse, and nor is it going to do any of us any good. I’m one of Jeff Berwick’s @dollarvigilante many followers and I certainly take into account what he’s saying. But let’s face it, I’m not going to flee to South America (I already live in New Zealand) and if whatever I choose to focus on makes that possible future more likely, I’d rather choose to focus on what I want rather that what @dollarvigilante fears.
So here is my thought for the day, and it’s very new one for me – what if the “coming financial meltdown is no more real than “global warming”?
https://steemit.com/steemit/@sift666/it-s-beyond-our-control
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It is also possible that Russia and China hoard gold because it is
convenient to use in corruption . For example do you believe that the Chinese gold is in the vault of the Chinese Central Bank or Chinese Communist Party vault?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great news!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I am and have been for long time a strong advocate for buying gold. The world money system is under extreme pressure and will collapse at some point. The question is when?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Loved your article but a question to dollarvigilante, did you add the dividends payed by DJ to your calculation?
On December 31st, 1999, gold closed at $290.25. As of today it is trading at $1327.80. That is a percentage gain in the last 16 years of 357%! Compare that to the Dow Jones, which closed the 20th century at 11497 and currently is at 18085 for a gain of only 57.3%.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Easiest upvote..!! Great article as always. Thanks for sharing. Happy to upvote and pleased to share this on Twitter✔ for my followers to read. Cheers. Stephen
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
How would you judge the value of btc as a hedge vs. the value of gold?
btc is easier to store, secure, and transport, but the ultimate value of btc still requires enough of society to survive that internet and power grids are still stable.
gold has intrinsic value for it's utility in tech apps, but the market value will probably still be be there for it's "traditional" values
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
黄金有得是,每年都产很多,还不如比特币。
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
As Always, an Excellent post Jeff! :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Another awesome article Jeff keep up the good work. Capitalism for life!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
and gold is still the best investment?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Technically it's more a store of value. It's only a good "investment" when the value of whatever currency you bought it in goes down relative to the gold, which is most currencies most of the time. But not all of them all of the time.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
From my understanding, it's not so much about buying the gold, as selling the dollar. It depends which one you trust more at this point based on your own research.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Muy bueno lo que has escrito, realmente me gusta, soy creyente de la mejor inversión es el oro y la compra de tierras me han enseñado mis padres. nunca tuve poder de ahorro así que no tengo inversión en oro, si he comprado unos terrenos, que serán la herencia para mis hijos soy de Argentina Mis gobernantes han hecho arreglos ridículos con las extracciones de oro en mi país, y en algunos lugares están haciendo un desastre natural. Nuevamente muchas gracias por compartir este material
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Appreciate this. Knew about it, but it's good to see the info spreading around.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Go for GOLD
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Basic Materials at 4.48% does not look like a strong overweight:
http://www.nasdaq.com/quotes/institutional-portfolio/swiss-national-bank-913041?page=2
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I bought physical SO HIGH when it hit the last peak, but now I know it's time to buy the dip. Just gotta get the wife onboard after my last obsessesive spree.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
For the record our analyst said the top of that run would be $2,000 (it ended around $1,900)... he called for the pullback (but not as low as it did... he said around $1,300, which is where we currently are).
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Cool, thanks for the reply, that's actually very helpful... and great to relay to the wife ;-)
Love your interview with the Steem founders by the way.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This just came from inflation.us:
"On Monday, despite gold settling down $9.10 to $1,321 per oz, the HUI Gold Miner Index soared 3.98% to 239.21. It was the 18th largest up day in history for gold mining stocks on a down day for gold! Over the last 12 months, there have been 26 trading days of the HUI Gold Miner Index rising 1% or more on down days for gold!
Historically, when this has occurred 20 times or more over the trailing twelve months, it has been the #1 strongest and most accurate indicator that gold mining stocks are ready to make huge short-term gains – with the HUI Gold Miner Index having a 83.4% chance of gaining over the following 3 months and a 95.7% chance of gaining over the following 6 months. "
http://inflation.us/gold-stocks-to-explode-to-new-2016-highs/
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
sources?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This is mind blowing. This is good stuff, keep it coming.
Currently I live in a sustainable ecovillage where all the inhabitants live on a negative carbon footprint. We are the Garden of Eden and our founder is Quinn Eaker @quinneaker . He has written some shattering steemit articles about money. Go ahead and take a look . I think you'll find him compelling.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks Jeff. I only started following you and TDV about 6 months ago but I enjoy your work very much.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I agree that if possible getting into precious metals is one of the smartest things anyone can do but most people in this economy can barely afford food or not know where their next meal is going to come from let alone spend almost $1,400/oz of gold or invest into too much silver. I think is shit hits the fan would be more important to have food and water than it is to have gold or silver, you can't eat that stuff. Funny how people are always saying to get into precious metals but those saying that are the ones that actually make 6-7 figures a year and not the average person. I have been unemployed now for almost 6 months due to medical reasons, unemployment denied and can't even get food stamps to sustain myself, though I've been working since I was 16yrs old (now 39) and paid into the system so illegals and people that should not be collecting rip the benefits of my hard work while the government fucks me royally. Millions are in the same position I am in if worst, so how does someone would someone like me go spend on precious metals when I can barely afford to feed myself and my family?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Reading, watching and learning in this troubled time.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Good job!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This post has been linked to from another place on Steem.
Learn more about linkback bot v0.3
Upvote if you want the bot to continue posting linkbacks for your posts. Flag if otherwise. Built by @ontofractal
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Very interesting opinions ...
I love a good debate!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Gold was valued for centuries
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit