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It’s Monday and welcome back to the SilverTowne Vault Cast. I am your host Shawn Ozbun.
Today I have another article that made me laugh. The article is titled “gold is going to get crushed”. It’s amazing to me the things that get pushed by the media to talk down gold. I also have other gold news to talk with you about.
Before I get into all of that, let’s have a look at today’s precious metals pricing.
Gold – $1358.20 Down $ 0.97
Silver – $21.73 Down $0.51
Platinum- $1448.00 Down $2.50
Palladium- $735.00 Up $2.00
10 Amazing Charts That Demonstrate The Slow, Agonizing Death Of The American Worker
The middle class American worker is in danger of becoming an endangered species. The politicians are not telling you the truth, and the mainstream media is certainly not telling you the truth, but the reality is that there is nothing but bad news on the horizon for workers in the United States. In the old days, when the big corporations that dominate our society did well, that also meant good things for American workers since those corporations would need more of us to work for them. But in the emerging one world economic system that our economy is being merged into, those corporations have other choices now. For instance, the big corporations can now choose to limit the number of "expensive" American workers that they employ by shipping millions of jobs to the other side of the world. And from their perspective, it makes perfect sense. They can make much bigger profits by hiring people on the other side of the planet to work for them for less than a dollar an hour. If they can get good production out of those people, then why should they hire Americans for ten to twenty times as much, plus have to give those Americans health insurance and other benefits? Another major factor in the slow, agonizing death of the American worker is technology. We live during a period when technology is advancing at a pace that is almost unimaginable at the same time that it is steadily becoming cheaper and cheaper. That means that it is going to become easier and easier for companies to replace workers with robots and computers.
America is simply not the economic powerhouse that it once was. Back in 2001, the U.S. economy accounted for 31.8 percent of global GDP. By 2011, the U.S. economy only accounted for 21.6 percent of global GDP. That is a collapse any way that you want to look at it. Read More...
Gold is going to get crushed
Mr Deverell sees gold trading at US$1,100 an ounce in a year and below US$1,000 in five years. He says the lower prices are unlikely to lure more central bank buying. While central banks like to have diversified reserves, their managers wouldn’t want to lose money if gold enters a period of declines, he said.
“The need to buy gold for wealth preservation fell down and the probability of inflation on a one to three year horizon is significantly diminished”, he has told Bloomberg.
Investors have lost faith in the world’s traditional store of value, despite central banks continuing to print money on an unprecedented scale. However, it seems retail investors have seen the current price as an opportunity to buy gold bullion, bars and coins. The US Mint ran out of its smallest gold coins in late April, while the Perth Mint said volumes jumped to a five-year high. India’s gold imports are expected to rise by 47% to 225 tons in the second quarter to meet consumer demand, according to the All India Gems & Jewellery Trade Federation.
But Mr Deverell says this is just bargain-buying, bringing forward activity, but is not massive buying. Possibly contradicting Mr Deverell’s comments somewhat, the World Gold Council issued a report showing central banks bought109 tonnes of gold in the first quarter.
Despite the retail and central bank buying though, fear over where the gold price will head is driving the market. With no real intrinsic value, and detached from its normal drivers such as inflation, it’s anyone’s guess where the gold price will be in six months or six years. A sudden global crisis could trigger a massive rise in the price; or the gold price could just meander down or crash below US$1,000 an ounce. Read More...
Gold price plummets
Gold has dropped below $US1,400 a troy ounce, approaching prices not seen since its historic plunge a month ago.
Tame US inflation data helped trigger heavy selling in the gold market Wednesday, where many investors hold the metal as a hedge against the threat of rising consumer prices. The dollar's sharp rise has also made gold more expensive for buyers using other currencies.
June gold futures ended down 2.00 per cent at $US1,396.20 a troy ounce, the lowest settlement since April 19. Meanwhile, silver prices fell 3.1 per cent to $US22.658 a troy ounce, the lowest settlement since October 7, 2010.
Investors sold precious metals after data showed US wholesale prices falling 0.7 per cent in April, beyond the average economist forecast for a 0.6 per cent drop. With the risk of a rapid rise in prices looking increasingly remote, investors see less of a need to hold gold, an asset that is widely viewed as less vulnerable to the effects of inflation. Read More...
For the best source for acquiring gold and silver please contact Silvertowne at 1-877-477- coin, that’s 1-877-477-2646 or you can visit us at www.silvertowne.com. Silvertowne has been a trusted precious metals and numismatics dealer since 1949.
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[Disclaimer] Shawn Ozbun is not a licensed financial adviser, there is risk associated with all investment including gold and silver. You should seek advise from a licensed financial expert before making a purchase.
