Brown Bottom Intrigue

Written By: The WealthCycles Staff

A market in which the primary price trend is downward.

Alan Greenspan is an economist and former Chairman of the Federal Reserve Board. He was appointed Chairman by Ronald Reagan in 1987 and remained in his position until his retirement in 2006. 

A fiat currency is created by a government decree. The Latin word fiat means “let it be done.” And with the stroke of a pen, or the crank of a printing press, “money” is created. Fiat currency has no inherent value—the paper that a $100 dollar bill is printed on is surely not worth $100. It might have been worth a few cents before the government ruined its utility as scrap paper by printing green words and numbers all over it! Compare this with gold, which is a precious, rare metal that is, in many cases, the only substance on earth that can be used for certain human purposes, including science, medicine, and of course—adornment.

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testiomials Some say Brown was offended by gold’s “laziness”—that it simply sat there, producing no interest or dividends. If that was really Brown’s reason for dumping Britain’s gold, he, like the U.S.’s Warren Buffet, missed the point: gold is money—and it’s done a heckuva lot better than the dollars and euros Brown traded it in for.”

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Miners Continue to Hold Back Silver and Gold Supply

Rob McEwen is the original founder of Goldcorp, where he grew the tiny $50 million mining company to over $10 billion in total value. Given such an amazing achievement, and his 29 years of experience in the natural resources space, we turn to the entrepreneur for a calm voice. McEwen says:

Futures are really nothing more than IOUs. Futures contracts are just standardized agreements to deliver a specific commodity, in an agreed quantity, at an agreed price, on an agreed date, someday in the future. They are traded like stocks on numerous commodities exchanges around the world. They differ from buying stocks in that you agree to a transaction at some point in the future.

Derivatives are contracts or securities that derive their value from other assets. In other words, derivatives don’t have value in and of themselves; they get their value from something else—an index, a commodity, or anything else of value. This gives derivatives an interesting characteristic: an infinite number of them can be created.

The tangible things that we eat, use and/or buy. Commodities that are traded include Cattle, Cocoa, Coffee, Copper, Corn, Cotton, and Crude Oil, just to cover the Cs. Gold, silver and platinum also are traded on the commodities exchanges as futures contracts.

Exchange-Traded Funds (ETFs) are securities that trade like stocks but are supposed to track the price of an index like the Dow or S&P 500 instead of an individual company, or they may be designed to track the price of a commodity like oil, gold, or silver.

A market in which the primary price trend is upwards 

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Silver Supply Inadequate To Meet Growing Demand

Written By: The WealthCycles Staff

The tangible things that we eat, use and/or buy. Commodities that are traded include Cattle, Cocoa, Coffee, Copper, Corn, Cotton, and Crude Oil, just to cover the Cs. Gold, silver and platinum also are traded on the commodities exchanges as futures contracts.

A market in which the primary price trend is upwards 

Inflation is simply an increase in the supply of currency and credit. The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling is defined by the term "price inflation." Central Banks attempt to stop deflation, a natural phenomenon which occurs in order to correct the prior inflation.

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testiomials Tight supplies contribute to the rising price of silver, but it will be the growing global desire to preserve wealth that will send it to the moon.”

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Central Banks Trapped Between (Gold) Rock and Hard Place

Written By: The WealthCycles Staff

A market in which the primary price trend is downward.

From Wikipedia.org:

A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

Exchange-Traded Funds (ETFs) are securities that trade like stocks but are supposed to track the price of an index like the Dow or S&P 500 instead of an individual company, or they may be designed to track the price of a commodity like oil, gold, or silver.

A market in which the primary price trend is upwards 

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testiomials Without moving a single ounce of physical gold, central banks can sell their pile over and over again—creating an infinitely tangled web of lenders, creditors, swappers, and traders.”

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Scrap Gold Buyers Signal Bull Market Phase

Written By: The WealthCycles Staff

A market in which the primary price trend is upwards 

A market in which the primary price trend is upwards 

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testiomials One trick our old friend “Snakes” used was to buy costume jewelry by the pound. For every 20 pounds, there were inevitably gold and silver pieces that made it worth his while.”

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Spooked Investors Retire from Stocks

Written By: The WealthCycles Staff

A market in which the primary price trend is upwards 

The word “cycle” comes from the Greek word kyklos, meaning cycle or circle. One common definition of cycle is “a periodically repeated sequence of events.”

The idea of a cycle is symbolized by a circle, which, because there is no beginning or end, represents recurrence. The symbolic circle is often divided into segments—often two, such as the Chinese yin and yang or day/night, but more often four segments, like the seasons.

A recognition and understanding of cycles is one way human beings are able to recognize patterns in data. As early humans learned that events in nature recur over and over again with regularity, they developed the ability to plan for the future, which ultimately led to advanced civilizations.

Investment banks are financial institutions that underwrite new stock and bond offerings, advise clients on mergers and acquisitions, and make markets—or act as a middleman in stocks and bonds.

Simply put, bonds are debt. Bonds basically say: "I owe you (IOU) X-amount of currency, plus X-amount of interest." —Michael

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testiomials The stock market’s wild ride has many investors bailing out. Twice-burned retirees likely won’t be back at all, but even younger investors are thinking twice about securities.”

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Fundamentals Don’t Lie



Today we tune into Gold & Silver Radio’s Leigh Greenberg for a review of why the economic fundamentals continue to argue for the long-term growth of gold and silver. Often, when short-term “noise” about the economy becomes too scary or disruptive, it’s useful to review the basic reasons we chose to invest in precious metals to begin with.

“When people lose confidence in the economy they turn to other investments, especially those with intrinsic value like commodities and gold and silver, “ Greenberg explains. Even though recent price volatility in gold and silver may create doubt in the indecisive or faint of heart, the economic fundamentals argue that gold and silver still have a long way to climb.

The tangible things that we eat, use and/or buy. Commodities that are traded include Cattle, Cocoa, Coffee, Copper, Corn, Cotton, and Crude Oil, just to cover the Cs. Gold, silver and platinum also are traded on the commodities exchanges as futures contracts.

Inflation is simply an increase in the supply of currency and credit. The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling is defined by the term "price inflation." Central Banks attempt to stop deflation, a natural phenomenon which occurs in order to correct the prior inflation.

Quantitative easing is central banker speak for creating currency to buy debt or other assets.

The process of quantitative easing is fairly simple—it involves printing currency and buying assets from banks—but it can take many different forms. Central banks can use Q.E. to buy relatively safe treasury securities, pumping cash into their vaults to stimulate lending; or they can buy assets that have lost value (think mortgage-backed securities) in order to make banks whole and attempt to shore up their balance sheets. Central banks can also target certain maturities of the assets they purchase, to push down the cost of short-term, medium-term, or long-term borrowing. 

Simply put, bonds are debt. Bonds basically say: "I owe you (IOU) X-amount of currency, plus X-amount of interest." —Michael Maloney, Guide to Investing In Gold & Silver. But, there is more to it than that. Bonds set the cost of borrowing, determine international currency flows, and play a huge role in determining the value of each nation’s currency. That means bonds have a direct effect on the dollars, euros, pesos or yuan in your wallet or bank account.

A market in which the primary price trend is upwards 

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Stocks on a Cliff

Since late July, stocks (as measured by the S&P 500) are down nearly 12%. But despite the fact that confidence has plummeted and the world become embroiled in economic turmoil, stocks are still overvalued, according to one very important metric. 

According to Robert Shiller and his Cyclically Adjusted PE ratio, which takes into account the S&P 500’s last 10 years of earnings, stocks are overvalued by at least 25%, and the scary thing is that doesn’t account for any of the “overshooting” that could happen.

“…After the Great Depression, we went through a period of 20 years where general investors didn’t want anything to do with stocks. The price earnings ratio, this time, after 2000, only got down to around 13, which is slightly below average, but not far below average. We [haven’t] really had the overshooting, yet.”

The word “cycle” comes from the Greek word kyklos, meaning cycle or circle. One common definition of cycle is “a periodically repeated sequence of events.”

The idea of a cycle is symbolized by a circle, which, because there is no beginning or end, represents recurrence. The symbolic circle is often divided into segments—often two, such as the Chinese yin and yang or day/night, but more often four segments, like the seasons.

A recognition and understanding of cycles is one way human beings are able to recognize patterns in data. As early humans learned that events in nature recur over and over again with regularity, they developed the ability to plan for the future, which ultimately led to advanced civilizations.

A market in which the primary price trend is upwards 

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What’s Going On With Gold?

Written By: The WealthCycles Staff
 “Perseverance furthers.”

            --I Ching (Book of Changes)

The past couple of weeks have required of those invested in gold and silver faith, nerves of steel and a solid foundation in economic cycles. Gold plunged from a peak of $1923.70 on Sept. 6 to a low of $1535 before rebounding to $1657 yesterday, then dropping back down to $1593 at press time. Silver, also influenced by its use as an industrial metal, and fluctuating in a much smaller market, has been an even crazier ride for investors. Reports Bloomberg:

The basic format of an economic cycle is expansion, leading to crisis, followed by recession, and finally recovery, which leads back to expansion. The timing of basic economic cycles can be predicted with some regularity.

The tangible things that we eat, use and/or buy. Commodities that are traded include Cattle, Cocoa, Coffee, Copper, Corn, Cotton, and Crude Oil, just to cover the Cs. Gold, silver and platinum also are traded on the commodities exchanges as futures contracts.

A fiat currency is created by a government decree. The Latin word fiat means “let it be done.” And with the stroke of a pen, or the crank of a printing press, “money” is created. Fiat currency has no inherent value—the paper that a $100 dollar bill is printed on is surely not worth $100. It might have been worth a few cents before the government ruined its utility as scrap paper by printing green words and numbers all over it! Compare this with gold, which is a precious, rare metal that is, in many cases, the only substance on earth that can be used for certain human purposes, including science, medicine, and of course—adornment.

Deflation is a contraction of the currency supply, which causes prices to fall and the value of currency to rise. When prices fall, a boom becomes a bust, and suddenly a recession becomes a depression.  Fed Chairman Ben Bernanke, a scholar of the Great Depression, knows the dangers that deflation poses to a debt-based economy.

Futures are really nothing more than IOUs. Futures contracts are just standardized agreements to deliver a specific commodity, in an agreed quantity, at an agreed price, on an agreed date, someday in the future. They are traded like stocks on numerous commodities exchanges around the world. They differ from buying stocks in that you agree to a transaction at some point in the future.

The tangible things that we eat, use and/or buy. Commodities that are traded include Cattle, Cocoa, Coffee, Copper, Corn, Cotton, and Crude Oil, just to cover the Cs. Gold, silver and platinum also are traded on the commodities exchanges as futures contracts.

The word “cycle” comes from the Greek word kyklos, meaning cycle or circle. One common definition of cycle is “a periodically repeated sequence of events.”

The idea of a cycle is symbolized by a circle, which, because there is no beginning or end, represents recurrence. The symbolic circle is often divided into segments—often two, such as the Chinese yin and yang or day/night, but more often four segments, like the seasons.

A recognition and understanding of cycles is one way human beings are able to recognize patterns in data. As early humans learned that events in nature recur over and over again with regularity, they developed the ability to plan for the future, which ultimately led to advanced civilizations.

Do you think silver can go to £1400 an oz?

Alexander
UK

testiomials What we have seen happen last week and this week is a temporary symptom of panicked investors scrambling to reposition themselves.”

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2008 Déjà Vu Signals Rebound for Gold

Amid news that China’s juggernaut economy is slowing and fears that the Eurozoners don’t have the political will to fix what ails them, stock markets worldwide took a dive today. The Dow closed down 738 points—its worst week since October 2008. Gold and silver also dropped dramatically—gold down 9.5% from its Sept. 6 peak of $1,923.70, but with gold and silver, the memory of 2008 is more reassuring. 

Gold fell simply because investors burned in the securities and commodities markets needed the cash to cover margin calls, as reported by Bloomberg earlier today.

The tangible things that we eat, use and/or buy. Commodities that are traded include Cattle, Cocoa, Coffee, Copper, Corn, Cotton, and Crude Oil, just to cover the Cs. Gold, silver and platinum also are traded on the commodities exchanges as futures contracts.

Deflation is a contraction of the currency supply, which causes prices to fall and the value of currency to rise. When prices fall, a boom becomes a bust, and suddenly a recession becomes a depression.  Fed Chairman Ben Bernanke, a scholar of the Great Depression, knows the dangers that deflation poses to a debt-based economy.

Inflation is simply an increase in the supply of currency and credit. The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling is defined by the term "price inflation." Central Banks attempt to stop deflation, a natural phenomenon which occurs in order to correct the prior inflation.

A market in which the primary price trend is upwards 

The word “cycle” comes from the Greek word kyklos, meaning cycle or circle. One common definition of cycle is “a periodically repeated sequence of events.”

The idea of a cycle is symbolized by a circle, which, because there is no beginning or end, represents recurrence. The symbolic circle is often divided into segments—often two, such as the Chinese yin and yang or day/night, but more often four segments, like the seasons.

A recognition and understanding of cycles is one way human beings are able to recognize patterns in data. As early humans learned that events in nature recur over and over again with regularity, they developed the ability to plan for the future, which ultimately led to advanced civilizations.

Read More >

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