Hello readers and customers of 401 G.C. , we hope everyone had a safe and happy 4th. Below are the metals prices for today, Monday, July 8th, and a very good article by Gerardo Real of the Dines Letter, a financial newsletter. We hope you find this information revealing and happy investing!
Jack
Gold Price today :
Jul 08, 2019 16:14 NY Time
Bid/Ask
1393.00 / 1394.00
Low/High
1391.40 / 1408.30
Silver Price & PGMs
Jul 08, 2019 16:12 NY Time
Silver
14.98
+0.02
Platinum
814.00
+6.00
Palladium
1543.00
-11.00
Rhodium
3155.00
0.00
Gold and a Warning
By Gerardo Del Real
Written Jul. 08, 2019
Deutsche Bank’s overhaul is a sign of things to come for the global economy… starting in Europe.
The bank has decided to a “restructure” that’ll see 18,000 jobs cut by 2022.
It will also be closing down its global equities sales and trading business and will create a “bad bank” which will hold 74 billion euro.
The restructuring of Deutsche Bank will be one of many to come from the European region. It won’t just be limited to the private sector.
In case you had any doubt which direction monetary policy in Europe was headed, Managing Director of the International Monetary Fund Christine Lagarde has been nominated to become the next president of the European Central Bank.
Current ECB President Mario Draghi’s term ends on October 31.
Mr. Draghi’s tenure has been one failed promise after another.
If Ms. Lagarde is confirmed, she takes over the beginning of the end for the euro.
Despite calls for quantitative easing and interest rate cuts, inflation is half of the ECB’s 2% mandate.
Trump’s next trade move sends gold to $5,000?
As stocks sink once again on Trump-China trade news…
Gold is already beginning to move in 2019 for the biggest gains in years.
Just days ago, gold made a critical “cross” move that it’s made every time before surging to new record highs.
With no end in sight, the trade war is set to push gold to unseen heights. You just need to act before Trump’s next move…
His final act could be the final push for the gold supercycle.
Lagarde is an interesting and qualified nominee as she oversees an organization — the IMF — of 189 countries that officially works to ensure the stability of the global monetary system, promote international trade and economic growth, and reduce poverty.
I could make a case it does a heck of a job of destabilizing wherever it gets involved but that’s a conversation for another day.
Far from an academic, Ms. Lagarde is an attorney and former politician whose political savvy will help Europe navigate the challenges to come. But that’s not the point of this piece.
The point of this piece is to connect the dots and oversee the direction of monetary policy out of Europe and elsewhere.
Lagarde oversaw the bailouts in Greece and Argentina.
She has been very supportive of both negative rates and quantitative easing.
In 2015, when Draghi announced his asset-purchase program, Lagarde commented:
“We welcome the measures announced today that will strongly reinforce the ECB’s accommodative stance. The planned expansion of the ECB’s balance sheet will help lower borrowing cost across the euro area, raise inflation expectations and reduce the risk of a protracted period of low inflation.”
— Jan. 22, 2015, IMF statement.
Fast forward over four years later and the 2% inflation expectations remain just that, expectations as low inflation continues to persist throughout the region.
A June 2019 statement Lagarde made in an IMF blog is telling:
“When the next downturn comes, which inevitably it will, policy makers may need to use all policy tools to maximize their combined effect. This means supporting demand through decisive monetary easing and fiscal stimulus wherever possible.”
Expect decisive monetary easing and fiscal stimulus.
Pivot here to the U.S. and there is more of the same, just from a position of strength.
President Trump’s Federal Reserve nominee Judy Shelton is known as a free trader who last year called for a “new Bretton Woods conference,” similar to the 1944 meeting that established the post-war economic order.
She then went on to suggest that meeting happen at Mar-a-Lago, but we all know who’s in charge and you can’t blame her for talking her book.
Back to the policy direction.
Ms. Shelton has also advocated for a return to the gold standard. Let me be clear, that will never happen because of the deflationary consequences and the restrictions that would place on political spending.
That doesn’t mean Shelton is wrong. That also doesn’t mean that gold won’t play a part when “the great reset” happens. It will.
Market Oracle Makes Final Prediction
In 1964, James Dines recommended gold at $35 and silver at 92.5¢.
By 1980, gold was trading at $850 and silver had shot up 50-fold to $49.45.
In 1984, he told his readers to buy a little-known computer stock at 44.5¢.
Apple Computers went on to return 30,000%… or 300x your money!
Now he’s making the boldest prediction of his legendary career…
The global monetary system needs to be reformed, I believe there will be a Bretton Woods-style meeting in the next couple of years, one that will be forced upon us by mathematics.
Neither the current global debt nor the negative interest rate orgy that’s going on is sustainable, but power never relinquishes power on its own, it is always forced to.
Whether it’s Japan, Europe, or here in the U.S., the dominoes are starting to tip over. Today it’s Deutsche, tomorrow it’ll be someone else until soon it’s an entire region that implodes and needs “restructuring.”
Gold will see new real highs between $3,000-$5,000 within the next 7 to 10 years, but be careful what you wish for because the pain that comes with that will be severe for those not positioned.
Note : above excerpts taken from the Dines Letter, a private, ” subscription only” publication that reviews the global financial markets and is not associated with 401 Gold Consultants LLC. This commentary is meant for information purposes only and does not reflect the opinions or recommendations of 401 Gold Consultants LLC.
Posted By :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com