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Tuesday, September 19, 2017

Author and Precious Metal Broker Shares Reasons Behind Gold's Rise

Appetite for physical gold on the rise even after reaching one-year high.

gold on the rise

Official figures, such as soaring prices and volume metrics from precious metals companies, offer some indication of gold's appeal. To author and precious metals broker Bill Holter, however, a more telling sign that the metal is making strides is the burst of interest from first-time investors.

This, Holter told KamloopsBCNow, means that people are finally understanding the volatile nature of currencies and the difficulties of storing your wealth loss-free.

According to Holter, appetite for physical gold has been on the rise even during bearish stretches, and it hasn't dwindled as gold reaches its one-year high.

The analyst believes that money printing is reaching a boiling point and could trigger a monetary reset – in this new world, gold will stand out as one of the very few assets that kept its value through the turmoil.

"We are headed for a monetary reset and the reason we're headed for a monetary reset is there's too much debt outstanding that cannot be paid on the current terms. When I say current terms, I'm talking about with current purchasing powers of the various fiat currencies (or paper money)," Holter explained.

The article states that, as opposed to traditional investments, gold serves as a guarantee of capital preservation, one that offers bullion owners peace of mind in any scenario. One major upheaval could happen due to the piling of credit – Holter says we're in the largest credit bubble in history and that, when it bursts, currencies will go with it.

Part of why gold retains its value so well is that it's finite, as opposed to currencies that governments have been printing carelessly since 2008-2009.

"The amount of gold outstanding and produced since then shows that gold is way, way cheaper than it has been in maybe ever. Gold is extremely cheap in relation to money supplies, in relation to debt outstanding," said Holter. "There's obviously uncertainty in global markets and you're seeing a flow into gold from all over the world - not just the U.S.. It could be looked at as a flight out of fiat currency."

Holter also shares the view of some investors that gold and silver could become scarce due to limited supply – a view that could have significant influence on market sentiment. "There's no way to tell. There's no way to tell where the bottom of the barrel is - logically - the western supplies have to be getting short," said Holter of the gold supply. And while he's bearish on all currencies, Holter is especially negative on the U.S. dollar, which he believes will lose out to the Canadian dollar as the latter is part of a resource-based economy.

Thursday, August 31, 2017

Doomsday Clock Reinforces Need for Safe Haven

Global tensions increase appetite for safe-haven assets such as physical gold.


Somewhat forgotten in recent times, ValueWalk writes that the concept of the Doomsday Clock has flared up once again, due to the possibility of nuclear war between the U.S. and North Korea. The last time the clock ticked so close to midnight, they say, was 1953, when the Soviet Union tested its hydrogen bomb.

But tensions with North Korea aren't the only thing that has investors worried, the article notes. Political uncertainty in the U.S., a weakening dollar and ongoing terror attacks have all helped reinforce the value of safe-haven assets such as gold.

The metal reestablished itself in the financial crisis of 2008-2009, when the world's stock markets fell by about 50%, or a total of $34 trillion. During this time, gold helped savvy investors stay afloat due to the negative correlation that it often has with stocks. And it did more than just shield those who owned it; between 2007 and 2009, gold rose from $670 an ounce to $938 an ounce, amounting to a gain of 40%.

Gold's bull run continued after 2009, as governments around the world flooded their economies with money in a post-crisis environment. By 2011, the metal rose past $1,900 an ounce, posting its all-time high.

The article goes on to state that the money printing that allowed gold to reach peak levels shows why the metal continues to hold its value while currencies rise and fall. Unlike paper money, gold is finite, which means governments can't simply add more gold to the system as desired.

This is why, the article argues, the gold standard can't be restored: there is simply too much money in circulation compared to the finite supply of gold. It's also why the price of gold has close to doubled in the last decade, a trajectory that the metal is all but guaranteed to continue on.

Although the gold standard was abandoned in 1971, its proponents maintain that out-of-control money printing will end in disaster. It already had catastrophic results in France, China and Germany, and Zimbabwe and Venezuela are recent examples of paper money becoming worthless due to irresponsible actions from the government.

The article concludes by reminding readers that in all of those examples, those with a significant allocation to gold remained largely untouched by the consequences of central bank manipulation. And, they believe that the same will be the case when the next crisis hits, regardless of the direction it comes from.

Wednesday, August 9, 2017

Political Woes to Heat Up Gold and Bitcoin

Political uncertainty and elevated risk to increase appetite in safe-haven investments.

Gold and bitcoin ready to heat up

Safe-haven investments shine in times of uncertainty and elevated risk. As TheStreet's David Yoe Williams points out, for U.S. investors, there has been no shortage of either in recent times.

Yoe cites domestic issues as being the most immediate concern, with the publicized back-and-forth over Obamacare taking center stage. Republican Senators have neither managed to repeal the Affordable Care Act nor find a replacement for it, a problem which will have ongoing ramifications for the U.S. economy.

Aside from the growing U.S. debt ceiling, another point of concern is the growing perception that the Trump administration isn't as efficient as many had hoped it would be. Yoe claims that this could cause a significant downturn in the stock and bond markets, both of which benefitted from the promise of an economic recovery, or the "Trump Bump".

International issues are increasingly becoming a concern as well, with recent events putting more pressure on an already strained relationship between the U.S. and Russia. There's also risk coming from Europe and China – both face an increasing amount of debt, and both will soon host elections that could significantly shake up their politics.

Many people are concerned that North Korea is a ticking time-bomb, with the country continuing to make subtle threats in the form of showcasing its offensive might. The Trump administration seems content to respond to force with force, which would put the markets in turmoil and increase the appeal of safe-haven assets.

Beyond politics, another current hot topic for the financial markets are cryptocurrencies. Recent ruling by the U.S. Securities and Exchange Commission show that the government is starting to take them seriously. It's clear that investors are looking for a safe-haven commodity outside the monetary system because not only are they note closely tied to economic and geopolitical issues, but they are also able to provide anonymous transactions away from government scrutiny.

As popular as cryptocurrencies might be getting, Williams notes that the precious metals market looks ready to outstrip them. After all, despite their touted benefits, cryptocurrencies bring with them a significant amount of volatility and could be the most unpredictable out of any asset.

Precious metals can provide a safer alternative, which is ideal when talking haven assets whose primary purpose is protection. Gold has gained 9% this year with silver posting a 3% gain during the same period; by all accounts, this appears to be the beginning of a positive trend in both markets. As Williams puts it, the "gold standard" protection that these metals offer will continue to be highly valued in an environment where certainty seems less and less available.


Tuesday, July 18, 2017

Next Gold Bull Market Driven by Stock Correction says Sprott CEO

Weaker-than-expected economy could be the perfect catalyst for next gold bull market.

next gold bull market driven by stock correction

Central banks from around the world have grown bolder in their approach, with many of them embarking on a course of tightening monetary policy for the first time in recent memory. Aside from the U.S. Federal Reserve's much-publicized rate hiking, the Bank of Canada recently raised rates for the first time since 2010, and the European Central Bank indicated that it might follow suit.

According to Sprott Inc. CEO Peter Grosskopf, however, the banks are operating on overly optimistic economic forecasts and will not be able to hike rates as quickly as expected. "We think the underlying economies and the strength of the economies can be debated," Grosskopf explained. "If you look at the underlying statistics, it's a lot less evident that the economy is strong."

Grosskopf believes this will provide the next leg up for the yellow metal, with weaker-than-expected economic growth leading to the stock correction that many are expecting. This risk-heavy environment would act as a perfect catalyst for the next gold bull market.

"The next move on gold will be driven by an equity market correction," Grosskopf told Bloomberg in an interview. "It's a pretty safe bet that if equity markets start to look volatile and dangerous then a lot of money will flow into gold as a hedge to that."

Sprott USA chairman Whitney George agrees that it's dangerous for central banks to hike in unison amid low inflation. He expects this to not only put pressure on the stock market but to also negatively affect the currencies of the countries involved.

"When you look at the history of the last 20 years, every time central banks have decided it was time to take the punch bowl away we've had quite a dislocation," says George.
Grosskopf, whose firm is in the midst of returning to a precious metals-oriented investment strategy, feels that investors have been lulled into a false sense of security, resulting in a reduction of their gold positions.

These investors are sure to flock back to the safety of the yellow metal as soon as they think trouble is brewing, allowing gold to reach new heights. According to the firm's strategists, gold has the potential to rally past $1,400 by year's end.

"People haven't placed a high priority on having a hedge because the punch bowl seemed to be relatively full," said Grosskopf. "Gold is vastly under-invested by most investors, so it's got a lot of growth ahead of it."


Tuesday, June 27, 2017

Uncovering Gold Ownership in America

While polls offer only limited insight into how much gold Americans own, history could give us a better clue.

Gold ownership in the US

The statistics of gold ownership in the U.S. are difficult to track. It's known that the nation occupies high spots on the lists of top gold consumers and biggest gold hoarders, but past that point, data is relatively muddled.

Polls show that Americans continue to rank gold highly as an investment, with the metal landing third on a recent list of the best-perceived long-term investments. This data, however, offers only limited insight into how much bullion Americans are buying. Even the U.S. Mint's statistics, which show $1.2 billion worth of gold coins being sold in 2015, does little to inform us about individual purchases.

Writing in the LA Times, James Ledbetter believes that a look at history might give us a better clue of where gold sits with American investors. Despite being illegal to own between 1933 and 1975, gold remained a very popular investment in the country.

When gold was first confiscated in the 1930s, the hoard of privately-owned gold was estimated to be at $1.4 billion, a massive amount that was twice the size of the Bank of England's reserves. After the government tried to  buy up all the remaining gold, the Treasury estimated that $287 million in gold coins still sat with people.

Clearly, Americans didn't want to give up on owning gold despite the administration's threats. As the government couldn't reconcile the high amount of remaining gold coins with their new illegal status, the figure was simply expunged from the books and the gold is thought to have been smuggled out of the country or kept in private collections.

Ledbetter notes that gold retains its secrecy even half a century after a floating currency was established in the U.S., and long after one could argue for the economic and security reasons of being vague about gold hoards.

The secrecy surrounding gold has also given rise to conspiracies involving a lack of physical gold, such as the notion that the Federal Reserve has little to no gold bullion. Yet despite the restrictions in producing accurate estimates, it's safe to assume that 1% to 3% of Americans own gold, although Ledbetter and others believe that the number could be as high as 10%.

These statistics would mean that anywhere between 2.5 million and 25 million of America's citizens own gold. Regardless of the size of individual gold hoards, these numbers underline the importance of gold investment in the country while a closer look could redefine what we know about Western appetite for the metal.

Monday, June 19, 2017

Exclusive: Canadian Silver Twin Maples Coin (2 oz) from Birch Gold Group

The evolution of the Canadian Silver Maple Leaf is here

Canadian Silver Twin Maples

Perfection can be hard to top, and there are very few bullion coins as flawless as the ever-popular Canadian Silver Maple Leaf. Ever since the first Maple Leaf was minted three decades ago, the coin has stood as a paragon of value in a tumultuous world that has seen economic markets around the world rise and fall numerous times.

Demand for the 1 oz Maple Leaf has been elevated by its near-absolute purity, with a silver content of 99.99%. This has helped to establish it as a preferred coin among many people who purchase precious metals.

With tens of millions of the valuable coin in circulation, many have wondered when the Royal Canadian Mint will look to create another coin equally impressive, if not more so. That time has finally come, as we are proud to announce that Birch Gold Group will be the exclusive distributor of the Canadian Silver Twin Maples.

In some ways, the new coin is reminiscent of its predecessor: The memorable portrait of Her Majesty Queen Elizabeth II, designed by Susanna Blunt, remains on the coin's obverse. In addition, the coin's high purity once again acts as a guarantee of its inclusion in portfolios big and small, as well as in Precious Metals IRAs.

The coin's reverse has seen some changes, as the new image of the maple leaf was created by Celia Godkin in a tactful endeavor to reinvigorate a classic design. The Silver Twin Maple's leaf is the sugar maple, a Canadian native which has long served as a symbol of the country's prosperity.

Perhaps the most notable change from the Silver Canadian Maple Leaf (also sold by Birch Gold Group) is that the Silver Twin Maples will contain a full two ounces of silver, twice as much as its predecessor. Further, to show that they are truly keeping up with the times, the Royal Canadian Mint will imbue the coin's sparkling surface with two high-tech security measures in the form of precise radial lines and a micro engraved laser maple leaf – these will ensure that the coin is as unmistakable under a microscope as it is to the naked eye.

Click here to learn more about the 2 oz Silver Twin Maples, or to contact Birch Gold Group to make a purchase.

Ben Shapiro Gold Company as Heard on Ben Shapiro Show: Birch Gold Group

Shapiro and Birch Gold Group working to educate Americans on value of purchasing gold

Ben Shapiro gold

In today's world, it can be difficult to get an opinion from someone you know will speak from their heart. Getting an expert opinion on how to safeguard your hard-earned savings can prove even more difficult, especially in the current landscape of aggressive profit-seeking.

Birch Gold Group's collaboration with Ben Shapiro, Editor-in-Chief of the Daily Wire and New York Times bestselling author, is a move towards clearing the clutter of incorrect and often damaging information about financial related matters, and bringing the cold, hard facts about money to the American people.

Since his early work, Shapiro has shown a fondness for precious metals, and the candid author and host of the Ben Shapiro Show continues to remind people why they can't afford to overlook gold and silver. His endorsement of Birch Gold as his precious metals firm of choice since August 2016 shows another level of dedication to helping Americans protect their savings.

Paper cash holdings have never been more vulnerable, especially when held in a virtual setting such as a bank account. The constant erosion of the dollar's purchasing power, coupled with the increase in cyber attacks, means that your holdings in "paper" or digital form are less secure than if they are resting in the form of a tried-and-true physical asset, whose intrinsic value is never put into question.

Time and time again, gold and silver have shown that they fit the bill perfectly, as they can help Americans avoid the volatility of equities, while still having growth potential. This is one of the primary reasons why Ben Shapiro advocates diversifying into precious metals with Birch Gold Group.

If you're an investor looking to diversify your portfolio, purchasing physical gold and silver is one decision that should make a lot of sense. Or, if you're simply looking to protect and preserve your savings, such as in an IRA or eligible 401(k), moving into an IRA backed by physical gold and silver is something that Ben Shapiro advocates for as well. And in a world where your savings are often under threat, Birch Gold Group can help you achieve this.