Gold and Silver Prices
Gold prices jumped sharply on Friday buoyed by a disappointing jobs report which highlights continuing weakness in the U.S. economy.
“Gold prices gained on Friday after U.S. jobs data showed that hiring slowed drastically in May, easing investor concerns that the Federal Reserve will raise interest rates in the coming months… On Friday, the Labor Department said nonfarm payrolls rose by a seasonally adjusted 38,000 in May, the weakest gain since September 2010 and falling far short of economist expectations of 158,000…
“Now that we just saw some really terrible data ... the chances of [the Fed] moving forward with a rate increase are all out the window,” said Bob Haberkorn, senior market strategist at RJO Futures… There’s been a lot of bullish money on the sidelines ... that has been worried about the Fed… They’ve been lying in the weeds and waiting. It feels like it’s coming out this morning.’” (“Gold Surges Following Jobs Report,” WSJ, 6/3/16.)
Gold ended the week up $30.70, closing at $1,244.50. Silver prices closed at $16.49, up $0.19.
Owning Gold Not Optional For Investors – TheStreet
Keith Fitz-Gerald, chief market strategist for Total Wealth Research, was interviewed on TheStreet regarding the Federal Reserve’s plan to raise interest rates and the importance of owning gold.
“’The arrogance of the Fed in my opinion is unbelievable as the rest of the world wants easing the Fed wants to raise rates which tells me they’re still off the rails and making stuff up as they go along…
“I think individual investors can stick with gold … so that no matter what happens with the Fed’s next move, no matter what Wall Street tries to hijack next, no matter what lack of adult supervision Washington wants to demonstrate, there’s still survivability and potential for profits…
“My take is that gold has never been more relevant. I don’t think it’s an option asset class any more. I think every investor needs to have some on hand… But I don’t believe it’s optional and I do believe everyone investor needs to have it.” (“Owning Gold Is Not Optional, Every Investor Needs It – Strategist,” TheStreet, 6/2/16.)
Gold Is An Investment In Monetary Disorder – Jim Grant
Jim Grant, founder of Grant's Interest Rate Observer, was recently interviewed at 2016 Strategic Economic Conference about gold and the dangerous policies of central bankers.
“This is not going to be any news: Jim Grant is bullish on gold… The degree I would characterize as 'very'. I would characterize gold not so much as a hedge against monetary disorder, but as an investment in it. People will say well that's a hedge against Armageddon, no, Armageddon doesn’t happen mostly, but what we are in the midst of is monetary shenanigans, and I see no real chance of there being fewer of them, and a great chance there will be more of them so I’m very bullish on this ancient competition for paper money. Gold competes with money, with government issued paper money, competes with the promise to pay money which is called credit. I think the institution of government issued money and of credit are in a tough way so gold is going to be the heir to those difficulties…
"Gold however has its fans in the East and gold is moving from West to the East… When Western central banks do sell as the Bank of England did in the late 90's, and as little Venezuela did in the first quarter and is probably doing now, typically those are moments to pay attention because they're moments of distress in the world or of a view on the part of the economic establishment that gold is good for nothing and that particular idea that gold is good for nothing is invariably a buying opportunity…."
"People who hold the view that [gold is a vestigial organ] are the people who hold the view that the stewards of our paper and digital currencies have the answers, that this monetary improv conducted for the past seven or eight years by the world's Western central banks and certainly mostly in Japan, that this is the way forward. I try to understand what they're saying but I can't make head nor tail out of it. It seems to me the opposite is so obvious that sometimes I wonder if I'm seeing things…." (“If You Want to Make Money, Go to Scary Places: Jim Grant,” Strategic Investment Conference 2016, 5/27/16.)
“Incredible Opportunity” To Own Gold And Silver Before Next Crash – Embry
John Embry, Senior Investment Strategist at Sprott Asset Management, told King Worlds News that current prices offer an opportunity for investors to acquire physical gold and silver before the next world economic collapse.
“Eric, it certainly has been an ugly couple of weeks in the precious metals space, with platinum being abused as much or more than gold and silver. I thought Andrew Maguire did an excellent job in explaining the action in his KWN interview on Friday… And when you juxtapose Maguire’s interview with the interviews KWN did with Pierre Lassonde and Stephen Leeb, where they explained the fundamentals for enormous price increases in gold and silver, it clearly demonstrated once again what an incredible opportunity there is for investors to acquire whatever physical gold and silver they can at these prices…
“Also, I remain fascinated by the misinformation coming from official sources with respect to the economy. The recent housing numbers were many, many standard deviations above where they should have been, and a lot of the supposed strength in the sector is primarily attributable to horrible lending standards that appear to be repeating the same process that proceeded the 2007 – 2008 collapse. However, as bad as the lending standards might be in the housing sector, they are dwarfed by what is occurring in the auto sector… This is going to end very badly, and I’m afraid in the not-too-distant future we might be referring to 2007 – 2008 debacle as the good old days.
“I still believe that the U.S. authorities remain very concerned about an eventual dollar crisis or outright collapse for that matter… There is no reason for a rate hike, so the government has to create fictional numbers in order to support the concept and keep foreign investors in the dollar….” (“50-Year Veteran Warns We Are Headed For Another 2008-Style Collapse,” King World News, 6/1/16.)
Gold To Rise To $1400 As Investors Shift To Safe Haven Asset – ABS
Allocated Bullion Solutions, a technology solution provider for refiners, central banks and mining companies, issued a new report bullion on gold.
“Gold prices may rise to $1,400/oz over the coming year, according to the latest report by Allocated Bullion Solutions (ABS). In the short-term ABS expects weakness to persist as investors re-appraise the likely path of U.S. monetary policy, supporting the USD and leading to an unwind of speculative net open positions.
“’However, any dip sub-USD 1,150/oz is likely to be actively bought into and absent a sharp appreciation of the USD, we see scope for gold to rise to $1,400/oz over the coming year,’ ABS says.
“The reports finds that relentless quantitative easing and negative interest rate policies (NIRP) in several major economies, in addition to concerns around geopolitical stability, is inducing a fundamental shift in investment demand towards traditional safe havens like gold….” (“Gold may rise to $1,400/oz in 12-months: ABS,” CommodityOnline, 6/1/16.)