Category Archive: 6) Gold and Austrian Economics

COT Blue: Distinct Lack of Green But A Lot That’s Gold

Gold, in my worldview, can be a “heads I win, tails you lose” proposition. If it goes up, that’s fear. Nothing good. If it goes down, that’s collateral. In many ways, worse. Either way, it is only bad, right? Not always. There are times when rising gold signals inflation, more properly reflation perceptions. Determining which is which is the real challenge.

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The Two Faces of Inflation, Report 22 Apr

We have a postscript to last week’s article. We said that rising prices today are not due to the dollar going down. It’s not that the dollar buys less. It’s that producers are forced to include more and more ingredients, which are not only useless to the consumer. But even invisible to the consumer. For example, dairy producers must provide ADA-compliant bathrooms to their employees.

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Washington State Politicians Drop Cynical Attempt to Impose Taxes on Gold & Silver

Well, here’s some encouraging news… Efforts in Washington State to impose sales taxes on gold and silver were SHUT DOWN today thanks to intense efforts by the Sound Money Defense League, a group of in-state coin dealers led by Dan Duncan, the Association of Washington Businesses, and a large number of vocal grassroots supporters.

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New Inflation Indicator, Report 14 Apr

Last week, we wrote that regulations, taxes, environmental compliance, and fear of lawsuits forces companies to put useless ingredients into their products. We said: “For example, milk comes from the ingredients of: land, cows, ranch labor, dairy labor, dairy capital equipment, distribution labor, distribution capital, and consumable containers.”

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Debt and Profit in Russell 2000 Firms

This week, the Supply and Demand Report featured a graph of debt vs profitability in the Russell 2000. Here’s the graph again: This graph shows a theme that we, and practically no one else(!) have been discussing for years. It is the diminishing marginal utility of debt. In this case, more and more debt is required to add what looks like less and less profit (we don’t have the raw data, only the graphic).

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Gold & Basel 3: A Revolution That Once Again No One Noticed

Real revolutions are taking place not on squares, but in the quiet of offices, and that’s why nobody noticed the world revolution that took place on March 29th 2019. Only a small wave passed across the periphery of the information field, and the momentum faded away because the situation was described in terms unclear to the masses.

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West Virginia Joins Growing Sound Money Movement – Six Other States Now Weighing Their Own Bills to End Taxes on Gold & Silver

Before the ink could even dry on West Virginia Governor Jim Justice’s signature on a repeal of sales taxation on gold, silver, platinum, and palladium bullion and coins, legislators in Wisconsin and Maine introduced similar measures in their own states.

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What Causes Loss of Purchasing Power, Report 7 Apr

We have written much about the notion of inflation. We don’t want to rehash our many previous points, but to look at the idea of purchasing power from a new angle. Purchasing power is assumed to be intrinsic to the currency. We have said that the problem with the word inflation is that it treats two different phenomena as if they are the same.

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SOUND MONEY: A BIBLICAL PERSPECTIVE – PART II

The value of silver and gold is given by their own nature. Neither gold nor silver has value expressed in other units of account. Their value is expressed directly in their own weights. Everything else that is valuable (other assets, commodities, goods, services, or performed labor) is measured against a certain weight of these metals. In other words, the value of gold and silver is assigned by their own nature, while the value of a transaction is...

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Sound money: A Biblical perspective – Part I

In today’s world, it is obvious that the competition of ideas is under serious threat and with it, the much-needed discussions on how to deal with certain topics or try to understand the world we live in. That is particularly worrying, especially when one considers that the western world went through the process of Enlightenment roughly 200 years ago. In the words of Immanuel Kant:

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Will Basel III Send Gold to the Moon, Report 2 Apr

A number of commentators have predicted that the rules of the Basel III bank regulations will cause gold to skyrocket (no, this article is not about our view that gold does not go up, that it’s the dollar going down, that the lighthouse does not go up, it’s the sinking ship going down in the storm).

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Two Junior Miners Offering Arbitrage Opportunities – an Interview with Jayant Bhandari

Maurice Jackson of Proven & Probable has just conducted another interview with Jayant Bhandari, who is known to long-time readers as a frequent guest author on this site. Below is a video of the interview as well as a link for downloading the transcript of the interview in PDF form. But first here is a list of the topics discussed.

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Brexit and Learning To “Live With Boom and Bust Economic Cycles”

Generations of people have learned to live with boom and bust economic cycles. Years of relative plenty were followed, as night follows day, by grief including high unemployment and forced emigration on a large scale. In fact, if you go back much beyond the late 1960s, it would not be too cynical to say the cycles were often more about going from bust to really busted, as for decades the country was hit by crippling rates of largely enforced...

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Watchdog confirms illegal activity by cryptocurrency firm Envion

An investigation by the Swiss Financial Market Supervisory Authority (FINMA) has revealed the that Zug-based cryptocurrency venture Envion unlawfully received deposits from at least 37,000 investors. Envion unlawfully accepted over CHF90 million ($90.5 million) in its Initial Coin Offering (ICO) without the necessary statutory licence, according to a statement by FINMAexternal link on Wednesday.

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Gold Gains On Recession Concerns and ‘No Deal’ Brexit Risks

– Gold gains due to concerns about slowing growth, monetary and geopolitical risks – Increasing possibility of ‘No Deal’ Brexit heightens recession risks in UK, Ireland – Brexit uncertainty is impacting UK & Irish economies; Likely do long term damage – UK sees sharp slowdown in mortgage approvals in February as housing market slows – Gold surges to near all time record highs in Australian dollars at $1,860/oz – Gold in sterling, euros and...

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Merger mania: Consolidation in the gold mining sector

Late last year, Barrick Gold, the world’s largest gold miner in terms of reserves, made headlines when it announced its acquisition of Randgold Resources, in an $18bn mega-merger that marked a key moment for the mining industry. In January, United States gold giant Newmont and principal rival of Barrick, made public its own plans to buy Canada’s Goldcorp, the world’s third-largest bullion producer by market value, for $10 billion.

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On Board Keynes Express to Ruin, Report 24 Mar

Last week, I ranted about the problem with our monetary system and trajectory: falling interest rates is Keynes’ evil genius plan to destroy civilization. This week, I continue the theme—if in a more measured tone—addressing the ideas predominant among the groups who are most likely to fight against Keynes’ destructionism.

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Is Inflation Beginning? Are You Ready?

Extrapolating The Recent Past Can Be Hazardous To Your Wealth. “Those who cannot remember the past are condemned to repeat it,” remarked George Santayana over 100 years ago.  These words, as strung together in this sequence, certainly sound good.  But how to render them to actionable advice is less certain.

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In Gold We Trust 2019 – The Preview Chart Book

The new IGWT report for 2019 will be published at the end of May… …and for the first time a Mandarin version will be released as well. In the meantime, our friends at Incrementum have decided to release a comprehensive chart book in advance of the report. The chart book contains updates of the most important charts from the 2018 IGWT report, as well as a preview of charts that will appear in the 2019 report.

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Cryptocurrencies accepted by Switzerland’s biggest online retailer

Switzerland’s largest online shop, Digitec Galaxus, has announced it will start accepting payments in bitcoin and other cryptocurrencies. The company, which saw turnover of close to a billion francs last year, is by far the largest Swiss retailer to date to take this step. The move may go some way to answering the question posed by many bitcoin holders: “I have cryptocurrencies, now what do I do with them?”

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