Monday, December 9, 2019

The Dollar Is a Source of Global Instability

by Jim Rickards, Daily Reckoning:

The dollar constitutes about 60% of global reserves, 80% of global payments and almost 100% of global oil transactions.

So the dollar’s strength or weakness can have an enormous impact on global markets.

Using the Fed’s broad real trade-weighted dollar index (my favorite foreign exchange metric, much better than DXY), the dollar hit an all-time high in March 1985 (128.4) and hit an all-time low in July 2011 (80.3).

U.S. and London’s days of domination over the gold price may be numbered as Dubai posts a new record for gold trading

by Kenneth Schortgen, Rogue Money:

Dubai Gold and Commodities Exchange (DGCX) has recorded its best ever first half in its 13-year history, trading over 11,300,000 contracts so far in 2018, up 44 per cent year-on-year (Y-O-Y).

Traded value for the first six months of 2018 breached $250 billion for the first time too, said a statement from DGCX.

The exchange’s record-breaking performance was sealed following a robust month of trading in June, which saw 2.04 million contracts traded, up 74 per cent from June last year. This month’s traded value reached $42.3 billion. – Zawya

ANOTHER RAID WITH GOLD DOWN $12.15 TO $1240.90 AND SILVER DOWN 31 CENTS TO $15.83

by Harvey Organ, Harvey Organ Blog:


THREE HUGE COMMENTARIES THAT YOU MUST READ TONIGHT: 1. NICHOLAS BIEZENEK ON EFP’S/ 2. ROB KIRBY ON DEUTSCHE BANK’S PROBLEM AND HOW THEY ARE BEING ‘FORCED OUT OF AMERICAN POOL’/3. JAMES RICKARDS COMMENTARY ON THE END GAME UTILIZING SDR’S/CHINESE YUAN COLLAPSES TO ALMOST 6.7 TO THE DOLLAR/TRADE WARS WITH EUROPE ARE ESCALATING/ALASDAIR MACLEOD’S IMPORTANT PAPER/MORE SWAMP STORIES FOR YOU TONIGHT

No Pain No Gain: It’s Best To Prepare For Pain This Week In Gold & Silver Prices

from Silver Doctors:

SD Outlook: looks like were going lower, so buyers have great opportunity here. If you’re not a buyer right now, prepare for more pain. Here’s why…

Editor’s Note: There will not be a SD Midweek Update on Wednesday.

*****

This is the week where both fundamentals and technical data dumps can have an effect on the cartel’s ability to smash the price of the metals.

Meaning they will be able to strong arm gold and silver with ease.

Ron Paul Makes the Case for Gold

by Peter Schiff, Schiff Gold:

Earlier this month, Peter Schiff said Federal Reserve policy is pushing us toward a no-growth, high-inflation economy.

There are a number of factors in play. There are growing inflation pressures. There are record amounts of debt – both government and corporate. But behind all of these symptoms, we have a disease.

Ron Paul digs down to the root causes of our economic woes in this in-depth look at the US financial system and the need for reform. Paul says a monetary crisis is coming. What will replace the dollar? Paul makes a strong case for gold.

Gold’s Price Performance: Beyond the US Dollar

by Ronan Manly, BullionStar:

With the first half of 2018 now drawn to a close, much of the financial medias’ headlines and commentary relating to the gold market has been focusing on the fact that the US dollar gold price has moved lower year-to-date. Specifically, from a US dollar price of $1302.50 at close on 31 December 2017, the price of gold in US dollar terms has slipped by approximately 3.8% over the last six months to around $1252.50, a drop of US $50.

Since the world’s major gold price discovery hubs of London and New York trade gold in US dollars (or more correctly predominantly trade synthetic gold and derivatives), and since much of the mainstream financial media tends to be very US-centric, the media’s fixation with the US dollar price of gold is probably not surprising. However, it’s not the full story, because in some major national currencies as well as in cryptocurrencies, the price of gold has actually moved higher year-to-date.

Switzerland chooses gold over paper wealth backed by US dollar

from Hang The Bankers:

Another country is betting on physical gold.

Switzerland’s pension fund has boosted its investments in bullion, switching from the paper-backed securities in US dollars.

“The Swiss government Pension System decided to change from paper gold in the amount of 700 million CHF into physical gold and store it in Switzerland. The 700 million only stands for 2 percent of the total assets, but it is quite a surprise that they do this,” said Claudio Grass, an independent precious metals advisor and Mises Ambassador.

Keiser Report: Airbus (Br)exiting the UK (E1247)

from RT:

In the second half, Max continues his interview with Simon Dixon of BnkToTheFuture.com about ICOs, equity tokens and the future of crypto regulations.