top-gold-silver-articles-october-2017

1. TOP 5 ARTICLES OF THE MONTH October October 2017 2017

2. 1/ 10 FACTORS TO PROPEL GOLD 10 FOLD 1/ 10 FACTORS TO PROPEL GOLD 10 FOLD By Egon von Greyerz - Published on Oct 11, 2017 By Egon von Greyerz - Published on Oct 11, 2017 In?ation is coming and it will have a major e?ect on the world economy and ?nancial markets. This is one of the factors that will drive gold to levels which few can imagine today. Later in this piece, I am discussing 10 Factors which will make gold surge. NO FEAR Markets are expressing no fear and seem very comfortable at or near all- time tops. There is no concern that stocks are massively overvalued or that bond rates are at historical lows and only have one way to go. Nor is anyone worried that house prices are at levels which most people can’t a?ord. Money printing and interest rate manipulation has created such cheap financing that most people don’t look at the price of the property but only at the ?nancing costs. In many European countries, mortgages are around 1%. At that level the monthly cost is negligible for many people. Neither the banks nor the borrowers worry about interest rates going back to the teens as in the 1970s. So whilst we are waiting for markets to wake up from the dream state they are in now, what signals should we look for and what about timing. These are the areas that we see as critical and below are our near term and long-term views on: Interest rates / bonds Inflation, Commodities, Oil, CRB. Dollar Stocks Gold www.goldbroker.com

3. 10 Factors to Propel Gold 10 Fold INTEREST RATES – ONLY ONE WAY TO GO Interest rates are critical to a world with $250 trillion debt plus derivatives of $1.5 quadrillion and global unfunded liabilities of 3/4 quadrillion. Minor increases in rates will have a catastrophic e?ect on global debt. Derivatives are also extremely interest rate sensitive. Also, derivatives represent an unfathomable amount that will blow up the global ?nancial system when counterparty fails. The very long interest rate cycle bottomed a year ago. Since the dollar debt is the biggest, dollar rates are the most important to the world. The US 10- year Treasury bond bottomed in July 2016 at 1.3% and is now 2.3%. US rates have turned up from a 35-year cycle bottom and are likely to go considerably higher into the teens or more like in the 1970s. This could be a very slow process but we could also see a rapid rise. As the 10-year chart shows below, there was a rapid rate rise into December 2016. The 10- month correction ?nished in early Sep 2017 and a strong uptrend has now resumed. The long-term trend from 1994 on the chart below, shows the July 2016 bottom. The 23-year downtrend shown from 1994 actually goes back to 1987. This 30-year trend will be broken when the rate goes above 2.6%. With the 10-year at 2.35% currently, we are not far from a break of this trend. www.goldbroker.com

4. 10 Factors to Propel Gold 10 Fold In summary interest rates bottomed in 2016, right on cue as that was the end of the 35-year cycle. The trend is now up for a very long time. This is initially linked to a rise in in?ation and will later on be fuelled by a collapse of bond markets and hyperinflation. INFLATION – ON THE RISE There are many ways to measure in?ation. We can take the o?cial government ?gures which are manipulated and lagging the real economy. US CPI bottomed in 2015-16 at 0% and is now 2%. If we take the Shadowstat figures, real US inflation is nearer 6% and in a clear uptrend. But there are better global indicators for in?ation that can’t be manipulated. The CRB (Commodities Research Bureau) index crashed by 50% from 320 in 2014 to 160 in early 2016. That was a signi?cant bottom and the CRB is so far up 15%. www.goldbroker.com

5. 10 Factors to Propel Gold 10 Fold The S&P GSCI Commodity index is heavily linked to energy and shows an even stronger inflationary trend with a rise of 43% since Jan 2016. Finally, we have oil as an important in?ation indicator. Brent Oil bottomed at $27 in Jan 2016 and is now $56, a rise of 107%. So whether we take US CPI, various Commodity indices or oil, the trend is clear. They all bottomed around the beginning of 2016 and are now in clear uptrends. This is a strong signal that in?ation has bottomed and is likely to increase substantially in the next few years, eventually turning into hyperinflation. www.goldbroker.com

6. 10 Factors to Propel Gold 10 Fold US DOLLAR – DOWNTREND WILL ACCELERATE The dollar has been in a strong downtrend since 1971 when Nixon ended the gold backing. This was a disastrous decision for the world’s ?nancial system and for the US economy. It has led to a total collapse of the dollar and a ?nancial system based on debt only. The US economy as well as the world economy now rests on a bed of quicksand. The primary reason why the dollar has not totally disappeared yet is the Petrodollar system. This was a clever devise by Nixon’s team in 1974 to agree with Saudi Arabia to sell oil in dollars and to invest the proceeds in US treasury bonds and in the US economy. Saudi Arabia would also buy US weapons and receive protection by the US military. This is what has created a massive demand for dollars globally. But this will soon come to an end with China and Russia introducing an alternative to oil trading in dollars. This will eventually lead to the total demise of the dollar. But in spite of the Petrodollar, the US dollar has collapsed against all currencies since 1971. Against the Swiss Franc, the dollar is down 78%. The DMark/Euro has risen 123% against the dollar since 1971. Only in 2017, the Euro has risen 14% against the dollar and this despite of all the problems in Euroland. www.goldbroker.com

7. 10 Factors to Propel Gold 10 Fold We might see temporary dollar strength for a while after the strong fall this year. But the downtrend is very clear and the dollar will at some point within the next few months accelerate down very strongly. The Petrodollar is soon dead and so is the US dollar. The consequences will be disastrous for the US economy and will also lead to a rapid acceleration of US and global inflation. STOCKS – BUBBLE CAN EXPAND BUT WILL BURST Most stock markets in the world are at or near all time historical high. The signi?cant exception is Japan which peaked in 1989 at 39,000 and is now, 18 years later, at half that level. The most massive credit expansion and money printing in history has done very little for ordinary people but it certainly has fuelled stock markets around the world. On most criteria, stock markets are massively overvalued, whether we take price earnings ratios, market value to GDP, to sales or margin debt. Stock markets are now in bubble territory and very high risk. But there is a big BUT! Because bubbles can get much bigger than we can ever imagine. The trend is clearly up and there is nothing today indicating that this trend has come to an end. Normally at market peaks, we see broad participation from retail investors. Normally stocks only turn when everybody has been sucked in. But we are certainly not hearing ordinary investors talking about how much money they are making today in tech stocks like they did in 1998-9. The Nasdaq is up 5x since 2009 just as it was at in the 1990s. The big di?erence today is that smaller investors are not participating. That may be one of the reasons why this market will go a lot higher. Stock markets peak with exhaustion and we are still not at that stage. www.goldbroker.com

8. 10 Factors to Propel Gold 10 Fold Higher rates will initially make investors more bullish about a strengthening economy. And as bonds decline with higher rates, investors will switch from bonds to stocks. Eventually higher rates will kill the economy and stock markets. But not yet. So we may still see much higher stocks for yet some time and well into 2018. There will of course be corrections on the way there. But there is one major caveat. This latest phase of the long bull markets in stocks has lasted for 8 years already and on most criteria, it is very overbought and high risk. When the market turns, we will see the biggest bear market in history. The coming fall will be much greater than the 1929- 32 crash of 87%. Thus, Caveat Emptor (Buyer beware)! In summary, stocks can go a lot higher but risk is extremely high. GOLD – LONG TERM UPTREND WILL ACCELERATE So with rising stocks, rising interest rates and a falling dollar how will gold do? That is a very easy question to answer. Just like with commodities, as I have discussed above, gold and silver resumed the long-term uptrend in January 2016. There are a number of factors that will fuel gold’s rise to levels that very few can imagine today. www.goldbroker.com

9. 10 Factors to Propel Gold 10 Fold 10 REASONS WHY GOLD WILL SURGE: 1. Failure of the ?nancial system, with massive money printing and currency debasement 2. Gold will follow in?ation which will increase strongly eventually leading to hyperinflation 3. Real interest rates will be negative which favours gold. This was the case in the 1970s when gold rose from $35 to $850 despite rates in the mid teens. 4. The death of the Petrodollar and the dollar 5. China’s accumulation of gold on a massive scale and potentially introducing a gold for oil payment system 6. Western Central Bank’s empty gold vaults. CB’s have leased or covertly sold a major part of their gold. That gold is now in China and will never come back 7. Government and bullion bank manipulation of gold will fail 8. The paper gold market will collapse leading to gold going “no o?er” which means gold can’t be bought at any price 9. In?ation will increase institutional gold buying substantially. Gold is today 0.4% of global ?nancial assets. An increase to 1% or 1 1/2% would make the gold price go up manifold. 10. With relatively low global demand today, annual goldmine production of 3,000 tonnes is easily absorbed. With falling production, the coming upturn in demand can only be met by much higher prices. The above 10 factors are neither based on hope, nor fantasy. It is not a question if they will happen but only WHEN. In my view, these events will take place within the next 5 years and most probably faster than that. The compound effect of these 10 factors should push gold up at least 10-fold. www.goldbroker.com

10. 10 Factors to Propel Gold 10 Fold We must remember that 1976-80 gold went up 8.5x from $100 to $850. This time the situation is much more explosive so a 10 fold increase is not unrealistic. So if you don’t own physical gold or silver, buy some now at these ridiculously low prices and store them safely outside the banking system. If you do own su?cient physical precious metals, just relax and enjoy life, knowing that you are well protected against coming catastrophes. www.goldbroker.com

11. 2/ IS THE WORLD ABOUT TO TAKE A “GOLD SHOWER?” IS THE WORLD ABOUT TO TAKE A “GOLD SHOWER?” Published on Oct 9, 2017 by Dave Kranzler Published on Oct 9, 2017 by Dave Kranzler The 1944 Bretton Woods international monetary system as it has The 1944 Bretton Woods international monetary system as it has developed to the present is become, honestly said, the greatest developed to the present is become, honestly said, the greatest hindrance to world peace and prosperity. Now China, increasingly hindrance to world peace and prosperity. Now China, increasingly backed by Russia—the two great Eurasian nations—are taking backed by Russia—the two great Eurasian nations—are taking decisive steps to create a very viable alternative to the tyranny of decisive steps to create a very viable alternative to the tyranny of the US dollar over the world trade and ?nance. Wall Street and the US dollar over the world trade and ?nance. Wall Street and Washington are not amused, but they are powerless to stop it Washington are not amused, but they are powerless to stop it… Now, ironically, two of the foreign economies that allowed the dollar an arti?cial life extension beyond 1989—Russia and China—are carefully unveiling that most feared alternative, a viable, gold-backed international currency and potentially, several similar currencies that can displace the unjust hegemonic role of the dollar today. The above is an excerpt from William Engdahl’s essay, “Gold, Oil, Dollars, Russia and China.” The essay is a must-read if you want to understand how the dollar was cleverly forced on the world as the reserve currency and how it is about to be cleverly removed and replaced with a trade system that reintroduces gold into the global monetary system. Unfortunately, the U.S. educational system presents a fraudulent account of world ?nancial and economic history from Bretton Woods to present. Fed on a steady educational diet of U.S. propaganda, anyone raised and educated in the U.S. will wake up one day to an economic cold shower and eventual poverty unless they’ve taken the steps necessary to protect their savings (if they have any). www.goldbroker.com

12. Is The World About To Take A “Gold Shower?” Let’s face it, the entire western monetary system is basically a Let’s face it, the entire western monetary system is basically a fraud. It is privately made and privately owned, with the entire fraud. It is privately made and privately owned, with the entire international payment system being controlled by the FED – which international payment system being controlled by the FED – which is totally privately owned – and the BIS (Bank for International is totally privately owned – and the BIS (Bank for International Settlement, in Basle, Switzerland – also called the central bank of Settlement, in Basle, Switzerland – also called the central bank of centrals banks). centrals banks). – from an interview with Peter Koenig, geopolitical analyst and a former staff-member of the World Bank Without a doubt, the Russia-China led BRICS axis is working toward a “reset” of the U.S.-centric dollar reserve global currency system: “Russia shares the BRICS countries’ concerns over the unfairness of the global ?nancial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international ?nancial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.” That quote was delivered by Putin at the annual BRICS summit in Xiamen, China. I don’t know how Putin could have more plainly, yet diplomatically, laid out the inevitable demise of the dollar’s status as the world’s sole reserve currency. The news report from the Nikkei Asian Review of a gold-backed yuan oil futures contract to be traded in Shanghai was treated with predictable skepticism from the those who require an event to have already occurred in order to “see it.” That report surfaced shortly after the BRICS summit in China. I suspect China intentionally has made the world aware of its plan to roll out this contract eventually well ahead of the actual event. China is imminently launching a yuan-denominated crude oil contract on the Shanghai Futures Exchange. www.goldbroker.com

13. Is The World About To Take A “Gold Shower?” Please note, for anyone skeptical of this event, that the announcement came from the vice chairman of the China Securities Regulatory Commission. I suspect that once this contract is trading smoothly with a high level of liquidity, the next logical step would be to enable the users of this contract to convert the yuan received for oil into gold. The gold- backing would be an incentive “sweetener” to use this contract instead of dollar-settled futures contracts. A gold-backed, yuan-denominated oil futures contract makes sense certainly from the perspective that Russia and China are already settling Russian energy sales to China in yuan. They have also set up a mechanism by which Russia can convert the yuan received into gold. Furthermore, the Central Banks of Russia and China combined, are by far, the two largest buyers of gold in the world. Why else would Russia/China accumulate a massive Central Bank gold reserve other than to eventually reintroduce gold as a currency stabilizer and a trade settlement “equalizer” into the global monetary system ? Introduction of an oil futures contract traded in Shanghai in Yuan, Introduction of an oil futures contract traded in Shanghai in Yuan, which recently gained membership in the select IMF SDR group of which recently gained membership in the select IMF SDR group of currencies, oil futures especially when convertible into gold, could currencies, oil futures especially when convertible into gold, could change the geopolitical balance of power dramatically away from change the geopolitical balance of power dramatically away from the Atlantic world to Eurasia. the Atlantic world to Eurasia. – William Engdahl, ibid. The consequences for America as a whole will be catastrophic. Currently the parabolic issuance of U.S. Treasury debt is funded primarily by a recycling of dollars used to settle the majority of global oil trades. Once a dollar-alternative for settling oil trades is established, the amount of dollars available to ?nance U.S. debt-fueled consumption will rapidly decline. But it’s the ability of the U.S. to issue debt unfettered right now that keeps the U.S. economic system from collapsing. The Fed’s printing press will be the only alternative to immediate collapse. History has shown us what the end of that pathway looks like. It’s far worse than waking up and stepping into an ice-cold shower. www.goldbroker.com

14. 3/ BANK FAILURES IN EUROPE COMING SOON – THE ECB 3/ BANK FAILURES IN EUROPE COMING SOON – THE ECB SAYS SO SAYS SO Published on Oct 5, 2017 by Philippe Herlin Published on Oct 5, 2017 by Philippe Herlin “Europe’s bank sector has grown too big and may need to shrink, possibly through mergers or failures (...) many banks in the euro area do not earn their cost of capital.” In other words, they are zombie banks, bankrupt and only kept alive by the liquidity ?owing from the ECB. “It seems that there are too many banks competing for customers. (...) There is a good chance that the banking sector will indeed shrink.” Who makes such incendiary statements, which would panic millions of savers throughout Europe if they were broadcast by the mainstream media? Some doom and gloom prophet seeking fame? Some editorialist exaggerating a bit to make some noise and be heard? No, not at all. On the contrary, this is coming from a low-pro?le individual, very well informed, occupying a very high institutional position: Danièle Nouy, who is none other than the person in charge of banking supervision at the European Central Bank. This woman in charge of controlling the European banks’ ?nancial situation – who has direct access to their accounts, since she’s working at the ECB – is quietly announcing that the banking sector is over-sized and that we must expect mergers and failures... Since bank “failures”, un-forcibly or without losses, are a very rare occurrence, here one must read the word “default”, much gloomier. These perfectly explicit statements coming from the best possible source help us understand why the BRRD and the Sapin Law 2 were put in place: Those bankruptcies must be organised in such a way as to limit damage on the banking system and the economy. www.goldbroker.com

15. Bank Failures in Europe Coming Soon – The ECB Says So The BRRD, as a reminder, allows a failing bank to use its clients’ bank accounts, whereas the Sapin Law 2 allows the freezing of life insurance accounts. The project of freezing bank accounts is part of the same logic. These new regulations are put in place knowingly – the European banking sector will have to go through a major restructuration, many zombie banks will fail, the savers will have to pay, and the taxpayers will be “asked” to contribute... fair warning to all. To wit, September 29, Crédit Agricole announced the buyout of three Italian credit unions for 130 million euro. Prior to that, it was the Italy's Interbank Deposit Protection Fund (FITD) that used to ?nance 3 billion euro of bad debts for those banks. Here the saver has been spared, but the whole of the Italian banking system – through the guarantee fund – has now several billion euro or extra debt, which is not too reassuring. By the way, isn’t it a marvellous idea to buy Italian banks... Evidently, the French bank didn’t learn from the catastrophic experience with Greece. One should not be talking about restructuration here, but rather about kicking the can down the road with debt. Mergers, restructuration and bankruptcies will increase in the coming years in Europe – this will be accomplished with debt, but it will also bring its lot of crying and tears. Decidedly, we are living an exciting time... www.goldbroker.com

16. 4/ SHARE OF GOLD IN RUSSIA'S RESERVES AT HIGHEST 4/ SHARE OF GOLD IN RUSSIA'S RESERVES AT HIGHEST IN ALMOST 17 YEARS IN ALMOST 17 YEARS Published on Oct 2, 2017 by GoldBroker Published on Oct 2, 2017 by GoldBroker Vladimir Putin is doing his part to keep the upswing in gold alive. Since the Russian president went on a geopolitical o?ensive in Ukraine in 2014, the haven asset had its ?rst annual gain in four years in 2016 and is on track for another in 2017. A bene?ciary of economic and political perils from North Korea to Brexit, it’s among the top-performing commodities this year. Meanwhile, the Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Putin’s 17 years in power, according to World Gold Council data. In the second quarter alone, it accounted for 38 percent of all gold purchased by central banks. www.goldbroker.com

17. Share of Gold in Russia's Reserves at Highest in Almost 17 Years The gold rush is allowing the Bank of Russia to continue growing its reserves while abstaining from purchases of foreign currency for more than two years. It’s one of a handful of central banks to keep the faith as global demand for the precious metal fell to a two-year low in the second quarter. But what may matter most is that gold is as geopolitics-proof an investment as any in the age of sanctions and a deepening rift with the U.S. “Gold is an asset that is independent of any government and, in e?ect, given what is usually held in reserves, any western government,” said Matthew Turner, metals analyst at Macquarie Group Ltd. in London. “This might appeal given Russia has faced financial sanctions.” Besides being the largest o?cial buyer of gold, Russia is also among the world’s three biggest producers, with the central bank purchasing from domestic miners through commercial banks and not in the open market. Since starting to accelerate bullion purchases in 2007, Russia’s holdings have more than quadrupled to 1,716 tons at the end of June, just behind China and more than Turkey, India and Mexico combined, according to the World Gold Council. That brought its share in Russia’s $427 billion reserves to near 17 percent. www.goldbroker.com

18. Share of Gold in Russia's Reserves at Highest in Almost 17 Years High Tempo If Russia’s buying continues at a similar pace, the World Gold Council said the full-year increase in 2017 “could closely match” the 200 tons purchased annually in 2015 and 2016. The Bank of Russia declined to comment. Governor Elvira Nabiullina said in an interview last year that a portion of reserves is held in gold to ensure their diversification. Its gold holdings are all stored inside Russia, and the management of investments in precious metals is conducted separately from foreign-currency assets, according to the central bank’s website. Although gold is still up over 11 percent in 2017, prices in September touched the lowest since August and su?ered their biggest monthly loss this year. Plans by the U.S. Federal Reserve to tighten monetary policy are sapping the appeal of the non-interest-bearing metal as the dollar rebounds. Bullion for immediate delivery was down 0.3 percent to $1,275.51 at 2:03 p.m. in London. The high share of gold in Russia’s reserves doesn’t worry Fitch Ratings, the only major credit assessor that ranks the country above junk. “In the end, reserves have to be liquid,” said Erich Arispe, director at Fitch’s sovereigns and supranationals group. Similar to other commodities, gold “can be liquid as well. So at this point, we don’t detect any concern about reserves.” www.goldbroker.com

19. 5/ GOLDMAN SACHS: GOLD IS BETTER THAN BITCOIN 5/ GOLDMAN SACHS: GOLD IS BETTER THAN BITCOIN Published on Oct 18, 2017 by GoldBroker Published on Oct 18, 2017 by GoldBroker Gold is better than cryptocurrencies due to its durability and intrinsic value, explains American banking giant Goldman Sachs. “Precious metals remain a relevant asset class in modern portfolios, despite their lack of yield,” analysts at Goldman Sachs wrote, as quoted by Bloomberg. “They are neither a historic accident or a relic,” and are still relevant despite new assets like cryptocurrencies, they said. Investors boost the amount of gold in their portfolio as uncertainty increases, making fear the key medium to short-run driver, Goldman said. Wealth is the long-term driver, especially in emerging markets such as China, where growing income levels over the next few decades will support prices, it said in a report. Goldman analysts used several criteria to compare gold and bitcoin, including durability, portability, intrinsic value and unit of account. In three categories gold is better, losing to bitcoin only in portability: - Durability: While both require expertise for correct long-term storage, gold wins because cryptocurrencies are vulnerable to hacking through online wallets or the user’s computer or smartphone, are subject to regulatory risk, and network and infrastructure risk during a crisis. - Portability: Transferring bullion can be expensive, given its weight, need for a high level of security and high import taxes in some countries, such as India. In contrast, it’s much faster and cheaper to move bitcoins. www.goldbroker.com

20. Goldman Sachs: Gold Is Better Than Bitcoin - Intrinsic value: There’s a limited supply of gold and other precious metals in the Earth’s crust, whereas in the case of cryptocurrencies, it’s easy to create alternatives, meaning there’s e?ectively no control over supply at a macroeconomic level and no intrinsic value due to rarity. - Unit of account: Gold is better at holding its purchasing power, and has much lower daily volatility. Bitcoin/dollar volatility has averaged almost seven times that of gold in 2017, the bank said. www.goldbroker.com

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