Currency
Login

Currency

Wait Until You See the Price of Gold in Venezuela Right Now

Share on Facebook Tweet on Twitter

Posted by Frank Holmes - US Global Investors

on Tuesday, 07 August 2018 07:04

glld

Last month in Venezuela’s capital city of Caracas, a cup of coffee would have set you back 2 million bolivars. That’s up from only 2,300 bolivars 12 months ago, meaning the price of a cup of joe has jumped nearly 87,000 percent, according to Bloomberg’s Café Con Leche Index. And you thought Starbucks was expensive.

But that was July. Prices in Venezuela are doubling roughly every 18 days. The International Monetary Fund (IMF) now projects inflation to hit an astronomical 1 million percent by the end of this year. This puts the beleaguered Latin American country on the same slippery path as Zimbabwe a decade ago and Germany in the 1920s, when a wheelbarrow full of marks was barely enough to get you a loaf of bread.

Venezuela’s socialist president Nicolas Maduro—who only this past weekend survived an assassination attempt involving several explosive-laden drones—announced recently that the country plans to rein in hyperinflation by lopping off five zeroes from its currency. If you recall, Zimbabwe similarly tried to combat soaring prices of its own by issuing a cartoonish $100 trillion banknote—which in 2009 was still not enough to buy a bus ticket in the capital of Harare.

Without structural governmental reforms, a new bolivar is just as unlikely to steady Venezuela’s skyrocketing inflation or remedy its crumbling economy.

Gold Could Save Your Life

So where does this put gold? At some point, hyperinflation gets so ludicrously out of control that discussing exchange rates becomes pointless. But as of July 30, an ounce of the yellow metal would have gone for 211 million bolivars—an increase of more than 3.1 million percent from just the beginning of the year.

COMM-gold-priced-venezuelan-bolivars-08032018
click to enlarge

My point in bringing this up is to reinforce the importance of gold’s Fear Trade, which says that demand for the yellow metal rises when inflation threatens to destroy a nation’s currency—as it’s doing right now in Venezuela.



Read more...

Banner

Currency

Ancient Dollars and Gold Bullion

Share on Facebook Tweet on Twitter

Posted by Gary Christensen - The Deviant Investor

on Wednesday, 01 August 2018 08:25

Consumer price inflation is real. It sneaks into every facet of life. Bags of coffee shrink from 16 ounces to 12 ounces and then to 10 ounces. “Shrinkflation is policy. That Snickers candy bar is smaller but costs the same or more.

But don’t blame the candy industry, coffee distributors or automobile manufacturers. Fiat currencies create the problems.

word-image-11

Why do we need to fix our currency? Because commercial banks (via fractional reserve banking) and the Federal Reserve print dollars by the trillions, devalue all existing dollars, and increase prices on almost everything. Do you remember McDonald’s prices in 1961?

word-image-12

The problem is the currency unit. It shrinks in value!



Read more...

Banner

Currency

Support Is Growing For Bitcoin ETF

Share on Facebook Tweet on Twitter

Posted by Aubrey Hansen

on Tuesday, 31 July 2018 11:34

boxcoin

As things stand, the bitcoin ETF is widely considered to be the biggest news story in the cryptocurrency industry this year. We have recently seen a decision on the Direxion Investments ETF’s announced for some time in September, while Bitwise Asset Management has become the latest venture to go down the route of lodging a cryptocurrency ETF application with the US Securities and Exchange Commission (SEC).

The application that has caught the attention of the cryptocurrency industry though is that which was unveiled in June from VanEck and SolidX. Both ventures have had previous applications shut down by the SEC, and decided this time to join forces and submit what is increasingly looking like a successful bitcoin ETF.... CLICK for the complete article



Banner

Currency

Trump-Juncker meeting in focus, Lira crumbles

Share on Facebook Tweet on Twitter

Posted by Futures Magazine

on Wednesday, 25 July 2018 06:53

2427Asian stocks have commenced on a positive note this morning, as strong U.S. corporate earnings and optimism over China boosting fiscal support for its economy rekindled risk appetite. European markets could benefit from the risk-on sentiment; however, gains may be limited as investors adopt a guarded approach ahead of a meeting between the European Commission President Jean-Claude Juncker and U.S. Donald President Donald Trump.

With escalating trade tensions between the European Union and the United States still, a key theme that continues to weigh on global sentiment, the outcome of today’s meeting could leave a lasting impact on the markets. If the talks prove unsuccessful and trade tensions end up escalating further, risk sentiment is likely to be negatively impacted.  Market players should be prepared to expect the unexpected from the talks, especially when considering how highly unpredictable the Trump administration can be.

Turkish Lira crumbles after central bank holds rates

The Turkish Lira depreciated heavily against the Dollar yesterday after the nation’s central bank defied market expectations by leaving interest rates unchanged at 17.75%, despite inflation soaring.

This move immediately raised questions over the central bank’s independence, a month after President Recep Tayyip Erdogan’s re-election under an amended constitution that enabled him to follow through on his promise to take more direct control over monetary policy. Outside of Turkey, global trade tensions, a broadly stronger Dollar and expectations of higher US interest rates have exposed to the Lira to downside risks. With a combination of external and domestic factors eroding buying sentiment towards the Lira, the local currency remains at risk of depreciating towards 5.00 and beyond against the Dollar.

Currency spotlight: EUR/USD

The euro/U.S. dollar (EUR/USD) currency pair was on standby on Wednesday morning, as investors positioned ahead of the anticipated meeting between US President Trump and European Commission President Jean-Claude Juncker.

Heightened concerns over a trade war with the United States have shaved some attraction away from the euro and this can be reflected in the bearish price action. There could be some action on the EUR/USD today depending on the outcome of the meeting. Focusing on the technical picture, the EUR/USD remains in a wide range on the daily charts. Sustained weakness below 1.1700 could inspire a decline towards 1.1640 and 1.1600, respectively. In regards to the longer-term outlook, the divergence in monetary policy between the European Central Bank and the Federal Reserve could ensure the currency pair remains depressed for prolonged periods.

Commodity spotlight: Gold

It has been a quiet start for gold this morning as bulls and bears were both missing in action. Regardless, the yellow metal remains bearish on the daily charts and has scope to extend losses as the Dollar stabilizes. Although global trade tensions could accelerate the flight to safety and support appetite for safe-haven gold, any meaningful gains are likely to be threatened by U.S. rate hike expectations. Gold bears need to attack and conquer $1,213 for prices to sink towards the psychological $1,200 level.



Banner

Currency

Things are Becoming Very Complicated & Possibly Very Dangerous

Share on Facebook Tweet on Twitter

Posted by Victor Adair - Live From The Trading Desking Desk

on Monday, 23 July 2018 07:27

market-tradersTrump “is not happy” with the Fed raising interest rates...claiming that rising rates hurt the American economy and cause the US Dollar to rise...that a rising US Dollar makes America less competitive. My good friend Dr. Martin Murenbeeld, (www.Murenbeeld.com ) has long argued that the best way to correct the huge American trade deficit is to drive down the USD...especially against overvalued Asian currencies.

Trade wars: In my July 7/18 notes I quoted Christopher Wood of CLSA as saying that “politics” have replaced Central Banks as the most important driver of world markets. I agree and I see Trump as the epicenter of “politics.”  Trade wars (Trump Vs. the Rest of The World) are a sub-set of “politics” and Trump is now threatening to escalate again with 25% tariffs on auto imports and up to $500B of tariffs on Chinese imports. In my June 9/18 notes I wrote that trade tensions were growing as Trump steps up his game...and that he was just getting started.

“Currency wars” are another sub-set of politics and Trump has linked “currency wars” to “trade wars” by declaring that the EU and China are deliberately devaluing their currencies to gain a competitive advantage over America. There may be some truth to that...at least in China’s case...and Trump has a point when he says that high US interest rates push up the US Dollar. But the New Fed is doing the right thing by boosting rates from “emergency” levels...the economy is strengthening and is able to deal with rising rates. But capital flows to America for safety and opportunity...not just to pick up yield.

The US Dollar Index (USDX) hit a one year high this week following Powell’s Congressional testimony. Powell said that the US economy is doing fine and that  the Fed will likely continue to gradually raise short term interest rates. The Dollar fell from those highs on Thursday’s CNBC Trump interview and fell further Friday morning on Trump’s tweets.

dxe



Read more...

Banner

<< Start < Prev 1 2 3 4 5 6 7 8 9 10 Next > End >> Page 2 of 191

Free Subscription Service - sign up today!

Exclusive content sent directly to your Inbox

  • What Mike's Reading

    His top research pick

  • Numbers You Should Know

    Weekly astonishing statistics

  • Quote of the Week

    Wisdom from the World

  • Top 5 Articles

    Most Popular postings

Learn more...



Our Premium Service:
The Inside Edge on Making Money

Latest Update

Martin Armstrong and How Bull Markets End

Back on July 26th, we invited Martin Armstrong back to get an update on his views on stocks, bonds and politics.  Not only did Martin suggest...

- posted by Patrick Ceresna

Michael Campbell Robert Zurrer
Tyler Bollhorn Eric Coffin Jack Crooks Patrick Ceresna
Josef Mark Leibovit Greg Weldon Ryan Irvine