Gold is doing what it is supposed to do!
Equity markets are tumbling, “NASDAQ 100 Rout Erases $1.5 Trillion in Market Value in 3 Days” reads one Bloomberg headline.
The big names such as Apple lost over US$225 billion, Microsoft almost US$200 billion, Amazon and Tesla each lost US$175 billion market value over the three trading days from May 4 to May 9.

Bonds are also declining in value as yields are rising. The market selloff has been the most extreme in the tech sector, but most major indices are lower year-to-date.
The chart below shows the gold price along with five different equity indices. In order to compare performance since the beginning of the year, we set January 4, 2022, to 100.
Equity markets have tumbled sharply since the beginning of the year

It has been a rough week in most markets with both equities and bonds declining sharply.
Tech stocks have been pummeled with many ‘big names’ plunging more than 50% (from their 52-week high). Some of the bigger names include Zoom Video -75%, PayPal -73%, Netflix -72%, Meta Platforms (Facebook), -53%.

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The equity market decline is coupled with announced layoffs. Robinhood, the popular online trading platform, announced a 9% reduction in full-time staff this week for example.
Markets are expected to decline further as earnings continue to be announced.
With U.S. equity markets on the verge of correction territory and the U.S. yield curve close to inversion the Fed’s predicament becomes even more precarious as they head into their meeting next week.
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Gold and the US Federal Reserve have a love-hate relationship.

Hate because they both enjoy it when the other one performs badly, but love it because the Fed owns over 8,000 tonnes of gold and would rather no one else had any.

So it was a funny thing when a former Chair of the Federal Reserve proposed measures this week that would go a long way to boosting many aspects of the gold market, including the price of gold bullion…

Janet Yellen knows a lot about the economy.

She has a 1971 Yale Ph.D. in economics.

Yellen also authored countless papers and several books on the economy.

She’s been a professor at Harvard University, London School of Economics, and the University of California Berkeley.

She served in prominent positions in the U.S.

Over the past couple of weeks, we reviewed the U.S. government confiscation of gold by Executive Order in 1933. (see “Gold Confiscation: Will History Repeat Itself?” and “The Facts of Gold Confiscation: The Saga Continues”).
One of the points was that the difference between 1933 and today is that gold is not money for banks today. This means banks are not on a gold standard.
Some observers have stated that the announcement by Russia’s Central Bank on March 25 to purchase gold at a ‘fixed’ 5,000 rubles per gram is a return to the gold standard or that it creates a gold-backed ruble.
Below we provide context to the announcement.
Also, why the central bank buying gold at a ‘fixed’ price is not the same as a gold standard.
Russia Sets its Fixed Gold Price
The

This week on GoldCore TV, Dave Russell welcomes Tim Price of Price Value Partners. Tim sees the current inflationary pressures as simply the beginning of a bigger move that could end in a new monetary system.
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Gold Price Today – Gareth Soloway
2022-03-24

Dave Russell of GoldCore TV welcomes back Gareth Soloway of InTheMoneyStocks.com where we ask if the bull market for stocks is back and if $2,500 on gold is still on the cards for 2022?

The Fed Has No Idea What’s Coming Next!
2022-03-18

We will let you know what we are doing once

Dave Russell of GoldCore TV welcomes back Gareth Soloway of InTheMoneyStocks.com where we ask if the bull market for stocks is back and if $2,500 on gold is still on the cards for 2022?
What role does the inversion of the yield curve play in signaling a US recession?
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Gold Gives You Personal Sovereignty
2022-03-09

Dave Lukas of Misfit Entrepreneur invites Stephen Flood, CEO of GoldCore, to the show. Dave and Stephen talk about what people should know before investing in gold and silver, the present state of inflation, central banking, and the monetary system.
Further, he explains why gold is still your safe-haven asset and how it

We will let you know what we are doing once we know what we are doing
was the message from the Federal Reserve statement and Chair Powell’s press conference that followed.
The Fed, as widely expected did raise their short-term rate, known as the fed funds rate, by .25% to a range of 0.25% to 0.50%.
This was the first increase since 2018.
Along with the statement FOMC (Federal Open Market Committee) participants also released their Summary of Economic Projections.
This gave an indication of where the committee members view economic indicators going forward.

FOMC Summary of Economic Projections
There are a few of the FOMC projections that we want to point out in the table below.
The first is that the FOMC participants are now projecting U.S. GDP growth this year

Dave Lukas of Misfit Entrepreneur invites Stephen Flood, CEO of GoldCore, to the show. Dave and Stephen talk about what people should know before investing in gold and silver, the present state of inflation, central banking, and the monetary system.
Further, he explains why gold is still your safe-haven asset and how it provides you with personal sovereignty. They also talk about cryptocurrencies and their future.
Stephen also discusses some of the lessons he’s learned along the route to being a successful entrepreneur.
Click to Listen to the Podcast

The Truth About The National Debt
Watch David M Walker Only on GoldCore TV
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As part of the sanctions against Russia, seven Russian banks have been cut off from SWIFT.

We start by discussing what SWIFT is, and then the implications of completely cutting Russia out of SWIFT.

What is SWIFT and Why Russia is Being Excluded

SWIFT – The Society for Worldwide Interbank Financial Telecommunication is a messaging system that links more than 11,000 banks in 200 countries.

The system doesn’t move actual money between the banks but transmits messages between banks with instructions to settle transactions.

Additionally, this system is crucial to the international trade system – without it, countries wouldn’t be able to settle trade transactions between countries.

The bar charts in the graphic from the Wall Street Journal

The ‘Fed put’ – gone until there’s blood in the streets
Well, it’s happening.  Bitcoin (and other cryptocurrencies are sharply down, along with equity markets in many advanced economies.
And the Federal Reserve (the U.S. Central Bank) statement and press conference on Wednesday didn’t indicate any backing down from raising interest rates, maybe as soon as the March meeting.
The Fed’s stance pivot from ‘the economy needs additional stimulus’ to ‘it is time to start tightening policy’ came at the end of 2021 when Fed officials changed their view that 40-year high readings on consumer price inflation was due to transitory factors and will subside on its own.
Their new stance that high inflation is permanent and is what ensures tighter policy. The Fed has already

European Energy Crisis: 4 Reasons You MUST Know!
European households are facing rising prices on many goods and services, but one particular standout is electricity and gas bills.

According to Bank of America, European household gas bills are expected to rise to €1,850 in 2022 from €1,200 in 2020 (an ~55% increase).
Natural gas prices have pulled back from the December peak. However, it remained high and it could get worse over the remainder of the winter months.
Reasons for the energy crisis are not entirely straightforward as the global energy market is interconnected and quite complex.
However, below we outline some of the key issues:

European Gas Prices Chart

A. Europe reliant on Gas Imports as Domestic Production
Europe is increasingly reliant on gas

Gold price fell to $1,808 an ounce in the wake of the release of the minutes of the December Federal Reserve meeting, having hit an intra-day high of $1,829. Silver price fell to $22.72 an ounce from an intra-day high of $23.26.
Gold and silver have continued to sell off this morning with gold trading as low as $1,794 and silver trading down to $22.14.
The FOMC minutes showed a much more hawkish Fed than markets had been expecting.
The minute suggests that the Fed could be very aggressive in reducing their $9tn balance sheet.
They specifically highlighted their concerns with inflation (no longer transitory).
Why Buy Gold In 2022Watch Stephen Flood on GoldCore TV
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The minutes did not put any timeframe on when they might begin this reduction.

Black Friday 2021 saw the largest stock market sell-off since 1931.
Is this the start of a bigger crash, has the trend changed or is this just a one-time blip?
We ask Gareth Soloway of InTheMoneyStocks.com what his charts are suggesting and why he is so bullish on gold
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Why Governments Hate Gold
2021-11-27

Do governments hate gold?  The answer: Yes — Governments hate gold because they cannot print it, and it is difficult for them to control.

Gold is Boring – That’s Why You Should Own It!
2021-11-04

Gold and silver price actions

Do governments hate gold?
The answer: Yes — Governments hate gold because they cannot print it, and it is difficult for them to control.
Because they cannot print it or easily control it, gold has little use to them during the never-ending schemes to tax and then redistribute wealth.
India is a recent example of a government trying to control gold imports through increased taxation on imports and imposing rules, such as that importers had to re-export 20% of imports as gold jewelry.
These types of rules are difficult to enforce and smuggling of gold into India skyrocketed. Once gold is in the form of jewelry or physical metals it is very difficult to tax. Below we explore some other granular points about why governments disown gold.
Yes, some central banks do own

Gold and silver price actions have been the opposite of dramatic for months now, they have been boring. In the last 100 days, gold has moved sideways in the US$100 range between $1725 and $1825.
Silver had a similar experience moving in a US$5 range between $21.50 and $26.50. These ranges are quite small when compared to exciting moves in Tesla shares and cryptocurrencies such as Shiba!
Some people think that being boring this year means we should not own the precious metals at all because it means missing out on exciting things happening everywhere else.
However, this week we’re going back to basics for a refresher about why humanity loves silver and gold, doing so for thousands of years.
The Science Behind Gold
The facets of science that make precious metals

Why do Central Banks want higher inflation?
The debt ceiling debate in U.S. Congress and related political nonsense brings even more to light the exponential growth in US federal government debt. US government debt has doubled in the 10 years since the last major debacle Congress created over raising the debt ceiling back 2011. The debate and Congress’s unwillingness to increase the limit back in August 2011 resulted in declining equity markets. It also resulted in Standard and Poor’s downgrading U.S. debt to AA+ from AAA!
The Political Standoff
The political standoff over raising this arbitrary restriction of how much debt the US can issue has become just another political lever in the dysfunctional Congress. As Secretary Yellen points out…
Raising the debt

In our post on January 28, 2021 “Gold, The Tried-and-True Inflation Hedge for What’s Coming!” we outlined four reasons that we expect higher inflation over the next several years. The brief bullet points are:
Money Supplies have risen dramatically
Commodity Prices are rising again
Reduced Globalization as ‘Made at Home’ policies are proliferating
Pent up demand
Headlines such as this one last week from Bloomberg “Inflation gauge Hits Highest Since 1991 as Americans Spend More” or this one from the Financial Times, “Inflation fears in the UK rocket as supply and staff shortages stymie recovery“, or The Australian Financial Review, “Soaring gas prices add to the energy, inflation crisis“, are becoming regular headlines in the mainstream media.

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Why You Must Own

Gold leads the way
Last week we wrote about the gold to silver ratio. Our points were that it measures the price of one metal against the other, just as we use the dollars per ounce to measure daily metals prices, and just as we use ounces per Corvette to measure purchasing power preservation.
Also, we discussed the range of movement that silver has around gold over the past fifty years.  We laid out notes for when to buy silver against gold, and when not to.
The Long Run Relationship Between Gold and Silver
Today we expand on the gold to silver relationship. Traditionally, gold moves first, with silver following but moving relatively more.
Since the 1970s, in all the big price moves studied, we find that although silver goes farther, gold leads the way by moving

In our post on August 11 titled End of an ERA: The Bretton Woods System and Gold Standard Exchange, we discussed the significance of then-President Nixon’s action of closing the gold window thereby ending the Bretton Woods Monetary system.
Under the Bretton Woods monetary system, central banks could exchange their US dollar reserves for gold. This also ended the gold fixed price of US$35 per ounce.
This week we explore the two questions that concluded last week’s article: What role can gold serve in the international financial system in the future? And why do central banks continue to increase their gold reserves?
Starting with the latter question of why central banks continue to increase their gold reserves?
This is an important factor in the gold market and

In our July 29 post titled How Gold Stacks Up Against Stocks, Property, Commodities and Big Macs! we showed readers charts of gold as a ratio to other assets and products. We discussed that gold competes with crypto and stocks for the investment dollars.

It was clear that gold as a ratio of the S&P 500 Index and of the broader MCSI World Equity Index show that gold is ‘relatively cheap’ compared to these measures.

But then we showed that this wasn’t the case when we looked at the long run ratio of gold to other assets and products. Examples we used where wheat prices, UK house prices, oil prices, and the price of Big Macs.

The ‘relatively cheap’ ratio of gold to the two equity market indices said another way is that these indices have risen or

Central banks’ massive Quantitative Easing (QE) programs have come under scrutiny many times since the central banks fired up the printing press and began quantitative easing programs en masse after the 2008-09 Great Financial Crisis.
However, the increase in central bank assets due to quantitative easing programs during the crisis pale in comparison to the QE programs during the Covid pandemic.
As economies recovered after the Great Financial Crisis many worried that consumer price inflation would rise rapidly due to the extra liquidity in the market. A fear that never materialized as many economies stayed well below central bank inflation targets.
Quantitative Easing Leading to Financial Crisis?
The question being asked now is have these programs led to

[unable to retrieve full-text content]Today Gareth Soloway, Chief Market Strategist of InTheMoneyStocks.com talks about his technical analysis of gold and silver as well as giving us insights in to the recent moves in Bitcoin and the stock markets.
Recent comments from the Federal Reserve Chairman Jerome Powell indicated that they may need to raise rates in 2023 (2 years away!). This is primarily due to the continued excessive money printing fueling a surge in inflation. Inflation is no longer transitory but could remain high for some time. All this should have been positive for a gold bull market, but instead, we saw a $90 correction in the gold price. Gareth talks to Dave Russell on this episode of GoldCore TV, who asks; “Is Gold Still in a Bull Market?”
Watch the Video to Learn More

The difference between physical gold investing and ETF investing was stark in the first quarter 2021 according to the World Gold Council’s Gold Demand Trends data released last week.
Before focusing in on investment demand below a few notes on overall gold demand in the first quarter.
Total gold demand in the first quarter of 2021 was down 4%. However, because gold production and gold demand (jewellery, bar and coin etc.) are decentralized around the globe, and no one ever has a complete picture of all transactions. So the WGC adds up all the known supply and demand. If measured demand does not exactly match measured supply, then there is an X factor added to demand, because in the end demand should always equal supply.
In the first quarter this balancing X

The debate between relatively new digital cryptocurrencies versus ‘tried and true’ gold has dominated most precious metals related websites. But what if gold and cryptocurrencies were combined? According to a Bloomberg article a NYC Real Estate Mogul, after learning about cryptocurrencies from his son, is putting this concept to work by securing a minimum of $6 billion in gold reserves to back his new cryptocurrency.
The concept of pegging a digital currency to an external reference is not a new one. Called stablecoins the idea is to back the currency with something permanent. Using gold reverts currency back to the origins of how our traditional banking system started and helps ‘stabilize’ price instability.
In the future, will digital currencies (when combined

‘ESG’ is a great buzzword in investing right now. For years the momentum has been building for the idea that retirement savings should do more than keep you secure, it also should help the planet. Obviously, no one wants to hurt the planet since its our only home. ESG Investment is shorthand for Environmental, Social and Governance, which are the three lenses through which investments are to be ranked. High ranking companies get more money from investors than low rankers. The competition to rank high is fierce since having more investors is an important thing for companies. ESG is part of the broad socially responsible investing trend that focuses on development of a more sustainable financial system.
This quote from Civitas Post gives reference for the speed of

Gold has not made new highs in many months. Gold peaked last year at US$2067 on August 6. The 7 month down leg of more than 18% as been deep enough and long enough that some commentators are now saying that the bull market has now turned to a bear market for gold.  Losing faith is understandable because falling prices feel bad. But this week we want to show that current prices may not reflect reality. We will review the story of Archegos Capital Management which proved that prices often are false signals, a picture painted by others who have their own agenda. Then we can relate that story back to gold and silver by making the point that 7 months of down leg means nothing.
OFTEN WHAT WE SEE IS JUST WHAT OTHERS WANT US TO SEE
Archegos is something almost no one

ETF gold demand from investors has soared over the past year. The unprecedented fiscal and monetary stimulus were rolled out to tackle the effects of Covid -19. However, consumer demand, particularly but not surprisingly, jewellery demand slumped.

What’s in store for gold demand fundamentals for 2021?
Increased consumer demand in China and India will help support the gold price in 2021. There is little doubt that investment demand – especially into Exchange Traded Funds (ETFs), the similar products was the main driver of the gold price higher in 2020. According to World Gold Council data, total ETF demand surged 120% from 398.3 tonnes in 2019 to a new record high in 877.1 tonnes in 2020. However, consumer demand, comprised of jewellery plus bar as coin demand

Governments are taking a page out of the play book that monetary policy began a decade ago – which will lead to even higher debt levels.
During the throes of the financial crisis almost a decade ago Mario Draghi, then President of the European Central Bank (ECB) pushed the ECB’s mandate to the limits with his speech in July 2012:
“within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough”
This was during a time when Greece, Portugal and Ireland had already received financial stabilization support from the European Union, IMF and ECB. Concern that rapidly rising government bond yields in southern Eurozone countries would create a domino effect of financial crises requiring financial stabilization packages

The two day rise in the gold price of more than US$50 fizzled out on Tuesday. The gold price is down about 7% (in US dollar terms) since its year-to-date high set on January 6. It is also down 13% from its all-time high set in August 2020. The silver price, boosted by social media attention, did not set its year-to-date high until February 1. Since then the silver price has slid about 5% from that high. Chairman Powell testified to Congress on Tuesday stating that the Fed plans to stay its course of keeping the Fed funds rate low. It is also continuing its asset purchase. This did little to inspire a further rise in the gold or silver price. But what about rising government bond yields?
Interpreting the Fed Chairman
The increase in inflation expectations,

The LBMA (London Bullion Market Association) annual forecast survey published last week shows that forecasters expect the average gold price to rise 11.5% in 2021 to US$1973.8 (forecasters’ average) from the actual average gold price in 2020 of US$1769.6, and for the silver price to rise 38.7% in 2021 to US$28.50 from the actual annual average of US$20.55 in 2020. These expected averages show silver might gain three times more percentage than that of gold in 2021.  
There was, of course, a wide range of views among forecasters with a US$650 price difference between the highest forecast for the average price of gold for 2021 at US$2300 and the lowest at US$1650. And for silver the range was US$28 with the highest annual average forecast at US$47 and the lowest at