Gold Price Falls, Sinks vs UK Pound Despite N.Korea Missile, London Bomb + Spain’s Catalonia Crisis

Gold price gains of 1.6% from last week were again erased Friday in London, as the outlook for interest-rate hikes trumped new geopolitical tensions led by another weapons test by the pariah state of North Korea.
Dollar priced-gold retreated to $1325 per ounce – more than $30 below last Friday’s 12-month high – as major government bond prices fell yet again, driving US Treasury bond yields up to their highest since mid-August above 2.20% on 10-year debt.
After threatening to “sink” Japan and turn the US “into ashes and darkness” on Thursday, Pyongyang this morning fired its furthest-yet missile test over the northern Japanese island of Hokkaido, splashing into the Pacific.
British police said an ‘improved explosive device’ caused an explosion on a rush-hour London Tube train, with 22 people needing hospital treatment, mostly for burns

This post was published at FinancialSense on 09/15/2017.

Gold Investment Resuming

Gold has surged dramatically to major breakouts since its usual summer-doldrums lows. That’s naturally rekindled interest in this leading alternative investment, despite the record-high stock markets. Investors are starting to return to gold again to prudently diversify their stock-heavy portfolios. That’s very bullish for gold, as investment capital inflows can persist for months or even years. This shift is most evident in GLD.
The American SPDR Gold Shares is the world’s leading and dominant gold exchange-traded fund. Since its birth way back in November 2004, it has acted as a conduit for the vast pools of stock-market capital to migrate into and out of physical gold bullion. The marginal gold investment demand, and sometimes supply, via GLD can be big and varies wildly. Thus GLD-share trading is often gold’s primary short-term driver.
The definitive arbiter of global gold supply and demand is the venerable World Gold Council. It publishes highly-anticipated quarterly reports called Gold Demand Trends. They offer the best reads available on global gold fundamentals. At first glance, it’s not apparent why gold-ETF demand plays such a massive role in driving gold’s price action. But digging a little deeper makes this crucial-to-understand relationship clearer.
According to the WGC, over the past 5 years from 2012 to 2016 jewelry demand averaged about 54% of overall global gold demand. Total investment demand including physical bars and coins in addition to gold ETFs averaged just 26%. Breaking that category down further into bars and coins separate from ETFs, they weighed in at averages of 28% and -2% of world gold demand respectively over the past 5 years.

This post was published at ZEAL LLC on September 15, 2017.

What Headlines Got Wrong about Today’s Data Dump

It actually wasn’t that lousy.
Voices will once again clamor with renewed vigor – after having been muffled yesterday by the mini-spike in inflation – for the Fed to back off its tightening trajectory, given today’s reports on retail sales and industrial production. But the headlines got it wrong.
So yes, comparing August to July, retail sales were ugly. To make any sense at all out of these monthly comparisons, the data is adjusted for seasonal variation and holiday and trading-day differences and are only as good as these adjustments.
And in August, according to the Commerce Department, total retail sales fell 0.2% from July, the largest monthly decline in six month, mostly triggered by a 1.6% drop in sales at new- and used-vehicle auto dealers and auto parts stores.
These sales at auto and parts dealers differ from the monthly numbers that automakers report – they report the number of units delivered to customers, new vehicles only. But today’s numbers are in dollars and include sales of new and used vehicles and auto parts.

This post was published at Wolf Street by Wolf Richter ‘ Sep 15, 2017.

Anti-Gold Puppet Now Hints Gold Will Soar

Several representatives of the elitists have been warning about a major global financial crisis. Recently the former Head of the Monetary and Economics Department at the Bank of International Settlements, the Central Bank of Central Banks, warned that there are ‘more dangers now than in 2007.’
Goldman Sachs commodities analyst, Jeff Currie, who is infamous for incorrectly predicting gold would drop to $800 about three years ago, recently advised anyone listening to own physical gold: ‘don’t buy futures or ETFs…buy the real thing. . .the lesson learned was that if gold liquidity dries up along with the broader market, so does your hedge, unless it’s physical gold in a vault, the true hedge of last resort.’

This post was published at Investment Research Dynamics on Dave Kranzler.

“So Unhelpful”: Trump’s Tweets On London Terror Attack Spark Anger, Outrage In U.K.

Following this morning’s “terrorist incident” in London (which we covered here), Trump tweeted out the following messages once again branding the attackers as “losers” and calling on governments around the world to be more “proactive.”
“Another attack in London by a loser terrorist. These are sick and demented people who were in the sights of Scotland Yard. Must be proactive!” “Loser terrorists must be dealt with in a much tougher manner. The internet is their main recruitment tool which we must cut off & use better!”
Another attack in London by a loser terrorist. These are sick and demented people who were in the sights of Scotland Yard. Must be proactive!
— Donald J. Trump (@realDonaldTrump) September 15, 2017

This post was published at Zero Hedge on Sep 15, 2017.

Trying to Save the Euro from Total Disaster

European Commission President Jean-Claude Juncker has now come out in a very desperate move telling that those members of the EU who are non-euro countries should introduce the euro ASAP. ‘The euro is destined to be the single currency of the EU as a whole,’ Juncker declared. Juncker then proposed a ‘euro preparation instrument’ to provide technical and financial assistance to make this transition.
The Euro is in serious trouble because of the total mismanagement of the ECB. Low to negative interest rates have totally failed to stimulate the economy after almost 10 years. Now that rates must rise to try to avoid a massive pension collapse in Europe, the ECB could suffer a major default and will need to be bailed-out itself by the government since it owns 40% of euro-zone debt.

This post was published at Armstrong Economics on Sep 15, 2017.

Markets Ignore North Korea Missile Launch; Send Pound Soaring, Yen Tumbles

S&P futures are slightly lower (ES -0.1%) as traders paid little attention to the latest missile test by North Korea on Friday, with shares and other risk assets barely moving, gold lower and focus rapidly returning to when and where interest rates will go up. Most global market are mostly unfazed, and the Korean Kospi actually closed up 0.4%, by the latest geopolitical escalation after a North Korean ballistic missile flew far enough to put the U. S. territory of Guam in range. European stocks edged fractionally lower while Asian shares advanced.
As reported on Thursday evening, the main overnight event was North Kore’s launch of a missile which passed through Japan’s airspace and over Hokkaido, before landing in the Pacific Ocean. This initially prompted Japan to issue an emergency warning for its residents to seek shelter, while there were also reports that South Korea conducted its own missile firing test as a show of readiness. US military stated North Korean missile did not pose a threat to Guam and that the launch was an intermediate range ballistic missile. South Korean President Moon said will not sit idle on North Korea provocation and that South Korea has power to pulverize should
North Korea provoke. On Friday morning, Russia also denounced the ‘provocative’ N. Korea missile test, according to the Kremlin. Meanwhile, North Korea stated that it will take stronger actions for its self-defence if the US continues to walk on current course.
Still, markets are showing clear signs of habituation to missile launches and other provocative actions from North Korea, which has fired more than a dozen missiles this year and tested a nuclear device. Global equities climbed to a record high this week as earnings and confidence in economic growth overshadowed tensions on the Korean Peninsula. The MSCI All Country World Index is poised for its third week of gains in four. Meanwhile, recent economic data has been supporting of bullish positions, with yesterday’s CPI prints suggesting inflation may again be on the rebound. While China data this week softened, the signals from DM financial markets remain optimistic. As such, investors will look to U. S. retail numbers today for more clues about the policy path.

This post was published at Zero Hedge on Sep 15, 2017.

Bill Blain: Have We Reached Missile Fatigue?

Submitted by Bill Blain of Mint Partners
Mint – Blain’s Morning Porridge – September 15th 2017
‘And if I claim to be a wise man, it surely means that I don’t know..’
Did I blink and the North Koreans launched another missile? Did I miss it? What’s happened to the headless chicken panic? Missile Fatigue? Provocation or escalation? An expected reaction to new sanctions? Hasn’t even made the front page of the FT. Hmm.. lets see what happens next….
A couple of key events will stick in my mind from this week. The significant financial ones are all about the weight of money driving financial asset markets higher, and how the effects of money desperately chasing returns are clearly spilling across to the ‘real’ asset sector.
Its most obvious in the bond markets where new deals are being bid up to unfeasibly tight spreads, yet we’re still seeing massive demand with deals heavily oversubscribed. I must thank Bloomberg for a story this morning that references the Ukrainian Chicken Farm Moment rule of the new issue market.
But asset price inflation is spreading outside the conventional stock and share markets.

This post was published at Zero Hedge on Sep 15, 2017.

Visualizing The Side Hustle Economy: 25 Ways To Make Extra Dough

Popularized in recent years by people like Gary Vaynerchuk, the ‘side hustle’ has quickly become a preferred mentality for aspiring entrepreneurs to make additional money on the side.
As Visual Capitlsist’s Jeff Desjardins explains, the gist of it is: by working hard outside the traditional hours of a 9-to-5, a side hustle allows you to build a business around what you are truly passionate about. And if that endeavor is successful, it can also help you make the full transition into permanent entrepreneurship later on.
ENTER THE SIDE HUSTLE ECONOMY Today’s practical infographic from Quid Corner highlights 25 different ways to dip your toes into the side hustle economy.

This post was published at Zero Hedge on Sep 14, 2017.

Armstrong Logic?

I had not planned on penning a public article today but my plans were changed by Martin Armstrong as he again is busy attempting to rewrite history. He is again trying to scare people away from their only financial hurricane insurance, gold …why? Any thinking person knows a credit disaster is coming. Heck, even he has called for a pending financial disaster himself…but gold is not a safe harbor ‘this time’?
As a reminder of past fallacy, Mr. Armstrong wrote back in September 2015 ‘…’You are doomed if you cling to the idea that gold will rise simply because stocks decline. Gold was DEVALUED in 1934 since gold was MONEY. What it could purchase for $20.67 then cost $35. (this line has since been deleted from his original article) The government confiscated gold and moved to a TWO-TIER monetary system with gold used exclusively for international settlements, not domestic.’ … Martin Armstrong
The fact is, gold was REVALUED 70% higher versus the dollar (and much more versus other assets) as what previously required $20.67 to purchase one ounce of gold moved to $35. I said at the time, what he wrote could not have been a typo or a mistake, his logic was in reverse and he was trying to rewrite history.
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Fast forward to present, he is at it again. He recently posted ‘Am I certain about the strong dollar?’ Let’s take a look at a few glaring ‘alterations’ of history and poor logic according to Martin Armstrong.
His article starts out with ‘You can denominate oil to peanuts in some other currency but that still will never put a dent in the dollar. Why? It is capital flows than count and trade is minimal’.

This post was published at JSMineSet on September 14th, 2017.

Gold Up, Markets Fatigued As War Talk Boils Over

North Korea threatens to reduce the U. S. to ‘ashes and darkness’ Markets becoming used to ongoing provocations from North Korea Russia and China continue to support watered down versions of sanctions on Kim’s regime Both NATO and Russia running war games on one another’s borders Putin says Russia will ‘give a suitable response’ to NATOs threatening behaviour Gold set to climb as fears over economy and war will drive safe haven demand This year North Korea has launched a dozen missiles. With the latest one it has threatened the U. S. with ‘ashes and darkness’ as Kim believes it ‘should be beaten to death like a rabid dog.’
Russia and China continue to support watered down sanctions on the isolated country. Both have made it clear that they will not tolerate a war on their borders.

This post was published at Gold Core on September 15, 2017.

Venezuela Has Officially Abandoned The Petrodollar – Does This Make War With Venezuela More Likely?

Venezuela is the 11th largest oil producing country in the entire world, and it has just announced that it is going to stop using the petrodollar. Most Americans don’t even know what the petrodollar is, but for those of you that do understand what I am talking about, this should send a chill up your spine. The petrodollar is one of the key pillars of the global financial system, and it allows us to live a far higher standard of living than we actually deserve. The dominance of the petrodollar has been very jealously guarded by our government in the past, and that is why many are now concerned that this move by Venezuela could potentially lead us to war.
I don’t know why this isn’t headline news all over the country, but it should be. One of the few major media outlets that is reporting on this is the Wall Street Journal…
The government of this oil-rich but struggling country, looking for ways to circumvent U. S. sanctions, is telling oil traders that it will no longer receive or send payments in dollars, people familiar with the new policy have told The Wall Street Journal.
Before we go any further, we should discuss what we mean by the ‘petrodollar’ for those that are not familiar with the concept. The following comes from an excellent article by Christopher Doran…

This post was published at The Economic Collapse Blog on September 14th, 2017.

Meanwhile, In Lithium Markets…

The last week – since China unveiled its hypocritical plan to ban petrol cars – has seen record inflows into Lithium-related funds.
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Trading volumes have exploded higher and prices for LIT (the Lithium and Battery Tech ETF) are back to near 6 year highs.
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Never one to miss out on an opportunity, LME is reportedly looking to introduce a contract for lithium (via Mining-Journal.com)…
While details were scarce on the ground, SP Angel expects that the contract would be tied to lithium carbonate concentrate, a major traded raw material for lithium processors and battery producers, and also possibly a contract for lithium hydroxide, a value added product preferred by some downstream consumers.
Both would likely have strict quality controls which might add to costs, SP Angel said.
When contacted by Mining Journal for comment on the possible contracts, a spokesperson for the LME said it had been approached by industry users regarding the introduction of an LME lithium contract and it was looking into this.

This post was published at Zero Hedge on Sep 15, 2017.

Markets Shrug Off Latest N. Korea Missile Launch; Busy U.S. Reports Day

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.
(Kitco News) – Global stock markets traded narrowly mixed overnight and U. S. stock indexes are pointed toward weaker openings when the New York day session begins.
Gold prices are slightly lower in pre-U. S.-day-session trading.
The marketplace is so far showing a very muted reaction to the news North Korea has fired another ballistic missile over Japan. The U. N. Security Council is holding an emergency meeting today on the matter. On Thursday North Korea threatened to ‘sink Japan’ with its nuclear missiles and also to reduce the U. S. mainland ‘to ashes.’ The big unknown in this situation is how far will President Trump be pushed before he responds with military force.

This post was published at Wall Street Examiner by Jim Wyckoff ‘ September 15, 2017.

Trump Lashes Out At “Politicized” ESPN, Here’s Why

Wondering why President Trump has lashed out at ESPN this morning with the following tweet?
ESPN is paying a really big price for its politics (and bad programming). People are dumping it in RECORD numbers. Apologize for untruth!
— Donald J. Trump (@realDonaldTrump) September 15, 2017

Here is Free Market Shooter blog’s Jon Hall to explain…
Jemele Hill, co-host of ESPN’s SportsCenter, took to Twitter on Monday blasting President Trump as a ‘white supremacist’. She also labeled him as ‘unqualified and unfit’ for America’s highest office; claiming that his win was a ‘direct result of white supremacy’.
What are these comments coming from a sports network for? When people tune into a football or basketball game, they want to escape away from the woes and problems of the world; not have it infiltrate into their favorite pastime. Hill would probably call that notion white privilege because only white people have the benefit of escaping from their problems.

This post was published at Zero Hedge on Sep 15, 2017.

Germany & France Want to Tax Gross Sales on the Internet

The hunt for taxes in France and Germany is in full swing. Merkel and Macrone are looking for endless new sources of tax revenues. They are moving directly into the position of destroying their economies because their thirst for more and more taxes never ends. No matter how much they collect, they never have enough. The latest scheme is now to tax gross turnover of internet companies such as Google and Amazon – not profits. The French want a 5% tax on everything in Europe. They already get a 20% VAT which is a complex consumption tax to keep countless government employees in a job with every layer of business taxesd having to file claims constantly.

This post was published at Armstrong Economics on Sep 15, 2017.

Hurricane Irma Released “250 Million Gallons Of Untreated Sewage” Into The Streets Of Florida

One could be forgiven for believing that, with all this talk of the coming ‘climate catastrophe,’ Americans would be scrambling to flee Hurricane-prone states like Texas and Florida. The reality is just the opposite: Thanks to their low cost of living, and minimal taxes, Florida and Texas are among the states in the US where populations are rising via interstate migration. Contrast that with Connecticut, which is far less vulnerable to hurricanes, and where the population drain has accelerated dramatically in recent years.
Both Harvey and Irma impacted some of the fastest-growing counties in the US, exposing a problem that’s probably frustrated city and county officials for years. How to upgrade decades-old sewage and water-treatment systems.
When the storms struck, the ancient systems quickly failed, releasing millions of gallons of raw sewage into city streets and canals, complicating the cleanup effort, according to Bloomberg:
‘Millions of gallons of poorly treated wastewater and raw sewage flowed into the bays, canals and city streets of Florida from facilities serving some of the nation’s fastest-growing counties. In fact, 4 of the 10 fastest-growing coastal counties in the eastern U. S. are in Florida. More than 9 million gallons of releases tied to Irma have been reported as of late Tuesday as inundated plants were submerged, forced to bypass treatment or lost power.’

This post was published at Zero Hedge on Sep 14, 2017.