Jim’s Mailbox

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Jim

ALERT: Silver Is Now On The Cusp Of A Major Breakout As Gold Surges To Highest Level In Nearly 2 Months!
August 09, 2017

The price of silver is now on the cusp of a major breakout as gold surges to the highest level in nearly 2 months!

KWN note: The report by MSA below was issued late last night, prior to today’s upside action in gold and silver.

Gold Breakout

By Michael Oliver, MSA (Momentum Structural Analysis)

August 9 (King World News) – The weekly close two weeks ago was above our number of $1265 and sufficient to close over the resistance line on momentum (plotted through prior peak weekly closing readings going back to November 2016).

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Jim/Bill,

An outstanding article in its simplicity.

I never really looked at money in this way!

“What’s money worth if interest rates are negative?

Interest rates, after all, are the “price” of money.

When we borrow money from a bank and pay interest on the loan, it means that the money we’re borrowing has value. That –capital- has value.

Negative interest rates, on the other hand, suggest that capital is totally worthless.”

Hence, in the article below, they give examples of how people care very little about their investments. Almost like the CASINO syndrome (they’re chips, not real money, so let me bet a lot of them). Ahhh, it’s only paper. Let me buy the hottest item, regardless of its real value or sustainability.

CIGA Wolfgang Rech

This Cryptocurrency Website Is Selling For More Money Than Facebook’s
August 9, 2017

What’s money worth if interest rates are negative?

Interest rates, after all, are the “price” of money.

When we borrow money from a bank and pay interest on the loan, it means that the money we’re borrowing has value. That –capital- has value.

Negative interest rates, on the other hand, suggest that capital is totally worthless.

This isn’t a philosophical exercise. These are the times we’re living in.

Despite a few tiny increases, interest rates worldwide are still near the lowest levels they’ve been in 5,000 years of human history.

Bankrupt governments across Europe who are already in debt up to their eyeballs have issued trillions of euros worth of new debt with negative yields.

And there have even been famous cases (also in Europe) in which bank depositors have had to PAY interest, while borrowers were BEING PAID to take out a mortgage.

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Dear Jim,

Every once in a while the Chinese surface a sub in the middle of our naval exercise and they say, “Oh, please excuse, we are so stupid. We will never catch up to you Americans; your technology is amazing.” In the meantime our arrogance has blinded us to the true dange the Chinese are preparing for. They are holding a knife to our throats and we think their hands are empty. They have ALL the gold. We have all the debt.

One day soon they are going to get tired of loaning us dollars and getting paid back in wampum.

Respectfully,

Jack Mergott

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Jim/Bill,

COMEX?

I know Shanghai Gold Exchange…but who’s COMEX?

CIGA Wolfgang Rech

China’s Gold Demand Takes Australia By Storm, Breaching $11 Billion Annually
August 10, 2017

(Kitco News) – Chinese gold demand is not letting up, as the country bought 230 metric tons of Australian gold last year, which exceeded $11 billion on the Shanghai Gold Exchange, according to recent data released by The Perth Mint.

It is the quality of Australian gold and its reliable supply that is so attractive for the Chinese market, said Chief Operating Officer of The Perth Mint, David Woodford.

“In 2014, The Perth Mint became the first foreign refinery accredited on the Shanghai Gold Exchange and we have worked steadily to establish this new market,” said Woodford. “Today we are on track to achieve our goal of becoming the biggest source of imported gold in the Chinese market and that is great news for Australian gold producers and Australian mine workers.”

The growth in demand is undeniable, with Australian gold exports to China more than doubling from 2011 to last year, surging from 110 metric tons to 232 metric tons.

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