According to a recent article from The Street.com, “The most important economic issue over the next decade will be the rising position of the Chinese currency, the renminbi, in the foreign exchange markets.” While current global financial reserves are dominated by the dollar, euro, yen and British pound, there is a significant shift taking place right now. A shift that could dramatically change the global reserve market and the dollar’s status as the reserve currency of choice. The central banks that issue these currencies have,... Continue Reading

Russia to Continue Buying Gold

It’s no secret that many central banks have been buying gold in recent years. This trend of central bank buying does not appear to be slowing down at all either, in fact, it appears to be accelerating. These financial mega- institutions have been adding physical gold bullion to their reserves not only for its inherent value but also for diversification as uncertainty surrounding global currency markets increases. In a recent Kitco News article, Elvira Nabiullina, who is chairwoman of the Russian Central Bank, is said... Continue Reading

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Gold's Long-Term View Alive and Well

Gold prices have not done much of anything in recent months. In fact, the yellow metal has remained range bound as investors appear to be waiting on the outcome of ongoing negotiations between Greece and its creditors. In addition to Greece, markets also appear to be in a holding pattern as the Fed prepares to raise interest rates for the first time in years. As the Fed gets ready to tighten, the ECB and other central banks continue to pump markets full of stimulus money... Continue Reading

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The Reality of Central Bank Gold Ownership

Gold has been called a lot of things over the years. While some investors have lauded gold as a safe haven asset that can preserve wealth and purchasing power, others have referred to it as a “barbarous relic” and silly investment. It is our belief that those who understand the monetary system understand and appreciate the value of gold and precious metals, while those that do not are the ones that choose to bad-mouth such investments. We mock what we don’t understand… For those who... Continue Reading

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Monetary Policy Matters Not

  A lot has been discussed in recent months concerning the Fed and its potential plans to begin hiking interest rates. One week the Fed is seemingly on hold, the next week the central bank is getting ready to hike. During this see-saw discussion of the beginning of the tightening cycle, the Fed has consistently stated that any decision with regards to interest rates would be “data dependent.” The equity markets are now in an absurd state of uncertainty. A bad piece of economic data... Continue Reading

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Chinese Yuan May Get Reserve Currency Status This Year

The Chinese yuan has been gaining traction and acceptance among global currency markets. As the Chinese economy continues to grow, China will seek to continue to forge its place among leadership in the global financial marketplace. According to a report today by BBC News, the yuan could get reserve status this year… This is huge. This is another step towards the yuan becoming the global reserve currency of choice. When the International Monetary Fund this week stated that it does not consider the yuan to... Continue Reading


The dollar will fail…. This is not a question of if but rather when. We believe that when the dollar does fail, it will create a period of economic and geopolitical chaos the likes of which this country has not seen before. Fiat currencies such as the dollar are fundamentally flawed. To the average investor, discussions on the dollar’s loss of value-or any other fiat currency for that matter- seem complicated and difficult to comprehend. In reality, there are very simple reasons why fiat or... Continue Reading


With all the recent talk of the possibility of inflation bottoming in the U.S., we felt it prudent to discuss the other side of the coin a bit. Deflation is a decline in the general price levels of goods and services. An economy is said to be experiencing deflation when the inflation rate falls below zero percent. A CPI reading of -.1 percent, for example, would indicate that prices have dropped as much. The U.K. has just apparently entered deflation with year-over-year consumer prices falling... Continue Reading


As we have stated regularly for some time now, the global financial landscape appears to be headed for some significant changes. These changes may affect how investors look at various financial markets and may be the catalyst for a large shift in both investor allocation and sentiment. What are some of the issues we are referring to? There are several noteworthy issues in play right now that may significantly impact financial markets. Here we will briefly outline just a few, and discuss why these issues... Continue Reading

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