Monday, July 17, 2017

Jim Rickards on Gold - Recent Interviews and Articles

Recently Jim Rickards has had quite a few updated comments on the gold market including his view on where the price is headed towards the end of this year. Below are links to his latest comments on the subject.


First, here is his most recent article on the gold market appearing in The Daily Reckoning:

A Tale of Two Gold Markets  - below is an excerpt

"There is a lot of speculation about the actual motive of the flash crash paper gold short seller. Was this a so-called “fat finger” trade where the trader made a mistake by entering the wrong quantity or pushing the wrong button? That’s possible, but a more nefarious explanation comes to mind. 

Paper gold trades not only as futures and bank forwards, but also as options on futures. The flash crash happened the day before an important expiration date in the options market.

Was a seller of call options at, say, $1,245 per ounce trying to sink the price the day before expiration in order to avoid a $10 per contract loss? That’s entirely possible, even plausible. We’ll probably never know, because enforcement in this area is almost nonexistent."

(My added note: See this Bloomberg article on the "flash crash" Jim mentions)

Next, An in depth interview discussing the 2017 "In Gold We Trust" annual report

Published on Jul 3, 2017
Jim Rickards discussed with Ronald Stöferle and Mark Valek the key topics of the new In Gold We Trust Report 2017.

The key points debated were:
• Introduction – monetary surrealism – and where we stand
• Shadow Gold Price
• White Gray and Black Swans (esp. recession in the US)
• Populism and its true Cause
• De-Dollarization: Good-bye Dollar, Hello Gold (including the interview with Judy Shelton)
• A Coming War with North Korea
• Bitcoin and its Dangers
Finally, we have this.

Physical Gold Fund Update Report - Jim writes the conclusion section (see last page of the report)

"Our models show bonds and gold have it right and stocks are headed for a fall. The stock market correction won't come right away . . . ."

Added notes: Since we are looking at gold here are links to two recent articles by Alasdair Macleod that make an argument that China will implement some kind of new gold backed currency system. I see this speculation quite a bit so these articles provide some of the reasoning behind that view.

Time for a New Gold Standard for Asia

The Logic of a Mondern Gold Standard 

Update on Andrew Maguire - I may be able to provide an update from Andrew Maguire on his recent comments about a gold backed cyptocurrency along with large buy orders for physical gold. He has been traveling in Europe, but may be able to provide me a short written Q&A to publish here on this topic. If that does pan out, I will alert readers.
Added note on Jim Rickards 7-19-17: Looks like Jim has been busy this week. Says he spent two days working in an IMB Lab on this project. This is the reason I seek out Jim for comments on events that may impact systemic stability.

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