The World Financial Report

World Financial Report – March 14th, 2019

Radio Show Newsletter

WORLD FINANCIAL REPORT ON RADIO MARCH 14th 2019
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CHARTS OF THE WEEK-QUOTES-QUICK HITS

-CHART OF THE WEEK: One Economy, One Set of Stocks, Two Contrary Views on What to Do. The economy is showing signs of stress. Do you buy or sell U.S. growth stocks? That depends on which gigantic investment bank you ask. Both citing an anemic economy, Goldman Sachs and Morgan Stanley are building opposite cases for companies that have shown the ability to deliver faster growth in either revenue or profits. At stake is a decade-long winning trade that has consistently beat a competing strategy known as value that touts stocks with cheapest valuations. On the bullish side of the argument are Goldman strategists led by David Kostin, who recommend investors buy the 50 companies with the best growth potential, such as Amazon.com, SVB Financial Group and Adobe. Growth is so scarce now that these rare finds will pay off, they say. Bloomberg

-CHART OF THE WEEK: Powell’s Labor Market Worries Find Plenty of Support in the Data. Jerome Powell says America’s workforce faces serious challenges. Education levels are climbing only slowly, and both globalization and drug addiction are taking a toll on the labor market. “When you have people who are not taking part in the economic life of a country in a meaningful way, who don’t have the skills and aptitudes to play a role or who are not doing so because they’re addicted to drugs, or in jail, then in a sense they are being left behind,” the Federal Reserve chairman told CBS News’ “60 Minutes” in an interview aired Sunday. Recent research backs up Powell’s contention: even though unemployment is at 3.8 percent, a five-decade low, some corners of the American labor force are suffering from a many-pronged malaise. A National Bureau of Economic Research working paper explores the ties between education, globalization and declining opportunity, while a Cleveland Fed study suggests that opioid use could be sidelining workers. Bloomberg

-CHART OF THE WEEK: U.S. Cuts Oil Production Forecast for the First Time in 6 Months. The U.S. government cut its oil production forecast for the first time in six months as drillers scale back in smaller shale plays and the U.S. Gulf of Mexico. While crude output is still expected to reach record levels, the Energy Information Administration trimmed its 2019 forecast to 12.3 million barrels a day 110,000 barrels-a-day lower than it had forecast previously. In 2020, production is expected to reach 13.03 million barrels a day 170,000 barrels a day lower than last month’s estimate. Bloomberg

-“Philadelphia is the first major U.S. city to ban cashless stores, placing it at the forefront of a debate that pits retail innovation against lawmakers trying to protect all citizens’ access to the marketplace. Starting in July, Philadelphia’s new law will require most retail stores to accept cash.”The Wall Street Journal

-Man credited with calling the 2008 crisis says the next 20 years in the stock market will ‘break a lot of hearts.’ Jeremy Grantham, an investor credited with predicting the 2000 and 2008 downturns, told CNBC on Thursday that investors should get inured to lackluster returns in the stock market for the next two decades, after a century of handsome gains. “In the last 100 years, we’re used to delivering perhaps 6%,” but the U.S. market will be delivering real returns of about 2% or 3% on average over next 20 years, the value investor and co-founder of Boston-based asset manager GMO told CNBC in a rare interview.

Over the past five years, the S&P 500 index SPX, +0.25% has produced a compound annual growth rate of 8.1%, the Dow Jones Industrial Average DJIA, -0.40% has boasted a CAGR of 9.1%, while the Nasdaq Composite Index COMP, +0.39% has registered a compound return of 11.4% over the same period, according to FactSet data. Grantham attributed his call for lower future returns to a stock market he still views as pricey, despite a downturn that gripped the broader market in the latter portion of 2018.

The cyclically adjusted price-to-earnings (CAPE) ratio, a popular gauge of stock-market value created partly by Nobel laureate economist Robert Shiller, stands at 30.04, well above its historical average of 16.61. Grantham, who has been predicting a meltdown in stocks since last year, said that not even the recent go-slow reversal by the Federal Reserve on rate increases and the European Central Bank’s decision to roll out a fresh batch of bank stimulus will push stocks significantly higher.

“You can’t get blood out of a stone,” he told the network. The famed investor said that he expects stocks to limp along against that backdrop, with major developed banks unlikely to remove stimulus first introduced during the 2007-09 financial crisis. What’s an investor to do then, if U.S. stocks will offer such comparative lackluster results? Grantham advocates buying emerging markets, including China, where he thinks 6% or 8% returns are achievable. Read more here-https://on.mktw.net/2CgmJ51

-Jeffrey Gundlach says the stock market was and still is in a bear market. “The stock market was and still in a bear market,” the founder and chief executive officer of Doubleline Capital said in an investor webcast on Tuesday. Gundlach said stocks could go negative again in 2019. He credited the market rebound to the “180-degree turn” from the Federal Reserve. CNBC

-Gap, Victoria’s Secret, J.C. Penney, Tesla and Abercrombie & Fitch. What do these companies have in common? They’re all closing stores this year. Already, 4,810 store closures have been announced by retailers in 2019, according to Coresight Research. And it’s only March. Last year, Coresight tracked 5,524 store closures, down more than 30 percent from a record 8,139 closures announced in 2017. Adding to the noise, Amazon said this week it will shut all 87 of its pop-up shops inside Whole Foods, Kohl’s and malls across the country. But the company has vowed to invest more in its book stores and other bricks-and-mortar concepts, including its cashierless convenience store called Amazon Go. Here are some of the biggest retailers that have announced store closures so far this year. Read more here-https://cnb.cx/2Y25AFs

-Global debt is up 50% over the past decade, but S&P still says next crisis won’t be as bad. Companies, governments and households increased their combined debt load by 50 percent in the 10 years following the financial crisis, S&P Global Ratings said Tuesday. The surge represents a 50 percent increase that the ratings firm nonetheless said does not pose the same level of systemic risk. One area the firm highlighted was corporate debt and the rise of financing given to lower-quality borrowers. CNBC

-ECB Calls General Idea Behind MMT a ‘Dangerous Proposition.’Hardly any Twitter debate on economics these days can avoid touching on Modern Monetary Theory even on central banks’ official channels. In an hour-long question-and-answer session on Tuesday, European Central Bank chief economist Peter Praet tweeted his disapproval of one of the theory’s key tenets after being asked his views.

MMT’s headline argument is that countries issuing bonds in their own currencies don’t need to be so worried about overspending because they can always print money to pay off their debt. Advocates often see it as a framework of tools rather than a specific policy package, and point to years of low inflation in major advanced economies as evidence that they might be able to handle more spending than is generally assumed. The euro area doesn’t fit neatly into the theory because there’s only one central bank conducting monetary policy for 19 fiscally sovereign countries. Wall Street titans and prominent economists have joined the debate about the idea’s shortcomings and merits. Jerome Powell, the chairman of the U.S. Federal Reserve, recently called the concept “just wrong.”Bloomberg

-These seven stocks have done the worst in the 10-year bull market. Since the financial crisis 10 years ago, many S&P 500 stocks bounced back with huge gains, but some are actually lower than where they were when the market bottomed on March 9, 2009. CNBC looked at the price performance of companies in the S&P 500 that were publicly traded then and found seven stocks that have losses. CenturyLink was the worst performer, down 49 percent. The other stocks that lost ground are Apache, Mosaic, Devon, FreeportMcMoRan, Newmont Mining and Baker Hughes. The S&P energy sector has lagged, gaining just 56 percent. The top sector, consumer discretionary, rose 598 percent. CNBC

-Big banks are totally reliant on stock buybacks, and that could be a problem. At megabanks like J.P. Morgan Chase, about 63 percent of the median expected earnings per share growth in 2019 is from share repurchases, according to KBW analysts. At large regional lenders, 34 percent of earnings growth this year will be thanks to stock repurchases. At smaller firms, 25 percent of earnings growth is linked to repurchases. CNBC

-US households see biggest decline in net worth since the financial crisis. Household net worth fell at the highest level since the financial crisis, according to Fed data. Net worth at the end of 2018 was at $104.3 trillion, a drop of $3.73 trillion from the third quarter. CNBC

-Canada posted another blockbuster month of gains, with 55,900 jobs added last month. Economists were expecting just 1,200. As Manulife’s Frances Donald told us in her instant analysis, it’s tough to square this up with other recent data convincing the Bank of Canada the country is in a prolonged economic “detour.” Meanwhile, the U.S. added a mere 20,000 jobs last month, falling way short of the 180,000 estimate. BNNBloomberg

-The world’s appetite for oil is still growing, albeit at a slower pace. Despite the rise of electric vehicles, the International Energy Agency does not see oil demand growth plateauing through at least 2024. “There is no peak demand on the horizon,” the energy watchdog said in a report published on Monday. Oil demand will rise by 7.1 million barrels per day by 2024, the IEA said. That would represent “modestly” slower demand growth for crude oil, which powers the world economy. Fast-growing emerging markets continue to voraciously gobble up oil. China and India will account for almost half the global demand growth, the IEA said. Even though the appetite for crude oil will be hurt by fuel efficiency gains and electric cars, the IEA said the impact will be overshadowed by insatiable demand for jet fuel and plastics. CNN

-Ocasio-Cortez’s Green New Deal is not going over well at one of the year’s biggest energy gatherings. Energy thought leaders are largely dismissing Rep. Alexandria Ocasio-Cortez’s Green New Deal as unrealistic and politically divisive at the CERAWeek by IHS Markit conference. Climate talks at CERAWeek have largely focused on the kind of bottom-up, market-oriented solutions that Ocasio-Cortez dismisses as too conservative. The industry is highlighting its progress reducing its carbon footprint, but the International Energy Agency says companies need to do far more. CNBC

-Education Dept. faces 10% funding cut under Trump’s 2020 budget proposal. The Education Department’s budget would be significantly reduced under Trump’s 2020 budget. Changes include the end of subsidized student loans and the popular public service loan forgiveness program. With the House controlled by Democrats, the administration may find it hard to realize its requests. CNBC

-House Speaker Nancy Pelosi says Trump ‘unfit’ to be president, but ‘I’m not for impeachment.’ House Speaker Nancy Pelosi says “I’m not for impeachment” of President Donald Trump, arguing that “he’s just not worth” the divisiveness that the country would suffer from such an action. Pelosi’s opposition to seeking Trump’s removal was stated in a new, wide-ranging interview with the California Democrat published by The Washington Post on Monday. Her view contrasts with that of some of her fellow Democrats, who believe their party should use its new-found majority in the House to impeach the president. CNBC

-Here’s how much money you need to make to be in the top 1 percent in 8 different countries. Here’s the full breakdown of the annual pretax income you need to be among the top 1 percent of earners in various countries. The figures below, from Bloomberg, are in 2017 U.S. dollars. Read more here-https://cnb.cx/2F9q5sk

India: $81,000
China: $105,000
Canada: $190,000
France: $215,000
United Kingdom: $290,000
United States: $478,000
Singapore: $694,000
United Arab Emirates: $891,000

-The number of wealthy households in the U.S. reached a new high last year, roughly equivalent to the entire population of Sweden or Portugal. More than 10.2 million households had a net worth of $1 million to $5 million, not including the value of their primary residence, according to a survey by the Spectrem Group. That’s up 2.5 percent from 2017. Even as the ranks of the mass affluent grew, the pace slowed because of “weakening global economic growth and a contentious U.S. political environment,” said Spectrem Group President George Walper. Bloomberg

-Mansa Musa: The richest man who ever lived. Amazon founder Jeff Bezos is the richest man in the world, according to the 2019 Forbes billionaires’ list released this week. With an estimated fortune of $131bn (£99bn) he is the wealthiest man in modern history. But he is by no means the richest man of all time. That title belongs to Mansa Musa, the 14th Century West African ruler who was so rich his generous handouts wrecked an entire country’s economy.

“Contemporary accounts of Musa’s wealth are so breathless that it’s almost impossible to get a sense of just how wealthy and powerful he truly was,” Rudolph Butch Ware, associate professor of history at the University of California, told the BBC. Mansa Musa was “richer than anyone could describe”, Jacob Davidson wrote about the African king for Money.com in 2015. In 2012, US website Celebrity Net Worth estimated his wealth at $400bn, but economic historians agree that his wealth is impossible to pin down to a number. Read more here-https://bbc.in/2VXnOGc

-Instagram founder knocks down Elizabeth Warren’s plan to break up big tech companies. Instagram co-founders Kevin Systrom and Mike Krieger on Monday said politicians need to offer solutions that address the tech industry’s specific problems instead of just talking about breaking up companies like Facebook. Systrom and Krieger spoke at the South by Southwest conference in Austin, Texas. It was the pair’s first joint public appearance since they resigned from Facebook in September. Their comments come a few days after Sen. Elizabeth Warren, a candidate for president, proposed breaking up big tech companies like Facebook. CNBC

-The man who invented the web says it’s now dysfunctional with ‘perverse’ incentives. Tim Berners-Lee first envisioned the World Wide Web 30 years ago. In a letter published Monday, Berners-Lee said he understands concerns that the web is no longer a “force for good.” Berners-Lee laid out three reasons why the web is dysfunctional, including “perverse incentives” from ad-based business models. CNBC

-The World Wide Web is 30 years old today. Three decades ago on March 12, 1989, to be exact British computer scientist Sir Tim Berners-Lee submitted his proposal for what would become the World Wide Web to his boss at the European Organization for Nuclear Research (CERN). Today, Berners-Lee is considered an internet pioneer. However, the feedback that Berners-Lee received from his boss for the revolutionary idea in 1989 was not quite as exuberant as you might expect.

“Vague, but exciting…” was the simple, and somewhat understated, hand-written reaction scribbled on Berners-Lee’s proposal by his boss at CERN at the time, Mike Sendall. Happily, Sendall approved Berners-Lee’s proposal and, a year later, Sendall gave Berners-Lee permission to buy a high-performance NeXT computer (built by Steve Jobs, after he left Apple, and designed for technical and scientific work) that would become the world’s first web server. Berners-Lee had submitted his idea in a paper titled “Information Management: A Proposal,” in which he argued for the creation of an information management system he described as “a large hypertext database with typed links.” The idea was to offer universal access to use the then-nascent internet, not just to communicate, but to store and access vast troves of online documents and data. CNBC

-Electric scooter injuries pile up, half coming from drunk or high riders. Electric scooters have been hailed as efficient alternatives in urban transportation. But they aren’t without their downsides, with one of the major ones being injuries. As the number of accidents increases, hospitals and even the CDC are conducting studies to better understand the issue. Read more here-http://bit.ly/2TxlaKE

-GPS Flaw: Security Expert Says He Won’t Fly April 6. Don’t look now, but there’s another Y2K-like computer-calendar problem on the way, and this one arrives in just one month: April 6, 2019. That’s the day millions of GPS receivers will literally run out of time, rolling over their time counters back to zero, thanks to limitations in timekeeping for older GPS devices. Many navigation systems may be affected, such as on ships or older aircraft, although your smartphone will be fine. But because GPS satellites are also crucial to digital timekeeping used by websites, electrical grids, financial markets, data centers and computer networks, the effect of April 6 may be even more wide-ranging. “I’m not going to be flying on April 6,” said one information-security expert during a presentation at the RSA 2019 security conference in San Francisco this week. Read more here-http://bit.ly/2EY37mJ

-The Canadian government said Wednesday it is temporarily grounding Boeing 737 Max 8 and Max 9 planes and barring them from the country’s airspace, joining a list of dozens of nations to take the step after the second fatal crash of the planes in less than five months. Canada’s decision made the United States a notable holdout for continuing to allow the Boeing planes to fly as investigators seek clues as to what brought down an Ethiopian Airlines 737 Max 8 shortly after takeoff on Sunday, killing all 157 people on board.

The Federal Aviation Administration on Tuesday reiterated its stance on the plane, saying it saw no reason to order the jets be taken out of service. Dozens of countries and airlines spanning China to Mexico to Europe have grounded the planes this week. The crash of Ethiopian Airlines Flight 302 came less than five months after a Lion Air Boeing 737 Max 8 plunged into the Java Sea minutes into the flight, killing all 189 people on board. Both planes were new, delivered to the carriers from Boeing just months before their doomed flights. CNBC

-Dubai introduces cameras that use AI to measure people’s happiness. The technology analyses the facial expressions of customers but doesn’t save the information, authorities say. Cameras have wireless and Bluetooth connectivity, and can take 30 frames per second from a range of seven meters. CNBC

-Facial recognition’s ‘dirty little secret’: Millions of online photos scraped without consent. Facial recognition technology requires hundreds of thousands of images to “learn” how to differentiate facial features. NBC News obtained an IBM data set used to “train” the technology to learn faces. The set included millions of photos scraped by photo-hosting site Flickr, many without the consent of the subjects. Legal experts and civil rights advocates claim using photos without consent especially endangers minorities, who could be profiled and targeted, since the technology could eventually be used for surveillance purposes. CNBC

-Want to turn off the internet? It could happen if a solar storm hits the Earth. It’s happened before and it could happen again. Roughly 2,700 years ago, an unusually powerful solar storm swept past the Earth, scientists announced in a new study. Though it had little to no impact on people in that long ago, pre-industrial and pre-technological world, such an event today would cause widespread power outages along with potentially disastrous communication and navigation failures. The solar storm, which was in 660 B.C., was about 10 times stronger than any known event in the past 70 years, study lead author Raimund Muscheler said. A solar storm of that strength would be “a threat to modern society in terms of communication and navigation systems, space technologies and commercial aircraft operations,” the study said. Read more here-http://bit.ly/2EWJ6wM

-Apple announces event for March 25 where streaming TV and subscription news services are expected. Apple just announced a press event for March 25. Apple is expected to debut a new streaming TV service and a bundled subscription Apple News offering. Apple could also use the event to introduce a new low-cost iPad and a new version of AirPods. CNBC

-Apple’s streaming service is ‘a game changer,’ to add 100 million users in 3 years, Wedbush says. Apple’s highly anticipated TV streaming services will reach 100 million subscriptions in just three years, according to Wedbush. Wedbush tech analyst Daniel Ives calls the estimate “a realistic goal” given Apple’s “massive installed base and unmatched brand loyalty.” The new services could translate into a $7 billion to $10 billion annual revenue stream over time for Apple and a $215 per share valuation for the stock, Wedbush says. CNBC

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-Top 10 Most Expensive Diamonds In The World: Check Them Out. Read more here-http://bit.ly/2TJWpKw

10) The Heart of Eternity, $16 million. The Heart of Eternity is a Fancy Vivid Blue colored diamond mined in the South African Premier Diamond Mine. Blue diamonds make up only 1% of all the mined diamonds. This 27.64 carat diamond weighs 5.528g. The Heart of Eternity is so expensive because of its rare shape and color. This heart-shaped gemstone was cut by the Steinmetz group and sold to De Beers Group in 2000.

9) The Perfect Pink, 23.2 million. The emerald-cut, rectangular diamond was sold for $23.2 million to an unnamed bidder at Christie’s Hong Kong auction. The 14.23 carats diamond was named The Perfect Pink because of its intense color. Christie’s has auctioned only 18 pink diamonds in its 244 years of history. The Perfect Pink was discovered in India. It is in a class of its own and has a clarity grade of Very Very Slightly Included 2 (VVS2) because of tiny internal blemishes, which are common in such diamonds.

8) The Wittelsbach-Graff Diamond, $23.4 million. This 31.06 carats deep blue diamond has a royal history. It was discovered in India more than 300 years ago. During the 17th century, Spanish king Philip IV gave it away as part of his daughter’s dowry. Later it became part of the crown jewels of Bavaria and Austria. British jeweler Laurence Graff purchased it from Christie’s London for $23.4 million. Graff had it recut in 2010 to remove all the impurities, which had sparked a heated debate in the historical circles.

7) The Winston Blue, $23.8 million. It is the world’s largest flawless vivid blue diamond. It was originally known as the Fancy Vivid Blue Diamond, but was renamed The Winston Blue when Harry Winston, Inc of The Swatch Group purchased it in 2014 for $23.8 million at Christie’s Geneva auction. At 13.22 carats, it commanded a price of $1.8 million per carat, which is the highest per carat price ever paid for blue diamonds. The Gemological Institute of America has certified it as a type IIb diamond.

6) The Steinmetz Pink aka Pink Star, $71.2 million. The Pink Star was previously known as The Steinmetz Pink. Discovered in South Africa in 1999, it is the largest diamond with a Fancy Vivid Pink grade. This 59.60 carats (11.92g) stone was purchased by Hong Kong-based Chow Tai Fook Enterprises at a Sotheby’s auction in 2017. This oval-shaped diamond is flawless internally. It took the Steinmetz Group close to 20 months to cut it.

-The Luxury Assets Soaring In Value. In line with the dramatic surge in super wealthy individuals across the world over the past decade, demand for luxurious assets has been soaring. Aside from mega purchases like yachts, property and private jets, millionaires enjoy splashing the cash on a host of smaller “investments of passion”. Last week’s 2019 Global Wealth Report from Knight Frank sheds light on the luxury items that have experienced the greatest change in value over the past decade. Read more here-http://bit.ly/2TC2KYX

-Here’s how much experts say Jennifer Lopez’s 5 engagement rings are worth including A-Rod’s. “Love don’t cost a thing,” according to Jennifer Lopez, but the enormous diamond ring Alex Rodriguez proposed to her with over the weekend is worth a whole lot. On Saturday, Lopez posted on Instagram a shot of the massive, emerald-cut sparkler, as the power couple were vacationing in the Bahamas.

“The engagement ring that Alex Rodriguez gave to Jennifer features a high-quality emerald cut that weighs approximately 18 carats. Based on the photos, this diamond also appears to be collection grade quality as well,” Khordipour says, which is the highest diamond. “We evaluate her ring to be at least $1.8 million.” Rodriguez certainly has the means to afford an extravagant rock; in 2017, Forbes named Rodriguez as one of the highest-paid athletes of all time, with career earnings of $575 million. Since retiring from the New York Yankees as a player, he has since raked in millions more from his role as adviser to the team owner and as an entrepreneur. Lopez earned $47 million in 2018, according to Forbes.

Lopez received a 8.5-carat blue diamond ring designed by Harry Winston (below) from singer Marc Anthony, to whom she was married from 2004 to 2014. Benjamin Khordipour the head gemologist and antique jewelry specialist at Estate Diamond Jewelry in New York City, tells CNBC based on photos, the center diamond of the ring is extremely rare, and by today’s evaluation, he estimates it to be worth $4.8 million.

Lopez was also engaged to Ben Affleck, who popped the question with a 6.1 carat pink diamond designed by Harry Winston in 2002. After the couple called off their engagement, People reported that Affleck had paid $1.2 million for the ring. Based on photos, Khordipour estimates the rare fancy pink, radiant-cut ring to be worth $2.7 million. Read more here-https://cnb.cx/2UzAbrw

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GOLD-SILVER-PALLADIUM-PLATINUM

Gold to silver ratio at 80 to 1 with gold at $2,000 the silver price would be $25.00

Gold to silver ratio at 70 to 1 with gold at $2,000 the silver price would be $28.57

Gold to silver ratio at 60 to 1 with gold at $2,000 the silver price would be $33.33

Gold to silver ratio at 50 to 1 with gold at $2,000 the silver price would be $40.00

Gold to silver ratio at 40 to 1 with gold at $2,000 the silver price would be $50.00

Gold to silver ratio at 30 to 1 with gold at $2,000 the silver price would be $66.67

Gold to silver ratio at 20 to 1 with gold at $2,000 the silver price would be $100.00

Gold to silver ratio at 15 to 1 with gold at $2,000 the silver price would be $133.33

-Hedge Funds Dumped Gold Bets Before Jobs Data Sparked Rally. Hedge funds are looking like fair-weather friends when it comes to gold. Investors dumped their bullion holdings as the metal flirted with erasing its 2019 advance. But the move could prove to be premature. On Friday, prices got a jolt after a report showed U.S. hiring in February was the weakest in more than a year. The news helped gold push back above $1,300 an ounce amid renewed demand for a haven. Gold has been caught in a tug of war.

Four straight months of price gains amid economic hand-wringing gave way to losses in February as the dollar gained traction. Investors are having to pick sides, said Chad Morganlander, a portfolio manager at Washington Crossing Advisors, which oversees $2.5 billion. “I caution investors not to be so negative on haven assets, in particular as we start to see signs of the global deceleration,” Morganlander said, adding that Friday’s U.S. jobs report could be a harbinger of things to come. “Over the next three to six months, the trading perspective will start to shift to be more risk averse.” In the week ended March 5, hedge funds cut their gold net-long position by 54 percent to of 47,872 futures and options, according to U.S. Commodity Futures Trading Commission data published Friday.

The holding, which measures the difference between bets on a price increase and wagers on a decline, was the lowest in six weeks. The move came as short holdings jumped 21 percent, the most since July. Even while investors have trimmed their bullish holdings, they’re still betting on price gains. The funds have been net-positive since early December. Friday’s job numbers represented “a potential buying opportunity for gold,” Will Rhind, the chief executive officer at GraniteShares Gold Trust, said in an interview at Bloomberg headquarters in New York. “We have a world which is slowing, and you have central banks around the world loosening monetary policy for that precise reason.” Bloomberg

-Greg Hunter: Peter Schiff Interview, Record Debt Everywhere. On gold, Schiff says, “I think this is the calm before the storm. People don’t really perceive it. Maybe it’s like the Wile E. Coyote who has just run off a cliff, and he just hasn’t looked down yet. He doesn’t realize where he’s standing. Gold shorts are going to lose an incredible amount of money. That’s probably one of the most foolish things you can do. There are a lot of great things out there to short. Gold is the last thing you should be shorting. For central banks, gold is the safest reserve asset.

It’s the only asset that is not somebody else’s liability. I think the world is going back to gold. $5,000, $10,000 (per ounce) who knows how high it’s going to go. There is no real ceiling on the price of gold because there is no floor to the value of the dollar and other fiat currency. Gold is going to skyrocket.” And silver? Schiff says, “Look at last time. Silver went up to $50 per ounce from $3 to $4 an ounce in 2000-2001. Gold went to $1,900 per ounce, but silver went to $50 per ounce. It was a much bigger percentage gain. If I am right about gold going to $5,000 to $10,000 (per ounce), I am sure the percentage gain in silver will be even bigger.” Watch more here-http://bit.ly/2u7u8iA

-Greg Hunter: Rob Kirby Interview, Massive Secret Money Printing Will Shoot Gold Higher. Macroeconomic analyst Rob Kirby says $21 trillion in “missing money,” discovered in late 2017, is now a “national security” issue but is not a secret to the leaders of the rest of the world. Kirby explains, “The national governments around the world have become all too aware of the shenanigans that have gone on and the poor stewardship that has been illustrated by the keepers of the U.S. dollar, the world’s reserve currency.

This is what is at the root of all of our international economic tension. This is what is really at the root of the difficulties and differences between the American regime, the Chinese regime and the Russian regime. These people are aware of what has transpired, and they are not going to tolerate what’s been done in the name of keeping the U.S. dollar propped up as the world’s reserve currency and the criminality that’s been involved in doing so.” Watch more here-http://bit.ly/2CgY2FC

-Lawrie Williams: China adds 10 tonnes to gold reserves, but is that all? Latest figures from the People’s Bank of China, the country’s central bank, claim that the nation increased its gold reserves again in February by a somewhat conservative 320,000 troy ounces (9.95 tonnes). It is only recently that the Asian Dragon has started re-reporting monthly gold reserve increases but are these an any more accurate guide to the true size of the nation’s gold reserves than past announcements? After all China has a pretty dismal record in reporting the size of its gold reserve leading many to believe, ourselves included, that the size of its gold reserves as reported to the IMF is more fiction than fact.

If we add the latest 9.95 tonne figure to its previously reported gold reserve this now stands at some1,862 tonnes, the world’s sixth largest holding, but only equivalent in value to around 2.4% of the country’s total forex holding value. By contrast, all of the top four nations, and also the Netherlands at No.9 hold more than 60% of their forex holdings in gold. However, the Chinese central bank is not thought to be the only official government entity which holds gold on its behalf. These probably include the State Agency for Foreign Exchange, China Investment Corporation (the nation’s sovereign wealth fund) and the military, and we can probably add the commercial banks to this list as they are all state-owned. Read more here-http://bit.ly/2O0O8MU

-KWN: European Analyst Just Warned The Price Of Silver May Spike To $65 Within 18 Months. Read more here-http://bit.ly/2EZxzwB

-Silver Institute: February Silver Update. Read more here-http://bit.ly/2VY5yN2

-Fiat Recall Leaves Palladium Buyers Bracing for ‘Supply Shock.’ Fiat Chrysler Automobiles NV‘s recall of almost 900,0000 gasoline-fueled vehicles could spur additional demand for the palladium market that’s already reeling from shortages. Replacing the catalytic converters in these vehicles would require an additional 77,000 ounces of palladium, said Miguel Perez-Santalla, sales and marketing manager at refiner Heraeus Metals New York LLC. Prices of the metal that’s used to curb greenhouse gas emissions from vehicles have been climbing to records this year as producers struggle to keep up with demand.

“This eventually will be a bit of a supply shock,” said Maxwell Gold, director of investment strategy at Aberdeen Standard Investments, which oversees $736 billion. “Overall, this does paint a very positive picture of just growing emission standards globally, particularly in the U.S. for palladium and gasoline engines.” Production of the precious metal will trail consumption by 545,000 ounces this year, Citigroup Inc. said in December. Newer and stricter regulations to curb emissions in gasoline vehicles have been forcing automakers to boost their purchases of palladium, fueling the surge in demand even amid a slowdown in car sales in China, Europe and the U.S.

In the of case of Fiat, the new recall was prompted by a so-called in-use investigation by U.S. Environmental Protection Agency as well as testing done by the car company that was required by agency rules, the regulator said. The EPA routinely tests vehicles driven by consumers to ensure emissions remain within legal limits over time. Repairs required for Fiat vehicles will include replacing components associated with the vehicles’ catalytic converter, a key part of a vehicle’s emissions-control system, the agency said. About 70 percent of 110,000 ounces of precious metals needed to replace the catalytic converters will be palladium, Perez-Santalla said.

While metal from the recalled cars will likely be recycled, helping ease tight supply, “it’s just going to take a few months for it to come back into the system,” he said. “EPA will continue to investigate other FCA vehicles which are potentially non-compliant and may become the subject of future recalls,” the regulator said in its statement. Palladium, which closed at $1,554.34 an ounce in the spot market Wednesday in New York, could climb to $1,650 if Fiat is able to quickly replace the catalytic converters, Peter Thomas, senior vice president at Chicago-based metals broker Zaner Group, said in a telephone interview. “The demand could be impactful on this market, and if nothing else could hold these prices at these levels, which we haven’t had ever before,” Thomas said. Bloomberg

-Platinum American Eagle bullion coin sales inching toward sellout. U.S. Mint reports sales of 29,500 coins out of maximum 40,000 coins available. During the month of February, the U.S. Mint’s authorized purchasers bought another 2,400 of the 2019 American Eagle 1-ounce .9995 fine platinum coins, bringing cumulative totals for 2019 to 29,500 coins. The Mint has limited itself to a 40,000-coin maximum mintage for the 2019 coins. Mint officials indicated that an initial 30,000 coins were produced in advance of the Jan. 7 sales launch date, with another 10,000 pieces to be minted when the first 30,000 coins are sold. Read more here-http://bit.ly/2CjkRs7

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Investing In Fancy Colored Diamonds

Investing in rare colored diamonds is a long-term investment. The economic cycles of the past 15 years have seen colored diamonds reach new heights in value as price records were broken.

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1 Carat Radiant Cut Fancy Vivid Pink

  • Year: 1980
  • Total Price: $50,000
  • Price per Carat: $50,000
  • Source: Private Sale

1 Carat Radiant Cut Fancy Vivid Pink

  • Year: 1990
  • Total Price: $150,000
  • Price per Carat: $150,000
  • Source: Auction

1 Carat Radiant Cut Fancy Vivid Pink

  • Year: 2000
  • Total Price: $500,000
  • Price per Carat: $500,000
  • Source: Private Sale

1 Carat Radiant Cut Fancy Vivid Pink

  • Year: 2008
  • Total Price: $1,000,000
  • Price per Carat: $1,000,000
  • Source: Auction

1 Carat Radiant Cut Fancy Vivid Pink

  • Year: 2009
  • Total Price: $1,090,500
  • Price per Carat: $1,090,500
  • Source: Private Sale

1 Carat Radiant Cut Fancy Vivid Pink

  • Year: 2020
  • Total Price: $2,828,187*
  • Price per Carat: $2,828,187*

*Estimated value based on current market trend

1 Carat Radiant Cut Fancy Vivid Pink

  • Year: 2025
  • Total Price: $4,361,506*
  • Price per Carat: $4,361,506*

*Estimated value based on current market trend

1 Carat Radiant Cut Fancy Intense Yellow

  • Year: 1980
  • Total Price: $1,000
  • Price per Carat: $1,000
  • Source: Auction

1 Carat Radiant Cut Fancy Intense Yellow

  • Year: 1990
  • Total Price: $3,000
  • Price per Carat: $3,000
  • Source: Private Sale

1 Carat Radiant Cut Fancy Intense Yellow

  • Year: 2000
  • Total Price: $9,000
  • Price per Carat: $9,000
  • Source: Auction

1 Carat Radiant Cut Fancy Intense Yellow

  • Year: 2008
  • Total Price: $23,500
  • Price per Carat: $23,500
  • Source: Private Sale

1 Carat Radiant Cut Fancy Intense Yellow

  • Year: 2009
  • Total Price: $26,300
  • Price per Carat: $26,300
  • Source: Auction

1 Carat Radiant Cut Fancy Intense Yellow

  • Year: 2012
  • Total Price: $32,000
  • Price per Carat: $32,000
  • Source: Private Sale

1 Carat Radiant Cut Fancy Intense Yellow

  • Year: 2020
  • Total Price: $53,993*
  • Price per Carat: $53,993*

*Estimated value based on current market trend

1 Carat Radiant Cut Fancy Intense Yellow

  • Year: 2025
  • Total Price: $74,873*
  • Price per Carat: $74,873*

*Estimated value based on current market trend

1 Carat Radiant Cut Fancy Vivid Blue

  • Year: 1980
  • Total Price: $60,000
  • Price per Carat: $60,000
  • Source: Private Sale

1 Carat Radiant Cut Fancy Vivid Blue

  • Year: 1990
  • Total Price: $200,000
  • Price per Carat: $200,000
  • Source: Private Sale

1 Carat Radiant Cut Fancy Vivid Blue

  • Year: 2000
  • Total Price: $600,000
  • Price per Carat: $600,000
  • Source: Private Sale

1 Carat Radiant Cut Fancy Vivid Blue

  • Year: 2008
  • Total Price: $1,350,000
  • Price per Carat: $1,350,000
  • Source: Private Sale

1 Carat Radiant Cut Fancy Vivid Blue

  • Year: 2009
  • Total Price: $1,494,000
  • Price per Carat: $1,494,000
  • Source: Auction

1 Carat Radiant Cut Fancy Vivid Blue

  • Year: 2020
  • Total Price: $4,555,497*
  • Price per Carat: $4,555,497*

*Estimated value based on current market trend

1 Carat Radiant Cut Fancy Vivid Blue

  • Year: 2025
  • Total Price: $7,561,708*
  • Price per Carat: $7,561,708*

*Estimated value based on current market trend

1 Carat Radiant Cut Fancy Red

  • Year: 1950
  • Total Price: $13,800
  • Price per Carat: $13,800
  • Source: Private Sale

1 Carat Radiant Cut Fancy Red

  • Year: 1987
  • Total Price: $927,000
  • Price per Carat: $927,000
  • Source: Auction

1 Carat Radiant Cut Fancy Red

  • Year: 2008
  • Total Price: $2,000,000
  • Price per Carat: $2,000,000
  • Source: Private Sale

1 Carat Radiant Cut Fancy Red

  • Year: 2009
  • Total Price: $2,074,600
  • Price per Carat: $2,074,600
  • Source: Private Sale

1 Carat Radiant Cut Fancy Red

  • Year: 2020
  • Total Price: $3,103,720*
  • Price per Carat: $3,103,720*

*Estimated value based on current market trend