Jim Rickards https://goldbroker.com/news/authors/jim-rickards I recently revealed that the so-called “BRICS+” countries will announce the creation of a new currency at its annual leaders’ summit conference on August 22–24. This will be the biggest upheaval in international finance since 1971. It’s taking direct aim at the dollar. Quite simply, the world is unprepared for this geopolitical shock wave. It appears likely that the new BRICS+ currency will be linked to a weight of gold. This plays to the strengths of BRICS members Russia and China. These countries are the two largest gold producers in the world, and are ranked sixth and seventh respectively among the 100 nations with gold reserves. One difficulty in considering the impact of the new BRICS currency on the dollar is that all dollar indexes compare currency to currency. But that’s meaningless since the dollar, euro and sterling could all suffer from a loss of confidence at the same time. If gold goes from $2,000 to $10,000 per ounce, that is better understood as an 80... Tue, 27 Jun 2023 06:00:00 +0000 https://goldbroker.com/news/brics-gold-backed-currency-biggest-monetary-shock-3129 The current crisis is not like 2008 or even 1929. The New Depression that has emerged from the COVID pandemic is the worst economic crisis in U.S. history. Most fired employees will remain redundant. Bankruptcies will be common, and banks will buckle under the weight of bad debts. Deflation, debt, and demography will wreck any chance of recovery, and social disorder will follow closely on the heels of market chaos. The happy talk from Wall Street and the White House is an illusion. The worst is yet to come. James Rickards, the man who predicted the worst economic crisis in US history, tells you how to survive it. Mon, 08 Feb 2021 01:10:58 +0000 https://goldbroker.com/news/james-rickards-marc-friedrich-economic-depression-to-come-2155 You’re likely aware of the price action in gold lately. Gold has rallied from $1,591 per ounce on April 1 to $1,907 per ounce as of today. That’s almost a 20% gain in a little over six months, even with selloffs along the way. Today’s price of $1,907 per ounce is nearly double the low of $1,050 per ounce at the end of the last bear market in December 2015. That’s highly impressive, but it’s only the beginning. The history of gold bull markets (1971–80 and 1999–2011) shows that the most powerful gains come toward the end of the bull market, not at the beginning. That means even if you’ve missed out on the gold rally so far, you could still score huge gains as gold trends toward $10,000 per ounce or higher over the next four years. $14,000 gold is entirely possible by 2026. How? If we simply average the performance of the past two bull markets and extend the new bull market on that basis, we would expect to see prices peak at $14,000 per ounce by 2026. As I’ve stated... Sat, 24 Oct 2020 22:51:08 +0000 https://goldbroker.com/news/central-banks-gold-greatest-ally-2005 Elites are extremely hostile to the idea that gold should have any role whatsoever in the monetary system. To them, gold is truly a barbarous relic, as John Maynard Keynes was supposed to have said. You might as well propose bringing back the horse and buggy. Except Keynes never said gold was a barbarous relic. What he did say was more interesting. In his 1924 book Monetary Reform, Keynes in fact wrote “the gold standard is already a barbarous relic.” Keynes was discussing not gold, but the gold standard. There might not seem to be a difference, but there is. In the 1924 context, he was right. The classical gold standard ended in 1914 with the outbreak of WWI. To pay for the war, combatants printed massive amounts of money. After the war many wanted to return to the pre-war gold standard. In 1925, for example, the British Exchequer was Winston Churchill. He wanted to return to the old gold price, ignoring the fact that the wartime money printing demanded a much high... Fri, 23 Oct 2020 22:05:53 +0000 https://goldbroker.com/news/your-personal-gold-standard-2009 This is not the first time I’ve relayed this information. But these days I believe it’s more important than ever to remind readers of its significance, especially in light of the unprecedented credit creation the Fed’s been conducting since March. Following the Panic of 1907, John Pierpont Morgan was called to testify before Congress in 1912 on the subject of Wall Street manipulations and what was then called the “money trust” or banking monopoly of J. P. Morgan & Co. In the course of his testimony, Morgan made one of the most profound and lasting remarks in the history of finance. In reply to questions from the congressional committee staff attorney, Samuel Untermyer, the following dialogue ensued as recorded in the Congressional Record. Untermyer: I want to ask you a few questions bearing on the subject that you have touched upon this morning, as to the control of money. The control of credit involves a control of money, does it not? Morgan: A control of... Tue, 20 Oct 2020 23:58:31 +0000 https://goldbroker.com/news/money-is-gold-and-nothing-else-jpmorgan-was-right-2000 Why gold? That’s a question I’m asked frequently. It’s usually followed by a comment along the lines of, “I don’t get it. It’s just a shiny rock. People dig it out of the ground and then put it back in the ground. What’s the point?” I usually begin my reply by saying, “It’s not a rock, it’s a metal” and then go from there. I have a lot of sympathy in these conversations. The fact that people don’t know much about gold today is not exactly their fault. The economics establishment of policymakers, academics and central bankers have closed ranks around the idea that gold is a taboo subject. You can teach it in mining colleges, but don’t dare teach it in economics departments. If you have a kind word for gold in a monetary context, you are immediately labeled a “gold nut,” “gold bug,” “Neanderthal” or something worse. You are excluded from the conversation. Case closed. Jim Rickards holding a gold bar in a vault near Zurich, Switzerland. The bar is a so-called “good... Mon, 08 Jun 2020 10:22:35 +0000 https://goldbroker.com/news/why-gold-1869 The dollar constitutes about 60% of global reserves, 80% of global payments and almost 100% of global oil transactions. So the dollar’s strength or weakness can have an enormous impact on global markets. Using the Fed’s broad real trade-weighted dollar index TWEXMPA (my favorite foreign exchange metric, much better than DXY), the dollar hit an all-time high in March 1985 (128.4) and hit an all-time low in July 2011 (80.3). Right now, the index is 95.2, below the middle of the 35-year range. But what matters most to trading partners and international debtors is not the level but the trend. The dollar is up 12.5% in the past four years on the Fed’s index, and that’s bad news for emerging-markets (EM) debtors who borrowed in dollars and now have to dig into dwindling foreign exchange reserves to pay back debts that are much more onerous because of the dollar’s strength. And EM lending has been proceeding at a record pace. Actually, the Fed’s broad index understates th... Mon, 09 Jul 2018 15:27:53 +0000 https://goldbroker.com/news/dollar-source-global-instability-1349 The most important piece of evidence that the next great bull market in gold has begun is the technical behavior of the prior bear market itself. Over many decades, commodities rallies have exhibited 50% retracements (bear markets) before resuming their long-term upward trends based on the slow, steady devaluation of the fiat currency in which the commodities are priced. Using the $252 price from August 1999 as a baseline and referencing the September 2011 peak price of $1,900 per ounce, gold gained $1,648 per ounce in the bull market. A 50% retracement of that 12-year rally means a decline of $824 per ounce (i.e., 50% of the $1,648-per-ounce gain), which would put gold at $1,076 per ounce. Guess where gold bottomed? It bottomed at $1,051 per ounce, within 2% of the 50% retracement target. That decline is an almost perfect technical retracement. By itself, this pattern proves nothing without additional confirmatory evidence. This is why we did not call the end of th... Mon, 08 Jan 2018 15:50:25 +0000 https://goldbroker.com/news/the-next-great-bull-market-in-gold-has-begun-1250 By Graham Rapier and Sara Silverstein Jim Rickards has seen first hand the bailout of hedge funds and has testified before congress about the 2008 financial crisis. He says another recession could hit before the Federal Reserve is done unwinding the processes put in places to save us from the crisis a decade ago. Rickards expects gold to go to $10,000 an ounce as some central banks may have to resort to the gold standard to restore confidence in the markets. Jim Rickards, the author of "Currency Wars," "The Death of Money," and "The New Case for Gold," and most recently "The Road to Ruin," is no stranger to financial meltdowns. As general counsel for the hedge fund Long-Term Capital Management (LTCM), he had a front row seat as dozens of Wall Street institutions worked to bailout the firm with a $3.6 billion recapitalization. Instead of using traditional macroeconomic models, Rickards prefers to borrow one from physics: c... Tue, 05 Dec 2017 23:48:13 +0000 https://goldbroker.com/news/central-banks-may-have-resort-gold-standard-restore-confidence-1239 The physical fundamentals are stronger than ever for gold. Russia and China continue to be huge buyers. China bans export of its 450 tons per year of physical production. Gold refiners are working around the clock and cannot meet demand. Gold refiners are also having difficulty finding gold to refine as mining output, official bullion sales and scrap inflows all remain weak. Private bullion continues to migrate from bank vaults at UBS and Credit Suisse into nonbank vaults at Brinks and Loomis, thus reducing the floating supply available for bank unallocated gold sales. In other words, the physical supply situation has been tight as a drum. The problem, of course, is unlimited selling in “paper” gold markets such as the Comex gold futures and similar instruments. One of the flash crashes this year was precipitated by the instantaneous sale of gold futures contracts equal in underlying amount to 60 tons of physical gold. The largest bullion banks in the world could no... Tue, 28 Nov 2017 06:26:30 +0000 https://goldbroker.com/news/physical-fundamentals-are-stronger-than-ever-for-gold-1235 When the Fed raised interest rates last December, many believed gold would plunge. But it didn’t happen. Gold bottomed the day after the rate hike, but then started moving higher again. Incidentally, the same thing happened after the Fed tightened in December 2015. Gold had one of its best quarters in 20 years in the first quarter of 2016. So it was very interesting to see gold going up despite headwinds from the Fed. Meanwhile, gold has more than held its own this year. Normally when rates go up, the dollar strengthens and gold weakens. They usually move in opposite directions. So how could gold have gone up when the Fed was tightening and the dollar was strong? That tells me that there’s more to the story, that there’s more going on behind the scenes that’s been driving the gold price higher. It means you can’t just look at the dollar. The dollar’s an important driver of the gold price, no doubt. But so are basic fundamentals like supply and demand in the physi... Mon, 20 Nov 2017 23:12:39 +0000 https://goldbroker.com/news/gold-interest-rates-and-super-cycles-1229 Bill Bonner (Publications Agora) interviews James Rickards on his last book, “The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis.” James Rickards discusses central banks’ inability to stop the next financial crisis, as well as a possible financial market lock down. The central banks are tapped out. The only clean balance sheet left, the only entity that can pull money out of thin air, is the International Monetary Fund (IMF). They can print the world money, the Special Drawing Rights (SDR) currency, to re-liquefy the system. James Rickards predicts the next crisis will be worse than the ones before and recommends gold to preserve wealth. Wed, 01 Nov 2017 14:37:59 +0000 https://goldbroker.com/news/jim-rickards-on-central-banks-inability-to-stop-the-next-financial-crisis-1220 Last week featured two unusual stories on gold — one strange and the other truly weird. These stories explain why gold is not just money but is the most politicized form of money. They show that while politicians publicly disparage gold, they quietly pay close attention to it. The first strange gold story involves Germany… The Deutsche Bundesbank, the central bank of Germany, announced that it had completed the repatriation of gold to Frankfurt from foreign vaults. The German story is the completion of a process that began in 2013. That’s when the Deutsche Bundesbank first requested a return of some of the German gold from vaults in Paris, in London and at the Federal Reserve Bank of New York. Those gold transfers have now been completed. This is a topic I first raised in the introduction to Currency Wars in 2011. I suggested that in extremis, the U.S. might freeze or confiscate foreign gold stored on U.S. soil using powers under the International Emergency Economi... Wed, 30 Aug 2017 22:40:18 +0000 https://goldbroker.com/news/weird-things-are-happening-with-gold-1178 I was very pleased to welcome Jim Rickards to Zurich very recently. In this important 16 minutes video, recorded in a Swiss vault, Jim and I cover many vital factors that investors must be aware of to protect themselves against the major risks in the financial system. Among the topics covered are: Why gold will reach at least $10,000 The timing of gold’s rapid rise The significance of gold exports from the UK to Switzerland Swiss banks in breach of contract Central banks and gold The importance of silver How to buy gold and silver Hyperinflation and velocity of money China and gold The End Game Wed, 20 Jul 2016 15:25:39 +0000 https://goldbroker.com/news/jim-rickards-and-egon-von-greyerz-discuss-10-000-gold-984 Gold is becoming more and more acceptable in the investment community and especially since interest rates have approached zero and in some countries even gone negative. Until recently no portfolio manager would have mentioned gold and even less recommended it. Since the beginning of the year, soon after some called gold just a useless and worthless rock going down to at least $400, a list of hedge fund managers came out with bullish calls for gold and indicated they have been buying. After years of denigrating gold, the investment profession is starting to discover the liquidity trap and acknowledge the value of cash and, more specifically, gold and its place in a diversified portfolio. It remains that gold, as a percentage of global financial assets in 2015, represented only 0.58% vs 2.74% in the ‘80s and 5.00% in the ‘60s. World central banks are much better positioned in 2015 with 14.09% of international reserves, with the U.S. and the Euro Area well above a... Thu, 26 May 2016 06:15:55 +0000 https://goldbroker.com/news/be-your-own-central-bank-and-buy-gold-958 If you study the gold and silver market long enough you can’t but acknowledge that the precious metals are manipulated. Last friday drop (october 11th) in gold was another example : 2 millions ounces of paper gold were sold in less than 3 minutes (read the explanation here) at a time when the market is the most illiquid and when the CFTC (US market regulator) is closed due to US government shutdown. The manipulation that triggered a 2 years correction can be very difficult for gold investors to experience, unless they recognize that it create an opportunity to acquire physical gold at an artificially low price. The question all gold investors have in mind is “When will the manipulation end ?”. In the interview below, James Rickards, author of the bestseller “Currency Wars : The making of the next global crisis” give some very interesting answers you won’t read in the mainstream media. It is high level information from an an expert who anticipated long ago what’s happe... Mon, 14 Oct 2013 00:00:00 +0000 https://goldbroker.com/news/interview-james-rickards-about-central-bank-manipulation-gold-silver-markets-346