Former Mob Boss: Avoid Wall Street, Buy Physical Gold (Video)

Michael Franzese, a former mob boss who went straight following a 10-year prison term, thinks stocks are in a bubble. He says he has worked with many of the people on Wall Street and doesn’t feel comfortable letting “shady” characters handle his money. In 1986, Franzese ranked No. 8 on Fortune Magazine’s list of the 50 wealthiest and most powerful mob bosses.

Franzese says he thinks he can do better with his money than Wall Street speculators. In fact, his number one piece of advice to investors is to not even bother with stocks. He strongly recommends physical gold bullion specifically, because “No matter what, it’s always going to have value. Unlike stocks, where…you go to sleep, everyone tells you everything is wonderful, you wake up and everything is gone.”

Investors don’t need to trust an ex-mob boss with their wealth in order to recognize the truth of his words. As someone who had first hand experience dealing with the casino on Wall Street, Franzese wants no part of it. He prefers to have his money in his own hands, not in the system that has proven over and over again it can’t be trusted.

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Prominent Voices Warning of Stock Market Bubble

Stocks continue to soar to record highs and the media breathlessly touts the economic recovery. But the Fed-fueled bull market for stocks can’t last forever. In an article from CNN Money, some renowned experts are issuing ominous warnings:

  • Nobel Prize-winning economist Robert Shiller says the stock market is looking very expensive. By his metric, stocks have only been at their current level three other times: 1929, 1999, and 2007.
  • Hedge fund king Carl Ichan says, “We are in an asset bubble.” He describes a “dangerous financial situation” dependent on the Federal Reserve continuously refilling the punchbowl to stimulate the economy.
  • Ex-Treasury Secretary Robert Rubin says that extremely low interest rates have caused major instability and could lead to another financial crisis. When the bubble pops and hedge funds all head for the doors at the same time there is a risk of a “contagion and snowballing effect.”

Read the Full Article Here

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Why Gold Could Be the Best Hedge in the Next Market Correction (Pt. 3)

This is the final installment in a three-part series exploring three key reasons why gold could be the best hedge in the event of a major market correction. For part one, click here. For part two, click here.

As we wrote previously, there are many stories in the news lately exploring the various ways to protect yourself from a major market correction. They talk about hedge funds shorting US municipal debt, junk bonds, and foreign bonds in Asia and the eurozone. However, hardly anyone in the media mentions the use of physical gold bullion to protect your savings from a stock market crash.  We believe gold will outperform any of these conventional “safe havens” for three key reasons.

The third promising factor for gold in the event of a major market correction is that there are simply few alternatives. Even the conventional “safe bets” don’t hold up to scrutiny in today’s environment.

Treasury bonds have been one of the most traditional investments for protecting savings and providing cash flow. However, bond yields are currently at record lows and will probably move even lower in the event of a market correction. The return on a 5-year Treasury has fallen by an average of 4.3% in each of the past three recessions. In the likely event that this trend continues in the next market correction, the nominal yield could become negative. In other words, investors would be paying the government to take their money!
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Why Gold Could Be the Best Hedge in the Next Market Correction (Pt. 2)

This is part two of three in a series exploring three key reasons why gold could be the best hedge in the event of a major market correction. For part one, click here.

As we wrote yesterday, there are many stories in the news lately exploring the various ways to protect yourself from a major market correction. They talk about hedge funds shorting US municipal debt, junk bonds, and foreign bonds in Asia and the eurozone. However, hardly anyone in the media mentions the use of physical gold bullion to protect your savings from a stock market crash.  We believe gold will outperform any of these conventional “safe havens” for three key reasons.

The second promising factor for gold is that many of the “weak hands” have been shaken out of the gold market. This means that short-term speculators who were just jumping on the bandwagon have exited the gold market. Those that remain are primarily long-term holders who understand the fundamentals of gold.

A primary example of these “weak hands” is those who held “paper gold” investments such as exchange-traded funds (ETFs). In this type of investment, you don’t actually own gold. You simply put your money into a fund that is invested in gold companies or gold bullion. This is very different from holding the physical precious metal yourself. These paper gold investments are very popular with short-term speculators who can make quick money if they’re savvy enough.
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Why Gold Could Be the Best Hedge in the Next Market Correction (Pt. 1)

This is part one of three in a series exploring three key reasons why gold could be the best hedge in the event of a major market correction.

There are many stories in the news lately exploring the various ways to protect yourself from a major market correction. They talk about hedge funds shorting US municipal debt, junk bonds, and foreign bonds in Asia and the eurozone. However, hardly anyone in the media mentions the use of physical gold bullion to protect your savings from a stock market crash.  We believe gold will outperform any of these conventional “safe havens” for three key reasons.

The first promising factor for gold is that it is heavily out of favor. That is to say, the financial media loathes the yellow metal. Bullish sentiment on gold is currently at its lowest level since 2004. Due to the 30% decline of gold in 2013, those who have long hated it have been doing a victory lap. This is despite the fact that gold rose nearly 600% from 2001 to 2012.

Gold’s detractors somehow see fit to celebrate being correct once in 13 years. However, being on the ball less than 8% of the time since 2001 is nothing to brag about. With that kind of batting average, they couldn’t make the cut on a little league baseball team, let alone presume to give advice on how people can protect their hard-earned wealth.
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Today’s Key Gold Headlines – 8/19/14

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The Global Economy Is In a Depression (Video)

Jim Rickards, author of The Death of Money, was interviewed on RT. Jim checks off a daunting list of countries around the world experiencing economic difficulties and offers analysis of what is really going on.

What’s happening in Germany is happening all over the world. Germany’s economy contracted… Italy’s already contracted. France has two quarters in a row of zero GDP. The United States in the first half [of 2014]… did not even grow 1%… China is slowing down, and of course, Japan fell off a cliff. If you look around the world, it looks like we’re going into a global recession, except I would say this is a continuation of a global depression that began in 2007… This is not a normal recovery, not a normal business cycle…

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Another Date Which Has Lived in Infamy (Video)

Forty-three years ago today, President Nixon severed the last remaining shred of the gold standard when he suspended the ability of foreign banks to directly exchange the dollar for gold. Nixon promised his actions would be temporary, but this turned out to be an even bigger lie than his promise to end the Vietnam War.

In the video below, you’ll notice that Nixon also promised that the value of the dollar would remain stable in spite of his actions. Of course, this turned out to be completely wrong. According to the Consumer Price Index data released by the Bureau Labor of Statistics, the dollar has lost more than 80% of its value since Nixon’s fateful decision. Meanwhile, the dollar value of gold has gone from $35 an ounce to about $1,300.

What does this mean? Suppose you stashed an ounce of gold worth $35 alongside thirty-five one-dollar bills under your bed in 1971. Today, you would be sitting on gold that could buy you a nicely-tailored suit, while the cash couldn’t get you a pack of fancy boxer shorts. Who knows how much worse this is going to get. In our latest Videocast, Peter Schiff talks with Jim Rickards about the very real possibility that in the coming years, the dollar might lose its status as the world’s reserve currency. When that happens, you won’t even be able to buy a burger with your thirty-five bills. Click here to watch the interview.

“There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” – John Maynard Keynes

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Today’s Key Gold Headlines – 8/14/14

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Gold Videocast: Jim Rickards & Peter Schiff on Gold & Currency Wars (Video)

In his latest Gold Videocast, Peter Schiff meets with Jim Rickards, author of The Death of Money, for an exclusive interview about gold’s role in the international currency wars.

Jim Rickards is Chief Global Strategist at the West Shore Funds, and Director of The James Rickards Project, an inquiry into the complex dynamics of geopolitics + global capital. In The Death of Money, Rickards shows why another monetary system collapse is rapidly approaching – and why this time, nothing less than the institution of money itself is at risk. Fortunately, it’s not too late to prepare for the coming death of money. Rickards explains the power of converting unreliable money into real wealth, such as gold and other long-term stores of value.

0:28 – A review of the most recent developments in the international currency war and why the US is unfortunately going to “win.”

1:43 – Countries with the biggest dollar reserves are building up gold reserves in preparation for a currency crisis.

2:15 – China’s officially reported gold holdings are probably false. Rickards leads Peter through his reasoning that China’s gold holdings are likely 4-5 times greater than official reports!

4:00 – If China told the truth about how much gold they really have, the dollar would collapse and gold would skyrocket. They don’t want this to happen before they’ve bought as much gold as they feel they need.

5:11 – Why has Germany seemingly changed its mind about repatriating its gold?

6:49 – Basically, the Fed has “leased” the same gold over and over again.

7:12 – Rickards explains why gold dropped in 2013 and why it was a one-time event.

8:10 – At some point, US Treasuries can no longer be the safe haven for investors.

8:30 – Rickards addresses the problems surrounding the London Gold Fix and how the gold market is moving to the East. Shanghai is rewriting the rules of the gold market.

10:01 – Rickards explains how the next liquidity crisis will play out, with the collapse of central banks, as well as sovereign nations.

11:17 – When you have a currency crisis, it’s the paper wealth that evaporates. Rickards explains how Warren Buffet is preparing for exactly this endgame – by dumping paper money and buying hard assets.

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