Updates: This past week was China’s “Golden Week” holiday where China’s gold markets are closed for a week. Check out these charts to get a sense of the buying opportunities that this has presented over the last few years. A report from RT.com showed that Russia halved it’s US currency reserves and continued to add Euro, Yen, and gold. There was also a quick article put out by CNBC talking about the slowdown in corporate buybacks. This is not a good sign to come for a floor under the stock market. Thankfully, Apple and J.P. Morgan are still participating in buybacks.
Segment 2: We look at a great article from Bob Kirtley titled “Explosive Silver Prices Will Be Mind Boggling”. In it, the author looks at the average silver/gold ratio and projects that if we were to just hit the 60/1 norm silver would go to $25 in short order. Anything beyond the 20 year average would see silver prices absolutely explode. Kirtley reminds us how small the metals market is and how even holding a little could have explosive affects for your portfolio. To that end Kirtley urges potential metals buyers to strongly consider silver since he believes it will accelerate faster than gold to the upside. Finally he concludes that the demise of fiat currencies and the looming recession are the two biggest factors that will drive the metals.
Segment 3: If you are new to the market and want to get started with some physical this is a must listen. Is buying bullion direct right for you? What products are best? Should you time the market? Get all your questions answered.
Segment 4: This is a jam packed diamond segment. With Arnaud Soirat of Rio Tinto who is not bothered by the Argyle closure. He believes that Rio Tinto will go on to better things mining white diamond in Canada. Still he was quick to add that while there has been a glut in white diamonds “pink diamonds have risen in price by 500% since 2000”. Rebecca Foerster who is president of diamond producer Alrosa said in a Reuters article last month stated that “Argyle’s closure should boost the price of pink stones..”, which makes sense since 90% of the world’s supply will be taken off line. Finally we ask if it’s a good time to consider a natural fancy color diamond? Answer? Rachminov thinks so, “It’s definitely a good time to buy colored diamonds now”.
Segment 5: Kelsey Williams, author of Inflation, What it is, What it isn’t and Who’s Responsible for it pontificates on $25,000 gold. It’s actually not as unreasonable as you think, given a long enough time horizon. Even then, certainly stranger things have happened.