Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on New Zealand banning foreign home buyers. (See the Tangibles Investing section.)
Precious Metals:
Allen Sykora: With Silver Tanking, How Badly Will Miners Hurt?
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Przemyslaw Radomski: Gold Price To Soar Above $6,000 Per Oz.
Cryptos:
Another Top-5 Cryptocurrency Exchange Plots Move to Malta’s ‘Blockchain Island’
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Ripple Endorses ‘Preferred’ Crypto Exchanges for XRP Payments
Economy & Finance:
Wolf Street: “Asia Will Be the Next Source of Downside Systemic Risk for Financial Markets”
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Tyler Durden: “Everybody Knew This Was Coming”
Forex:
Thursday’s Forex Analytical Charts, August 16, 2018
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Turkey’s lira is rallying after a $15 billion loan from Qatar. JWR’s Comment: That was a desperation move. The long term trend for the Turkish Lira is still most likely downward.
Tangibles Investing (New Zealand Banning Foreign Home Buyers):
The door to one offshore escape hatch just banged mostly shut: New Zealand bans most foreigners from buying homes. It is noteworthy that the ban applies to sale of existing houses. Presumably a foreigner could still buy raw land or a lot in New Zealand, and build a house.
Provisos:
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News Tips:
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I did fairly well on gold mining stock a while back. Essentially doubled my investment in 6 months. Now I’m noting that the price is way down again and am considering re-investing. Anyone else with thoughts on this?
I did well “a while back” (8 to 9 months ago) in gold leveraged ETFs but not so much
lately. I was on alert to a possible gold “death cross” about a month ago and stepped
back to watch. That is when the 50 week moving average threatens to decisively go below the 200 day moving average. It did so and is a very negative technical indicator.
I don’t see gold (or silver) or mining stocks doing well the next 6 to 12 months. The wind will not be at our backs. The short and medium trends are now negative. I’ve chosen to sit back and wait for a better buying opportunity. There will be bounce backs and if you can move fast then you may wish to trade it. It’s just not the time to buy and hold for 3 to 6 months. The trend is not our friend. My 2 cents.
Gold just blew through a bullish signal to the downside. Agree with LadyWest, the trend is now to the downside. Watch that ’16 low, that would be a potential retracement (roundtrip) point and reversal zone of support. But, other things could happen before that as well.
Ladywest, Fred, Thanks for your opinions. I think I’ll play it as safe as possible and continue to invest in my other hedge, beans and rice.
Agree on Turkey Sir. Not because I follow foreign currency much but because of the simple Biblical principal; debt is not capital. One, or a country, cannot borrow their way to prosperity.
The Durden post linky goes to an article by Vitaliy Katsenelson about T-Bills. ???
New Zealand’s position is reality based in looking what cash infused “home buyers” can do to a local market. The reality of that has been seen in areas like Vancouver, B.C. and Seattle WA where overseas monies (mostly Chinese) have been parked into homes in a manner that causes major price increases. These homes are then left to rot because the investors won’t maintain the homes and properties and local buyers cannot afford the ever spiraling prices. In the greater Seattle area, we have been seeing Chinese buyers literally fly in for a weekend, plunk down full asking plus on a home, townhome or condo and then disappear. I’ve seen townhome units selling for $550K being bought on the spot for cash (questionable cash but cash nonetheless). Young families and singles who have been saving for a home can no longer afford the place and are either driven farther away or completely out of the marketplace (one reason why the greater Spokane region has been gaining families to it’s population base).