Rates, Crashes, and Gold

Written by James Dines
Posted October 10, 2018 at 3:50PM

Publisher's Note: We're fortunate enough to have access to the legendary Mr. James Dines and his renowned research, writing, and insights.

Mr. Dines is "The Original Gold Bug" and has attained “living legend” status for his ability to make correct forecasts that were in complete contradiction to the rest of the financial community.

He’s made readers of The Dines Letter a fortune. See what he’s calling for now, below.

To your wealth,

Nick Hodge Signature

Nick Hodge
Publisher, Outsider Club


Our predictions of rising interest rates in the United States have come true, with an Upside Breakout in the ten-year Note above its Supply Area at 3%.

Furthermore, with the US dollar still elevated, more havoc promises to be wreaked on emerging markets already devastated by America’s higher interest rates.

Many had borrowed in US dollars because they were expecting it would decline — they clearly weren’t reading The Dines Letter because we were contrarily bullish on the dollar at the time.

Next we foresee a minor dip in America’s interest rates, but then higher again later.

We find ourselves uncomfortable with the world’s currency crashes these days (India’s rupee is down 12.5%, Turkey’s lira is down 40% this year, Argentina’s peso plunged 60%, and Iran’s rial is down 70%, to name a few).

Yet, no general alarm is perceived in the mass media.

We suspect they see each currency crash separately, but we are concerned that they are an accumulating mass event that could be an early wave of currency crashes worldwide and bond defaults.

We hope not, but hope is not a plan, as there are other factors that concern us beyond America’s higher interest rates.

For example, China’s economic slowdown being further aggravated by US tariffs. Oil prices are rising, a shock to automotive owners and pushing up what they call inflation.

Exemplifying the obliviousness of bond buyers, some appear on television grateful for the current 3%, but that is because they are looking backward to when rates were recently around 0%, seemingly without considering the lower bond prices The Dines Letter still foresees — thus jumping out of the frying pan and into the fire. 

Click here to be in the shade when world markets overheat.

Gold & Silver

There was a large gold sale so unskillfully dumped on the market last month that it looked like a capitulation, or a margin-call liquidation.

If we are the last prominent Gold Super Bull in the world, so be it. The pessimism is near-total, with negativity so rampant that the Group Dynamics in the Mass Psychology book suggests gold should soon follow platinum and rhodium higher.

Barrick and Randgold announced a merger, which we believe is a mistake because many ISIS fighters fleeing the Middle East have moved to Africa’s Sahel and will menace southward from Libya.

Gold’s obedient kid brother is cheap, a metallic currency selling for what it did in September 1979, decades ago, yet the increasing amount of credit paper printed since then inspires us to make a prediction of explosively higher silver prices somewhere ahead that almost everybody would not now believe.

Believe the unbelievable or not. 


James Dines is legendary for having made correct forecasts that were in complete contradiction to the rest of the financial community. He is the author of five highly regarded books, including "Goldbug!," in addition to his popular newsletter, The Dines Letter, and videotaped educational series. Dines' highly successful investment strategies have been praised by Barron's, Financial Times, Forbes, Moneyline, and The New York Times, among others.

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