Why the War on Cash Will Spread to New Zealand

Why the War on Cash Will Spread to New Zealand

This Week:

  • Deflation Coming to NZ? RBNZ Worried it is
  • Inflation Versus Deflation and What Comes Next?
  • Why the War on Cash Will Spread to New Zealand
  • But Federal Reserve Worried About Inflation?

No Specials This Week Sorry

Ph 0800 888 465 and speak to David or reply to this email if you’d like a chat about buying gold or silver. No advice though, just my personal opinion!!!

Prices and Charts

Spot Price Today / oz Weekly Change ($) Weekly Change (%)
NZD Gold $1887.48 + $25.58 + 1.37%
USD Gold $1253.10 + $12.52 + 1.00%
NZD Silver $23.05 + $0.60 + 2.67%
USD Silver $15.30 + $0.34 + 2.27%
NZD/USD 0.6639 – 0.0024 – 0.36%

Precious metals have continued their climb higher this week.

NZD gold is up 1.37%, a good part due to the plunging NZ Dollar after the RBNZ interest rate cut this morning which surprised many.

NZD gold has continued to push up against the $1900 resistance level. It has traded in a narrowing pennant or wedge formation and will have to break out either way any day now.

NZD Gold Chart

The USD gold chart (bottom half of below chart) shows that it recently broke higher out of a similar pattern. Although it has pulled back overnight.

Also of significance is that in both currencies the golden cross has occurred. This is where the 50 day moving average (MA) crosses over the 200 day MA.  Often a sign of a change to a bullish or rising trend.

As we wrote in our weekly email last Thursday, the US dollar gold price has been the main driver of the gold price in NZ dollars. That is, the NZ dollar has been relatively stable so far this year. So a move higher in US dollar gold could translate into a similar sized move in NZ dollar gold. (Below is a closer up view of the US Dollar Gold Chart from our daily price alerts email today).

NZD Silver Chart

NZ Dollar silver continues to move in the sideways range it has been in for the past year. It is up above the 200 day moving average this week. $24.50 remains the key level that we need to see broken to indicate a sustained move higher.

NZD Silver Chart

Deflation Coming to NZ? RBNZ Worried it is

Like we said earlier, the NZ Dollar took a dive this morning when the RBNZ made a rate cut of 0.25% which surprised many it seems. It had edged up above the converging 50 and 200 day MA’s but has been knocked back down to them today. 0.68 cents again proved a tough level for it to get above. So for now a move higher would seem unlikely. Especially with the expectation of more rate cuts ahead now.

NZ Dollar Chart

Here’s a rundown of what the RBNZ announcement said.

RBNZ surprises with 25 bps cut to 2.25%; forecasts one more cut; concerned about falling inflation expectations; says wants NZ$ to fall

We’d say the key point is that lower inflation levels have them spooked. Like just about every other central bank on the planet, their fear is of deflation setting in (well apart from the likes of some like Venezuela where very high inflation rates are the worry instead!) So where to from here?

Well, that leads us into this weeks feature article.

Inflation vs DeflationInflation Versus Deflation and What Comes Next?

  • We look at the argument for deflation versus inflation and cover a few different opinions on what Central Banks – in particular the US Federal Reserve – will have in store for us next.
  • We also cast our mind over where the RBNZ might be heading in the long run.
  • Spoiler Alert: Deeper down the rabbit hole – just following a bit behind everyone else.   READ MORE.
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But Federal Reserve Worried About Inflation?

Interestingly while the Reserve Bank here is cutting rates, Jim Rickards believes the US Fed will shock everyone and raise them on the 16th March. (Although he still thinks they’ll about face in the long run after they’ve made things worse).

The Daily Reckoning noted that:

“Jim knows the market’s dismissing a rate hike on the 16th. But he watches the Fed through a microscope more finely calibrated than most. And he says a rate hike this month is still on:

The market does not expect a rate hike in March. In fact, the market is giving low odds of any rate hikes in all of 2016. Meanwhile, the Fed is moving at full throttle toward a rate hike…

The market’s dovish view has made it more, not less likely the Fed will raise rates in March. The dovish interpretation caused equity markets to rally the past two weeks in expectation of no rate hike. The rally eases financial conditions, which makes it easier for the Fed to raise rates.

Why is Janet Yellen steering headlong for a rate hike? Because she’s guided by phantoms. Jim:
“Yellen does not see a recession. Her forecasts, using badly flawed models such as the Phillips curve, NAIRU and FRB/US, are signaling steady growth, tighter labor markets and inflation just around the corner.”

The Phillips curve says, for example, that lower unemployment leads to higher inflation. And inflation must be ’round the bend since unemployment is so low. So she has to head it off at the pass.But the Phillips curve exists solely upon hearsay evidence. The stagflation of the 1970s should have discredited the witness for all time. But Janet Yellen is like a juror at the O.J. trial. She still swallows the story. And so she thinks a rate hike this month reflects healthy economic growth.Jim thinks the Fed announcement on the 16th will blindside the market. He says that could lead to a “train wreck.” There’s only one way to avoid that unpleasant outcome, says he. And there isn’t much time. Janet Yellen would have to telegraph her rate hike to the market ASAP. That way, the market could adjust in an orderly fashion before the Fed meeting in 10 days:

Will a Fed rate hike in March lead to a train wreck by crashing into market expectations? It depends on whether Janet Yellen can signal the markets that her runaway train is not stopping. Janet Yellen needs to start blowing the Fed’s whistle and warning markets now — before it’s too late.
Think she will? No whistle yet…”

Why the War on Cash Will Spread to New Zealand

We’ve discussed a lot recently how there is a move towards outlawing cash gloablly. Mainly as it will assist the central planners with controlling our finances more and taxing us more. Perhaps even more importantly with more and more countries heading down the road of negative interest rates, it will also stop people from escaping this by hoarding cash.

The main argument we’ve seen used is that cash is just for criminals and terrorists – so who needs it?

Well, here’s a reason why we’re likely to see more of a clamp down on cash here in New Zealand as well then. A headline this week read:

Financial transactions thought to be linked to terrorism have almost doubled in the past two years.

“Information released by the police under the Official Information Act showed a rise from 21 cases in 2014 to 40 in 2015 and the latest figure was 24.”

Source.

Another straw in the wind for cash perhaps? So instead of hoarding cash, maybe hoard some gold or silver instead?

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We’ve still got free delivery on boxes of 500 x 1oz Canadian Silver Maples delivered to your door via UPS, fully insured.

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This Weeks Articles:

War on Cash Down Under

Early Signs of the War on Cash Down Under?

2016-03-03 00:13:00-05

This Week: Why is the Gold/Silver Ratio at New Highs? NZ Dollar Holding Pattern? Early Signs of the War on Cash Down Under? Confirmation – World Trade Slumps China: More Troubles to Come and impact on NZ Special Today*****10 x 1oz Gold Kiwis going for $1942 each today 1oz NZ Mint 99.99% Gold Kiwi Ph 0800 888 465 and speak to […]

Read More…
Buying up Large

Why Doug Casey Bought $1.5 Million Worth of Gold Stocks

2016-03-08 18:17:45-05

In New Zealand Dollar terms gold has been quietly trending up for the past 16 months. However in US dollars the gold price was trending down right the way through 2015. But that seems to have changed in the past 2 months or so too. Read on for 5 reasons why gold might have bottomed… […]

Read More…
Inflation vs Deflation

Inflation Versus Deflation and What Comes Next?

2016-03-09 16:36:02-05

Inflation versus deflation is an ongoing debate or you could say even battle in the online alternative media. Undoubtedly there has been tremendous expansion in the global monetary base with the reaction of central banks worldwide following the 2008 crisis. However we haven’t (yet anyway) seen widespread inflation as many might have expected.   Inflation […]

Read More…
Stocks Screaming Buy

Gold Stocks Are Screaming Buy Right Now

2016-03-09 17:55:38-05

Gold mining shares have been a terrible investment over the past 5 or so years. But is that about to change? Read on for why now might be a very good time to consider adding them to your portfolio… Gold Stocks Are Screaming Buy Right Now By Justin Spittler It’s official: gold is in a […]

Read More…
As always we are happy to answer any questions you have about buying gold or silver. In fact, we encourage them, as it often gives us something to write about. So if you have any get in touch.

  1. Email: orders@goldsurvivalguide.co.nz
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Online order form with indicative pricing

Today’s Spot Prices
Spot Gold
NZ $ 1887.48 / oz US $ 1253.10 / oz
Spot Silver
NZ $ 23.05 / oz
NZ $ 741.05 / kg
US $ 15.30 / oz
US $ 491.98 / kg

7 Reasons to Buy Gold & Silver via GoldSurvivalGuide
Today’s Prices to Buy
1oz NZ 99.99% pure gold bar
1oz NZ Gold Ingot
$1951.65
1kg NZ 99.9% pure silver bar
1 Kilo NZ Silver Bar
$837.39 (price is per kilo for orders of 1-4 kgs)
$821.54  (price is per kilo only for orders of 5 kgs or more)
1oz PAMP Suisse 99.99% pure gold bar
PAMP Lunar Goat Gold Bar
$2041.65
1kg PAMP 99.9% pure silver bar
PAMP Silver
$865.16
1oz Canadian Gold Maple 99.99% pure gold coin
Gold Maple
$2034.70
1oz Canadian Silver Maple 99.99% pure silver coin (Minimum order size tube of 25 coins)
Silver Maple Silver Box
Tube of 25 $756
Box of 500 $14,255
(Fully insured and delivered)

Note:

  • Prices are excluding delivery
  • 1 Troy ounce = 31.1 grams
  • 1 Kg = 32.15 Troy ounces
  • Request special pricing for larger orders such as monster box of Canadian maple silver coins
  • Lower pricing for local gold orders of 10 to 29ozs and best pricing for 30 ozs or more.
  • Foreign currency options available so you can purchase from USD, AUD, EURO, GBP
  • Note: Your funds are deposited into our suppliers bank account only. We receive a finders fee direct from them only.


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Our Mission

  1. To demystify the concept of protecting and increasing ones wealth through owning gold and silver in the current turbulent economic environment.
  2. To simplify the process of purchasing physical gold and silver bullion in NZ – particularly for first time buyers.

We look forward to hearing from you soon.Have a golden week!David (and Glenn)
GoldSurvivalGuide.co.nz
Ph: 0800 888 465
From outside NZ: +64 9 281 3898
email: orders@goldsurvivalguide.co.nz
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The Legal stuff – Disclaimer:
We are not financial advisors, accountants or lawyers. Any information we provide is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we discuss is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.


Gold Survival Guide
PO Box 74437
Greenlane Auckland 1546
New Zealand

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