On Friday June 21st, the largest gold focused Exchange Traded Fund (GLD) saw over $1.5 billion flood into the ETF.
The inflow that day was over 10% higher than the 2nd largest ever inflow. That happened on July 11, 2008.
Last week, we witnessed the single largest inflow day ever in the ETF’s history, which was created just before the 2008 financial crisis.
And this will have massive implications for gold investors.
So pay attention…
Below is a chart which shows the weekly inflows and outflows of the GLD ETF since 2013.
It’s no wonder that Gold is at a 5 year high and recently broke a 5 year resistance line…
Gold Rush – Follow the Fund$ Flow
A metric we follow very carefully is this:
Which sectors are “passive” funds directing their capital into?
It’s been many years since the passive funds have paid attention to gold.
More importantly, the passive funds have just started their influx of capital into the gold sector.
And if you understand how the algorithms work (which us math nerds do), the algo’s and passive funds chase gains and liquidity.
The gold sector is tiny compared to other sectors like the financial sector or bio tech sector. Thus…
It doesn’t take a lot of new capital to send the share prices soaring.
The “green rush” is turning into a green wave across the country.
You see, last December, President Trump signed the Farm Bill. It legalized industrial hemp as a crop. And it’s unleashed a surge of state laws and rules legalizing cannabis…
Maryland’s Medical Cannabis Commission will offer several types of licenses for growing and processing cannabis. The deadline to apply was Monday.
Illinois is the 11th state to legalize recreational marijuana. On Tuesday, Governor J.B. Pritzker signed the Cannabis Regulation and Taxation Act. The law will go into effect on January 1, 2020.
This month, Canada amended its Cannabis Regulations. The new rules allow the sale of cannabis edibles, extracts, topical solutions, and more. They go into effect this October.
Friday is the deadline to apply for Nebraska’s hemp production license. This year, only research purposes for growing it are allowed. But commercialization is expected as the state develops its regulatory framework.
I'm an unapologetic information junkie...
I can't get enough of the things I enjoy. I love reading about what's new and innovative. And I try to be on the cutting edge of my hobbies and interests.
Longtime readers know I'm a surfer and guitarist. I've been working on a degree from Berklee College of Music in my free time to hone my guitar skills. And I've spent the last couple years working on a new experimental kind of surfing called foil boarding.
Of course, I get a lot of my information fix from the markets, too...
The financial news is a never-ending supply of new information. I've spent the last two decades parsing through it on a daily basis. It has become a way of life for me. And it's how I find new and exciting ideas.
I love sharing my findings with you. But this "information junkie" thing has a dark side, too – one you must be careful to protect yourself from...
Like it or not, it means I consume a lot of "current affairs" news. This is the constant noise that comes out of the media. (Reporters are always out to write a story, after all.)
Regular listeners know I’m not a permabear or permabull. You’ve got to be able to change your opinion when the facts change… So while I’ve been cautious on equities over the last several weeks, a new global fund manager’s survey is making me bullish.
Ivan Bebek is chairman and director of Auryn Resources… with over 20 years of experience in foreign negotiations, financing, and acquiring companies in the mineral exploration industry. Don’t miss this insider’s take on the junior gold mining sector… along with some very exciting news [20:10].
In my educational segment, learn why proper position sizing is key when investing in an idea… and one rule of thumb everyone should know [58:55].
Justin’s note: Beyond Meat (BYND) is soaring.
The plant-based meat producer is up around 500% since the company went public in May. The company is now worth over $9 billion, and is trading at more than 80 times its trailing 12-month sales.
That’s an absurd valuation. But many believe the stock could keep running. That’s because the company is supposed to radically change how people eat.
Personally, I think BYND’s a bubble that will pop any day now. But I was interested in the big trend here of plant-based meat. So, I got Doug Casey on the phone to see what he thinks about BYND and the future of food…
Justin: Doug, there’s a lot of hype around Beyond Meat right now, and for good reason.
Its stock is up around 500% since the company went public in May. Not only that, Whole Foods’ CEO recently described Beyond Meat as the future of food, saying, “You have a business here that is real and that is in the early innings.”
Do you buy that? Is plant-based meat really the future?
Doug: This trend – and I think it is a trend – has been predicted for some time. When I was in high school, Mr. Blue by Myles Connolly was a popular book for a while. I just looked it up – it was written in 1928. It’s been a long time since I read it, but if my memory serves, among other things it posited that people and machines would both run on the same fuel, a petroleum derivative, in a dystopian future. It’s not an unreasonable prediction. Because although there are 92 naturally occurring elements most food consists of carbon, hydrogen, nitrogen, and oxygen. These elements basically compose all carbohydrates, proteins, and fats. Plus traces of others like iron, copper, and sulfur.
When planning on how much to save for retirement, you first need to know how much you’ll spend.
The general rule is that you’ll need 70% to 80% of your pre-retirement income to maintain your standard of living.
However, a recent study found that nearly two in five (39%) retirees are spending more than they had expected.
With that in mind, there are at least five things you might spend more on once you retire.
Many retirees love to travel, especially on the kind of trips they could only dream about while working.
Cruises are a favorite. In fact, the majority (38%) of cruisers are baby boomers and 47% of them plan on booking another cruise. Furthermore, the average age of those take cruises lasting 16 days or longer is 58.
And they’re big ticket items…
Fares advertised for less than $75 per person per day, say to the Caribbean, are enticing.
Bitcoin’s price soared above $10,000 on cryptocurrency exchanges for the first time in 15 months. The price hopped the $10K barrier at 7:35pm Eastern Time.
At press time, the top cryptocurrency by market capitalization is trading at $$10,080.49 – the highest level since March 8, 2018 – representing month-to-date gains in excess of 13 percent, according to CoinDesk’s Bitcoin Price Index. On a 24-hour basis, BTC is outshining most top 10 cryptocurrencies with 7 percent gains.
The price rise is backed by a 12 percent jump in trading volumes. As per data source CoinMarketCap, $21 billion worth of bitcoins have traded across cryptocurrency exchanges in the last 24 hours. Messari, however, is reporting the “Real 10” volume at $1.4 billion.
With the move above $10,000, bitcoin has erased more than 40 percent of the sell-off seen in twelve months to December 2018. Further, prices look set to end the second quarter with triple-digit gains. As of writing, BTC is up more than 130 percent on a quarter-to-date basis.
On January 3, 2009, about six months before I launched Sovereign Man more than a decade ago, the Bitcoin blockchain came into existence.
50 bitcoins were mined by the network’s creator in that very first transaction. And within a few days, the first open-source Bitcoin software was released.
Few people noticed. By October of 2009, the value of a single Bitcoin was still just $0.0009 (9/100th of a penny).
A decade later, Bitcoin has seen a 10,000,000x increase and triggered perhaps the most spectacular financial bubble in human history.
For the next few weeks I plan on writing about how the world has changed over the last decade– Sovereign Man just celebrated its 10-year anniversary a few days ago, and I thought it was an appropriate opportunity for reflection.
Today I want to kick off that series of emails and discuss crypto.
Ten years of cryptocurrency has been a wild roller coaster. In 2009 few people had heard of it. Today, most of the world knows about Bitcoin. Tens of millions of people have bought some. And a fair number of those have been burned.
Gold has been on a tear this month.
Earlier this week, the European Central Bank Chief Mario Draghi – or as I like to call him “Super Mario” – outlined a possible fiscal stimulus plan in Europe. Gold rapidly moved higher off the news.
On Wednesday, U.S. Federal Reserve Chairman Jerome Powell released his own cautious statement on the economic situation. The U.S. dollar headed lower and gold popped.
Even gold sentiment among investors has spiked this month.
But for the last 5 years gold has been range bound in the U.S. Dollar… waiting for a catalyst to propel itself back towards previous high of $1,900 per ounce.
Many of you are prudent to note that I’ve published many articles showing how $2,000 gold is already here. You don’t need to look any further than gold priced in Australian dollars which continues to march to all-time highs….
As I’ve said before…
The reason for this out-performance in Australian gold pricing is due to U.S. dollar strength versus Australian dollar weakness.
Lots of media outlets will lead you to believe there’s a race to the bottom in currencies. And while this may sound dire, it’s great for resource companies in the right jurisdiction.
But for most gold producers, it’s been a grind. Anyone that tells you otherwise is lying to you.
Quick question: What’s the hottest culinary trend this year in America?
B. Chia seeds
Well, you don’t need to be a food connoisseur to know the answer… If you’ve been following the Daily for the past two weeks, you probably answered “D.”
You see, according to the National Restaurant Association’s 2019 What’s Hot Culinary Forecast, CBD-infused foods and beverages are the flavor of the year. The other three were distant runners-up.
The survey included 650 professional chefs—all members of the American Culinary Federation. And they believe CBD creates unique cuisine opportunities and potential new markets for experiential dining.
It doesn't take long for most investors to give up. They think they have a plan... But a bit of uncertainty hits them, and they're gone.
That's what happened last month. It was one of the worst Mays in stock market history, as I explained yesterday.
Uncertainty flooded into the market, and investors panicked. Stocks made a one-way move lower in May, falling almost 7%.
Panic set in. But that is the wrong emotion to have right now...
If you look at history, it's easy to see that what happened in recent weeks, however painful, is completely normal.
Simply put, corrections happen... even during a stock market Melt Up.
Let me explain...
May was a rough one. Things seemed to be going fine, with the finalized U.S.-China trade deal just days away. Then the deal unwound, and folks ran for the exits.