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As the markets and financial system continue to be propped up by an ever-increasing amount of debt and leverage, precious metals investors need to understand the two most important reasons to invest in gold and silver.  While one of the reasons to own precious metals is understood by many in the alternative media community, the more important critical factor is not.

The motivation to write this article is due to the increasing amount of negative sentiment and comments in regards to precious metals analysis and investing.  There’s a very interesting notion put forth by many commenters that the precious metals analysts and dealers are the frauds and charlatans, not Wall Street or the Central Banks.  I imagine they believe this because gold and silver prices haven’t performed as forecasted or compared to the insanely inflated stock, real estate, and crypto markets.

Before I discuss the two important reasons to own precious metals, I would like to provide some information about the fraud and corruption taking place in the financial industry.

Now, it is true that a few precious metals dealers have defrauded investors, but this is true with all sectors and markets in the financial industry.  However, investors frustrated with the precious metals tend to forget the massive amount of fraud and losses that took place as a result of the 2008 Housing and Investment Banking collapse.

For example, according to the article, Financial Crisis Bank Fines Hit Record 10 Years After The Market Collapse^[1]:

$150 billion (127.6 billion euros) – that’s how much US authorities have collected in fines from financial institutions for shady dealings with subprime mortgages since the beginning of the credit crisis in 2007, according to research by the British business daily Financial Times...

Macro factors continue to move, especially over the longer term, in ways that are decidedly in favor of the gold price.

As the irrevocably flawed fiat currency system plays out to its ultimate demise, geopolitical tensions, world demand/supply metrics, and rampant out-of-control debt spending continue to reinforce the case for owning physical gold.

Gold in 2018 will deliver its strongest annual price performance in five years, GFMS analysts forecast on Tuesday, as political uncertainty drives investment in bars and bullion-backed investment funds.

The GFMS metals research team, a unit of Thomson Reuters, predicted gold would average $1,360 an ounce this year, up 8 percent from 2017, with some short-term moves towards $1,500.

Gold has not risen above that level since early 2013.

“Uncertainty revolving around President (Donald) Trump’s politics, along with ongoing tensions in the Middle East and Brexit negotiations will remain gold’s key drivers,” the team said as it released its Gold Survey 2018.

The team expected demand by exchange traded funds (ETFs) to rebound this year to 350 tonnes.

“Retail investment is forecast to rise in 2018 following four consecutive years of declines, thanks to a pick-up in bar demand, supported by improving sentiment towards gold and rising price expectations,” GFMS said.

Adding to the bullish picture, the Chinese central bank was expected to resume purchases, GFMS said, leading to a rise in net official sector demand this year to more than 400 tonnes for the first time since 2015.

ORIGINAL SOURCE: Gold seen at highest annual price for five years in 2018: GFMS^[1] by Jan Harvey at Reuters^[2] on 5/8/18...

References

1. ^{^} Gold seen at highest annual price for five years

Exports from Russia to China amounted to $12.27 billion (an increase of 37.1 percent), imports to Russia from China surged to $11.8 billion dollars (an increase of 24.9 percent) in the period. The total trade turnover amounted to $24.1 billion.

The trade turnover between Russia and China reached $69.52 billion by the end of 2016. In 2017, it jumped by 20.8 percent to $84 billion. China is Russia’s largest trading partner. The countries have been planning to reach the $100 billion volume this year.

The countries have been seeking to use domestic currencies in settlements between each other. In 2017, nine percent of payments for supplies from Russia to China were made in rubles; Russian companies paid 15 percent of Chinese imports in renminbi.

Just three years ago, the numbers were two and nine percent, respectively. The two nations have also established a Russian-Chinese investment fund worth 68 billion yuan (over $10 billion) to develop trade, economic investment, and scientific cooperation. China and Russia can increase trade to $200 billion in the coming years, said Russian Prime Minister Dmitry Medvedev this March.

For more stories on economy & finance visit RT's business section^[1]...

References

1. ^{^} RT's business section (www.rt.com)

HARARE, May 8 (Reuters) – Former President Robert Mugabe will not appear before Zimbabwe's parliament as scheduled on Wednesday to answer questions on diamond mining operations, a legislator said.

Temba Mliswa, who leads the parliamentary committee on mines, said the clerk of parliament hadn't written to Mugabe to invite him to appear.

"It has been delayed but that resolution still stands," Mliswa said. "He will have to appear before the committee whether he likes it or not."

The committee had ordered the 94-year-old Mugabe to face legislators over his previous pronouncements that the state had been deprived of at least $15 billion in diamond revenue by mining companies.

Mugabe said in March 2016 the country was robbed of the revenue by diamond companies, including joint ventures between Chinese companies and the army, police and intelligence services, whose operations were shielded from public scrutiny.

Specifically, he said Zimbabwe lost $15 billion from the Marange gem fields, more than 400 kilometres (250 miles) east of the capital. He later expelled the companies and replaced them with a state-owned diamond company.

Mliswa said a new date for Mugabe to testify would be set. The questioning on Wednesday would have been Mugabe's first public appearance since the army deposed him last November in a de facto coup.

(Reporting by MacDonald Dzirutwe, editing by James Macharia, Larry King)

The post Zimbabwe parliament delays Mugabe's questioning on diamond revenue appeared first on MINING.com....