National Inflation Association | Preparing Americans for Hyperinflation

Fed Funds Futures Collapsing at Near Record Pace!

For 6 of the last 7 years, the Fed Funds Rate has finished below what the Fed Funds Futures market, at the start of the same year – was pricing …

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Gold/Crude Oil Ratio Just Hit New All-Time High!

On December 18th when the Gold/WTI Crude Oil Ratio surpassed 30, NIA predicted that we would see it rise above the 1973 all-time high of 35.39 in early 2016 and …

Mexican Gold/Silver Miners to Rise Most Short-Term

Since December 2nd, the price of gold has increased 4.73% priced in U.S. Dollars, 5.57% priced in Canadian Dollars, 7.86% priced in Chinese RMB, 9.69% priced in Brazilian Real, 11.29% …

NIA Assets Priced in Gold Update

Priced in terms of real money (gold) as a percentile of their 1959-2016 gold-based values, the top 10 most undervalued commodities/precious metals as of January 10, 2016 are: 1) WTI …

NIA’s Gold vs. Oil Indicator was Perfectly Accurate!

Exactly one month ago on December 8th, 2015, NIA publicly introduced its members to a proprietary indicator it has developed – for signaling the absolute most perfect opportunities to buy …

Best Possible Start of 2016 for NIA Members!

In recent months, the mainstream media worked tirelessly to convince the public that a December Fed Rate Hike would cause gold prices to crash, while benefiting the stock market – …

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China Rushing to Dump their U.S. Treasuries

In December 2015, China’s foreign currency reserves declined by $107.922 billion to $3.33 trillion, its largest monthly decline in history. China’s foreign currency reserves peaked at the end of June 2014 …

China Stocks Lose $1.37 Trillion in Market Cap Since December 22nd

From December 22, 2015 through January 7, 2016, Chinese listed companies on the Shanghai and Shenzhen exchanges have experienced a total market cap decline of $1.37 trillion – from $8.37 …

Gold/WTI Crude Oil Ratio Hits New 42 1/2 Year High!

Back on December 18th when the Gold/WTI Crude Oil Ratio closed at a new 27-year high of 30.88, NIA predicted that WTI Crude Oil prices would only bottom after the Gold/WTI …

China’s GDP About to Decline for First Time Ever!

The Chinese RMB just fell to a new 5-year low this morning against the U.S. Dollar. Based on NIA’s estimate of China’s year-end 2015 GDP of RMB67.758 trillion and the …

U.S. Dollar Finishes 2015 as World’s Second Most Overvalued Currency

The U.S. Dollar has finished 2015 as the world’s #2 most overvalued fiat currency, behind only the #1 ranked most overvalued currency the Swiss Franc. Over the last 24 months, …

ECB Balance Sheet: Gold Overdue for 23% Rally

Since 2006, the European Central Bank’s balance sheet in USD and the price of gold have followed each other very closely. Despite any short-term divergences, the ratio between the two …

NIA Members to Make Fortune in 2016

NIA has done more research than any other organization in the world on the fundamental and technical forces that drive the short, medium, and long-term price movements in gold and …

Media Ignoring America’s Unfolding Debt Crisis

The U.S. financial media continues to ignore how foreigners are dumping their U.S. Treasuries at a record pace – at a time when the Federal Reserve is no longer adding …

How to Perfectly Time Gold for Rally to $2,000

One of NIA’s favorite indicators that it frequently uses as a tool to help it perfectly time the best possible entry point for investing into gold and gold mining stocks …

Gold Soars as Crude Oil Crash Continues

Gold prices soared today by $15.80 to $1,066.90 per oz while WTI crude oil declined another $0.40 to $34.55 per barrel. The Gold/WTI Crude Oil Ratio finished today at a …

America’s Net Worth Falls as Canada Blows Past!

The net worth of U.S. households declined in 3Q 2015 by -$1.23 trillion or -1.43% to $85.182 trillion, its first quarterly decline in four years! Meanwhile, Canadian households saw their …

We Are at End of Dollar Rally – Not the Beginning!

Most people on Wall Street and in the mainstream media believe that a Fed Rate Hike today will mean a guaranteed huge rally in the U.S. Dollar over the next …

Gold Mining Sector Generating Positive Free Cash Flow

Publicly traded gold miners are now back to generating positive free cash flow. Over the last twelve months, the gold mining sector has generated positive free cash flow equal to …

Today’s One Sure Bet on Wall Street

The one sure bet on Wall Street today is that gold mining stocks will rise significantly in value relative to oil exploration & production stocks. The gold/WTI crude oil ratio …

Top NIAnswers

How do you determine the best time to buy gold/silver mining stocks relative to the price of gold?

The best way to measure how undervalued/overvalued gold and silver mining stocks are vs. the latest price of gold is by taking the current value of the HUI Gold Miners Index and dividing it by the latest price of gold per ounce – thereby creating what is most often called the ‘HUI/Gold Ratio’. Over the last 20 years, the median daily HUI/Gold Ratio has been 0.3615.

Currently, with the HUI Gold Miners Index at 135.95 and gold trading for $1,163.30 per oz – we have a HUI/Gold Ratio of only 0.1169, which puts it in the extreme buying opportunity zone.

he HUI/Gold Ratio was last in the extreme buying opportunity zone in late-2000 and it afterwards needed a total of only 18 months to rise back up to its 20-year median of 0.3615.

From its current level of 0.1169, the HUI/Gold Ratio needs to more than triple in value just to return to its historical median of 0.3615! This means if gold prices trade sideways/flat for the rest of 2015 and throughout 2016, gold miners on average are likely to more than triple in value.

If gold rises in 2016 to a new all-time high of $2,000 per ounce, while the HUI/Gold Ratio simultaneously returns to its long-term median of 0.3615, we will see the average gold miner rise next year by 431.81%.

What is the HUI/Gold Ratio today compared to the last two decades on a percentile basis?

If we calculate the HUI/Gold Ratio’s historical daily percentiles going back a full 20 years, the current HUI/Gold Ratio percentile is only 1.42%! This means on 98.58% of all historical trading days going back for two full decades, the HUI/Gold Ratio was higher than it is today. We feel just as strongly about gold/silver miners rallying big as we did about sugar in our recent report. As you know, since releasing our sugar report it has been the #1 largest gaining commodity in the world by far.

Is the U.S. in an economic war with Russia?

When the U.S. in March 2014 announced economic sanctions against Russia over the Ukraine crisis, it effectively declared economic war on Russia. The western mainstream media in its coverage of the Ukraine crisis – was very effective at portraying Putin as a vengeful and out-of-control aggressor who is dead set on recapturing the old Russian Empire.

A prominent western newspaper published an article with quotes from an unnamed Kremlin source, who claimed to personally hear Putin threaten in private to invade Poland, Romania, and the Baltic States. Another well-known member of the western media published a report with quotes from a “former Putin advisor” who claimed that Putin won’t stop expanding Russia until he captures Belarus and Finland. Both of these accounts are fictional.

It is important to realize that Putin was never the real aggressor in Ukraine – the entire Ukraine crisis was completely funded and planned out by the U.S. with support from its E.U. allies. The U.S. orchestrated an illegal coup that successfully forced Ukraine’s legally elected President to abandon the country – all because he chose not to sign an association agreement with the EU and to instead maintain its close ties to Russia.

How has Russia responded to the U.S. and E.U. sanctions against it?

The sanctions imposed against Russia by the U.S. and E.U. were relatively weak compared to the sanctions imposed against Iran, which successfully forced Iran to the negotiating table on the nuclear issue. The U.S. and E.U. were able to ban Iran from the SWIFT system, making it impossible for Iran’s banks to send or receive funds overseas, which crippled its economy.

The difference between Russia and Iran is, Russia already has one of the world’s largest arsenals of nuclear weapons. When word got to Putin that Obama was thinking about having Russia banned from SWIFT, Putin made it clear that banning Russia from SWIFT would be an act of war and Russia would have an “unlimited response”.

Western sanctions against Russia have had the unintended consequence of pushing Russia towards China. Since the sanctions were first implemented – Russia and China have solidified their relationship with the signing of many large business contracts and investment deals – including a 30-year $400 billion agreement for Russia to supply natural gas to China.

Russia and China are rapidly becoming very close allies – with both countries sharing many of the same economic interests, including their strong desire to weaken the U.S. economy by eliminating the U.S. Dollar‘s status as the world’s reserve currency. Over the last two years, China and Russia simultaneously became aggressive net sellers of U.S. Treasuries, while becoming aggressive net buyers of gold bullion.

Won’t America’s dominant military keep the U.S. Dollar the world’s dominant currency?

Unfortunately, the U.S. military is now officially past its peak – and is beginning to dramatically weaken with each passing year. The peak year for the U.S. military was 2002, when U.S. military spending accounted for 44.5% of the world’s total military spending. In 2014, the U.S. accounted for only 34.92% of the world’s total military spending – its lowest share of the last 20 years.

While America’s share of global military spending is rapidly declining – China and Russia are seeing their share of global military spending rise very rapidly. Together, China and Russia now account for 17.22% of global military spending, which is 5X greater than 20 years ago and their largest share of global military spending in history!

NIA estimates that about 50% of U.S. military spending is wasted with no tangible benefit – either on projects to develop new technology that get cancelled before completion, or on programs to train and arm foreign rebel groups to fight for us – who usually just steal our weapons and use them to empower terrorists like Isis.

How has Russia entering Syria affected the Russian Ruble?

As of today, the Russian Ruble relative to the price of Brent Crude Oil is at a new multi-year high. Russia’s decision to enter Syria and show off their newly rebuilt military is making the country well respected on the world stage – and has probably contributed to the Ruble’s amazing strength vs. Brent Crude Oil in recent weeks.

Does Russia deserve its junk bond rating?

Of course not. S&P, Moody’s, and Fitch destroyed their credibility by rating subprime mortgage bonds as AAA during the housing bubble. Their downgrades earlier this year of Russian debt to junk were even more outrageous.

On December 24, 2014, when S&P first announced that there was a 50% chance of them downgrading Russian debt to junk within 90 days – NIA saw this as an opportunity to buy Russian bonds, which we knew were completely mispriced due to the west’s economic war against Russia. Immediately following S&P’s announcement, the western mainstream media published numerous biased articles claiming that Russia would soon default on its debt – even though Russia’s debt/GDP ratios were among the world’s lowest, with Russia having enough foreign currency reserves to completely pay off all of its outstanding debt.

NIA on December 24th suggested that its members buy the Russian 10-year bond at a yield of 13.57%. NIA predicted that the yield of the Russian 10-year bond would decline in 2015 to 10%. (Bonds rise in price when their yield declines.)

On October 26, 2015, the Russian 10-year bond yield settled at 10.02%, after reaching an intraday low on October 23, 2015, of 9.96%. Over the last 10 months, the Russian 10-year bond has earned a larger total return adjusted for inflation than any other 10-year government bond in the world.