Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
The Bad News About Record-Low Unemployment - 24th June 19
Stock Market New High, but…! - 24th June 19
Formula for when the Great Stock Market Rally Ends - 24th June 19
How To Time Market Tops and Bottoms - 24th June 19
5 basic tips to help mitigate the vulnerability inherent in email communications - 24th June 19
Will Google AI Kill Us? Man vs Machine Intelligence - 24th June 19
Why are Central Banks Buying Gold and Dumping Dollars? - 23rd June 19
Financial Sector Paints A Clear Picture For Stock Market Trading Profits - 23rd June 19
What You Should Look While Choosing Online Casino - 23rd June 19
INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - 22nd June 19
Here’s Why You Should Drive a Piece of Crap Car - 22nd June 19
How Do Stock Prices React to Fed Interest Rate Cuts? - 22nd June 19
Gold Bull Market Breaking Out! - 21st June 19
Post-FOMC Commentary: Delusions of Grandeur - 21st June 19
Gold Scores Gains as Draghi and Powel Grow Concerned - 21st June 19
Potential Upside Targets for Gold Stocks - 21st June 19
Gold Price Trend Forcast to End September 2019 - 21st June 19
The Gold (and Silver) Volcano Is Ready to Erupt - 21st June 19
Fed Leaves Rates Unchanged – Gold & Stocks Rally/Dollar Falls - 21st June 19
Silver Medium-Term Trend Analysis - 20th June 19
Gold Mining Stocks Waiting on This Chart - 20th June 19
A Key Gold Bull Market Signal - 20th June 19
Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - 20th June 19
Investing in APPLE (AAPL) to Profit From AI Machine Learning Stocks - 20th June 19
Small Cap Stocks May Lead A Market Rally - 20th June 19 -
Interest Rates Square Minus Zero - 20th June 19
Advice for Financing a Luxury Vehicle - 20th June 19
Stock Market Final Blow Off Top Just Hit… Next Week Comes the FIREWORKS - 20th June 19
US Dollar Rallies Off Support But Is This A Top Or Bottom? - 19th June 19
Most Income Investors Are Picking Up Nickels in Front of a Steamroller - 19th June 19
Is the Stock Market’s Volatility About to Spike? - 19th June 19
Facebook's Libra Crypto currency vs Bitcoin: Five Key Differences - 19th June 19
Fed May Trigger Wild Swing In Stock Index and Precious Metals - 19th June 19
How Long Do Land Rover Discovery Sport Brake Pads Last? - 19th June 19
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Inflation Chronicles - Art Prices So High, “The Crowd Forgot To Clap”

Economics / Inflation Nov 14, 2014 - 10:09 AM GMT

By: John_Rubino

Economics

Depending on which expert is talking, the world is either falling into a deflationary abyss or launching an inflationary moonshot. What’s truly weird and fascinating is that they’re both right. The mountain of debt taken on in the past few decades exerts a profoundly deflationary pull on the economies of Europe and Japan, and to a lesser extent the US. At the same time the torrent of currency flowing out of the world’s central banks is swelling the accounts of the super-rich who are converting it into real assets as fast as they can, causing near-hyperinflation in some favored markets. Hence the spectacle of Paul Krugman (and most Fed governors) complaining about low inflation and warning of a deflationary death spiral, while things like this are happening:


CHRISTIE’S CONTEMPORARY ART SALE NETS $852.9 M., ALL-TIME AUCTION RECORD

This evening Christie’s brought in the highest-ever total for an auction, at their contemporary sale in New York, grossing $852.9 million across 75 lots. That figure beat the sale’s formidable estimate of $630 million to $836 million, and more than doubled the $343.7 million that its rival, Sotheby’s, brought in at its contemporary art auction last night. The previous record for an auction was $745 million, which was set back in May at Christie’s contemporary art auction in the same room.

The sale saw new artist records for 11 artists, among them Cy Twombly, Ed Ruscha, Peter Doig, Martin Kippenberger, Sturtevant, and Seth Price. Seventy-five of the eighty lots on offer found buyers, for an impressive sell-through rate by lot of 94 percent.

Andy Warhol’s Triple Elvis [Ferus Type] (1960) and Four Marlons (1966) sold early as lots 9 and 10, going for $81.9 million and $69.6 million, respectively. By the time the second figure was reached, the crowd—whether reeling from the action or no longer capable of being surprised or just no longer impressed by anything under $80 million—forgot to clap.

To say it was a hot room would be to put things mildly.

This is not a story from a deflationary world. Nor is the parabolic arc of trophy real estate prices:

Primrose Hill penthouse breaks record for most expensive property in area

A penthouse flat in a Primrose Hill development has broken the area’s record for the highest price based on surface area. The new build apartment has an asking price of more than £4,400 per square foot, around four times the average for the location.

The property is in the St Edmund’s Terrace development, a luxury complex by developer CIT featuring 36 flats and a separate two bedroom townhouse, all overlooking Primrose Hill.

With a surface area of 3,600 square foot, the asking price for the penthouse apartment is in the region of £15,840,000, while prices in the block start at £3.8 million for a two-bedroom flat.

The most expensive London home by surface area – a penthouse overlooking Buckingham Palace – is reported to have sold off plan this year for significantly more than the previous record of £5,000 per square foot.

To sum up, this place costs (at the current USD/Pound Sterling exchange rate) $6,900 per square foot, or $25 million for a 3,600 square foot penthouse. And it’s not even the highest-priced place in town.

There are dozens of similar examples from around the world of rich people tossing ridiculous sums at shiny baubles. But the process is not random: Each case involves presumably well-informed investors swapping financial assets like cash, stocks or bonds for real assets that exist in limited quantity and can’t be replicated by desperate governments.

So throw out those economic theories that require inflation OR deflation. Apparently we’ve entered a time in which both can exist — and rage — simultaneously. And until this case of financial schizophrenia is resolved, wealth will continue to flow from deflationary sectors — savers who earn negative real rates on their cash, workers who see their wages squeezed below the poverty line while their employers report record profits, local governments with shrinking taxe bases that force them to close libraries and fire teachers — to the owners of real assets who see their wealth march ever higher and who have little else to do but buy more toys.

Sounds a little like the days before the French Revolution.

By John Rubino

dollarcollapse.com

Copyright 2014 © John Rubino - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules