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Silver to Explode Upward … Regretfully, Most Will Miss out on This Next Great Wave of Wealth Creation
HOLLYWOOD, Fla., Jan. 18, 2012 /PRNewswire/ — At Smith McKenna, precious metals trading advisors, Steve Smith, CEO, has been accurately forecasting gold, silver, copper and other precious metals commodities trends for decades. “The latest movements in spot prices in copper and silver were totally predictable, considering the time of year and the projected demands. 2012 will be a huge wealth creating opportunity, if you’re positioned correctly,” exclaims Steve.
“All leading manufacturing Data calls for an end to the GLOBAL SLOWDOWN and a boom in CAPITAL INVESTMENTS thru-out the word,” explains Stephen Smith. Further, “Global consumption will empty all above ground supplies of Silver within the next 36 to 48 months.” The secret, when realized, will take prices to the stratosphere. Smith McKenna is calling for Silver to hit $50 oz. 1st Qtr. 2012, $75 mid 2012, and $150 by year end.
The precious metals sage warns, “Don’t be fooled into buying gold or silver ETF’s, Certificates, and Mining Stocks. You must own the physical asset. But, Don’t buy anything until you have all the information! You Must First Have Accurate Investing Information and Know How to Use It to be a Successful Gold, Silver and Other Precious Metals Investor.”
Steve Smith so much believes that knowledge is the key to profitable investing, that he is giving away a FREE Book, to the first 100 people that just ask for it. Go to www.smithmckenna.com/free-book/, and simply fill out the request form. He also makes available, free of charge, his weekly investing calendar to the public on the Smith McKenna website.
China Prepares To Launch Gold ETFs As Utah Becomes First State To Make Gold And Silver Legal Tender
Following Friday’s news that China has now surpassed India as the world’s largest buyer of gold, it is becoming increasingly obvious that the country is trying to capitalize on the popular interest in the precious metal by transferring the trading infrastructure away from US to domestic capital markets. First, it recently launched a 1 kilo gold futures contract on the HK Merc in an obvious attempt to undermine the Comex monopoly in the space, and next it seems that China has the GLD plain in its sights, as it plans to start exchange-traded funds, tapping rising demand in China, the world’s biggest investment market for the precious metal. Often blamed for the recent volatility in the price of gold, precious metal ETFs have been primarily an instrument available to those with access to the US market. That appears to be ending, and with an entire nation suffering from gold fever (as inflation continues to be goalseeked by the China politburo above expectations in what appears to be a programmed attempt by the Chinese central planners to push its population into gold hoarding) and about to be offered a simple way of investing in (paper) gold, it is likely that the price of gold (and soon thereafter all other commodities) will see unprecedented spikes in price in either direction as millions more are given direct exposure to trading the non-dilutable currency equivalent.
From Bloomberg:
“There are some complexities, as the central bank is in charge of gold management, while we still need to go through the procedures for launching new exchange products,” Wang Zhe, chairman of the bourse, said at a Shanghai forum. There is no timetable and the exchange is working with regulators on the plan, Wang said. China is the world’s largest gold producer and second-largest in overall consumption.
China doesn’t have gold ETFs and investors usually choose to buy physical gold, or invest through contracts traded on the Shanghai Gold Exchange, the Read more…
Deutsche Bank Sees Gold Surging as High as $2,000 as Soros Pares His Bets
Investors including George Soros and John Paulson invested in gold as the metal surged over the past year amid a sovereign debt crisis in Europe, economic turmoil in the U.S. and civil unrest in the Middle East. Photographer: Junko Kimura/Bloomberg
May 10 (Bloomberg) — Michael Yoshikami, who oversees $1.1 billion as chief investment strategist at YCMNet Advisors in Walnut Creek, California, talks about global stocks and commodities. Yoshikami also discusses bonds, the U.S. economy, and BYD Co.’s plan to list shares on the Shenzhen exchange. He speaks from Singapore with John Dawson on Bloomberg Television’s “First Up.” (Source: Bloomberg)
Gold, which reached a record on May 2, may surge a further 30 percent by January as investors seek to protect themselves from “economic uncertainty,” according to Deutsche Bank AG.
“I’m bullish on gold despite its current levels,” Hal Lehr, Deutsche Bank’s managing director for cross-commodity trading, said in an interview in Buenos Aires. “It could reach $2,000 an ounce in the next eight months.”
Investors including George Soros and John Paulson invested in gold as the metal surged over the past year amid a sovereign debt Read more…
3 Ways to Prepare for Inflation
In case you haven’t heard,inflation is on its way. Unprecedented levels of government debt and deficits will likely weaken the value of the dollar at some point, thus raising the prices of everything it buys.
But, the Federal Reserve says there’s no significant inflation yet. In fact, it recently said there might be too little inflation and will likely keep interest rates low for the foreseeable future, further increasing the money supply. Meanwhile, commodity prices are going through the roof.
The price of copper has more than tripled since the end of 2008, oil is near $90 a barrel (also near the high since the financial crisis) and prices of several food commodities like corn and wheat are near all time highs. These materials are in turn used to make many consumer goods. It’s only a matter of time before higher input prices come out the other end in the form of higher prices for consumer goods.
In fact, inflation has started to Read more…
US price increases hit consumers
Confirming what most US shoppers already suspected, the Labor Department on Thursday reported prices for everything from vegetables to unleaded fuel rose again in January.
The Labor Department’s consumer price index rose 0.4 percent for the month, a rate that was slightly higher than economists expected and which confirmed large price increases for commonly bought goods in the last year.
The figures showed gasoline prices have leaped over 13 percent in the last 12 months, while grocery prices rose slowly but Read more…
The Fed is Wrong About Commodity Prices
Author: David Weinstein
I imagine he has to say it, but Bernanke is wrong when he says US monetary policy has nothing to do with international commodity prices. At the height of the Egyptian crisis, which was partly driven by rising food prices, Bernanke couldn’t say, “Oh yea, US policy economic policy is part of the problem in Egypt.” This attitude, however, is both prevalent and respected, and it’s largely wrong.
First of all, commodities as a group are not commoditized – they are not all the same. For instance, the amount of gold in the world is largely fixed relative to annual gold production. Along with its historical position as a store a value, Gold’s consistent volume about ground is a primary reason for its currency-like quality; i.e. almost entirely driven by overall liquidity. Corn production, on the other hand can vary greatly from year to year given the amount of land devoted to it and the weather. Oil is somewhere in the middle because production can vary, but the worlds known reserves are relatively fixed. The resulting differences in price volatility have been studied ad nauseam and are most simply articulated by the so-called ‘cob-web model’ (see chart below).
Very simply put: Read more…
The supply of corn keeps getting smaller
675 million bushels of corn may seem like a lot, but that is only an 18 day supply for the US grain market, and that is the reason corn prices pushed above $7 Wednesday on the CME. March corn did not close above that level, but settled at $6.98 per bushel following USDA’s February Supply and Demand report that indicated the ethanol industry was refining corn faster than previously thought.
Corn, beans and wheat prices have all been rising, but so has the price for ethanol. A year ago, ethanol was in the $1.70 per gallon range, but Wednesday closed at $2.457 per gallon, the highest it has been since the early summer price spike in 2008 when it exceeded $2.80 per gallon.
The result of the ethanol industry’s demand for corn tightens down the supply, says University of Missouri marketing specialist Melvin Brees. In his Crop Report Commentary Brees says USDA economists raised corn use by 70 million bushels and 50 million of that was added to Read more…
The Coming Silver Accident
Theodore Butler
Perhaps “accident” may not be the precise word to describe what I see coming in silver. After all, Webster’s defines accident as “an unforeseen and unplanned event or circumstance.” While that definition certainly encompasses what I see ahead in the silver market, I need to add a qualifying adjective to complete my vision. That word is unavoidable. The silver market is headed towards an unavoidable accident.
This will not be like any accident you have ever witnessed or experienced. This is an accident you can fully prepare for, and greatly profit from. This coming silver accident could favorable and permanently alter your family’s standard of living and financial security. The great news is that preparations for this accident are simple and merely depend upon you applying common sense.
At the core of what makes the coming silver accident unavoidable is the immutable law of supply and demand. Supply and demand ultimately governs how all markets function. While some markets, including silver, can be artificially controlled or manipulated in price for long periods of time, eventually such manipulations must end if they are at odds with supply and demand.
Nothing has been more at odds with the basic law of supply and demand than the silver market. For many decades, the world has consumed more silver than it has produced. That has necessitated a draw down of previously produced silver – the existing inventories. There has never been a situation in any Read more…
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