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Confiscation of Gold and Silver by the U.S. Government
I received an email with the words “RED ALERT”. I received this from someone heavily involved and an expert in the metals and mining. I highly respect both men involved, as they know and always telling the truth about what is happening in the world of metals.
David Morgan of Silver-Investor, an absolute expert in silver and the mining field and has a wonderful and very insightful news letter. I am a member and get the newsletter due to the amount of his knowledge of silver/gold and mining. In fact, David Morgan has given me the green light to post bits of information from his paid subscription newsletter. I am thankful he is allowing that, as there is information in it that is not found any where else on the internet. His newsletter gives investment information of metals and mining as no other person I have read. I believe many benefit from the newsletter and I hope what small blurbs I reproduce here will also help others in keeping the value of their money as it is (but it is dropping fast every day – so action needs to be taken by all – in my opinion). I will start doing some postings with his insight within days. But I encourage Read more…
Gold-Silver Ratio: Silver value highest in five years
NEW YORK (Commodity Online): As precious metals continue to lead the commodities boom globally, the most frequently asked question these days is where does the gold-silver ratio stand.
Over the years, gold has been the high value beneficiary commodity in comparison to silver. But last week, the gold to silver ratio fell to just above 45:1. According to Wayne Atwell, Managing Director of Casimir Capital, the silver value in comparison to gold is the highest in the last five years.
“This is because people—investors—are regarding silver as a safe haven investment just like gold,” he says.
Atwell said: “Suddenly with the anxiety level that’s surfaced about sovereign debt and municipal deficits, people are turning to alternative ways to hedge themselves and I think people felt silver was cheap based on where it has been historically, so they jumped on the bandwagon.”
Gold-Silver ratio is the most important barometer for commodities traders and futures market dealers. Even though 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…
$2,000 Gold And 10 More Surprising Predictions From Credit Suisse
Gold is negatively correlated with real Fed fund rates
You’re not going to make money betting on the consensus. So if you’re looking for contrarian investments, Credit Suisse’s Andrew Garthwaite has picked out 11 economic events that are more likely than anyone thinks.
Surprise scenarios include $2,000 gold
by year-end. Several factors support this “surprise” including:
- Gold goes up when real Fed fund rates are negative — and they are
- Excess leverage leads to money printing or default
- China and Japan haven’t started Read more…
Take a look at how many ounces of silver have been needed to buy a median-priced home in the US:
For most people, there are some surefire luxuries that signify wealth, a few pearls of conspicuous consumption that say “you’ve made it!” For me, it’s always been a second home. My grandparents owned a vacation home in Arizona and then Florida when I was a kid, and it was an annual highlight to travel there every year.
But something happened on the way to my generation’s iteration of the American dream. Of all the people I know that have second homes, only one acquired it through his own hard work and success. The rest inherited them.
With high unemployment, shaky business conditions, desperate governments, weak real estate demand, and a suspect stock market, owning a vacation home is not even on the radar these days for most Americans. Paying their existing mortgage is the primary concern, something millions of homeowners still aren’t able to do. So, how is it that I can suggest a way to buy a vacation home in this market?
Because there are two trends in motion that I believe will continue working in our favor. And it likely won’t take long for them to reach a culmination point, allowing those of us with such a goal to see it realized.
First, Read more…
China should increase precious metals
Sungwoo Park
SEOUL – China should increase its gold and silver reserves, the Economic Information Daily reported on Monday, citing an interview with China’s central bank adviser Xia Bin.
Increasing gold reserves at the “appropriate time” is in line with the strategy of internationalizing the yuan, the report cited Xia as saying. “Related departments” should employ a “buy in the dip” strategy over a very long period of time, Xia said.
Bullion soared nearly 30 percent in 2010, advancing for the 10th year, as the dollar dropped and investors sought a store of value amid currency debasement. China is allowing greater use of its currency for cross-border transactions, seeking to reduce reliance on the dollar.
The report is “a positive factor for gold prices in the mid-and-long term,” Hwang II Doo, a senior trader at Seoul-based Korea Exchange Bank Futures Co, said on Monday. Still “it didn’t have immediate impact on prices as gold’s gain has more to do with the unrest in Egypt at the moment.”
Total gold consumption in China, the second-largest buyer, may gain 15 percent in the first-half, fueled by growing demand for alternative investments and a hedge against inflation, the China Gold Association said last week.
Imports of gold by China jumped almost five-fold in the first 10 months of last year from the entire amount shipped in 2009, the Shanghai Gold Exchange has said. Shipments were 209 metric tons compared with 45 tons for all of 2009, said exchange Chairman Shen Xiangrong.
The country increased gold reserves by 454 tons to 1,054 tons since 2003, the State Administration of Foreign Exchange said in April 2009. The metal only accounts for 1.6 percent of the nation’s reserves held by the People’s Bank of China, according to the World Gold Council. China doesn’t regularly publish gold-trade figures and rarely comments on its reserves.
Bullion for immediate delivery gained as much as 0.7 percent to $1,346.27 an ounce, and was at $1,339.25 at 12:53 pm in Seoul. The price rose 2.5 percent on Jan 28, the biggest intra-day increase since Nov 4 as escalating tensions in Egypt fanned concern that unrest may spread to other parts of the Middle East, increasing demand for an investment haven.
Gold: Major Buy Signals!
Gold and Precious Metals
UUP (US Dollar Proxy) Chart.
US Dollar Analysis:
- The Dollar decline on soft volume over the past few days has given me a buy signal. I use our US dollar signals to play the dollar, and to coordinate your Gold and Gold Stock purchases.
- Let me be clear; the move up here in the dollar is nothing more than a dead cat bounce, so don’t play it too big. When looking at the decline in the dollar from July through November, the dollar dropped nearly 15%. The most troubling sign I see for the USD over the longer term is the distribution in the ensuing rally in the Nov- Dec time frame. The dollar is in a major bear market, and rallies in bear markets tend to be sharp, and can end long before they are “supposed to”.
- The performance of the US Dollar over the last ten years is pathetic. The dollar has lost massive purchasing power against almost every single other asset. Consider: Crude Oil is up over 250%, and the Commodity Agricultural Raw Materials Index is up 57%. Many other commodities are up over 200% against the dollar, in the same timeframe. Why has this happened?
- The answer is: Debt Accumulation. Debt is growing, so the fundamental causes of the dollar bear market are also growing. The financial crisis is not ending. It is getting worse. Read more…
Gold Reserves of the World
Bullion analyst Mark Robinson says this is the biggest and most ambitious task that China has ever announced.
“If China wants to take its gold reserves to 10,000 tonnes in 10 years, the country needs to buy or acquire the yellow metal to the quantity of nearly 1000 tonnes per year.”
Which countries own the largest quantity of gold reserves right now?
- World leader the United States has 8133 tonnes of gold reserves, accounting for 76.5% of its foreign exchange reserves;
- Germany has the second highest gold reserves at 3412.6 tonnes;
- France has 2508 tonnes of gold constituting 58.7% of its forex assets;
- Italy has 2451.8 tonnes of gold constituting 61.9% of forex reserves;
- China became the fifth biggest holder of gold reserves this April with 1054 tonnes;
- Switzerland has 1040 tonnes of gold reserves constituting 23.8% of total forex reserves;
- India which recently bought 200 tonnes of gold from IMF has 557 tonnes of gold reserves representing 3% of total forex reserves.
- The IMF, which currently holds 3,217 tonnes of gold, is the third-largest official holder of the precious metal, but is not technically a sovereign central bank. The IMF has made gold sales a key element of its new income model aimed at lowering its dependence on lending revenue to cover expenses.
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