Archive
The Rule of Gold after the Financial Collapse
|
“You can own silver and gold but never any fiat currency issued by someone else”
Peter Cajander
 In a secular world, the operative “Golden Rule” is “He Who Has the Gold Makes the Rules”. The condition of the global financial banking system is untenable. The aggregate amount of debt worldwide is anyone’s guess. The introduction of derivatives and counter claims pushes the chain of obligations into the unknown. All that is left is for central banks to create mountains of uninterrupted counterfeit money to roll over and delay the inevitable. The IMF chart of World Currency Reserve is a skyrocket line to oblivion. It does not reflect a healthy stockpile of treasure, but certainly manifests a new debt machine running to infinity. The Bullion Vault explains this reality in the following manner.
|
The Sprotts Expect Silver to Keep on Sizzling
Sprott Money executives Eric Sprott (chairman) and Larisa Sprott (president), sing the praises of the “poor man’s gold” in this exclusive interview with The Gold Report. “All the data supports the thesis that silver is undervalued,” says Eric—who serves as chairman of Sprott Inc., as well as CEO, CIO and senior portfolio manager of Sprott Asset Management LP. “We’ll certainly see a three-digit price,” he adds. Larisa explains how the company’s business model differs from others in the space and reveals plans to open Sprott Money USA within the year.
The Gold Report: Your Markets at a Glance commentary last November said it seemed unlikely that silver would stay under $30 for long. Four months later, the spot price is about $35. Are you surprised by how quickly your prediction came true?
Eric Sprott: Read more…
Richard Lehmann: China May Corner Gold Market
China has likely begun a campaign to convert its dollars to gold that could end up with the nation cornering the gold market, says Richard Lehmann, editor of the Forbes/Lehmann Income Security Investor newsletter.
China is alarmed about potential weakness for the dollar, he says in an interview with Steve Forbes.
So “I’m concerned that basically China is probably already on a program to diversify the dollar into gold. I don’t think they want any other fiat currencies or want to minimize that amount.”
 |
| Gold bars |
If China buys enough gold, at some point it can simply dictate the price, Lehmann says. And it has the means to do so, given that Chinese currency reserves total almost $3 trillion, and the world’s gold supply is now worth about $5 trillion, he says.
So China could “in one stroke, basically take control of the gold market and tie the dollar to gold so that effectively, if every six months the dollar deteriorates 5 percent, they can just upgrade the stated price at which they wanted to buy gold and thereby upgrade and up-value their gold reserves, but also keep the dollar in check.”
With plenty of other investors buying gold too, many experts expect it to continue rising. Richard Russell, author of the Dow Theory newsletter, says in a commentary obtained by King World News that the precious metal may reach $6,000 an ounce.
Utah Legislature backs gold as legal tender
The Senate gave final approval Thursday to a bill taking the first step to recognize gold and silver as legal tender in the state.
It voted 16-7 to pass HB317, and sent it to Gov. Gary Herbert for his signature.
The measure would recognize as legal tender gold and silver coins issued by the federal government — not just their face value, but also their value in gold and silver or to a collector.
It would not require anyone to accept them, however, but make it an option. It also would exempt sales of such coins from capital gains tax. It also would order the state to study whether Utah should establish an alternative form of legal tender, such as one backed by silver and gold.
“It will put some pressure on the federal government. That’s the goal here because Read more…
Soros: Communist Chinese Model Of Order May Become “The Envy Of The World”
Billionaire investor George Soros has once again cited China’s dictatorship as the model for the rest of the world in a speech at an elite gathering in Europe.
Soros told the exclusive Travellers Club, that “China’s model of state capitalism, in which the interests of the individual are subordinated to those of the government, poses a danger if its example becomes“the envy of the world.”
“Perfect order and global governance are not realistic expectations.” Read more…
The Coming Rout QE3
There’s a scenario that could play out between May and September in which commodities (including my beloved silver) and the stock and bond markets could all sell off between 20% and 40%. The trigger will be the cessation of QE II and a multi-month pause before QE III.
This is a reversal in my thinking from the outright inflationary ‘buy with both hands’ bent that I have held for the past two years. Even though it’s quite a speculative analysis at this early stage, it is a possibility that we must consider.
Important note: This is a short-term scenario that stems from my trading days, so if you are a long-term holder of a core position in gold and silver, as am I, nothing has changed in my extended outlook for these metals. The fiscal and monetary path we are on has a very high likelihood of failure over the coming decade, and I see nothing that shakes that view.
But over the next 3-6 months, I have a few specific concerns.
It’s time to build on the idea I planted in the Insider article entitled Blame the Victim (February 28, 2011) where I speculated on the idea that the Fed might be forced to end its Read more…
Gold and Silver over the next month or so
Last month I calculated Silver was about to go ballistic – I think a 28 % price rise is pretty impressive in one month. I presumed gold would follow at a more leisurely pace. It did. Short term though the fundamentals of each are disconnected. Gold is reflective of safe haven mode where as silver is in highly speculative mode.
Silver hasn’t finished yet by a long shot, but it is pausing for breather. In January I thought out what is happening and it seems now we are due a pull back. In January I did ludicrous calculations to prove the state of the market to justify my thought process. The dips are now very shallow. I was surprised that silver broke $35 so quickly and seems to Read more…
Dollar dies, States rebel and FLEE to gold and silver standard !!!
New Currency Arrangement and Revaluation of Gold Reserves Predicted
Chris Powell, Secretary/Treasurer of gata.org, is asked by James Turk, Director of The GoldMoney Foundation and Founder of GoldMoney if we’re heading towards a monetary train wreck. Chris expects the central banks to mobilize gold back into the monetary system. This would perhaps mean a new currency arrangement and a revaluation of the gold reserves. View the full 34-minutes interview at: www.goldmoney.com/powell-turk.
![[Most Recent Quotes from www.kitco.com]](https://i0.wp.com/www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](https://i0.wp.com/www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
crisisboom
CRISISBOOM 
You must be logged in to post a comment.