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Poor Man’s Gold is Breaking Out — Sell Your House and Buy Silver?
Investors have pushed silver above the recent channel high at around $39 or so per ounce and I fully expect a retest of $50 if any more talk is given about QE3 — Silver rises because of the rising digital money supply, not from speculation. Owning cash is speculative whereas owning metals is conservative or a safe haven at current prices.
Many people will tell you that silver and gold are in a bubble but the fact is that commodities in general are one of the only asset classes that work here because the consolidated banking system is holding our economy hostage and Bernanke is solely focused on saving the banks. Right now, shorting European banks and going long silver and gold looks to be about as good of a “trade” as possible — investors are essentially betting that Europe will face massive credit problems because of the obvious insolvency of Greece, Italy, Portugal, Spain, and Ireland.
The next shoe to drop is the US… We are facing the exact same issues as Read more…
Bernanke to Invent New Term for Printing Money
When the U.S. Bureau of Labor and Statistics (BLS) reported their latest consumer price index (CPI) inflation data last week, everybody in the mainstream media worked tirelessly to spin the data in order to proclaim that U.S. price inflation is not a problem. Most articles in the media reported that inflation slowed in May due to falling gas prices. The truth is, gas prices rose last month and U.S. price inflation is spiraling out of control. Price inflation based on the CPI on a year-over-year basis rose during the month of May to 3.57%, up from 3.16% in April, 2.68% in March, 2.11% in February, 1.63% in January, 1.5% in December, and 1.1% in November. The official rate of price inflation has more than tripled over the past 6 months. Yes, maybe the rate of Read more…
Seven Reasons We’re Buying a Home and Four Reasons We’re Not
Although the housing bubble and bust may have shattered notions that home prices have nowhere to go but up, Americans haven’t lost their love for owning a home. In the latest Allstate/National JournalHeartland Monitor poll, homeownership ranked second, just behind raising a family, in people’s definition of the American Dream. Despite new home sales’ drop to a record low, about four-fifths of respondents said that owning a home is still a better financial decision than renting, and nearly nine in 10 homeowners say would buy their home again.
Those results also underscore the extent to which Americans see buying a home as a deeply personal decision. It seems the decision to buy a home is made from the heart, while the decision to rent comes from the wallet.
That is a great way to look at the situation. Most people want to buy and own. Those who look rationally at the costs often chose to rent, not because it’s the most emotionally pleasing choice, but because it’s the most financially sound decision. Those who chose to rent recognize that being house poor is its own form of Read more…
Mubarak could be worth $40 billion to $70 billion
Egyptian President Hosni Mubarak and his half-Welsh wife Suzanne
According to analysis by Middle East experts, Mubarak has taken much of the gains overseas and deposited much of his wealth in secret bank accounts in British and Swiss banks, The Guardian reported on Friday.
Observers say the Mubaraks have also invested in real estate in Read more…
Gold buying spree grips Chinese households
In this world of chaos and tumult, the Chinese people know what to do to preserve their wealth – they buy gold. When Americans finally wake up, if that ever happens, there is a good chance that there won’t be any gold to buy at any price.
By David Lew
BEIJING (Commodity Online):An unprecedented investor interest in gold is turning Chinese households as store houses of wealth these days as people are on a gold buying spree across the rural and urban areas of the dragon country.
Bundles of news stories are these days written on the gold buying spree by the Chinese households. If not an overstatement, it is now a fact that people’s houses in China have soared in value thanks to the rising prices of gold in the last two years.
“People in China are buying gold like never before. They believe that gold is the best form of investment. So they are buying gold coins, bars and jewelery items and stocking up safely in their homes,” says Beijing-based bullion dealer J Kim Lee.
Quoting the World Gold Council figures, Lee says that if the gold buying spree by Chinese households goes on at the current pace, private gold Chinese demand may overtake Indian gold demand by 2014, giving the world’s two most populous nations two ounces of gold in every five sold worldwide that year.
Indian households are estimated to be owning 15,000 tonnes of gold. India continues to the largest consumer and importer of gold worldwide.
According to precious metals analyst Steven Jon Kaplan, a significant percentage of gold’s price increase in 2009-2010 was caused by the incremental demand from 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…
Something Large This Way Comes
And so it picks up steam. What started in Iceland, instigated by Wall St, has now engulfed Tunisia, Yeman, Sudan, Egypt, Syria, Jordan and others yet to be made manifest. Saudi Prince Turki bin Abdul Aziz Al Saud has warned the country’s royal family to step down and flee before a military coup or a popular uprising overthrows the kingdom.
Julianne the Apostate can take the credit of kicking this ball down the hill as it was his release of some of those documents which demonstrated selected venality amongst certain countries’ leadership. It would have happened anyway, but the Apostate, it seems, was the spark. How this could be to Israel’s benefit is beyond me.
The control system is blowing apart at the seams. Anyone thinking the unrest across North Africa to the Middle East is part of a planned paradigm has got to be crazy. Certainly, there are organizational forces at work trying to ride on top of the chaos, but all Read more…
Wealth Cycle Investments
Wealth cycles are nothing new, however, the potential of this upcoming cycle will be the largest in the history of mankind impacting that of global proportions. When the financial currencies of the world collapse, the transfer of wealth will happen literally overnight. Those who are invested in gold/silver certificates, bank accounts, stock market, checks, bonds, IRA’s, currency (ie Federal Reserve Note, Euro) are prone to loose everything they have worked so hard for. You must recognize what cycle we are in to avoid the pitfalls. It’s the same as common knowledge, if you were watching the weather channel and the meteorologist says that there will be a record blizzard in 24 hours what would you do? The first thing I would do is to make sure that my house has ample food, warm clothing and lots of firewood. If you don’t take these certain precautions surely you will suffer the consequences of hypothermia, starvation or even death. 
Wealth cycles have a long history originating in ancient Greece and Rome. Every time in history upon the birth of a fiat system when a government intervened in free markets, the markets would eventually undergo a correction. You can see that every time a government began devaluing its currency by creating more and more of it, certain events, like inflation or hyperinflation, would follow, every time. In the case of America the same thing is beginning to snowball.
This current cycle that we are in heavily favors gold and silver. You see it on the news everyday and you read it in the newspaper. Question is, have you ever thought about selling your scrap precious metal to one of those gold buyers you just saw on TV a few minutes ago? If you were to sell your precious scrap metal or coins for the inflated quote of dollars they will give you then the following week the monetary system collapses what would you have gained?
Countries such as China have recognized this cycle. It recently was announced that China imported 209.7 metric tons of gold during the first ten months of 2010. That was five times more gold than China imported during the first ten months of 2009. China is even encouraging its citizens to purchase gold and silver! Other nations such as India, Russia, Brazil, even Sri Lanka have been making news by announcing that they all want to build more gold reserves. When you see large international moves like this, you have to know something is up.
Mike Maloney says “I’m not a gold bug or a silver bug. I’m really a cycles guy. Silver, I believe, is the best way to get a whole bunch of cash flow, real estate, high-dividend-yield stocks, or something that is creating income every single month. What you eventually want is cash flow.”
http://blogs.wsj.com/marketbeat/2010/12/03/gold-demand-huge-buying-from-china/
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