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Key Players Buying More Gold Now
Investor appetite for gold is heating up, in part because of signals from hedge fund guru John Paulson, the guy who saw the real estate meltdown coming in 2007 and became a billionaire as a result.
The Paulson & Co. founder “told investors it’s time to buy the metal as protection against inflation caused by government spending,” Bloomberg reported today.
Bloomberg reported that 12 of 22 companies surveyed had a buy on gold, with five surveyed neutral.
Paulson & Co., the largest owner of the SPDR Gold Trust Exchange Traded Fund, which trades in gold futures, cut its position in 2011, Bloomberg reported earlier, probably to cover losses in securities.
A Feb. 14 SEC filing showed Paulson & Co. with $2.9 billion worth of SPDR shares, according to Bloomberg’s latest report.
Meanwhile, central banks—even as they act to inflate 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…
What kinds of societies create wealth? What kinds destroy it?
There are some activities that are positive sum activities. That is, they are productive. They increase the total of real wealth in a society.
Bill Bonner
There are other activities that are zero sum activities…or even negative sum activities. War, for example. Excess legal wrangling. Paperwork. Too much time spent in schools. Too much support for the unemployed, the malingerers and the loafers. These things decrease the total of real wealth in a society.
Sometimes people are bright, honest and hardworking. Sometimes they are lazy, shiftless and cunning. They always prefer to get wealth and status by the easiest means possible. In some societies, the best way is by working hard. In others, it is by being clever…becoming a lawyer…a banker…or a government hack.
A new society…or a fresh economy (such as one that has just been flattened by war or hyperinflation)…or a new model for an economy…is generally a wealth-creating society.
A free society is also generally a wealth creating society. People do what they want. If they want wealth, they are free to create it.
But as societies (or economies) age, they become Read more…
IN THE STOCK MARKET, IT’S 1937 ALL OVER AGAIN
One of the most worrisome problems in the stock market right now is that we are basically repeating the exact same situation that occurred from 1937 to 1942.
Most Americans think we’ve had this amazing stock market recovery since the financial crisis of 2008… and we have to a certain extent.
But we are by no means out of the woods.
In fact, during America’s last real economic collapse, in the 1930s and 1940s, we saw a similar drop and recovery… before the markets crashed all over again.
In fact, the situation is eerily similar.
Look at this chart… it’s one of the scariest I’ve seen in a long time. It shows an overlay of what happened in the stock market in 1937 compared to 2008. In both situations, we saw big crashes, of about the exact same magnitude… then a big recovery, again of about the same size.
But what will happen next?
Well, if history is any guide, we could well have another big leg down in the stock market. That’s exactly what happened 70 years ago.
And with all of the problems left unresolved in our economy today, it could certainly happen again, especially if the U.S. dollar loses its reserve status.
http://www.stansberryresearch.com/pro/1011PSIENDVD/PPSILC42/PR
Federal Reserve Banking System Explained
Federal Reserve Banking System Explained
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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