Thursday, December 30, 2010

Everthing Gold is New Again

By: Shayne McGuire December 29, 2010

In stormy times, investors look for something solid to hang onto—something like gold. The World Bank president himself, Robert Zoellick, suggested in November that the world’s economies could use the old reliable metal to help stabilize their currencies. For these and many other reasons, professional gold-fund manager Shayne McGuire argues that gold has nowhere to go but up. The following essay is adapted from McGuire’s latest book, Hard Money: Taking Gold to a Higher Investment Level.  LINK...
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Shayne McGuire is not your average "Gold Bug," predicting a financial collapse. He's head of global research for one of America's largest pension funds managing over $115 Billion in assets. He says most pension funds have only 0.3% of their assets allocated to Gold and many fund managers are being forced to take a more serious look at Gold because of its outstanding performance (+280%) in the past decade. During the end of the last Gold bull market in the 70's, global asset allocation to Gold was about 26% , compared to just 0.8% today (see chart below provided by the Erste Group Research). Shayne says, "a rise to $10,000 an ounce is not out of the question." He says that Gold rose by a multiple of 23 during the end of the 70's. We think that compared to this decade low of $250, it should take us to at least $5,750 an ounce($250 X 23)? We assume that no one really knows what the new high for Gold will be, but we're convinced that Gold has much higher to go before this bull market is over. When looking at the chart below, think about the time period in history before these highs occurred; the World Wars, Depressions and Inflation? There's no doubt in our minds that global assets in Gold will reach historical levels, our concern is-- at what cost to society?   BK

Wednesday, December 29, 2010

Richard Russell Signals Warren Buffet to Take Notes From His Father

From: 321Gold
http://www.321gold.com/editorials/russell/russell122810.html

Richard Russell
Dow Theory News Letters
Dec 28, 2010

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Some call him the Godfather of investment newsletter writers, Richard Russell has been in the markets for 50+ years and is highly sought after by professionals and retail investors for his investment wisdom. In the article above he says that Warren Buffet's father, Howard Buffet understood Gold, but not Warren. Mr. Russell says that he has studied and experienced many bull markets and they never end in a whimper, rather an explosion to the upside. He feels that Gold will end this way and we are not even close to that end. BK

Monday, December 27, 2010

World Bank reaffirms gold as "reference point" to monetary system reform

08:14, December 23, 2010
Source: Xinhua

World Bank President Robert Zoellick reaffirmed his proposal to use gold as a "reference point" to reform the current international monetary system on Wednesday in Paris.   LINK...
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We agree and see no other alternative. History is repeating itself and Gold will become the stabilizing force for ALL currencies. Gold is the axiom to currency stability and economic reform. It has been this way for thousands of years and will continue to be. Those in finance who ignore the facts of history will be doomed to repeat it.  BK

China Central Bank absorbing substantial amounts of gold without disrupting market

Author: Lawrence Williams

Posted: Thursday , 23 Dec 2010

China can build its reserves without overtly appearing to do so, by buying in its own gold production, which not only includes mine production, but also output from custom refining, either of gold directly, but also from byproduct gold from its vast base metals refining sector.  LINK...
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China has been called the next Great Nation of the world by many well respected and successful financial guru's. China has not only absorbed much of our manufacturing sector in their own country, but they have also been acquiring commodity based companies around the world. They see the "writing on the wall" and diversifying out of the USD is key to their strategy. Buying gold to protect their USD reserves has been actively pursued by China for a long time now. Although China may keep their gold strategy a secret, global central banks have publicly revealed their intention to increase their gold reserves. We see no reason why every citizen who has investments should not have gold bullion as part of their portfolio. What is the old saying? Don't do as they say, do as they do!   BK

Commodities: Gold's Year-End Review

From: SFO Magazine http://www.sfomag.com/
http://www.sfomag.com/SFOWeekly/Detail.aspx?ID=350&StoryDate=12272010&STID=A04DCD0E-0D63-4088-BF54-A69777D8E295

By Mike Daly

As a long-time gold bug, all I can say is wow! This has been a year filled with global economic ups and downs, causing savvier investors to turn to alternative, safe haven investments to protect their wealth. Since gold and silver historically retain their value better than most other commodities, these precious metals have benefited from the poor economic climate.  LINK...
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To receive updates from Mike Daly, please join our e-mail list.  BK

Gold to Rise in 2011

Country 95.9FM CJWF
December 27th, 2010 . mvlasveld

A Windsor expert on the value of gold believes it’s value will continue to climb in 2011.

Bosko Kacarevic at Gold Coins Canada says gold climbs in value when people are worried about the economy and want to stabilize their wealth. It’s worth about $2,000 an ounce now. He believes there are two reasons why gold will continue to gain value. Kacarevic says the US government just introduced what they call a new “quantitative easing,” which basically means they’ve been printing money, and there’s not much sign of quick job recovery. He also says it may gain ground as governments around the world reintroduce it into the value of their currency. Kacarevic also believes silver may gain value in 2011.  LINK...

Thursday, December 23, 2010

A Show Stopper

IMPORTANT!!!
The story behind the Silver manipulation.  BK

By: Theodore Butler

Commissioner Bart Chilton, much to his credit, made a number of recent statements that gave me great encouragement. He has confirmed that a single entity controlled 35% to 40% of the short side of COMEX silver earlier this year. (He didn’t identify JPMorgan as the entity, because he is precluded by law from doing so.) Chilton also indicated that he thought a 1500 contract limit for silver to be reasonable.

But it was something that Chilton said in a speech two days before the meeting that rocked me. In essence, Chilton proposed that any time a trader hits the proposed position limit and is holding a hedge exemption from position limits the agency would closely review the details of the underlying swaps that allowed the exemption. Importantly, Chairman Gensler ratified Chilton’s approach at the hearing and directed the staff to initiate this approach immediately. The chairman’s exact words were, “Make it so.”

Why was I rocked? Because I thought the agency was already doing this. Then it dawned on me that verifying whether the OTC swaps position that allowed JPMorgan to hold the obscenely concentrated COMEX short position was handled by the CME as part of their role as a SRO (self-regulatory organization). The CFTC never got to examine the details of what swaps justified JPMorgan’s concentrated silver short position, just the CME. In an instant, I knew how the silver scam was allowed to continue this long. The exchange decided what OTC swaps were legitimate, not the CFTC. But with Chilton’s Position Points approach, it would now be the agency doing the verification. Talk about a game changer.  LINK...
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Dear readers,

This breakthrough in exposing the Silver manipulation is a long time coming and Ted Butler, one of the most respected authorities on the Silver market explains why the price of Silver has been lagging so much compared to the other metals in its class. As we have shown in our post from Dec 16th, Silver should be the shining star in the metals market in 2011. We expect high volatility and much higher prices in both Gold and Silver in 2011.  BK

Disclaimer:  Trading and investing in precious metals is highly volatile and risky. Past performance is not indicative of future results. Please consult with a registered financial advisor or tax professional before investing in precious metals.

Wednesday, December 22, 2010

Raymond James Raises Silver Price Estimates

Financial Post: Eric Lam December 21, 2010 – 1:10 pm

If the past year has been a good one for gold, then it’s been a great one for silver.

Since August alone, silver prices have jumped more than 60%, crossing the $30 an ounce threshold. Year to date, the price of silver has averaged $19.86/oz, a 35% increase on the 2009 average.

“With the drivers for precious metals remaining firmly in place, we are increasing our long-term price assumptions for silver bullion to $17/oz from $14/oz,” the Canada research team from Raymond James said in a note. “The current key drivers behind the rise in silver are similar to that for gold, including quantitative easing I, II, likely III and possibly IV, paper currency debasement, sovereign debt issues, concerns over future inflation and strong investment demand, particularly from emerging markets.”   LINK...

Thursday, December 16, 2010

The Case For Silver: A Simple Approach

By: Bosko Kacarevic

Like Rodney Dangerfield, Silver
"Gets NO Respect."
 

Over the past few years we have seen multi-decade highs in practically all commodities especially metals.


We have heard all the arguments about Gold; is it money or an ancient relic, Platinum; is it a precious metal or an industrial metal and of course Copper; the ultimate industrial metal. All three have significantly broken their 1980 high. So why does Silver "Get No Respect?"

(Prices are rough estimates)










Whether considered a monetary precious metal or an industrial metal, Silver is still lagging by 104%. Where does this number come from? The average percentage gain in Gold, Platinum and Copper since 1980. Whether or not this is an accurate way to measure the price of Silver, the fact remains that compared to its peers, Silver is lagging BIG TIME! Where will it go? We have heard estimates of $500/oz, but just to catch up to the performance of the other three metals we think it could easily reach $80/oz (104% of its 1980 high of $40) very quickly. When will this happen? No one really knows exactly, but you can be sure that Silver WILL "GET RESPECT" sooner rather than later. BK

Wednesday, December 15, 2010

China’s Golden Surprise: A Glittering Opportunity?

December 13, 2010
Jim Trippon http://www.seekingalpha.com/

This is the kind of thing that the Chinese usually keep a secret. No one knows why Beijing broke with tradition. But perhaps the news was too big to contain behind the usual wall of silence.

If you hadn’t already heard, China’s gold imports are up – way, way up. In the first ten months of the year, China’s gold imports jumped fivefold. With two months to go in the year, China had quintupled its intake of gold compared to the full year of 2009.

This is big! Remember, China is already the world’s largest producer. Yet its gold imports rose to 209 tonnes in the first ten months – up dramatically from just 45 tonnes the year before.

(2011 is the year of the rabbit in China, a year in which some say "money can be made without too much labour.")   LINK...

Monday, December 13, 2010

John Williams and the Hyper-Inflation Argument

John Williams and his services are sought after by many professionals. http://www.shadowstats.com/

Of course his solution for protection is to own physical Gold and Silver.

Friday, December 10, 2010


Join the Silver Bulls in the Stampede to Higher Prices 


Thursday, December 9, 2010

Priced in Gold, the So Called S&P 500 Rally is a Dud!

Dear readers,

Chart provided by http://www.stockcharts.com/ and Jesse's Café Américain


















For those who continue to ignore the fact that Gold is "money," not an investment, here is a chart of the S&P 500 index priced in Gold. As you can see the "rally" is not very impressive when priced in Gold.  The big illusion is that the "price" of Gold is going up. As we have been saying for some time now, Gold doesn't change. An ounce of Gold today is the same ounce of Gold a thousand years ago, the difference is the quantity of dollars it takes to buy that ounce of Gold. So it's not about Gold it's about the dollar losing value against Gold and other commodities. There are many who misunderstand Gold, it is not supposed to have a cash flow, P/E ratio, dividends or pay interest because it is money! Does the Canadian dollar pay dividends or interest? NO! Gold is a form of cash and people go to Gold when "confidence" in government and markets is lost. It is the last resort currency to protect ones wealth. Throughout history governments around the world have used Gold as a backing to their currency, and there's a reason for it. Which is a whole different topic all together.
Basically Gold is a barometer of fear in the market and those who choose to ignore the fact that the financial system is broken will suffer the consequences because I assure you that the powers that be or the "internationalists" know what's happening and they own Gold, and the physical bullion not paper substitutes. Just listen to Peter Munk's comments in the Charlie Rose interview below, he says that his billionaire friends have concerns about the markets and they're going to Gold. Even in Davos 2009 Mr. Munk was telling us the same thing. We agree that a high Gold price is not a good sign for the economy and the markets but we cannot ignore the facts, Gold has been the best performing asset class in the past ten years and all the fundamental signs are pointing to a much higher price. Just ask yourself what will be the result of all the bailouts, stimulus and Quantitative Easing (QE) that the FED is creating? It surely hasn't returned any jobs to America and Chairman Ben Bernanke even admits it in his recent 60 Minutes interview.
There is a big difference between being optimistic and realistic, we choose the latter and hope that we're wrong, because when you plan for the worst and hope for the best, and the worst happens, then it's not good for anyone, but at least you would have protected your wealth with Gold.   BK

Tuesday, December 7, 2010

All about Gold with John Hathaway, Peter Munk, & James Grant

A GREAT VIDEO!!!      
by: Charlie Rose

Charlie Rose sits down with three very successful market gurus from the investment industry and discusses GOLD! Folks, you can't get any better than this, these guys cover ALL the bases. The big take away from it all... Look to Gold as "money" not an investment. Gold is a measure of wealth a barometer of the global economic condition. The trick is to calculate the performance of your investment portfolio in terms of Gold. As we have been saying all along "the rise in Gold is not about the rise in Gold, it's about the loss of CONFIDENCE in the U.S. dollar as the world's reserve currency."   BK

Sunday, December 5, 2010

Ben Bernanke on 60 Minutes

Friday, December 3, 2010

Gold is Poised to Explode

Compliments of King World News KWN
A discussion with legendary Jim Sinclair
When will we see the first $100 move in a single day in gold?

“Before this year is out. That is one of the things which I’ve predicated my $1,650 by January of 2011 call on, and we are about to find out.
Look at Harry (Schultz) dean of the whole bunch, he believes that when confidence falls, it falls instantaneously. It may be ebbing and flowing, ebbing and flowing, and than all of the sudden wham, it’s gone! And that will be both the dollar market and the gold market, and it will be in synch.”  LINK...

Paper Gold Owners Should be Concerned, Please Review Your Prospectus

Compliments of Jim Sinclair's JSMineset


Subject: FW: $$: Lots of fake gold shows up in Hong Kong

HK gold market hit by sophisticated scam

By Robert Cookson in Hong Kong
Published: December 2 2010 03:59
Last updated: December 2 2010 03:59

Hong Kong goldsmiths have been sold hundreds of ounces of fake gold this year in one of the most sophisticated scams to hit the Chinese territory’s gold market in decades.
Industry executives say the scam – while not massive and hitting only the retail sector – uncloaks the increasingly elaborate gold swindles perpetrated by criminals in Asia as bullion prices soar to record highs of $1,400 a troy ounce.  LINK...

Thursday, December 2, 2010

China, The Next Global Super Power is Buying Gold, Hand-Over-Fist

Gold Imports by China Soar Almost Fivefold as Inflation Spurs Investment

By Bloomberg News - Dec 2, 2010 4:55 AM ET

Gold demand in China gained in the first half as government measures to cool the property market and falling equities spurred investment, the gold exchange said July 7. About 70 percent to 80 percent of the imports in the first 10 months were made into mini-gold bars, which Chinese investors like to hold, the exchange’s Shen said.  LINK...

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Here's an interesting view on why China is urging its citizens to buy gold. VIDEO

I must say that it does make good sense considering the condition of the U.S. economy and the weakness in the USD.  BK

Tuesday, November 30, 2010

Why Eric Sprott sees silver as the next big investing windfall

SHIRLEY WON — INVESTMENT FUNDS REPORTER
From Tuesday's Globe and Mail
Published Monday, Nov. 29, 2010 6:30PM EST

You have been a bull on gold from the get-go. Is its price over $1,350 (U.S.) unfolding as you expected?
It’s been the investment of the decade. When I bought gold, I was buying gold to hold [as a long-term investment]. As it turned out, it quintupled. I didn’t think it would go that far because no none would have imagined that the central banks and governments would get themselves in a position where they are printing money.
The printing of money makes gold more valuable. You don’t have to be a genius to figure this out. The Johnny-come-latelies – the Paulsons, Einhorns and Soros – all figured out, when [the Fed announced the first round of quantitative easing], that they should own gold. It becomes more obvious every day as you see these financial challenges that we have in Europe.
But the real story now is silver.

Why are you more bullish on that metal?

Gold has traded at a ratio of 16-to-1 to silver in terms of price, but today it trades in the range of 50 to 1. I think the gold-to-silver ratio is going to go back to 16 to 1 given the passage of time, say three to five years. And I bet you that silver overshoots. The gold-to-silver ratio may even get down to 10 to 1. I believe that the price of silver has been suppressed.  LINK...

Sunday, November 28, 2010

Gold Fever: Pondering the Causes

The New York Times
By FLOYD NORRIS

Published: November 25, 2010

It is part religion, part politics. It is a way to voice a lack of confidence in the central banks of the world and a yearning for the world as it used to be. It is an investment that historically made sense when inflation was rampant, and yet it is soaring while the Federal Reserve frets about the threat of deflation.

It is gold.

Over the last four decades, the only ones in which gold was freely traded, gold proved to be a good buy precisely when it appeared the system was failing. In the 1970s, gold zoomed upward from artificially low levels, while stocks did not come close to keeping up with inflation. In the 1980s and 1990s, stocks rose at rates greater than 15 percent a year, and gold went down. In the first decade of this century, stocks declined while gold rose at a compound rate of almost 15 percent a year.

So far this year, both gold and stocks are up. That combination is unlikely to last out the current decade.

Betting that $1,400 gold will soon be $1,800 gold or $2,500 gold is basically a bet that the West really is in permanent decline this time, with countries facing the prospect of bankruptcy or sharp reductions in spending on everything from schools to pensions. Or perhaps all of the above.

Let’s hope the bet is wrong.  LINK...
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This is the ironic thing about being successful in the Gold business. It means there is economic and social "unrest" in society. No sane person wants Gold to go ballistic but I don't think there is much sanity in the current monetary policies of the Western nations. We now have QE in Europe for Ireland and the new QE in the USA. This cannot last long and Gold will be the only sound money in the world, it is inevitable and axiomatic. The big difference between Gold bulls and Equities bulls is that Gold Bulls fundamentally do NOT want to be right because of what it means for society, it's a "protection play," but sometimes the truth hurts and unfortunately this time it will really hurt.  BK

Thursday, November 25, 2010

$500 Silver Says Max Keiser

Max Keiser explains how and why Silver can get to $500/oz. It has long been discussed in the hard money circles that manipulation of gold and silver existed and will come to an end. The recent CFTC hearings and confessions of a London trader have opened a big can of worms for the naked short sellers of gold and silver. We believe that silver will move much faster than gold on a percentage basis but they both have much higher to go in this bull market.   BK

VIDEO...

Wednesday, November 24, 2010

A Taste of The International Forecaster: Bob Chapman

This week in the USA section of The International Forecaster

The social net has become a bit more frayed. Soon extended unemployment benefits will cease and 2 million Americans will have to dip into their savings, if they have any. This is an outgrowth of the effects of free trade, globalization, offshoring and outsourcing. We have lost 8.5 million jobs over the last ten years to this destructive process. We have seen more than 42,000 manufacturing plants leave the country as well. There are now more than 17 million Americans unemployed and the U6 official government unemployment figures 17%. If you remove the bogus birth/death ration, the real figure is 22-5/8%. Over that ten-year period we have lost about 5.5 million manufacturing jobs or about 1/3rd of that labor force. As recent as 1985, 25% of output was in manufacturing, now it is close to 11%. America’s physical infrastructure is in a shambles, so that transnational conglomerates can bring us cheap goods to suppress inflation and bring these companies mega-profits, which they keep stored offshore to bypass taxation. They presently have $1.7 trillion in such profits.

This in part has been caused by deficit spending and the creation of money and credit since August 15,1971, when the US left the gold standard. It is not surprising as a result that 81% of the US economy is considered in poor shape and that the IMF fears a social explosion. You could call this a financial death spiral.

Tuesday, November 23, 2010

More Bad News For ETF's

Bloomberg · Sunday, Nov. 21, 2010


Gold’s 24% surge this year to a record is proving no deterrent to George Soros, John Paulson and Paul Touradji, whose investments signal more gains for the longest winning streak in at least nine decades.
Securities and Exchange Commission filings this month by Soros Fund Management LLC, Paulson & Co. and Touradji Capital Management LP listed investments in gold as their biggest holdings. Exchange-traded products own 2,088 metric tons, equal to nine years of U.S. mine supply, data compiled by Bloomberg show. Precious metals will produce the best commodity returns in the next year, Goldman Sachs Group Inc. said in a Nov. 9 report.
Read more: http://www.financialpost.com/news/Soros+gold+bubble+expanding/3865903/story.html#ixzz16AGCjcW5

Eric from JSMineset also comments on the Gold ETF's

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In our opinion, Gold ETF's are nothing but modern day alchemy. People must learn, there is NO substitute for real Gold in your hand. Our U-Vault Account allows clients to actually hold the Gold in their hand before it goes in the vault for storage. There are no custodians, subcustodians, derivatives or intermediaries. It's YOUR Gold, fully allocated, segregated and sealed in the vault, period.  BK

Gold, silver continue rally in uncertain times

Advisor.ca:  Vikram Barhat / November 23, 2010

"Gold is not trading on inflation expectations, it's really trading as an alternative currency to the U.S. dollar," said Paul Taylor, chief investment officer, BMO Harris Private Banking. "There's the expectation that the reflation of the U.S. economy is not good for the U.S. fiscal debts and deficit situation." 
 
A deepening lack of faith in paper currencies has been driving investors globally to adopt gold as an alternative currency. "If you look at currencies around the world they are all faith-based initiatives," said Herring. "They are all paper currencies backed by nothing."  LINK...
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A good article that touches on many of the points we've been talking about on this website.
As we've been telling our clients for a long time now. "The rise in Gold is NOT about the rise in Gold. It's about the loss of confidence in the U.S. dollar as the world's reserve currency."    BK

Thursday, November 18, 2010

Poetic Confessions of a Banker

As seen on www.jsmineset.com


video

People always wonder who's controlling our money from behind the scenes. We believe this video speaks the truth that has existed for hundreds of years.

The important thing to keep in mind is history, and the real reason why the United States of America was founded and what the "Declaration of Independence" was all about?
European's fled to America to preserve their culture and escape from tyranny, and to live as FREE men.
Of course the currency of the nation was backed by GOLD back then, and there was a reason for it. Gold keeps bankers and politicians honest and disciplined and keeps "the power" in the hands of the people!
Think about it, if the "internationalists" own the media, the politicians and the Gold then they always have the power. THEY don't want to lose that POWER so they always discount Gold ownership because they want it for themselves. If you have any doubt to this fact then please refer to history and realize that Gold has been a measure of wealth for almost 5000 years and it has outlasted EVERY government, currency and stock market that has EVER existed!   BK

Wednesday, November 17, 2010

Wealthy Families Shun Gold ETF's for the Real Thing, Physical Gold is True Protection

Financial News
Tara Loader Wilkinson

15 Nov 2010

A lawsuit filed last week against global banks JP Morgan and HSBC by investors in the US, over an alleged conspiracy to manipulate the market for silver futures, was the latest news to take the shine off the gold derivatives industry, wealth managers said. JP Morgan did not return calls for comment. HSBC declined to comment.
Ned Naylor-Leyland, partner at Cheviot Asset Management, said a lack of trust in banks and the spectre of counterparty risk was a problem. “I hear Swiss banks are turning out their vaults for clients wanting to take home their gold. Trust is wearing thin.”
The suggestion of manipulation followed assertions that paper claims on gold far outweighed the physical asset. This year, Jeffrey Christian, managing director of commodities market researcher CPM Group, said a hundred times more gold and silver changes hands each year than is produced or used.
According to the World Gold Council, global demand for gold bars climbed by a third between the second quarter of 2009 and the same period this year, while demand for gold ETFs and similar products rocketed 414%.
Nicholas Brooks, head of research and strategy at ETF Securities, said concerns that many ETFs are not backed by physical assets are overblown. He said: “Our ETFs are 100% backed by physical gold in vaults in London. There are other gold investment vehicles listed globally that do not provide the same level of detail on their holdings or independent audits and this may be a factor fuelling some of the conspiracy theories.”  LINK...
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We have been advising our clients to take the common sense approach to this problem. Think about the fundamental reason why people invest in Gold in the first place? For insurance against a failing financial system, a loss of confidence in government and the economy. So why would you trust your "Gold Insurance" in the hands of the creators of the problem to begin with? Maybe the ETF's really do have the gold they say they do, but their prospectus' clearly state that they can trade derivatives, so who really knows? We believe there's NO substitute for physical Gold in YOUR HAND!
As the old saying goes, "He who holds the Gold, makes the rules."   BK

Tuesday, November 16, 2010

Tim Horton's Closing 36 Stores

The Associated Press November 11, 2010, 12:49PM ET

The Tim Hortons chain of coffee shops says it's closing 36 restaurants and 18 kiosks in New England.
The Canadian company announced Wednesday it would close all its locations in Rhode Island, Massachusetts and Connecticut. It's also closing two of its stores in the Portland, Maine, area, although more than two dozen locations remain in Maine.  LINK...
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In the USA they say "As goes GM so goes the USA", in Canada we might as well say "As goes Tim Horton's, so goes Canada."    BK

Monday, November 15, 2010

Food Inflation Accelerating



Farm Costs Soar

The Standard & Poor’s GSCI Agriculture Index of eight futures climbed 30 percent this year, led by corn, wheat, coffee and cotton, as floods in Canada, Pakistan and China and drought in Russia and across Europe killed crops. The economies of China and India, the biggest consumers of cooking oils, are growing at three times the speed of the U.S.   LINK...
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Legendary investor and commodities guru, Jim Rogers has been telling us since 1999 that we're entering a commodities bull market that could last up to 18 years based on history. Mr. Rogers has been dead right ever since while we see ALL-TIME-HIGHS in GOLD and CRUDE OIL, followed by yearly highs in corn, soy beans, sugar, coffee, cotton etc. As we have been telling people on this website that the inflation numbers we see posted by the government do not include "FOOD & ENERGY", which are the most important prices people worry about because it's part of daily living. So, when you sit down with your financial planner and they estimate your retirement income needs based on 2-3% inflation then just ask him to use 10-15% when running his calculations and see what you get. We always say it's better to plan for the worst and hope for the best, especially if you're on a fixed income and in your retirement years.   BK 

Thursday, November 11, 2010

Dialogue About a Return to the Gold Standard Has Begun!

Breaking News:

King World News interviews Jim Rickards about solving the economic crisis with a Gold Standard! LINK...
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Seems to me that a return to the "Gold Standard" will be inevitable, according to these guys and the President of the World Bank, Robert Zoellick. They even suggest storing your Gold in private vaults. HMMM, I wonder if they heard of our
U-Vault Account? BK

Taste of The International Forecaster

This week's taste of The International Forecaster
by Bob Chapman

Several years from now many will see through the fallacies of Keynes and the nostrums that caused its demise. In the case of the Fed its goal is sustainable economic growth and price stability and that long term inflation expectations remain contained. As we have seen stability has been relative and inflation has been with us for many years, particularly since August 15, 1971, when the US dollar, the world reserve currency, abandoned gold backing. The simple conclusion is you cannot have both no matter what Keynes postulated. Central banks, and particularly the Fed, have allowed inflation to always be present, because deflation strikes absolute terror into their hearts. That is why the privately owned Fed demands total control over the US money supply. The Fed contends that they can control the economy via the money supply and manipulation of interest rates. The result is that stable prices are impossible. Growth has to be accompanied by inflation under Keynesianism; there can be no other outcome.
http://www.intforecaster.com/

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We are a long-time subscriber.   BK

Monday, November 8, 2010

Great Set of Articles From JSMineset.com

Jim Sinclair's www.jsmineset.com does a GREAT job updating everyone on the gold market. We visit his site daily.

http://jsmineset.com/2010/11/08/in-the-news-today-700/

Saturday, November 6, 2010

Big winner at Caesars loses at the border

Fri Nov 5, 3:22 PM

By Trevor Wilhelm

WINDSOR, Ont. ­ A Caesars Windsor gambler lost $20,000 to the U.S. government after border guards called his bluff.
After a man from Birmingham, Mich., won $40,000 at Caesars Monday, he put half in deposit at the casino and tried to bring almost $20,000 back to Michigan without declaring it, according to U.S. officials.
"If he'd showed up at the border and said I've got $20,000 with me, we would have counted it, filled out the form and he would have been on his way home with his money."
Failing to declare the cash isn't a criminal offence, so the man's name hasn't been released.
For Canadian gamblers or others crossing the border with a lot of cash, the rules at the border are similar. There is no restriction on the amount of money you can bring to or take out of Canada, but you must report amounts of $10,000 or more. That includes cash, coins, bank notes and securities such as travellers cheques, stocks and bonds.  LINK...

Gold Smells Blood

By Greg Hunter’s USAWatchdog.com -5 November 2010

One day after the Federal Reserve announced a $600-$900 billion second round of Quantitative Easing (QE2), gold and silver hit fresh all-time highs.  Yesterday, the yellow metal surged more than $40 an ounce to well over $1,390 before falling back a few dollars in after hours trading.  Silver, also, had a monster move!  It was up more than a $1.50 per ounce.  It, too, retracted slightly in after hours trading.  That surge in precious metals is a debilitating rebuke of the Federal Reserve’s wild and unprecedented money printing policies.   How bad is it, really, for the Fed to feel this is a good idea?  Gold is acting like a predator that smells the blood of wounded prey.   LINK...

Friday, November 5, 2010

Marc Faber's Outlook for 2009 and Why it Echoes Today

http://www.24hgold.com/article-gold-silver--Video-Marc-Faber-on-the-Economy-goldand-the-shares.aspx?langue=en&articleid=360731_Bloomberg

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Mr. Faber holds no punches on who's to blame for the financial crisis. His thoughts then are spot on to what is happening now. Who says no one can predict the markets? Listen to what Mr. Faber said at the end of 2008 and think about what is happening now. Especially with Gold!   BK

Thursday, November 4, 2010

Commodity Prices Rise Forcing Retailers to Raise Food Prices on the Shelf

Compliments of Dan Norcini from JSMineset
Posted: Nov 04 2010 By: Dan Norcini Post Edited: November 4, 2010 at 10:45 am

Food Sellers Grit Teeth, Raise Prices

From THE WALL STREET JOURNAL – An inflationary tide is beginning to ripple through America’s supermarkets and restaurants, threatening to end the tamest year of food pricing in nearly two decades. Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. And food makers and retailers including McDonald’s Corp., Kellogg Co. and Kroger Co. have begun to signal that they will try to make consumers shoulder more of the higher costs for ingredients.   LINK...

Saturday, October 30, 2010

Eric Sprott on King World News

King Wolrd News interview's Eric Sprott

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Founder of one of Canada's most successful fund companies, Eric Sprott talks to King World News and says physical Gold & Silver is where investors should be.   BK 

Friday, October 29, 2010

Gold Will Outlive Dollar: John Hathaway

Bloomberg


The world’s monetary system is in the process of melting down. We have entered the endgame for the dollar as the dominant reserve currency, but most investors and policy makers are unaware of the implications. LINK...
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This article should disturb you, but should not surprise you because as history dictates: All fiat currency systems fail and collapse one way or another. Unfortunately it is the nature of all governments to run a currency into the ground and unfortunately it is just our TIME. We believe the ONLY way the average citizen can protect wealth is with PHYSICAL Gold & Silver, and it has been proven through 5000 years of history. As they say, "those who ignore history are bound to repeat it. BK 

Wednesday, October 27, 2010

Legendary Real World Economist, Bob Chapman Says $3,000 Gold in 2011



Bob Chapman of the International Forecaster (our favorite newsletter) discusses the economy, politics and Gold & Silver on the Contrary Investor Cafe. Bob calls it like he sees it, a must hear interview for those who want to protect their investments.  LINK...

"Stimulus Program Wins Praise From Auditor General" Sheila Fraser

WAKE UP PEOPLE!!!

As a Canadian citizen I would FIRE Sheila Fraser! She must be living in Disneyland, because the last time I checked Canada's unemployment rate is rising and Windsor (the so called Automotive Capital of Canada) has the highest unemployment rate in the country. What did the stimulus program do for the legendary, 90 years standing GM Transmission Plant in Windsor? GM completely shut its doors earlier this year, and is now a place to play games like "paintball", it's embarrassing. I guess if we can't produce anything we might as well shoot each other for fun. Also, what about the thousands of Ford and Chrysler workers laid-off and the plant closures around the city. Chrysler's Plant#6 on Pillette Road has been leveled and is now a beautiful parking lot. It's absolutely baffling, in the same edition of the newspaper you have Shelia praising the stimulus program and Ford announcing another 450 workers being laid-off. What a JOKE! 

Then in another article we have Infastructure Minister Chuck Strahl telling us that "it's not an exact science. On the other hand we have plenty of anecdotal stories." HEY Chuck, we don't need stories we need JOBS! Especially the ones that were sent to China and India!      BK
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By Mark Kennedy, Postmedia News October 26, 2010

OTTAWA — The Harper government has done a good job of designing an economic stimulus program that quickly pumped billions of dollars into the economy to create jobs, Auditor General Sheila Fraser has concluded.
In her report released Tuesday, Fraser offered solid praise for the spending program — known as the Economic Action Plan — which was the centrepiece of the 2009 budget and was created to stem the effects of the recession.
The government allocated $47 billion to fund job-creation schemes over two years.  LINK...
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HEATHER SCOFFIELD

Published: October 26, 2010 7:31 p.m.
Last modified: October 26, 2010 7:37 p.m.

OTTAWA - Infrastructure Minister Chuck Strahl says he agrees with the federal auditor general that it's a "bit of a guess" how many jobs the government's $47 billion in stimulus spending has created.
 
"It isn't an exact science. On the other hand, we have plenty of anecdotal stories," Strahl said in response to Sheila Fraser's first analysis of the federal stimulus program.

...myriad government departments involved in the Economic Action Plan hired extra people, put in many extra hours and threw all their available resources at getting the money out the door as quickly as possible.

WHAT??? The government hired extra people to get the funds out the door. At the tax payers expense! Hell, I know a lot of people that would have travelled to Ottawa in person to accept the funds, why pay someone to distribute them.   BK

http://www.metronews.ca/halifax/business/article/673374
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End of line for 450 Windsor area Ford workers
By Grace Macaluso, The Windsor Star October 27, 2010 8:37 AM

http://www.windsorstar.com/business/fp/line+Windsor+area+Ford+workers/3731385/story.html

Tuesday, October 26, 2010

CFTC's Chilton raises alarm about silver market

Compliments of Jesse's Cafe Americain: one of our favorites

CFTC's Chilton raises alarm about silver market
WASHINGTON
Tue Oct 26, 2010 9:30am EDT

The manipulation in the silver market with two or three banks holding enormous undeliverable short positions was obvious, for years.  LINK...
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This has been brewing for many months now. Prepare yourself for some head spinning volatility in the precious metals market.   BK

Thursday, October 21, 2010

Guggenheim's Scott Minerd Says Ultimately Gold Could Reach $5,000

Wall Street Journal video link below.

http://online.wsj.com/video/news-hub-outside-view---a-bull-case-for-gold/DF47331F-8562-4A83-80E7-AE2EE0302A3F.html

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As we have pointed out to many of our client's in the past. This Gold bull market is all about the "confidence" in paper money or paper investments. Gold is your ULTIMATE insurance and you never trade insurance.  BK

Remember:
  • Gold can never go bankrupt
  • Gold can never be worth ZERO
  • Gold has no liabilities
  • Gold has no counter party risk

Wednesday, October 20, 2010

Jim Rogers Says $2,000 Gold on Freedom Watch With Judge Napolitano

video

Sorry Kitco, But We Beat You to the Punch

Dear readers,
On Oct 18, 2010 on BNN ( http://watch.bnn.ca/#clip362344 ), Kitco Metals in Montreal Canada claims they're "Canada's first" gold storage facility that let's clients trade their physical metals in storage. This is a FALSE claim. I'm not sure if we were the first, but we were definately offering this type of service before Kitco, and here is our proof, from July 19, 2010 Windsor Star Article . There are unique advantages to our storage service that, to my knowledge no other company offers. For more information on our unique and fully insured, segregated, allocated and sealed storage services please call our office.


Sincerely,

Bosko Kacarevic
President

Monday, October 18, 2010

Central Banks Waking Up To Gold As A Currency

As seen on http://www.jsmineset.com/

South Korean central bank looks to gold

By Christian Oliver and Song Jung-a in Seoul and Jack Farchy in London
Published: October 18 2010 10:24
Last updated: October 18 2010 16:13

LINK...

Friday, October 15, 2010

Another Perfect Storm Brewing

Seeking Alpha
October 15, 2010
By:  Bo Peng

It’s been a textbook case of "bad news is good news" in the past few weeks, entirely driven by QE2 expectations. The expectations are so high that inflation is finally being priced in (see 30-yr bonds, commodities, and gold), and Bernanke would have to do it even if he had a change of religion tonight, or else. The only question is when and how much. While I don’t know the answer, I’m sure it lies somewhere between a dog and a fire hydrant. If QE2 is not big enough to cause another 10% drop in the dollar index, it’ll snap back 10% along with equities/gold/commodities crashing through a significant correction. If it is big enough to meet the markets’ insane expectations, it will most likely kick the currency war into full speed and start the sequence that leads to the dollar’s death as the international reserve currency.  LINK...

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Professional money managers are beginning to enter the Gold market, unfortunately many of them are buying the "paper" Gold and using it as a trading vehicle. At least Mr. Peng has a core position in Gold and he's just taking some profits, but long term he's bullish. The QE2 (Quantitative Easing or Money Printing) that the FED is planning to introduce is the catalyst that sends Gold to the moon. We do NOT recommend trading Gold because it is your insurance policy, however for those who are trained professionals be my guest. But beware of the ancient rule, "He who has the Gold (not paper), makes the rules!"   BK

Wednesday, October 13, 2010

Key to Security: Finding the Right Vault

GRANT ROBERTSON — Banking reporter
From Wednesday's Globe and Mail
Published Tuesday, Oct. 12, 2010 7:10PM EDT

The jump in demand comes from a variety of players that weren’t much of a force a decade ago when surplus vaults fell out of favour. They include the gold-backed funds that have become popular investment properties, as well as ultra-high-net-worth investors who want to hold large stores of bullion amid record-setting prices. Concerns about currency values and a sputtering global economic recovery helped push gold above $1,300 (U.S.) an ounce for the first time two weeks ago.

“Gold 10 years ago was $280 an ounce,” Mr. Wainstein noted. “So nobody wanted to worry too much about getting a lot of bullion into their vault. It just didn’t seem like a thriving business. That has changed.”
LINK...
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Dear Readers,

Clearly the demand for Gold Bullion and secure vault storage is in demand. Please take this as a reminder that we have private secure and insured vault storage services with Brinks Canada Ltd., and we are practically the only vault storage service that allows its customers to physically see and feel their Gold BEFORE it goes into the vault for storage. Having a local Canadian company storing your Gold has its advantages because we can very quickly set-up delivery or pick-up of your Gold. Usually 2-3 days notice is all we need and our fees are only 2% for storage and $45 for pick-up or delivery. Please call for more details.   BK

Tuesday, October 5, 2010

The Silver Perspective

video

Super Rich Buy Gold by the TON

Reuters
By Laura MacInnis

GENEVA
Mon Oct 4, 2010 1:13pm EDT

GENEVA (Reuters) – The world’s wealthiest people have responded to economic worries by buying gold by the bar — and sometimes by the ton — and by moving assets out of the financial system, bankers catering to the very rich said on Monday.
Fears of a double-dip downturn have boosted the appetite for physical bullion as well as for mining company shares and exchange-traded funds, UBS executive Josef Stadler told the Reuters Global Private Banking Summit.
"They don’t only buy ETFs or futures; they buy physical gold," said Stadler, who runs the Swiss bank’s services for clients with assets of at least $50 million to invest.
UBS is recommending top-tier clients hold 7-10 percent of their assets in precious metals like gold, which is on course for its tenth consecutive yearly gain and traded at around $1,314.50 an ounce on Monday, near the record level reached last week.
"We had a clear example of a couple buying over a ton of gold … and carrying it to another place," Stadler said. At today’s prices, that shipment would be worth about $42 million.
Julius Baer’s chief investment officer for Asia is also recommending that wealthy investors park some of their assets in gold as a defensive stance following a string of lackluster U.S. data and amid concerns about currency weakness.  LINK...
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Mainstream media is continually regurgitating the comments of George Soros earlier this year, that Gold is the "Ultimate Bubble." Let's please put this to rest once and for all! Mr. Soros referred to Gold as the "Ultimate Bubble", he did NOT say that the Gold bubble is ready to BURST! We agree that Gold could become a bubble but it is far from bursting. Besides, Mr. Soros' hedge fund is LONG Gold and did anyone ever think he's playing his position? There are many economists predicting Gold at $5,000 to $10,000 before this is all over. We believe that Gold is still in the early stages of a run-off phase and it will not hit a top for years to come, so
DON'T invest at your own risk!   BK

Thursday, September 30, 2010

Feds Roll Out New Economic Package

Advisor.ca
Steven Lamb / September 30, 2010

"We are meeting the challenges of the global economic crisis head-on with Canada's Economic Action Plan," said Minister Flaherty. "We continue to move forward with the Plan through the Sustaining Canada's Economic Recovery Act, which will provide real benefits for families, consumers, businesses and taxpayers."   LINK...
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It is an economic axiom and history proves, that expanding the money supply and credit to stimulate or sustain an economy results in much higher gold prices. It has happened time and time again, during the early 1900's hyper-inflation in Germany the price of Gold went from 170 Marks to 87 TRILLION Marks in only four years. See ERSTE Group "Special Report"

Wednesday, September 29, 2010

Gold "Absolutely" Still a Buy: Metal Will Double in 5 Years, Frank Holmes Says

Yahoo Finance
Posted Sep 28, 2010 12:00pm EDT by Aaron Task

"If we were to go through those 1980 [inflation-] adjusted prices, gold would be at $2300 per ounce today," he says, calling that a "fair" target for the metal.   LINK...
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GREAT Video:  Frank Holmes get's right to the point and explains the facts from the 1970's compared to today and that Gold is NOT even close to a bubble.   BK

Tuesday, September 28, 2010

A Seller's Guide to Cashing in on Your Gold Jewellery

ROB CARRICK
From Tuesday's Globe and Mail

Published Monday, Sep. 27, 2010 7:35PM EDT
Last updated Tuesday, Sep. 28, 2010 6:45AM EDT

Get the picture? It’s a gold rush out there and all these businesses are staking claims in a small patch of ground.
“Everyone is doing cash for gold – it’s all over the place,” said Bosko Kacarevic, a gold bullion dealer who runs Gold Coins Canada in Windsor, Ont.
The problem with selling your gold jewellery for cash is that the buyer’s profit margin depends on paying you as little as possible. Mr. Kacarevic has a few suggestions to help you get the best possible deal, starting with checking the price of gold before you head off to sell your jewellery.
This is easy to do – just head to theglobeandmail.com and scroll down the homepage to where the continuously updated financial market numbers appear (remember that, as with oil, the price is in U.S. dollars). By the way, gold prices are all that matter when you’re selling jewellery for its melt-down value. Craftsmanship and aesthetic value are irrelevant.   LINK...
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A little help from the Globe and Mail is always good for business. Thanks Rob.   BK

Sunday, September 26, 2010

US Dollar Struggle Lost To The Likes of GOLD

The International Forecaster
By:  Bob Chapman
Saturday, Sept 24, 2010

The struggle over the past 16 months between the US dollar and gold to represent the world reserve currency has already been won by gold. The dollar is fast on its way to being dethroned as it looses momentum in trying to maintain its place in history. Historically all fiat currencies have failed and there have been no exceptions. For the past seven years the Federal Reserve, in order to stave off the strong undertow of deflation, has continued to create colossal amounts of money and credit. That has continued to depreciate the dollar versus gold and other major currencies.
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Please call for your free copy of this issue.  BK

Gold Going Still Higher: David Rosenberg

It may be overbought on a near-term technical basis, but gold — now on the precipice of breaking above $1,300/oz — is likely to remain in this secular uptrend for quite a while longer. We’re talking years. We’re still talking $3,000/oz. Gold has made this transition this year away from being a strict commodity towards a role befitting a monetary metal that is no government’s liability. Look at what is happening around the world.  LINK...
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Another great piece by Mr. Rosenberg. Check out his comments on Gold on page 6.  BK

Friday, September 24, 2010

Volcker Spares NO ONE in Broad Critique

The Wall Street Journal
September 23, 2010, 4:38 PM ET
By Damian Paletta

Former Federal Reserve Chairman Paul Volcker scrapped a prepared speech he had planned to deliver at the Federal Reserve Bank of Chicago on Thursday, and instead delivered a blistering, off-the-cuff critique leveled at nearly every corner of the financial system.  LINK...

***A VERY IMPORTANT VIDEO!***
The Video by Thompson Reuters...LINK...

Volker: "The financial system is broken!"

Pay attention to his comments on the TRILLIONS of dollars of "credit default swaps" that are most disturbing.  BK
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The chairman of chairman, Mr. Volker helped return the U.S. economy to stability during the early 80's and I believe this is why the economy did so well during the 80's and 90's. He diagnosed the problem and prescribed the medicine. The medicine didn't taste good because he raised interest rates but after that we had a healthier economy until recently. The current administration refused to take the right medicine years ago and now we're stuck in a corner, with a problem that could last for decades. Obviously there must be a BIG problem in order to bring out someone like Mr. Volker. We believe the problem is "CONFIDENCE" in the USD and this is the cause for Gold to go much higher.   BK

Thursday, September 23, 2010

Investors Are Deaf to the Screams of Gold and Cotton

Bloomberg News
By Mark Gilbert - Sep 22, 2010 7:00 PM ET

Most of us own truths too painful to confess. We drink too much. We lust inappropriately. We envy. We covet material goods, when every study shows experiences count for so much more. Confessing them, even just to ourselves in the long, dark teatime of the soul, is too distressing.
The collective subconscious of the financial markets is no different. It knows pension systems are bankrupt, water wars are coming, China will best the West, Keynesian stimulus is a surefire way to stoke inflation, gold is saying something, and the banking community remains as rapacious as it was prior to the credit crisis. Knowing and admitting isn’t the same thing.  LINK...
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The article above discusses food prices rising 28% in the past year. I hope you factored that into your retirement plan?   BK

Monday, September 20, 2010

Plan B for the USD, return to a Gold Standard where Gold is $5,000

A very surreal interview with Jim Rickards. No hype, no fuss, no arguments just the facts.  LINK...

Unfortunately for some, Gold will re-enter the currency market as a standard to be measured against. When exactly this will happen I do not know, but rest assured it is coming. Please be on the right side of the market when this happens if you want to protect your wealth.  BK 

Saturday, September 18, 2010

Bob Chapman on the Greek Crisis and a Solution

Legendary economist and once the world's largest Gold/Silver stock broker explains the Greek crisis and how they are not alone. Mr. Chapman's views and opinions are recognized around the world and he has complete independance and offers an unbiased perspective that very few others can offer. The International Forecaster is our main source for independant news and information.   LINK...

Thursday, September 16, 2010

Greenspan Talks About Gold's Role in Global Currency Value's

Editorial of The New York Sun
September 15, 2010
 
Mr. Greenspan replied that he’d thought a lot about gold prices over the years and decided the supply and demand explanations treating gold like other commodities “simply don’t pan out,” as Mr. Malpass characterized Mr. Greenspan. “He’d concluded that gold is simply different,” Mr. Malpass wrote. At one point Mr. Greenspan spoke of how, during World War II, the Allies going into North Africa found gold was insisted on in the payment of bribes.* Said the former Fed chairman: “If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it.”   LINK...
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Isn't it strange how people have a different tune when they are not working under the thumb of "Uncle Sam?"
The canary that Mr. Greenspan is talking about is the HUNDREDS of TRILLIONS of dollars of OTC (over the counter) derivatives that are floating around the global economy without a home. Once these products hit home and get "Marked to Market", their true value will be revealed (ZERO) and Gold will reach the heavens above.  BK

Wednesday, September 15, 2010

Goldilocks; a piece from David Rosenberg of Gluskin Sheff

GOLDILOCKS

Well, at least we know we can use yesterday’s action as a microcosm to what is actually driving the gold price higher (up $22.55/oz, +1.8%, yesterday to $1,268 an ounce) — and it isn’t inflation. How do we know that? Because 10-year TIPS breakeven levels — the market proxy for inflation expectations — fell seven basis points. The correlation would seem to be more with the U.S. dollar as the DXY sank 1.0% to 81.080 yesterday. And, what ailed the U.S. dollar were hints out of Goldman Sachs that the Fed was indeed planning another round of Quantitative Easing. So once again, gold has asserted itself as a monetary metal — a currency that is no government’s liability and a hedge against these recurring concerns over the integrity of the global monetary system.   http://www.gluskinsheff.com/

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By: Bosko Kacarevic
Since August of 1971 the USD has been backed only by the good faith and credit of the USA, which really means CONFIDENCE. That confidence is now lost and this is the real reason for the economic crisis. Gold is no longer used as a backing to practically any currencies around the world. This allows bankers and politicians to run wild with spending, but Gold is the only honest money that reveals the truth of the system. I always tell people, "the rise in Gold is NOT about the rise in Gold, it's about the loss of CONFIDENCE in paper currencies and government." BK

Monday, September 13, 2010

Another Stunning Interview of James Dines on King World News

Mr. Dines rarely does interviews, but when he speaks it's with conviction. And he has the track record to prove it. Listen to this candid interview by Eric King of King World News, as Mr.Dines says Wall Street bankers are lost and Gold will go to $3,000 to $5,000. LINK...