UN calls for scraping dollar

A UN report released on Tuesday calls for abandoning the US dollar as the main global reserve currency to achieve greater stability in the world financial system.
"The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency," said the World Economic and Social Survey 2010.
The use of the dollar for international trade came under increasing scrutiny when the US economy fell into recession.  LINK...
*********************************
HMMM, I wonder what currency they will use to replace the U.S. dollar?  BK

Mike Maloney Says Logically Gold Could Reach $15,000/oz

******************************************

This video addresses my comments two weeks ago when gold broke the $1,250 level, I said we will start seeing analysts come out and predict much higher price targets than $1,500 for years end. Mike Maloney is speaking a little further out, but you get the idea. Understanding the rise in Gold is NOT about the rise in Gold. It's about the loss of confidence in the USD as the world's reserve currency. Gold will always be just Gold, like it has been for thousands of years and it will always have value like it has for thousands of years. This crisis is about currency devaluation, deficit spending and expansion of money and credit. Every fiat currency through out history and without fail has always returned to it's intrinsic value of ZERO, without exception. Gold has always maintained it's value without exception and has always been the ultimate form of internationally accepted payment. BK

RBS tells clients to prepare for 'monster' money-printing by the Federal Reserve

By Ambrose Evans-Pritchard, International Business Editor
Published: 5:11PM BST 27 Jun 2010

Andrew Roberts, credit chief at RBS, is advising clients to read the Bernanke text very closely because the Fed is soon going to have to the pull the lever on "monster" quantitative easing (QE)".

"We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy. Think the unthinkable," he said in a note to investors. LINK...

*********************************
"Plan for the worst and hope for the best."
"It's better to be safe than sorry."
These are the mantras of the age. BK

Now China sources newly mined gold from the USA

China is already the world’s largest gold miner, and many analysts now assume – following the country’s announcement last year that it had been building up its gold reserves for six years unknown to the West – that it is still expanding its gold holdings in a way that does not necessarily show the gold going into official reserves. And now it appears to be looking elsewhere to purchase supplies of the yellow metal without overtly impacting the market.
What is significant, perhaps, is that this suggests that China’s commitment to gold is both ongoing – and likely to increase. The country, through its financial institutions and state television advertising, has been persuading its ever growing middle classes to purchase gold (and silver) as a good investment. There seems little doubt that the state is doing the same thing itself as a means of diversifying its huge reserves.  LINK...
******************************************
Folks, this is a very important development because China is the worlds largest holder of U.S. debt and if they are trying to quietly accumulate gold with out disturbing the market, then they obviously know that their U.S. dollar denominated reserves are at risk of losing value and they want to buy as much gold as possible at low prices. Yes, I said low prices. It's clear to me that China is very bullish on gold even at these levels.  BK

Gold and Risk Aversion: Kirby Daley Says Own Physical Gold

In March of 2010 on CNBC Asia, Kirby Daley a well known market strategist says he has "physical gold" as a significant part of his portfolio for risk aversion. LINK...

Gold DOUBLED Since This News Cast in 2007-- $630--$1,230

Now we have a new crisis in Europe and gold could very well double again over the next few years. Yes that could mean $2,400 plus. BK

Why Many Analysts See Gold Going As High As $10,000

Posted Wednesday, 23 June 2010
by: Lorimer Wilson


My first reaction when I read an article on this site by Arnold Bock - articulating why gold would go to $10,000 – by 2012 no less - was amazement. Who in their right mind would suggest that gold would eventually reach $2,500, let alone $5,000 or even $10,000? Well, I did some investigation and, believe it or not, Bock is in lofty company. Many respected individuals, such as David Rosenberg, Peter Schiff, Harry Schultz, Rob McEwen and many others, have come to the same conclusion. Below is a partial list of such individuals with sound reasons to substantiate their views.  LINK...

1967 a Former FED Chairman Was Quoted...

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation...This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process...It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

******************************

Isn't it ironic that this same FED Chairman allowed the tech bubble and real estate bubble to take shape? It makes one realize that, sometimes when men are given positions of power their belief system becomes clouded.   BK

'Gold bull run to continue, target $1300-1500'

Published on: June 22, 2010 at 20:40
Gold prices have once again climbed to record levels of $1264 last week before correcting on profit taking thereby cementing the appeal of the yellow metal as a safe haven for investors. China announced its move toward a more flexible currency exchange rate mechanism which has improved the investor sentiments in general but the softening of the dollar has helped the recent surge in gold prices to record levels.
This has led to further bullish forecasts on gold prices with some analysts quoting $2000 gold with in a year. In this scenario, Atul Shah, Head, Emkay Commotrade in an interview told Sreekumar Raghavan of Commodity Online that he expects gold to immediately target $1300-1500 and global supply-demand factors will weigh on market sentiments rather than domestic factors.  LINK...
******************************
Here they are folks, the analysts with higher short-term targets on gold. By year's end we'll start seeing more and more predictions like $3,000--$5,000--$7,000 gold.  BK

The gold standard: generator and protector of jobs

June 16, 2010: Hugo Salinas Price

A great article that looks at the historical significance of gold and the political implications attached to it. Considering WWII, the Brenton Woods Conferance and President Richard Nixon's decision to close the gold window in 1971, Mr. Salinas-Price speaks from experience and is a multi-billionaire himself, so you're not getting a view from some economist who never owned a business. A very educational read. BK

LINK...

Gold Recliams its Currency Status as the Global System Unravels

By: Ambrose Evans-Pritchard
June 20, 2010

LINK...

***************************
The common mantra we have been talking about for a long time, "GOLD IS A CURRENCY", and in times of crisis it becomes the "Ultimate Currency". This golden cycle has been repeated through out history and if history is any guide this will cause gold to rise much higher in the near term. Gold becomes your "insurance policy" against crisis and corruption.
We hear all the time that gold is too volatile and risky? The RISK is not about owning gold, the risk is about NOT owning any gold. BK

Finding gold in the mainstream

In this article from http://www.moneyweb.com/ , Ian McAvity, a longtime respected gold market watcher, says that "it would take a rush to $5,479 to replicate the 1980 peak (I repeat that is not a forecast, it's a technical observation from an overlay of the cycle of the 1970's on the cycle from 2001). Simply put, any talk of a gold bubble is utter nonsense." LINK...

*******************************
As we said in our post when gold broke $1,250, you will see more and more talk about much higher prices and a target of $1,500 by years end may be too conservative? BK

Gold on longest winning streak since 1920

Friday June 18, in the Financial Post: LINK...

Gold is returning to its natural state as the "Ultimate Currency", especially during a sovereign debt crisis in Europe. People around the world are looking to alternatives to preserve capital. BK

Economist tips gold price to keep rising

The following article was posted on http://www.jsmineset.com/, and speaks to my comments earlier today. Now that $1,250 has significantly been broken, we will start reading more about $2,000 gold, $3,000 gold and $7,000 gold. No one really knows where it will end but surely we have much higher to go. BK
LINK...

Central Banks Join The Gold Rush

NEW YORK (CNNMoney.com) -- Foreign governments have been getting in on the recent gold rush, driven by continued fears about Europe's debt crisis and the pace of the global economic recovery.
Those concerns have been propelling the precious metal to record highs over the past 18 months. In fact, gold posted a new intra-day high Friday, when it reached $1,260.90 an ounce. A day earlier, it reached a fresh record high closing price of $1,248.70 an ounce. LINK...

**************************

Yet another ALL-TIME-HIGH and a significant psychological level of $1,250 was broken this morning! I think many analysts will now say their forecast of $1,500 by years end was too conservative. I would have to agree. BK

Food prices to rise by up to 40% over next decade, UN report warns

Growing demand for emerging markets and biofuel production will send prices soaring, according to the OECD and the UN Food and Agriculture Organization. LINK...

****************************

Hey, that wasn't in my retirement plan. I better call my pension company and tell them to increase my pension to compensate for this and tell my financial planner to change his average forecast of 6-7% return on my money to 12-13%. Oh, how I wish it were that easy. BK

Fannie And Freddie Money Pit May Suck Down $1 Trillion Of Taxpayer Cash

Posted Jun 14, 2010 12:06pm EDT by Henry Blodget

Bloomberg checked in on the state of Fannie Mae and Freddie Mac, the two once-quasi-private mortgage subsidy companies that are now almost wholly owned by taxpayers. Bloomberg found that Fannie and Freddie have already drawn down $145 billion in their unlimited line of taxpayer credit, and that their losses could ultimately be as high as $1 trillion.
To put that in context, Fannie and Freddie alone may consume more than the entire TARP Wall Street bailout, which was in the neighborhood of $800 billion. Fannie and Freddie’s taxpayer-money-vaporization will likely dwarf even that of AIG, which most people still consider the most appalling bailout beneficiary of all. LINK...

*********************************

These liabilities are staggering. Through out history every nation that followed this path of money printing, quantitative easing, government bailouts or what ever you want to call it, has ended up in a severe crisis, revolution or war. The future of western society is not looking so promising. Our most prosperous days are behind us, for a long time to come. BK

Nightmare vision for Europe as EU chief warns 'democracy could disappear' in Greece, Spain and Portugal

By Allan Hall Last updated at 3:26 PM on 14th June 2010

EU leaders are meeting this week to thrash out a rescue package for Spain as its economy teeters on the brink.
News of the behind-the-scenes scramble in Brussels spells bad news for the British economy as many of our major banks have loaned Spain vast sums of money in recent years.
Germany’s authoritative Frankfurter Allgemeine Newspaper reported that Spain is poised to ask for multi-billion pound credits. LINK...

*****************************************
As many gold bulls have been saying since the Greek crisis, this is just the beginning. It will make its way to the U.K. and U.S. soon, please prepare yourself and your finances. BK

Gold Target of $6,000 says Harry Schultz

The "Dean" of investment newsletter writers, legendary Harry Schultz,
says he sticks with his short term target of $1,400 on gold but says eventually we will see $6,000! For the tenured advisor's and brokers out there who have 30-50 years in the game, I need not tell you about Uncle Harry's legendary status. For the newer crowd, watch as gold puts to sleep many bulls on Wall Street. LINK...

Super Depression Coming?!?

A 2009 interview from Senior Research Scholar at Yale University, Mr. Immanual Wallerstein, says the worst is far from over and he predicted the current crisis in Europe last year. And we keep hearing from mainstream media that no one could have seen this coming? I sometimes wonder if anyone reads history anymore? BK

LINK...

How The Central Bank Eats Your Money

By: Special to the National Post June 8, 2010 – 9:46 am

Monetary policy is one of the most difficult topics in economics. But also, I believe, a topic of absolutely crucial importance for our prosperity.
As you all know, last week, the Bank of Canada increased its benchmark rate by a quarter of a percentage point to 0.5%. There had been a lot of speculation in recent weeks about that decision to finally raise rates after keeping them at a record low for more than a year. And as usual there will be a lot of speculation about the bank’s next moves. How far will it go? How fast? LINK...

GOLD Hits a NEW All-Time High Again!

In the overnight market, gold rallied to a brand new all-time high of $1,251.85. This gold bull refuses to be tamed. Short-term targets of $1,500 seem very likely. Bosko Kacarevic

LINK...

Egon von Greyerz from Gold Switzerland Says $7,000 Gold is Not Unreasonable

While you were sleeping, CNBC Europe was interviewing the founder of Gold Switzerland, Egon von Greyerz.

Egon says that based on "real inflation" and the government deficits, $7,000 gold would just be a "NORMAL" target. This of course is not a pretty picture for the financial markets or governments, but history teaches us that a crisis is usually the end of corruption and the beginning of better things to come. GCC

LINK...

The Command Economy: Surging Forward Into The Past

Ludwig von Mises Institute
April 2010
by: Charles Goyette

Folks, the video link here is compliments of the Mises Institute. The speaker Charles Goyette is a very popular radio talk show host in the U.S. on economics, social and political events. He presents the current crisis is a very straight forward approach and sends the message that people need to WAKE UP! GCC

LINK...

Multi-Billionaire Hugo Salinas Price Says Gold Will Not Go Down Like in 1980

KWN's Eric King interview's legendary Mexican businessman Hugo Salinas Price.

Multi-Billionaire Hugo Salinas Price is famed not only for his legendary business acumen but also his drive for honest money in Mexico and globally. Hugo has pushed the Mexican government for over a decade to provide silver as money but the corrupt Mexican government and Mexican central bank has refused, causing tremendous hardship for the citizens of Mexico due to inflation. In this interview Hugo discusses gold and silver as well as the collapsing monetary system. LINK...

Deutche Bank's Lewis Says Gold May Rally Past Crisis

June 04, 2010, 2:02 PM EDT By Alex Emery

June 4 (Bloomberg) — Gold, which touched a record of $1,249.70 last month, may rally another 36 percent as Asian central banks buy for the first time in two decades, said Michael Lewis, head of commodities research at Deutsche Bank AG.
The precious metal may rise to as much as $1,700 an ounce over the next year on concerns that budget deficits will weaken major currencies, Lewis said in an interview yesterday in Lima. Exchange-Traded Funds, known as ETFs, where gold futures make up 80 percent, are also having an “enormous impact,” he said. LINK...

2010 Fractional Gold Eagles Are Available June 10

The United States Mint has indicated the availability date for fractional weight 2010 American Gold Eagle bullion coins. Authorized purchasers may begin placing orders for the coins on June 10, 2010. Orders will be subject to the standard allocation process.

Available in: 1/2 ounce, 1/4 ounce and 1/10 ounce

********************

These smaller denominated coins are in high demand because when gold hits $2,000/oz and more, these fractional pieces offer more flexibility in trading.

A Pocketbook of Gold

I just finished reading this book and it is an excellent read. Jim Sinclair and Peter Carlin do a fantastic job of presenting facts and theories in a simple format on why and how to invest in gold. The book is only 140 pages but very informative and focused. After reading this book it will give you a feeling of powerful understanding of the global financial system as a whole. I highly recommend it to everyone.
Bosko Kacarevic, President
Central Metals Corp.

*As always, we do NOT receive any type of compensation for our third party recommendations. Our only benefit is educating people on the fundamentals of gold investing.

Krugerrand Output Jumps to 25-Year High on European Debt Crisis

June 03, 2010, 6:54 AM EDT
By Garth Theunissen

June 3 (Bloomberg) -- Rand Refinery Ltd., the world’s largest gold-smelting facility, raised production of Krugerrand coins to a 25-year high as Europe’s sovereign-debt crisis boosted investor demand for bullion.
Output last week jumped 50 percent to 30,000 ounces of blank coins for minting by SA Mint, Debra Thomson, Rand Refinery’s treasurer, said by telephone from Johannesburg today. That was the highest weekly production since 1985, she said. LINK...

***********************
Take note folks, trends usually start in Europe and make there way to the west.
Physical gold coins will be in high demand here, sooner than most think. Gold is your "insurance policy" against political, financial and social unrest. Gold has been reflecting this for the past ten years, as it has gone from a low of $250 to $1,200 today, that's almost 500% return on your investment in only ten years! GCC

Steve Wynn -- Straight to The Point

Published: Friday, 28 May 2010 9:34 AM ET

Steve Wynn says Americans are afraid. He’s just angry.

“Washington is unpredictable these days,” declares the CEO of Wynn Resorts.

“No one has any idea what’s next…the uncertainty of the business climate in America is frightening, frightening to everybody, and it’s delaying the recovery.” (Catch more Steve Wynn's views in the videos below and on CNBC throughout the day). LINK..

Gold at $2,500 Looks More Likely Than Ever!

by Dan Burrows, posted 4:42 pm 06/01/10

Gold added another $11.30 Tuesday to hit $1,226 an ounce, and although the yellow metal is still well off its nominal all-time high of about $1,240 set just a few weeks ago, you don’t have to be a member of the build-a-bunker-in-Montana crowd to believe gold could hit $2,500 an ounce in the next couple of years.
David Rosenberg, chief economist and strategist at Canada’s Gluskin Sheff, tends to be pretty bearish, but he’s also about as dispassionate and data-driven a guy as you can find. In other words, he’s hardly some kooky gold bug. And if past relationships among data sets hold up, gold fever is just getting started, Rosenberg says.
"There is no doubt that when benchmarked against the CPI, money supply and GDP, gold can easily double from here," Rosenberg told clients in a Tuesday report. "Demand is always difficult to forecast, especially for jewelry, but we do know that central banks have very deep pockets and bought more gold last year (425 tons) than at any other time since 1964."

A Simple Matter of Supply and Demand

LINK...

******************************************

Folks, Mr. Rosenberg provides an excellent FREE newsletter service that we subscribe to. All you have to do is visit his website at
http://www.gluskinsheff.com/ , and sign up. As always we do not receive any type of compensation for our recommendations to third party sites. GCC Management

Silver Could Sky Rocket to $100/oz

Money Manager Dr. Stephen Leeb of Leeb Capital Management discusses the gold and silver market and a possible spike in silver to $100/oz. Over the last decade, his independently-verified performance record has been ranked in the top 5 percent among peers according to Informa’s PSN manager database.

India Gold makes historic surge to Rs.19,050

NEW DELHI (Commodity Online): India 24 carat gold hit Rs.19,050 per 10 grams in Delhi Spot markets making the latest historic high fuelled by weak rupee versus dollar and strong demand. Reports suggested that pure gold hit a new historic high of Rs.19,050 per 10 gram in the Delhi spot market on Tuesday on weak rupee versus dollar and good demand, analysts said. LINK...