Saturday, July 31, 2010

Richard Russell: "Something Has To Give"

Legendary investment newsletter writer and commonly referred to as the "Godfather of newsletter writers", Richard Russell was interviewed by The Economist magazine recently. The article discusses the current economic conditions as compared to the last half century and basically ends with the phrase "something has to give!"
Mr. Russell's response--What is it that might give? Could it be the price of Gold? Gold could rocket higher when it is widely accepted that it is the only real and trustworthy money, money that needs no counter-party and that Gold is the only money that has no counter-party. Gold is wealth on its own. Every nation in the world can collapse and Gold will still represent unquestioned and eternal wealth.
A link to this article is provided by King World NewsLINK...
This from a man who has been at it for over 50 years and has earned high respect in the financial markets.
Stay thirsty my friends.  BK

Gold's on the Cusp of a Parabolic Move Up

A great article by John Embry in Investor's Digest of Canada, voted the world's best investment advisory.   LINK...  to pdf

Thursday, July 29, 2010

Global Economic Unrest

Headlines from Jim Sinclair's JSMineset

>California ‘fiscal emergency’ declared
>1.65 Million Properties Receive Foreclosure Filings in First Half of 2010
>Bank of England chief says stimulus still needed
>Fed Board Member’s Deflation Warning Hints at Policy Shift

Whatever they're doing, it's NOT working?

Wednesday, July 28, 2010

Ben Davies--Gold Undervalued, Under-Owned and Misunderstood

Ben Davies CEO of Hinde Capital explains why he thinks lower Gold prices are a good buying opportunity to CNBC's Maria Bartiromo.   LINK...

Sunday, July 25, 2010

Gold Myths & Objections

Before we get into all the negative opinions about Gold, we must understand why the mainstream media, banks, financial institutions and government all down play Gold as an investment. People must study history to understand that Gold keeps bankers and politicians honest and disciplined. And the banks, government, schools and media are all working together to conceal the truth. There is much more to it and many books have been written on this subject, however we must accept that there is a fundamental reason why the forefathers of America used Gold & Silver as a backing to the currency of America.
  1. Gold pays no interest or dividends:  Who cares, Gold has returned over 500% in the past ten years and 16% annually over the same perion. How did your "diversified & balanced" portfolio do without Gold? Click here to see a chart of Gold compared to the S&P 500 including return on dividends.

Texas Congressman Ron Paul Puts The HEAT On FED Chairman Ben Bernanke

A great video!

An Unkind Complicatedness

Christie Blatchford

From Saturday's Globe and Mail
Published on Friday, Jul. 16, 2010 11:37PM EDT
Last updated on Friday, Jul. 23, 2010 6:59PM EDT

In the end, nothing else would do for Scotiabank (BNS-T50.12-0.06-0.12%) but that Amar Patel – 73 years old, bald from chemotherapy, in the throes of metastatic breast cancer – should drag her aching bones down to the bank’s head office in downtown Toronto.
The trip from her airy apartment above the Indian Rice Factory, the landmark restaurant she founded in 1970 and has run ever since, was an agony of no fewer than five transfers – from the hospital bed in her living room to a commode, from commode to the chair lift for the first set of stairs, from that chair to the next chair lift for the second set, from that chair to a walker, from walker to the car.  LINK...
The hassle this lady was forced to undertake is nothing but a disgrace, Scotia Bank should be ashamed of themselves. We have had many people call us and complain about the procedures the Scotia Bank imposes on people when buying physical Gold/Silver. We can promise you that our procedures are very simple and private.   BK

Wednesday, July 21, 2010

Tuesday, July 20, 2010

New FED Nominees and a USD With NO Intrinsic Value

From Jesse's Café Américain
Jim Grant talks about the FED nominees, money printing and the USD. Watch the reporters eyes light up when Jim says the USD has NO intrinsic value, it's priceless. BK

Monday, July 19, 2010

Windsor Business Staking Its Future on Gold

By Ellen van Wageningen, The Windsor Star
Bosko Kacarevic is putting his faith in gold.
He is going a giant step further than investors who are buying the precious metal for inflation protection, as insurance against currency collapses and in hopes the price will continue to escalate.
He is staking his livelihood on it. Last month, Kacarevic left a job as a consultant with Investors Group in Windsor to set up his business as an independent gold broker/dealer.
Kacarevic is not alone in espousing the value of gold as one of those assets. U.S. financial pundit Jim Rogers has predicted gold, which is currently selling for over US$1,200 an ounce, is on its way to $2,000. Also still touting gold's glitter is Canada's Sprott Asset Management LP, which started investing in it 10 years ago when the price was around $300 an ounce.   LINK...

Friday, July 16, 2010

Markets Make Fools of Us All

By: Eric Fry

For more than a decade, the markets have made a fool out of the conventional “wisdom” that stocks are for buying and holding. During the last eleven and a half years, for example, the S&P 500 Index has delivered a total return of exactly zero.
The markets have also made a fool out of the conventional wisdom that gold is a barbarous relic – a monetary artifact. During the identical eleven and a half-year period when stocks were busy doing nothing, the gold price quadrupled!   LINK...
Just think about it...allocating only 10% of your portfolio to Gold, eleven years ago would have shown you a return on your entire portfolio of about 30% year to date.   BK

Thursday, July 15, 2010

Higher education fund buys gold over economic worries


Copyright 2010 Houston Chronicle
July 14, 2010, 9:40PM

AUSTIN — Fearing unstable international financial markets and the possibility of high inflation, Texas' higher education investment managers have bought more than $500 million in gold.

The gold purchases represent only 3 percent of the University of Texas Investment Management Co.'s $22.3 billion in investment funds, but it indicates how deeply the fund managers are concerned about the global financial future.   LINK...

Gold "biscuits" selling like Hot Cakes in Mumbai

Shivom Seth

Monday, July 12, 2010

Mumbai – They are selling like hotcakes. Gold bars have been moving off the shelves in India’s financial capital, Mumbai, more than the trusty, old gold coins or jewellery. Commonly referred to as gold biscuits in the Mumbai market, gold bar buying in main consumer India appears to have resurfaced after a gap of nearly two month. As gold continues to break through the upside, Indian investors are investing in gold bars, for security reasons.  LINK...

Wednesday, July 14, 2010

Debt Shuffling Will Be A Self-Defeating Excercise

Compliments of JSMineset and the Financial Times

By Satyajit Das

Published: July 12 2010 16:10

George Bernard Shaw observed that “Hegel was right when he said that we learn from history that man can never learn anything from history”. Emerging details of the European Financial Stability Facility (EFSF) bear testament to this.  LINK...

Since we're talking about history; Did you know that the first pure Gold coins were struck by King Croesus of Lydia (present-day Turkey) during his reign between 560BC and 547BC--and gold coins have continued as legal tender ever since?
Gold is and will always be the ultimate safe-haven currency or means of exchange.
There is NO other currency throughout all of history that has stood the test of time like Gold has, this is fact and there are many reasons for it. For more information please call...BK

Tuesday, July 13, 2010

UK debt is ‘twice as much as we thought’

12 July 2010, 7:37am

The true scale of the national debt is £2 trillion – more than twice the official figure, an alarming study shows.

The black hole in the public accounts equates to £78,000 for every household in the country.
The ‘real’ state of the national finances is exposed in a study published today by the Centre for Economics and Business Research, which warns of a series of mammoth debts that aren’t revealed by the official figures.

As we said when the Greek crisis erupted, financial trends are like fashion trends, they start in Europe and end in America. The fundamentals of the western banking system were born in the UK during the Rothschild era, and if they underestimated their numbers imagine how bad our numbers really are?  BK

Monday, July 12, 2010

Chief Investment Strategist at Raymond James, Says Gold Still Has a Long Way To Go

America's largest independant brokerage firm Raymond James, managing about $200 Billion in assets worldwide is still bullish on Gold.

Listen to this great interview on King World News

Managing Director & Chief Investment Strategist for Raymond James - Jeffrey is known for his insightful market commentary, and is a regular on Wall Street Week, CNBC, Bloomberg TV, USA Networks, Fox TV, NPR. Jeffrey is quoted in The Wall Street Journal, New York Times, Barron's, Washington Post, Business Week, U.S. News and World Report, Fortune, SmartMoney, as well as MSNBC and Jeffrey Saut is in an excellent position to gage investor sentiment as Raymond James has over 2 million retail accounts.   LINK...

Thursday, July 8, 2010

On July 4th the U.S.A. turned 234 years old.

We subscribe to David Rosenberg's newsletter and here is what he said a few days ago...

The US turned 234 years old yesterday, and yet over half of the nation’s money supply was created since Helicopter Ben took over the flight controls four years ago. No wonder gold is in a full-fledged bull market.

– David A. Rosenberg, Chief Economist & Strategist, Gluskin Sheff & Associates Inc.

Wednesday, July 7, 2010

Could Russia And Europe Team-Up To Survive?

A very good discussion on CNBC.   LINK...

Legendary Newsletter Writers on GOLD


When we have a concensus on a major trend and all the legendary investment newsletter writers, who answer to no one but their subscribers, like our personal favourite Bob Chapman and many others like Richard Russell, Harry Schultz, James Dines and Jim Willie , say that the market is in decline and GOLD is in a mjor bull market then you cannot say that no one warned you, or that no one knew this was coming. For years we have heard all kinds of excuses on market results that make people feel better after the fact.

Here is a piece from Bob Chapman's newsletter that was provided by Richard Russell:

Russell on gold:

Question -- Russell, how do your studies of the primary trend affect gold?

Answer -- The gold bull market will be no exception to my studies of the primary trend. Gold is indisputably in a great primary bull market. Gold moved into its second phase, the longest phase, and the one that starts to interest the crowd. But we haven't seen the crazy third phase of the gold bull market yet. The third phase is the manic phase where everyone wants in and speculation grows to insane proportions. I believe the third phase of the gold bull market lies ahead, maybe six months to a few years ahead. There's no way to time it.

Understand this -- every item you buy, every trade you make, has a counter-party. I talked to a friend last night who was thrilled because he was heavily short the market. I asked him "Who's your counter-party for all these shorts?" He answered, "What are you talking about?" I replied, "If you make a killing on the short side, who's the counter-party, who's going to pay you your profits?" My friend turned white, "Gad, I see what you mean. I don't know who my counter-party is or whether they'll even be solvent if the market collapses."
And that's where gold comes in. Gold is pure wealth. It hasn't been produced by any bank or corporation, Thus gold doesn't have a counter-party, nor does it need one. Gold can't be devalued or thrust into bankruptcy. This is the fact that gold-haters seem incapable of understanding.

Thursday, July 1, 2010

Gold is a Barometer of Fear and Confidence; Not Inflation

Source: A Pocketbook of Gold, by Jim Sinclair and Peter Carlin

"Gold is no more than a barometer. It indicates the general feeling of security people have about other asset classes...If you feel safe, hold other assets. If you are concerned -- and let me tell you most people in the world are concerned -- then you move to Gold...The biggest driver of the Gold price is a fundamental lack of confidence in government."

--Peter Munk, 2009

A highly successful and connected executive and founder of Barrick Gold, the largest Gold mining company in the world, Peter Munk surely understands what drives the Gold market better than most.

Now watch the video below and decide if you have confidence in the U.S. economy.

As we keep stressing, "Understanding the rise in Gold is NOT about the rise in Gold. It is about the loss of confidence in the U.S. dollar as the world's reserve currency." BK