Thursday, September 30, 2010

Feds Roll Out New Economic Package
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...
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...
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

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 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...
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.
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...
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...

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
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...
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...
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


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.

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...

The Commodities Bull Market Remains Strong

We have been in a general BULL market in commodities since about 1999 and it has clearly been identified by the declining USD and the continual rise in Gold and Silver. The base-metals, energy and grain markets have also been breaking all-time-highs over the past few years. Since China holds the manufacturing industry by the throat, the tranfer of wealth is sure to leave the western world and move East. This will cause a loss of confidence in the USD and a continuing decline in the standard of living in the West. The only protection against this development is the physical ownership of Gold and Silver because they act as your only insurance policy to preserve wealth and purchasing power. The western world MUST learn to SAVE, not consume with credit and live beyond ones means.  BK
Strong Chinese data boost base metals prices
By Javier Blas in London
Published: September 13 2010 11:14
Last updated: September 13 2010 11:14

Base metals prices surged on Monday after they were boosted by better-than-expected economic data in China, the world’s biggest importer of commodities such as copper.  LINK...

Saturday, September 11, 2010

Richard Russell Calls For an End to Fiat Money

52 years of guiding his subscribers through the investment jungle, Richard says the American dream is over, along with pensions.  LINK..

Thursday, September 9, 2010

He Predicted the Mortgage Collapse, Now He's Buying Gold

By Jon Erlichman and Dakin Campbell - Sep 7, 2010 5:00 AM ET

Michael Burry:  Gold is also a favored investment as central banks issue debt and devalue their currencies, he said. Governments haven’t adequately addressed the causes of the financial crisis and may be sowing the seeds for future problems by borrowing, he said. In the U.S., lawmakers showed they didn’t understand how to prevent another crisis when they gave the Federal Reserve and Chairman Ben S. Bernanke additional authority, he said.   LINK...
Farmland, water and Gold. Getting back to basics seems like the theme for investors in the future.   BK

Thursday, September 2, 2010

Congressman Ron Paul Wants an Audit of the Gold in Fort Knox

A ground breaking development that could send Gold prices much higher.  BK
Fox News takes Kitco’s Ron Paul gold audit story national
Submitted by cpowell on Thu, 2010-09-02 01:29
9:40p ET Wednesday, September 1, 2010