Saturday, December 31, 2011

TRENDS in The Past 11 Years

Source:  Visit Zerohedge for more charts on trends.

For those that believe gold cannot possibly go to $3,000 or $10,000 USD, please consider the hyperinflation period in Germany (LINK) during the early 1900's. Back then the German Mark was a very powerful and globally recognized currency as the U.S. Dollar is today, and you can see how printing money and/or expanding the balance sheet of a country via bailouts, stimulus, quantitative easing or whatever? It all has the same effect on commodity prices in general, especially GOLD!

Wednesday, December 28, 2011

U.S. Mint says has enough gold, silver Eagles coins

By Frank Tang

Wed Dec 28, 2011 3:10pm EST

(Reuters) - The United States Mint said on Wednesday it has enough American Eagle gold and silver bullion coins to meet demand and does not expect to allocate them in early 2012.
Sales of the U.S. gold and silver bullion coins have slowed in the fourth quarter as precious metals prices retreated from record highs, bucking a trend earlier this year when investors flocked to physical gold and silver as safe havens.
"As we plan on having sufficient quantities of all coins available, we do not anticipate having to allocate the initial release," U.S. Mint spokesman Michael White said in a note.   LINK...

Tuesday, December 20, 2011

Money Supply Explosion Will Lead to Accelerating Inflation

Originally posted on GoldMoney

In case you were wondering where inflation comes from and why things are getting more expensive? It's simple supply and demand folks. The more money and credit the Central Banks create the less "value" it has against consumer goods, and the result guessed it, INFLATION! So who is to blame for inflation?
Your cost of living will never stop increasing as long as Central Banks are printing money. Now ask yourself if the return on your investment portfolio looks like this chart? If not, then you're losing money and the only way to protect your wealth is to become your own "Central Bank" and have GOLD/SILVER bullion in reserve, because Cantral Banks cannot just create gold by pushing buttons on a printing press or a computer!
People are being swindled and they don't even know it!   BK

Wednesday, December 14, 2011

Kyle Bass Says Europe Needs Actual Restructuring

This is a GREAT buying opportunity in GOLD and SILVER for those with disposable cash. 
Here's a LINK to one of the interviews Kyle did recently. He addresses the fact that the COMEX has $80 Billion in paper futures contracts in open interest, and when he asked how much they have in deliverable gold in the warehouse, they said $2.7 Billion? So Kyle being the smart man he is, said just give me a billion in physical and you guys worry about the rest.  BK

Monday, December 5, 2011

Texes Hedge Fund Manager, Kyle Bass who made millions in the credit crunch says take physical delivery of your GOLD!

About the 41st minute into the video, Kyle talks about his gold holdings.  Pay close attention to what he says about the attitude of the warehouse managers and how much paper they hold compared to the actual physical.  BK


Tuesday, November 29, 2011

Hyperinflation Warning, Preserve Value With Gold

John Williams:
The Gold Report:

Among the specters lurking in's Editor John Williams' gloomy outlook for the U.S. are the demise of the dollar, hyperinflation and the ongoing lack of political will to take sound corrective measures. Still, as he tells The Gold Report in this exclusive interview, investors have options. Williams contends that turning to gold, silver and strong foreign currencies would protect wealth and position savvy investors to take advantage of extraordinary opportunities likely to flow out of the turmoil ahead.

Excerpts from the interview:

TGR: Let's go back to gold. According to your research, the September 2011 high of $1,895/oz gold was below the historic high of $850/oz in 1980, if the 1980 figure was adjusted for inflation. The $850/oz in 1980 would have equaled $2,479/oz in Consumer Price Index--all Urban consumers (CPIU)-adjusted dollars, or $8,677/oz Shadow Government Statistics (SGS)-alternate-CPI-adjusted gold prices in 2011. Is gold underpriced if you put it into that context?

JW: On that basis, yes, it is. It also depends on when you measure it. My hyperinflation report looks at what has happened to the dollar over a longer period. Since President Roosevelt took the U.S. off the gold standard domestically in 1933, the dollar has lost 98--99% of its purchasing power. People tend to forget that. But if you look at the gold price movement since 1933, it actually has moved a little more than the government-reported pace of inflation. My estimate of what inflation should be if we had consistent CPI reporting shows that the loss of the dollar's purchasing power against gold is the same as it is measured by the CPI.

So over time--and this is true over millennia--gold tends to maintain purchasing power, which means it holds its value net of inflation. Not that you'd break a piece of gold down to a small enough unit to buy a loaf of bread, but if you did, it also would have bought a loaf of bread in ancient Rome.

TGR: For the same amount of gold.

JW: Same amount of gold. Gold has a long tradition as store of wealth. That's why--globally--gold generally has been viewed as such. It only got bad press in the U.S. because private ownership of gold was outlawed after Roosevelt's action. It became legal for Americans to own gold again after Nixon abandoned the international gold standard. Yet, even today, some on Wall Street discourage investment in physical gold, largely because they cannot make a commission on it, as they do with stocks and bonds.

Given the gold ownership limitations after 1933, those in the U.S. who wanted to buy gold turned to buying gold stocks. But because of what happened in the 1930s--that's now two generations or so ago--gold as an investment and as a hedge to protect wealth lost some of what had been its commonly recognized value in the U.S. Outside the U.S., almost everyone views gold as a traditional hedge.

TGR: That's physical gold. What about exchange-traded funds and gold equities in the juniors? Will those investments also preserve wealth?

JW: I wouldn't count on the financial system working as it should. I look at physical gold, preferably sovereign coins, not only as a store of wealth, but also for purposes of liquidity.

Gold stocks also should preserve wealth over time, but I would look at them as longer-term holdings. There could be periods of systemic failure with resulting interim liquidity issues.

TGR: You talked about hyperinflation coming as early as 2014, or even before that. But 2012 is just weeks away. What can people expect next year in terms of the data you watch and maintain versus some of the government-issued statistics?

JW: I can tell you that the economy is weaker and will remain weaker than the government reports. We don't have an economic recovery in place. We'll tend to see higher inflation.

TGR: Something to watch out for. Thank you, John.


Tuesday, November 22, 2011

A 60 Minutes Re-Cap From Last Year

Inspired by the TF Metals Report

Michael Lewis on 60 Minutes March 14, 2010
Part 1 of 2

Compare this to today's MF Global and CME shenanigans?

Friday, November 18, 2011

Coin Investments Trump The FTSE

Investors who bought the Avarae Investment Trust haven't exactly made a mint but they have beaten the FTSE by around 10 percentage points over the past year – a return not to be sniffed at in these troubled times.
The trust has returned 4pc over the past year, compared with the index's loss of 5pc. The relatively small – £7.5m – Aim-listed fund has done well over a three-year view as well, returning 40pc compared with the FTSE 100's growth of 26pc.

Thursday, November 17, 2011

Central Banks Make Biggest Gold Buy In Decades

London— Financial Times

The activity of central banks is one of the most important drivers of the gold market, but many banks disclose few details about the changes in their bullion reserves.
Central banks became net buyers of gold last year after two decades of heavy selling - a reversal that has helped propel the price of bullion to a high of $1,920.30 (U.S.) a troy ounce in September, up 600 per cent in a decade.
This year, led by emerging market central banks intent on diversifying their growing foreign exchange reserves, they are set to buy more gold than at any time since the collapse of the Bretton Woods system 40 years ago, the last time the value of the dollar was linked to gold.  LINK...

World Gold Demand Up 6% In Third Quarter

Market Watch
By Francesca Freeman
LONDON (MarketWatch) -- World gold demand rose 6% in the third quarter, boosted by a 33% increase in investment demand as the deteriorating economic landscape in Europe heightened the appeal of the yellow metal as a hedge against insecurity, the World Gold Council said Thursday.
Third-quarter gold demand totaled 1,053.9 metric tons, up from 991.1 tons in the same period of 2010, the industry body said in its latest Gold Demand Trends report. In dollar terms, this equated to $57.7 billion, an all-time high in value terms.   LINK...

Saturday, November 12, 2011

Fake Silver and Gold Hit Markets


This is precisely why we strictly deal in high quality "investment grade" bullion products, NO collector coins. Not that collector coins are bad, it's just they are more difficult to verify for authenticity. We believe that if investors want leverage in their gold portfolio the best place is the gold mining companies and of course our trusted source for mining shares is none other than,
Bob Chapman of the
International Forecaster
He answers everyone and if you ask nicely he'll give you his stock recommendations at no cost. Besides, all our bullion suppliers are rigorously investigated and tested before we do any business with them. We verify all credentials of our refiners through the Certified Coin Exchange and the International Standards Organization (ISO) for certification. We do NOT accept walk-in business so all the products we trade are from existing clients. Our focus is on building long-term relationships with our clients to ensure a "closed loop" system of trade. Any product we sell, is a product we stand behind. Any product we buy is examined for purity and tested for authenticity. We have access to highly sophisticated X-Ray devices that measure the purity and full composition of any metal. The personal nature in the way we conduct business and the fact that all products we purchase are thoroughly examined before any cash is paid out will deter any counterfeiters from attempting to sell us fake product. People cannot just come into our office to make a quick deal and leave. Most products are sent to our warehouse before any funds are released. We spend the time with our clients to get to know them and ask many questions about their investment ideas. For those of you that have been to our office in person, know that we deal in an intimate setting and our office is not open to the public. All clients must book an appointment before they visit.    BK
Counterfeiters BEWARE!
You're up against the best technology:

S1 SORTER, handheld PMI gun for alloy ID

Friday, November 11, 2011

Will Italy Fail and Gold go to $3,000?

Tuesday, November 08, 2011

Commentary by Peter Morici, Ph.D.

Simply, private investors and other governments, notably cash-rich China and other big exporters, expect Italian and other European sovereign debt to fail. They are concerned the euro will simply implode all together, and then no European government will have both the resources and inclination to stand behind the ESFS's failing bonds.
At that point, nothing is left but gold. Now trading at $1790, it could zoom right past $2000 to $3000 an ounce.
Peter Morici is a professor at the Smith School of Business, University of Maryland School, and former Chief Economist at the U.S. International Trade Commission.    LINK...

Monday, November 7, 2011

Germany Fights to Keep Their Gold

News release from Zero Hedge

Germany to G20: German Gold “Must Remain Off Limits”; Italian Gold Sale Again Proposed In Germany

If gold is so important to the most powerful country in Europe during this global crisis, don't you think gold deserves a position in YOUR portfolio? 
All the gold critics should take notice of the lengths to which Germany is taking to protect their gold, even though it's "JUST a metal" and "doesn't produce any interest or dividends?" WAKE UP PEOPLE!   BK 

Friday, November 4, 2011

No Wonder Silver is Not $80 Yet?

From: Jesse's Cafe Americain
CFTC Update on the Investigation Into Manipulation of the Silver Market In Progress Since 2008
We believe $80 silver will be a reality in 2012.   BK

Central Banks Quietly Accumulating Gold - Declared Purchases of 206 Tons Through September 2011

From: Zero Hedge

Gold appears to have broken out above resistance at $1,750/oz after consolidating between $1,600 and $1,750 in recent weeks.
Demand for gold bullion remains broad based and global in nature. One of the most important sources of demand continues to be central bank demand.
According to data from the IMF, central banks continue to be significant net buyers of gold. Mexico has added most to its reserves, with a net 83.7T of gold between January and September 2011, followed by Russia, which has added 59.3T this year, and Thailand, which has added 52.9T (see chart).

Monday, October 31, 2011

Silver Price: Silver Tsunami from India

By Dominique de Kevelioc de Bailleul
But what about silver?

As India proceeds to Vasubaras, the first day of Deepavali celebrations in the state of Maharashtra, traders and business people consider this day an auspicious one “for making important purchases, especially metals, including kitchenware and precious metals like silver and gold,” according to Wiki. As the demand for gold rises in India, silver demand rises as well.

Another factor which could drive higher India imports of silver is the high cost of gold. Malaysian news outlet, The Star, reported that the rally in the gold price has created a problem of affordability among many Indians. Many Indians have always struggled financially to purchase the sacred metal for religious ceremonies, with some families spending their entire life's savings on the wedding of their young bride. But gold has increasingly become more prohibitive to many families in India as the rally enters its 11th straight year of higher prices.

Read more:

Thursday, October 27, 2011

"The Reason to Own Gold Never Changed." Eric Sprott

From Casey Research
An in depth interview with prominent money manager Eric Sprott.

More Than Half of Canadians Are Worried About Retirement...

STOP the herd mentality and think outside the box. Everyone knows the story of the Indians leading the buffalo to stampede off the cliff. Don't be the buffalo, my friends.

Retirement savings are only as good as the currency they're measured in. When Central Banks around the world are printing money to solve problems, your so called "Retirement Plan" is worth-LESS. Not understanding how the system works and how to measure REAL value is why many are losing their shirts in the "BUY and HOLD" for the long-term strategy. The only people benefiting from this are the financial institutions, insurance companies and financial planners, if they even deserve that title? People should be more focused on sound money management (buy-low / sell-high) by taking profits and moving them to a solid store of value like GOLD! Ask yourself, why have savings in a currency that will continually lose value forever? It is the nature of all governments to expand money and credit, which eats away at your hard earned wealth. The minute you deposit money into a bank it becomes inflationary because the bank will leverage your money to provide loans.
Folks, this time will be no different than the past. History is filled with monetary collapses and revolutions, why would anyone think that the human race has changed? The only thing throughout all of history that has survived as a currency of last resort is GOLD and SILVER. They have outlasted every government, stock market, currency, and bank that has ever existed. Why even bother to challenge this axiom? Just buy NOW!    BK

The Canadian Press, On Thursday October 27, 2011, 9:44 am EDT

TORONTO - A newly released poll suggests that more than half of Canadians over the age of 45 are concerned that the sagging economy and volatile stock markets are squeezing their retirement savings.
The poll by Sun Life Financial (TSX:SLF) and the CARP seniors group, released Thursday, said 54 per cent of 5,500 CARP members surveyed were worried about the impact of economic turmoil on their financial security.
And a third of respondents said they fear losing money in their retirement accounts from recent stock market losses.

Tuesday, October 25, 2011

Is Gold The ONLY Safe Haven Asset Left?

Not long ago Switzerland, the once safest place to store money, pegged its Franc to the failing EURO and subsequently fell 10%, now the YEN is at a long-term low, according to ZeroHedge. Everyone knows the USD has lost over 90% of its value since 1971, the big question is where do people go to protect the "value" of their wealth? The stock market, bond market, cash or farmland? Could gold be the only SAFE currency left in the world? If you judge from its performance over the past decade the answer is definitely YES! Part of the reason for this is because gold is the ONLY currency that has NO counter-party risk like government. Take refuge in GOLD dear readers, it will prove to be the safest place for your wealth.   BK

Thursday, October 20, 2011

New Position Limits on Derivatives

Bart Chilton, Commissioner of the CFTC talks to BNN about the new position limits on derivatives trading. Could this be an end to the manipulation in the gold/silver market? Is this the reaction to the new Pan Asian Gold Exchange set to open soon? It's a nice idea the Bart has about FREE and FAIR markets with TRANSPARENCY, let's see if pandora's box will open on the OTC derivatives market?   BK


Monday, October 17, 2011

Lackluster Economy Could Lead to Next Gold Rush

Former economic advisor to Bush and FED Governor, Larry Lindsey talks about gold returning as a standard.   BK

10/11/11 10:35 PM EDT Updated: 10/13/11 12:16 PM EDT

An August survey by the Gallup Poll found that 34 percent of those questioned considered gold to be the best long-term investment, beating out real estate, stocks, conventional savings accounts and bonds.

Read more:

Thursday, September 29, 2011

FIVE 9's Fine (.99999) Gold Coins

NOW Available the Gold Canadian Mountie Coin. Please call for a quote.

Wednesday, September 21, 2011

LBMA campaigns for gold to be Tier 1 asset for banks under Basel III

Posted on 20 September 2011
European central banks have become net buyers of gold for the first time in more than two decades, a significant sign that the role of precious metals in currency markets is not only being reassessed but actually changing, reported The Financial Times, while there also is a campaign afoot to include gold as a Tier 1 bank asset with the Basel Committee on Banking Supervision.

This week the London Bullion Market Association is meeting in Montreal, the biggest gold industry conference of the year. China, Mexico, Russia, South Korea and Thailand central banks are also net buyers of the yellow metal.   LINK...


Tuesday, September 20, 2011

Tom Stevenson: ETFs have potential to become the next toxic scandal

Back in April, the Financial Stability Board (FSB), an international super-regulator, wrote a prescient if less than catchily-titled paper "Potential financial stability issues arising from recent trends in Exchange Traded Funds (ETFs)".
Its central warning – that ETFs are not the cheap and transparent vehicles the marketers would have us believe – was spot on. When UBS’s $2bn black hole hit the screens on Thursday, no one who read the FSB report was surprised to see the words ETF and rogue trader in the same sentence.
The past ten years have seen an explosion in the popularity of ETFs. In part this reflects some of their acknowledged benefits – relatively low costs and the ability for investors to trade them throughout the day. A third claim, that ETFs are simple products, may once have been true but it no longer holds water. Many of these funds are now fiendishly complicated and way beyond the comprehension of the individual investors and professionals alike who are buying them.
Here are just a few of the reasons why ETFs are not all they are cracked up to be.   LINK...

Monday, September 19, 2011

Gold Breakout to $2,100 Coming Soon?

From a reliable source:   Jesse's Cafe Americain

Although there are a number of possibilities, some of which have been promoted by other 'name' chartists which people have sent to me, it seems most likely that gold is in a short term consolidation pattern, as a pronounced symmetrical triangle. A breakout to the upside seems most likely. That breakout will target 2100.   

Equedia - Central Banking: The God That Failed

Freedom Watch with Judge Napolitano
The case for a currency war.Watch Video

Thursday, September 15, 2011

Donald Trump Accepting Gold For Real Estate Payment

Posted by Wealth Wire - Thursday, September 15th, 2011

You may not be able to eat it, but gold has been used as a store of value and medium of exchange for millenia. We’ve previously opined that it may not be long before it once again becomes the world’s defacto currency. Governments, investment firms and individuals alike have been accumulating gold assets amid currency debasement, rising inflation and economic uncertainty.
The latest example of gold’s acceptance into mainstream consciousness comes to us from none other than one-time Presidential hopeful, reality TV star and real estate mogul Donald Trump, who recently agreed to accept a security deposit for one of his properties in gold bars:
On Thursday, the newest tenant in Donald Trump’s 40 Wall Street, a 70-story skyscraper in Manhattan’s Financial District, will hand Mr. Trump a security deposit worth about $176,000. No money will change hands—just three 32-ounce bars of gold, each about the size of a television remote control.   LINK...

Answers the many questions we get on what to do with your gold when it's $10,000/oz.  BK

Gold Fair Value, $10,000?

Gold-backed Dollar puts 'fair value' at US$10,000 an ounce

INTERNATIONAL. Gold has the potential to jump more than fivefold as the precious metal's price catches up with the surging amount of money in the U.S. economy, according to Dylan Grice, a global strategist at Societe Generale SA.   LINK...
We're seeing more and more predictions in this range.   BK

Monetary System Will Go Gold Soon

On King World News, Jim Rickards talks about how we will eventually return to gold as an important part of our monetary system.   BK

Tuesday, September 13, 2011

It's Time To Admit The Euro Has Failed

By Michael Sivy
September 12, 2011

Read more:
Is there anyplace where your money is safe?  Hmmm...    BK

Monday, September 12, 2011

Since 9/11, It Has Paid to Own Silver, Gold and Oil

From: The Wall Street Journal

The best performing asset class of the past decade has been silver, up more than 900%, from $4.16 an ounce to nearly $42 at last check. Gold has been a healthy second, up nearly 568%, from about $272 an ounce to about $1854.
Crude-oil, which everybody expected to be a big winner after Sept. 11, has gained, though not as much as gold and silver, rising 225%, from less than $28 a barrel to about $86.
The biggest post-9/11 losers have been the US dollar, European stock markets and financial stocks in the S&P 500. The best-performing sector in the S&P over this time has been the energy sector, up 128%.   LINK...
And yet portfolio managers around the world are less than 1% invested in Gold/Silver related assets. What will happen when these managers start looking for a better return on capital?   BK

Saturday, September 10, 2011

The Myth of Neo-Liberalism

A very thought provoking interview. A must watch!

Michael Hudson says we're headed for a 5-10 year DEPRESSION?   VIDEO...

Investment-savvy Indians shift gold buying to bars from bangles


By Jo Winterbottom

NEW DELHI, Sept 8 (Reuters) - In a nation whose love for gold is legendary, financial adviser Biju Daniel is one of scores of Indians who are rethinking how they amass riches through the precious metal.
Daniel's wife owns at least a kilogram of jewellery and he sports a gold watch. But he is also shrewd enough to realise that the world's biggest gold consumers are falling out of love with wearing their wealth, preferring to stock up on coins, bars and bullion-based investment funds as they look for returns safe from the ravages of inflation and the dictates of fashion.
Demand for gold bars, coins and other pure investments in India, Asia's third largest economy, soared 83 percent in 2010 from the year earlier to 349 tonnes, according to GFMS, a precious metals consultancy that is part of Thomson Reuters.    LINK...
Think about it folks, two of the largest, most populated countries in the world, with the longest histroy are buying gold coins and bars. Together China and India are absorbing our entire manufacturing and service based industries. What will that leave us?   BK

Friday, September 9, 2011

Is the Swiss Franc to Euro Peg Bullish For Gold?

By Eric McWhinnie

On Tuesday, gold (NYSE:GLD) reached a new all-time nominal high of $1921.15 before falling back below $1900. Silver (NYSE:SLV) futures for December delivery retreated 2.8% to close at $41.86. Even though gold and silver suffer pullbacks from time to time, the bullish case for precious metals (NYSE:DBP) continues to build. Yesterday, the Swiss National Bank decided to surprise global markets and give investors another reason to buy gold and silver.  LINK...
The only TRUE "safe haven" left...

Thursday, September 8, 2011

If You're Looking For Bubbles, Don't Look at Gold Coins

Constantin Gurdgiev

Globe and Mail Blog
Posted on Wednesday, September 7, 2011 12:01PM EDT

Dr. Constantin Gurdgiev is Head of Research with St Columbanus AG and the adjunct lecturer in finance with Trinity College, Dublin
Of all asset classes in today’s markets, gold is unique. And for a number of reasons.*
Firstly it acts as a long-term hedge and a short-term flight to safety instrument against virtually all other asset classes.** Secondly, it supports a wide range of instruments, including physical delivery (bullions, coins and jewellery), gold-linked legal tender, gold-based savings accounts, plain vanilla and synthetic ETFs, derivatives and producers-linked equities and funds. All of these are subject to diverse behavioural drivers of demand. Thirdly, gold is psychologically and analytically divisive, with media coverage oscillating between those who see gold as either a long-term risk management tool, or a speculative “bubble”. LINK...

Wednesday, September 7, 2011

More Beijing Embassy Cables Show China Sees Gold as Central in Currency War

From GATA's website

Submitted by cpowell on Tue, 2011-09-06 00:58. Section: Daily Dispatches

9:17p ET Monday, September 5, 2011

Dear Friend of GATA and Gold:

More news media-monitoring cables from the U.S. Embassy in Beijing to the State Department in Washington show that both China's government and the nation's financial press, tightly controlled by the government, consider gold to be the main weapon in a world currency war that is under way.

The additional cables, published a few days ago by Wikileaks and located by GATA's Irish friend R.M., disclose that China thinks that the United States is trying to prevent China's foreign exchange surplus from being converted into gold because the U.S. and its European allies plan a return to a gold standard that will favor them because they hold most of the world's gold reserves.   LINK...

Tuesday, September 6, 2011

$3,000 Gold by March 2012, Says Bob Chapman

Editor and publisher of the most highly acclaimed newsletter, The International Forecaster, Bob Chapman says that gold could easily go to $3,000 by March 2012.

Monday, September 5, 2011

China's Shadow Gold Buying


by: Tyler Durden

Wondering why gold at $1850 is cheap, or why gold at double that price will also be cheap, or frankly at any price? Because, as the following leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar's reserve status. Putting that into dollar terms is, therefore, impractical at best, and illogical at worst. We have a suspicion that the following cable from the US embassy in China is about to go not viral but very much global, and prompt all those mutual fund managers who are on the golden sidelines to dip a toe in the 24 karat pool. The only thing that matters from China's perspective is that "suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB." Now, what would happen if mutual and pension funds finally comprehend they are massively underinvested in the one asset which China is without a trace of doubt massively accumulating behind the scenes is nothing short of a worldwide scramble, not so much for paper, but every last ounce of physical gold...   LINK...
Here's an interesting video on the subject...

Wednesday, August 31, 2011

The Many Ways To Invest in Gold

CNBC:  Published: Monday, 29 Aug 2011
3:34 PM ET
By: Bob Pisani

How can an investor get into gold? Let's start with the obvious.   LINK...

Friday, August 26, 2011

Gold Margin Raised 27% on COMEX


The minimum cash deposit for borrowing from brokers to trade gold futures will rise 27 percent to $9,450 per 100-ounce contract in the speculative Tier 1 category at the close of trading tomorrow, Chicago-based CME said in a statement. On Aug. 11, the increase by the exchange was 22 percent to $7,425. The cost of one contract after today’s close was $175,730. The maintenance margin will rise to $7,000 from $5,500.    LINK...
Why bother with margin in this volatility? Just buy the physical metal fully paid for and aviod the stress. Eventually if they keep raising margins we will have a strictly physical market.  BK

Tuesday, August 23, 2011

Gold $3,000?

Aug. 23, 2011, 12:00 a.m. EDT

By Brett Arends, MarketWatch

Meanwhile, it still confronts a giant wall of skepticism. I hadn’t realized just how much skepticism was out there until I went on leave. During the summer’s financial crisis, pretty much every mainstream personal finance expert I saw on TV parroted the same line: “Gold is over,” “It’s too late to get into gold,” “Don’t buy gold at these levels,” and so on.
Hardly anybody owns gold. The assets of the Gold Trust ETF are still trivial compared to the trillions held in equities and bonds. Four times as much money is held in Apple (NASDAQ:AAPL) stock alone as in the entire GLD.
At a recent conference of about 40 investment commentators and gurus, I asked how many people in the room actually owned any gold in their portfolios. Just two of us raised their hands.
Very few mutual funds own gold. Even most “precious metals” funds only touch mining stocks, not the metal. Your typical “balanced fund” or “asset allocation” fund has no gold. If you want to have, say, 5% of your portfolio in precious metals you need to add it yourself.   LINK...
"Gold is money. Everything else is credit."         J.P. Morgan

Many still don't get-it!
Gold cannot be in a bubble because it's pure honest money. It cannot be inflated beyond reasonable accounts because it's finite. Sure you can create paper that represents gold like ETF's, certificates and mutual funds etc. But physical gold bullion is NOT a paper asset and cannot be created at will. The supply of gold IS what it IS, it cannot be expanded beyond it's physical domain. Gold is like land, there is only so much available on this earth and that's it, no more! You can't say land is in a "bubble?" The bubble is in fiat currencies, especially the USD. This is where the expansion is taking place, not in gold. Gold is just a rare, beautiful, fungible and shiny piece of metal that has historically been used as a medium of exchange, or MONEY. It is not an investment, it is a reserve. So it doesn't make sense to compare gold to other investments. As for the value of gold, that no one seems to know what it's worth; WATCH THIS VIDEO...LINK

Saturday, August 13, 2011

Don’t let anyone tell you gold isn’t golden

Aug. 12, 2011, 8:18 a.m. EDT
By Al Lewis
NEW YORK (MarketWatch) — OK, so I was wrong about gold.

In my first column of the year, I boldly predicted gold (CNS:GC1Z) would top $1,700 an ounce in 2011. Now it’s passed $1,800.
“A rising gold price is God’s little messenger, reminding us the money we save for the future is just paper,” I wrote. Geez, I sounded like one of those crackpot spokesmen from the AM radio commercials: “Gold has never been worth zero!” And nobody seemed to take me seriously since I admitted that my forecast was based on questions posed to my Magic 8-Ball, rather than insights from a real market analyst or economist.
I’ve written columns bullish on gold since 2003, after gold hit an astonishing, nose-bleeding, long-time high of $385 an ounce.
Those were the good ol’ days when, if you said something nice about gold, readers would email to call you a “gold bug” or some kind of conspiracy theorist planning for the end of the United States of America, or something.
When gold rallied well over $500 an ounce in 2005, I interviewed some very smart people who were pretty sure gold was just another bubble.
“It’s had a nice run over the last 24 months,” Jeff Thredgold, an economist with Vectra Bank Colorado, told me in 2005. “But gold is easily the single-worst investment of the last 25 years.” LINK...

Wednesday, August 10, 2011

...And the First Place Winner Gets GOLD!

Have you ever wondered why, in practically every measure of achievement in life, "First Place" is rewarded with gold, except the financial world?
WHY is gold as an investment discounted so much by mainstream financial media and Wall Street types? In some cases it's even laughed at by CNBC? Even the FED Chairman, Ben Bernanke recently stated that he doesn't think gold is money?

Maybe he forgot that one of the founders of the original FED, Paul Warburg in 1915 said, "The scope of our banking future will ultimately be limited by the amount of gold that we can muster as the foundation of our banking and credit structure." 

Other famous quotes:

"You have to choose between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold." 
 George Bernard Shaw

"Gold is money. Everything else is credit."     J.P. Morgan

Our entire system of banking or "Fractional Reserve System" was originally founded on the back of gold by the Rothschild family in the 18th century. Could it be that these highly educated and sophisticated financial professionals of today really don't understand gold? Or, could it be that they do, and just want it all for themselves?

Poetic Confessions of a Banker

One has to ask the question; If you knew the secret of acquiring true wealth would you let everyone else in on it? Or keep it a secret and stay powerful and wealthy? Think about why many mainstream economists and bankers scoff at a "Gold Standard" money system. Think about who has control and power over government? Think about the powerful elite group of bankers and then watch the video below and ask yourself, if we were under a gold standard and this old miner struck it rich, WHO would gain power and WHO would lose power?

Gold prospector says, gold is worth 500 years of a man's labour.  LINK

Let's not forget that every empire in history was built on gold and collapsed with a fiat paper currency. It is no doubt that gold is a powerful force and when it's in the hands of "We The People" then WE control the government not the bankers.
After all is said and done, the FIRST PLACE winner will have GOLD!    BK

Monday, August 8, 2011

James Turk Interviews Legendary Jim Sinclair at the GATA Conference

A MUST SEE interview!
Possibly two of the most talented and experienced gold investment professionals in the world! Jim's number of $1,764 is not far away.  BK

Friday, August 5, 2011

Original FED Founder, Paul Warburg in 1915

"The scope of our banking future will ultimately be limited by the amount of gold that we can muster as the foundation of our banking and credit structure."  Paul Warburg, 1915

Dollar's Reserve Status Waning, U.S. Treasury Borrowing Committee Says

“The idea of a reserve currency is that it is built on strength, not typically that it is ‘best among poor choices’,” page 35 of the presentation made by one committee member said. “The fact that there are not currently viable alternatives to the U.S. dollar is a hollow victory and perhaps portends a deteriorating fate.” LINK...

No viable alternatives to the USD???
SHHHHH...I'll let you in on a little secret, GOLD has been the hidden world's reserve currency for thousands of years, and it really still is, but don't tell anyone. Just give me a call and I'll get some for you.    BK

Thursday, August 4, 2011

Gold is Laughing at Us

By: John Carney
Senior Editor,

“Gold has proven to be a superman investment. It can leap over buildings and do things that investments aren’t supposed to do. And it’s laughing at us," I explained.
A more analytical take can be found today at Zerohedge. If you love charts, you'll love the post. Here's how it wraps up:
"As a percentage of assets, gold ownership remains negligible vis-à-vis assets such as equities and bonds. Ownership of gold is likely to be less than 2 percent of global investable assets. This is in marked contrast to the end of gold’s last bull market, when gold and gold stocks accounted for over 20 percent of global assets.
Gold remains badly analyzed, under-owned, and under-appreciated. This will change in the coming months and years, when the importance of gold as an investment and currency diversification and as a store of wealth is appreciated again."   LINK...

CNN Interviews Jim Sinclair in 2008 about Gold at $1,650/oz


We couldn't agree more. Get your family and your financial house in order first, then think about investing in gold as insurance. Financially speaking, one doesn't become rich by investing in gold, you are just maintaining your standard of living while the rest of the economy is falling. Gold protects your wealth against unsound financial policies in government and banking.   BK

Wednesday, August 3, 2011

Central Banks Join Rush to Gold

The Wall Street Journal
by Liam Pleven, Se Young Lee and In-Soo Nam

Central banks are ramping up their gold buying as they seek to diversify their reserves away from the dollar and other beleaguered currencies.
South Korea became the latest government to disclose a big bullion purchase, saying Tuesday that it recently bought 25 metric tons - more than doubling its holdings to 39 metric tons. Mexico, Russia and Thailand have also been major buyers in 2011.
This year, governments have almost tripled their net gold purchases, increasing their holdings by 203.5 metric tons this year, up from a 76-metric ton rise last year, according to the World Gold Council, an industry group backed by miners.
The demand marks a major shift in central banks' thinking about gold. Increasingly, they see bullion as protection against risks posed by declining paper currencies and global economic upheaval, and their vast resources and conservative bent make them a powerful force in the gold market.   LINK...
As we have said HERE many times, families should become their own "Central Bankers."    BK

$1,650 GOLD is Now BROKEN!!!

The number many experienced traders and analysts have been waiting for has now been achieved. Gold at $1,650 is the launching pad for $2,000, $3,000, $5,000 and beyond. How much more significance does anyone need when gold hit this number the same day as the debt ceiling deadline? What gold is telling us is that it sees right through the politics and responds to the truth, the USD is losing confidence as the world's reserve currency. This will set the stage for much higher inflation into the future. Prepare yourself by practising the old fashion way of living and saving money. Take personal control of your finances and protect yourself and your family.   BK 

Friday, July 29, 2011

Times Redux

From a client who would make a great writer:

Times Redux

Something I'd written earlier, perhaps in another lifetime--they seem to pass by so swiftly. Perhaps apropos to the madness that confronts the sane:

I've had much time lately to think, slicing and dicing the economy, watching the latest movement of this financial index or that, trying to find the meaning within the meaning of words uttered by too many CNBC liars who utter words which purposefully have no meaning--which hence become so meaningful.
The news, when not so blatantly manipulated, comes across as drab and dreary as the dusty shuffle of soldiers in defeat.
We try to find our economic heroes--our doctors of digits and decimals who can rearrange the numbers and orchestrate a cure, stamp out the sickness with spitting needles that pierce a body too sick to move after a binge of greed and over-consumption--but there seems to be a glut of experts, all prescribing pills of different sizes, shapes and colors. I have to escape it all sometimes.
Recently, I took a walk with some new friends along the Detroit River, on Riverside. Horses and apples. Marble and metal. Plants that can spell. It was fun, and kind of sad, too: We're getting older, we understand what's happening around us.
We paused at the rail, looking across the river at Detroit, it's shining cityscape hiding the rot that eats it from inside.
An old man was there, not part of our crowd. No one paid much attention to him. He sat alone on a bench, muttering quietly to himself, watching the river as it flowed serenely toward Lake Erie. His clothes were dark and heavy, ripped and soiled. He looked to be in his mid-sixties, with a lined and weathered face the color of old wood just before it turns grey.
Evening approached, and a comfortable lull had settled over our group. The old man was still there. Slowly, so as not to startle him, I walked to the bench and joined him. From where I sat three feet away his odor was strong, as if his armpit held the mystery of a mollusk dying on the sand.
Under his breath, I could hear his words. They were spoken in a low and gentle voice, almost melodious.
"Water sparkle, don't you know. I know the water. Everyday day it speak and shine. Jimmy know. Birds fly, and fishes crawl under the shine...June, December, all the same to the fishes." He fell silent, working his jaw as if chewing something.
"Is your name Jimmy?" I asked. He seemed not to hear me.
"People smile and cry like sun and rain," he said. "Damn angels don't care for Jimmy. Clouds fall and they all cry for Jimmy. I know. Jimmy know."
He turned and looked at me. I noticed his eyes. They were an almost feline blue, really that startling. Unreal. But he wasn't looking at me. He was looking way beyond me, at a universe with a population of one.
"Bird flap, then steal the fishes. Like little clocks."
He turned his gaze back to the river. I slowly rose and rejoined my friends.
I'm sure that Jimmy wasn't scared. Not anymore. Not like the people in Detroit. Not like me.
Detroit is where my sister lives. Professor at a Michigan University. Absolutely clueless. I've tried. The tenure teat is too strong. Obama will cure all which ails. So it goes.

My wife and I may be closer to making a move in the PM arena. Take care, and God bless you and yours.

--Anonymous Client

Rather poetic that GM headquarters is now downtown Detroit.     BK

Monday, July 25, 2011

NEW Product Shelf

Asian investors stricken by gold fever on record price

By Manolo Serapio Jr and Rujun Shen

Thu Jul 21, 2011 12:47am EDT

(Reuters) - Gold fever is gripping Asian investors and could spread to central banks as global growth uncertainties tarnish the appeal of other assets, putting bullion on course for more gains but also provoking fears about supply. Spot gold surged more than $100 in 11 straight days to Tuesday, its longest winning streak in four decades, hitting a record $1,609.51 an ounce, as debt default fears in the United States and Europe drove investors to seek safety. Gold stayed above $1,600 on Thursday as market watchers remained cautious about the debt situation on both sides of the Atlantic. Asian giants India and China, the world's two biggest consumers of the precious metal, expect to see demand continue to climb for the rest of the year, as growing wealth and stubbornly high inflation make bullion an attractive asset. "Record high prices won't scare away investors," said Shi Heqing, an analyst at Antaike, a state-backed metals consultancy based in Beijing.   LINK...

Monday, July 18, 2011

Bob Chapman Sees $2,000 Gold in Six Months!

July 15, 2011 on the Financial Survival Radio Program


Legendary Bob Chapman with his 50+ years experience in the financial markets says Gold could easily hit $2,000 and higher by 2012. Fasten your seatbelts folks, this will be a wild ride! We expect to see high volatility in the precious metals markets over the next couple years and we agree with Mr. Chapman that prices will continue much much higher.   BK

Sunday, July 10, 2011

Inflation Buffalo Trap

It is said that native Indians would trigger a stampede and herd the American Buffalo towards a cliff to their ultimate doom. This is what happens when you "follow the herd."  Many in North American financial circles advise clients NOT to hold savings in CASH, because inflation will eat away at it. They say you're better off putting your money in a "balanced and diversified" portfolio for the long term?
Are these advisers not admitting that the government issued currency is not a good "store of value?" Are they not admitting that inflation is always present? Are they not admitting that they have NO confidence in the government to manage its finances? If your "balanced and diversified" portfolio is denominated in the currency of the realm, then you will ultimately perish aswell, because no matter what the "NOMINAL" performance of the stock market is-- it's always a function of a currency losing "REAL" value. 
This is the illusion folks, because once a currency loses its function as a "store of value," it will also fail as a stable medium of exchange. As the currency shrinks in value, the cost of living explodes! Why? Because when the government has the power to create and issue money with no restrictions, inflation is never ending. To store REAL value, you want something that cannot easily be duplicated or created. Something that requires hard work, innovation and time to develop and distribute. Gold fits perfectly into this category and history is filled with evidence of this. 
Is it any wonder why Gold has returned over 300% in the past ten years, while government debt has sky-rocketed out of control?
Don't let your fate be the same as the once popular American Buffalo, learn about protecting your wealth with assets of true value and historical significance. Gold and other precious metals are only one section of the many physical assets one can acquire to preserve their wealth. Education, critical thinking and an open mind are the keys to your financial future. Be PERSISTENT!   BK