Monday, January 31, 2011

WHO is Draining GLD?

Please visit the:  FOFOA blog
A great article for the Gold ETF crowd who forget that, "for every buyer, there is a seller."   BK

NO Accountability?!?

Dear readers,

Today I'd like to talk about ACCOUNTABILITY in the financial industry.
I have read a couple disturbing articles lately and I would just like to provide a perspective from the outside looking in.

Everyone seems to be well aware that we are in a financial crisis, except the financial industry? In an article by Corky Siemaszko of NYDailyNews , Jamie Dimon, CEO of JP Morgan, is humiliated by the President of France, Nicolas Sarkozy at the World Economic Forum in Davos Switzerland. Dimon defends his dear banking industry by calling Sarkozy's criticism "unproductive and unfair." Are you kidding me? This sounds like a school yard defense. Instead of owning up to the fact that they created a monster paper derivative market that has no home for its HUNDREDS of TRILLIONS of dollars in numerical value, and suggesting a solution, Dimon says it's "UNFAIR." What's unfair is the multi-million dollar bonuses some CEO's got for failing! Dimon also has the gall to ask for more FLEXIBLE regulations in banking? It's like a kid in a candy store complaining, the store is not big enough. NO Accountability!

Then, in an article from, we have Don Reed, the CEO of Franklin Templeton, one of the largest mutual fund companies in America, questioning the intelligence and character of Canadians because "his company's survey" found that many Canadians are still "suspicious" of the market? Maybe someone should introduce this guy to Bernie Madoff? Mr.Reed goes on to say that he doesn't understand how the markets have recovered dramatically, yet investor confidence has not? His company spent two years studying investor's attitudes towards markets, maybe they should have been studying the "MARKETS" instead! Again, it seems that these CEO financial types live in their own world and they are NOT ACCOUNTABLE for anything?

The most disturbing thing is, that all these bankers and financial paper pushers are the first in line to criticize Gold and Silver as an investment. Why? Because Gold and Silver are honest money and they reveal the true nature and condition of the financial industry. Gold and Silver cannot be created out of thin air. Gold has been considered money longer than ANY bank, stock market or currency has ever existed. Gold has shown its true colors over the past eleven years, along with Silver, as the best performing assets in the entire industry. 5000 years of history prove that Gold is the ULTIMATE currency!

Folks, the financial system is broken and all the bankers and politicians are just patching things up like a handyman with duct tape. Until we get someone to professionally analyze the problem and come up with a solution to replace the broken parts, we will see Gold and Silver go much higher and there will be more civil unrest around the world. It happens time and time again throughout all of history, politicians and bankers push their limits until something SNAPS and a war breaks out. Egypt anyone?


Bosko Kacarevic

Saturday, January 29, 2011

Grocery Prices Rising: Bob Chapman

January 29th issue of The International Forecaster

Grocery prices increased at more than 50 percent the rate of inflation in 2010, according to data from the U.S. Bureau of Labor Statistics.
Food prices increased an average of 1.7 percent between November 2009 and November 2010, in comparison with a general inflation rate of only 1.1 percent. The greatest price increases were seen among meat, poultry, fish and eggs, which went up in cost by 5.8 percent. The price of sugar and sweets increased 1.2 percent, the price of fats and oils increased 3 percent and the price of dairy-based products increased 3.8 percent. The only commodities to go up in price more than food were medical care and transportation.

Invest Like a Legend: Eric Sprott

The Globe and Mail
Published Thursday, Jan. 27, 2011 4:21PM EST
Last updated Thursday, Jan. 27, 2011 4:45PM EST

HOW I WOULD INVEST A $100,000 WINDFALL: I would probably put 80% in precious metals, 10% in energy, and another 10% in agriculture, as well as special situations stocks.
ADVICE FOR INVESTORS: They should be in fear of the whole financial system collapsing, and figure out how they are going to survive in a worst-case scenario. Invest accordingly. That is why we have always thought that gold and silver were the pre-eminent places to be.  LINK...
Eric Sprott is one of the most successful investors in the country and I don't think he's joking about putting 80% of a portfolio in precious metals, because he has a proven track record of doing this.  BK

Friday, January 28, 2011

The World is Waiting For Sunrise

A Practical Guide to the Re-Monetization of Silver

Here is a link to a very thoughtful article by a very respected and honorable individual. Not only does he address the current financial crisis, but provides a workable solution to the problem, which very few are bold enough to suggest.
Enjoy...  LINK...

Sunday, January 23, 2011

China Buys Gold and the World Follows

By Myra P. Saefong, MarketWatch

“We are entering a period of strong seasonal growth in gold demand and Chinese New Year is a big part of that,” said Brien Lundin, editor of Gold Newsletter. “Physical demand has been supporting the gold prices on the downside even during the typical slack periods, and I expect that upcoming increase in demand will also support the price, but at higher levels.”   LINK...
Could the Chinese Yuan replace the USD as the world's reserve currency? It is no secret that high level negotiations are happening between China and other global powers, the question is; how will it affect our currency and the value of our retirement dollars? Below is a link to one of our previous posts on the China agenda. Owning Gold & Silver will be the best strategy in the years ahead.  BK

CHINA, the Next Global Super Power?

Saturday, January 22, 2011

Is Alan Greenspan Returning to His Golden Roots?

Mr. Greenspan has arrived to the Gold party too late, the economy is already in trouble? We wonder if he would have suggested a Gold Standard during his tenure as the Chairman of the Federal Reserve?   BK


Monday, January 17, 2011

Food and Energy Inflation

No hunger at the Fed

By Hossein Askari and Noureddine Krichene

Even though prices of sugar, wheat, corn, coffee, soybeans, and many other basic food, such as onions and cooking oil, rose at rates ranging between 60%-80% in 2010, this inflation seems to have been of little concern to the Federal Reserve.   LINK...

Friday, January 14, 2011

Geithner warns of future intervention

By Alistair Barr, MarketWatch
Jan. 13, 2011, 8:39 p.m. EST

SAN FRANCISCO (MarketWatch) — Treasury Secretary Timothy Geithner warned that the U.S. government may have to take control of major financial institutions again if there’s a crisis as big as the last one, according to a report released Thursday by a group overseeing the Troubled Asset Relief Program.    LINK...
Something stinks to high heaven here? Last week Mr. Geithner asks Congress to raise the ceiling on the government debt, now he's warning of another crash? There seems to be no end in sight to the debt problems and yet "The Market" is still in rally mode and Gold is less than $2,500?
Don't worry folks the recovery is just around the corner, right beside the swamp land for sale in Florida.   BK

Wednesday, January 12, 2011

Tim Geithner's Letter to Congress

Tim Geithner Letter to Harry


Here we have the Treasury Secretary of the USA asking Congress to raise the debt limit of the government? Is this a sign of a healthy economy in recovery? Has more debt become the solution for debt?
We believe this letter is a clear indication that we are not out of the woods yet and there will be more problems down the road. Having a personal reserve of Gold & Silver will be the only true protection individuals will have from a possible collapse of the U.S. dollar.  BK

Tuesday, January 11, 2011

"Not Owning Gold is a Form of Insanity": Chartist

Published: Monday, 10 Jan 2011

5:09 AM ET  By:
Gold will eventually rally exponentially and investors who don't own the precious metal are "insane," and may be showing "masochistic tendencies," Robin Griffiths, technical strategist at Cazenove Capital, told CNBC.  LINK...
With over 44 years of investment experience and one of the most respected technical analysts of global markets, Robin Griffiths is not someone to ignore. Many have said the definition of "insanity", is doing the same thing over-and-over again and expecting different results. I guess Robin is referring to the gold bears who have been dead wrong for the past TEN years!
The "buy and hold" strategy of most investment managers just doesn't work. Portfolio's must be actively managed by competent people. Those who believe that having a diversified & balanced portfolio for the long-run will pay-off are ignorant to history and the mechanics of global markets. In the end, the clients always lose.  BK

Gold As Insurance Says John Williams

John Williams Eyes Gold as Insurance Against Armageddon
Source: Karen Roche of The Gold Report 01/10/2011

John Williams says he likes physical Gold, Silver and Canada. Our U-Vault Account allows foreign clients to store their Gold & Silver in Canada with an independent security company. Please call for details or visit the U-Vault page for more information.  BK

JW:  My views haven't changed since we last talked. The ultimate result here is the government printing money to meet its obligations. The Fed effectively is funding the government's borrowing. But as the economy continues to weaken, as the deficit worsens, as the Treasury funding needs increase, quantitative easing and monetization of U.S. Treasuries will have to increase. We're going to see more and more foreign holders of dollars sell their dollars. I think there's high risk in the next year of a panicked sell-off, a panicked dumping of USD-denominated paper assets. All of that will cause the Fed to continue to flood the system with liquidity, to buy up unwanted Treasury debt and stimulate inflation. As people increasingly don't want to hold the currency because of the inflation, we'll start to see higher inflation that quickly can evolve into hyperinflation.

 JW:  As an economist looking at the broad trends—I'm not an investment advisor—people in a USD-denominated environment will need to try to preserve their wealth and assets and protect the purchasing power of the dollars they have. That means holding some physical gold, physical silver, getting some assets outside the U.S. dollar. I still like the Australian dollar, Canadian dollar and Swiss franc, and I think they will come out of this relatively unscathed versus the USD. Over the long haul, gold really is the preeminent asset, with a history of holding its purchasing power over time.   LINK...

Physical Gold Continues to Show True Value

As seen on
Trader Dan Norcini talks about the physical market in gold and silver.  LINK...
We believe the early stages of the "craze phase" in gold and silver will begin in 2011. We have already seen premiums being raised and short supply disruptions in any mints around the world. It will become important to build a relationship with a qualified precious metals dealer in the years ahead. We do not mean to toot our own horn, but having an account with a physical dealer will become part of everyone's portfolio. As it stands now we have a good inventory of physical (~$20,000,000.00) at our PFG warehouse, but it is moving fast.  BK

We have ten 1kg Silver Lunar Rabbits on order and due to arrive in our warehouse in 2 weeks. Please book your order now if you're interested.

Saturday, January 8, 2011

Classic Bob Chapman, Tells it Like it IS!

In the January 8, 2011 issue of The International Forecaster, Bob Chapman explains when the current financial problems really started.  BK

If you look back into the mid-1960s you will see the beginnings of today’s financial and economic problems. Inflation was beginning to raise its ugly head as clad coins came into being. We were collecting all the pre-1964 90% dimes, quarters and halves we could find. As we moved into 1968 few were to be found in circulation. War in Vietnam was draining the country and the buffoon Lyndon Johnson, another socialist, was leading America into the Great Society. What he was really doing was taking the US into socialism and debt. It got so bad that countries were demanding gold for dollars, particularly, aggressive was President Charles DeGaulle of France. Then the beginning of the end came. On August 15, 1971 the dollar was moved off the gold standard and the dollar became just another fiat currency. Here we are almost 40 years later and the dollar has lost 95% of its purchasing power and two breadwinners are needed in every family, as apposed to one in 1971. That is when social engineering began, as we know it today. We’ve seen many losers walk across the stage over the years – all with either their hands in the till or exuding incompetence. Most of the bright still excelled but 55% of Americans slipped into stupidity. What is sadder is they think they know it all, but they do not. From 1976 to 1981 gold and silver warned us of what was coming. We have had cycles of inflation, buildup of debt and a general degeneration of society.

We had a purging of the system in the early 1980s but it certainly did not last long. Real estate collapsed starting in 1988 and the affects carried over into the early 1990s. During that period those in control had a great opportunity to again purge the system, but they refused to use that option and went right back to doing what they had done in the past. Gold and silver fell out of favor and we were subjected to the dotcom boom, which ended in tears for so many. Inflation was about but worse a great deal of wealth had been lost. We were fortunate enough to call the top of the market in the first week of April 2000, just two weeks after the actual top. Only 2% of economists, analysts and newsletter writers called the top. Being mostly outnumbered by the losers has its benefits. Presently 95% believe gold and silver are headed lower. Considering their track records we’ll stay long as we have been since the second quarter of 2000 when gold was $262.00 and silver was $3.50.

Sunday, January 2, 2011