Monday, May 30, 2011

China Keeps on Buying More Gold Resources

China National Gold Seeks Africa Investment as Bullion Trades Near Record

China National Gold Group Corp., the state-owned company that controls the nation’s largest gold deposits, wants to invest in projects in Africa as it expects bullion to trade near record levels for the next three years.
“We aim at large-scale mines with good potential in countries that have close ties with China and domestic stability,” President Sun Zhaoxue, 48, said in an interview in Shanghai. “Gold prices will foreseeably fluctuate at historically.   LINK...

Thursday, May 26, 2011

Asian Tiger Sinks Teeth Into Gold

Sourced from: Jesse's Cafe Americain

Frank Talk, May 23, 2011

The World Gold Council (WGC) released its quarterly “Gold Demand Trends” report last week and, as always, it was filled with fascinating data on the strength of the global gold market. Gold demand grew 11 percent to 981.3 tons during the first quarter of 2011, worth $43.7 billion at quarter-end’s price levels.

The increase was driven by a significant rise in demand for gold as an investment, up 26 percent from a year ago, as emerging markets look to protect their assets from rising inflation. Demand for gold bars and coins was up 62 percent and 42 percent, respectively.  LINK...
NOTICE: The Chinese were NOT allowed to own Gold during the 1970's bull market in Gold. Now we have 1.5 BILLION Chinese buying Gold!  BK

Tuesday, May 24, 2011

Expect $5,000 Gold Says Richard Russell

King World News

Why is China so intent on accumulating gold? My thinking is that China is preparing its renminbi to replace the US dollar as the world's reserve currency. To become the new world power, China needs two items: (1) A military second to none. (2) The world's most trusted and wanted currency.    LINK...

Friday, May 20, 2011

Seniors Lose 32% of Their Buying Power

2011 Annual Survey of Senior Costs Finds Expenses Have Increased More Than Twice as Fast as Social Security COLA

WASHINGTON, May 19, 2011 /PRNewswire/ -- Seniors have lost almost one-third of their buying power since 2000, according to the Annual Survey of Senior Costs, released today by The Senior Citizens League (TSCL). TSCL is one of the nation's largest nonpartisan seniors advocacy groups.
In most years, seniors receive a small increase in their Social Security checks, intended to help them keep up with the costs of inflation. But since 2000, the Social Security Cost of Living Adjustment (COLA) has increased just 31 percent, while typical senior expenses have jumped 73 percent, more than twice as fast.  LINK...

Thursday, May 19, 2011

The Coming Great Inflation

USA Gold
by:  Michael J. Kosares


To continue with our theme on real inflation and true "cost of living," check out the chart in the article above and you'll see how much food and energy prices have gone up since last year. The numbers are eye popping!  
But don't worry my financial planner said inflation is only 1.5% and we're in it for the long term?   BK

Wednesday, May 18, 2011

The Gold/Chocolate Ratio

Seeking Alpha
by: Richard Bloch

As some people who knock gold as an investment point out, "You can’t eat gold." But you can eat chocolate – so what’s the gold/chocolate ratio look like these days?
No, I’m not talking about chocolate as cocoa the commodity, but chocolate as an actual product – specifically a Hershey Bar.   LINK...
This article addresses the true inflation aspect of investing. Many people forget that the government's official inflation number does NOT include food & energy, which for many in retirement is the only thing they spend money on. It shows that it's very important to consider your "cost of living" when deciding on the investment you choose and whether or not that investment will maintain it's value in ACTUAL food and energy, not the currency it's measured in. As we can see from these charts, gold is a good indicator of your cost of living and should be held in reserve in EVERY portfolio. After all, why do you think Central Banks around the world are storing gold in reserve?



Monday, May 16, 2011

Max Keiser Interviews Eric Sprott, Says Silver Raid is Unjustified

Hong Kong Gold Exchange Opens on Wednesday!

Watch out COMEX, here come 1.5 Billion Asians. This will be interesting?

From:  The Victory Report

The King
The Victory Report

There will be a homecoming to a currency connected to gold. The visiting paper tigers go home loser and take rightful place and just value of zero. The world will realize the need to turn the clock back to what made it great. All things paper are flagging measured against gold. The shaky foundation is crumbling, and those that relied on paper, like pension funds are in sad shape. Assets like stocks and land continue to tumble when priced in gold. As more pieces of paper money are needed to buy each ounce of gold, its price will increase. In the 1980 gold bull market the price of gold rose dramatically from around $35 to $850. This gold bull market will go much higher, and $1,475 an ounce will have seemed a bargain. Targets between $3,000 and $5,000 could even prove to be too low, believe it or not.  LINK...


Sunday, May 15, 2011

PIMCO'S Anne Gudefin Says Gold is the Largest Position in Their Fund

Your fund has the ability to invest in all types of securities. Other than value stocks, what do you like?

The largest position in the fund is gold, which we think is a very good form of protection against what can go wrong. We were encouraged by the fact that a lot of the central banks, especially in Asia, are big buyers. We think that's an underlying trend that's very favorable for gold.   LINK...

Tuesday, May 10, 2011

USA "The Largest Debtor in The History of The World," says Jim Rogers

Protect your USD accounts receivable with a corporate gold reserve. If your company is adversely affected by the falling dollar, then our U-Vault Account maybe the perfect answer to your international currency concerns.  BK

Monday, May 9, 2011

American Gold Eagle Sales Breaking Records at The U.S. Mint

This month’s sales are already 57 percent of the total in April, according to the mint’s website. May sales would be about 240,250 ounces if the current pace continues. The mint sold 231,500 ounces of the coins in December 2009 and 269,000 ounces in March 1999, its website showed.
Concern about faster inflation, Europe’s debt crisis, a weakening dollar and conflict in the Middle East and North Africa helped gold climb to a record $1,577.57 an ounce on May 2. European Union officials agreed in an unannounced meeting on May 6 to reconsider the terms of the 110 billion-euro ($158 billion) lifeline Greece received last year. LINK...

Sunday, May 8, 2011

Accumulate as Much Silver as You Can!

By Tehmaas S. Gorimaar

To simply follow the silver price without trying to understand the extreme stress in the global paper currency system today would be folly.
Since August 15, 1971, when Nixon closed the gold window, the world has been floating on a sea of fiat currencies, supported only by its one reserve currency, the U.S. dollar, which is nothing more than an I.O.U.
During the days of the true gold standard, a country was required to disgorge its gold reserves if it ran consistent trade deficits. Of course, these days, in the absence of the gold standard, countries have been at liberty to print as much currency as they deem fit.
This has led to a scenario of competitive devaluations. We are now at a point where the smart money is losing its faith in this paper currency system, and is viewing it as a giant, Ponzi scheme, the likes of which the world has never witnessed before.
The U.S. dollar has abused its privileged status as the reserve currency via extremes in fiscal and monetary policy. We are now at a breaking point. Make no mistake about that. To protect itself, real wealth is starting to abandon the paper Ponzi system in earnest. Smart investors are accumulating real money, namely, gold and silver.   LINK...

Thursday, May 5, 2011

China "Aims to Have More Gold Than America"

International Business Times
May 3, 2011 10:30 PM HKT

THE CENTRAL BANKS of developing countries will Buy Gold at an increasing rate in coming years, with China being a leading player, according to a major industry figure.
Rob McEwen, founder and former head of Goldcorp, now the world’s fifth largest Gold Mining company, believes central bank purchases could help push the price of gold to $2000 an ounce by the end of the year.
"China is out to have more gold than America, and Russia is aspiring to the same,"said McEwen, who is now chairman and CEO of junior miner US Gold. "When you have debt, you don’t have a lot of flexibility. China wants to show its currency has more backing than the US."  LINK...
To better understand China's intention please watch this old video...LINK

Tuesday, May 3, 2011

Silver's Soaring Price Evokes Memories

By: Becky Kramer
The Spokesman Review

Silver prices are flirting with $50 per ounce for the first time in decades.
In North Idaho, that inevitably brings back memories of Nelson Bunker Hunt and his brother William Herbert Hunt – two Dallas billionaires who tried to corner the silver market.

The brothers used their profits from Libyan oil fields to begin quietly buying up silver during the 1970s, a time of high inflation. At one point, the Hunts controlled an estimated 110 million ounces of silver. They were also major stockholders in the Sunshine Mine near Kellogg. During the Hunts’ high-stakes gamble, the price of silver briefly shot above $50 per ounce in January 1980. The brothers’ speculative buying came to an abrupt end when commodity exchange rules were modified, forcing the Hunts to put up money they didn’t have or quickly sell off their silver stocks.
Silver prices tumbled rapidly over the next two months, and so did the Hunts’ fortune. By some accounts, they lost $1.7 billion.

Michael DiRienzo, executive director of the Silver Institute in Washington, D.C., said the current run-up in silver prices is a much different scenario. Silver prices have been rising steadily since 2006. Both investment demand and growing industrial use are contributors, DiRienzo said. In addition to fabrication demand for jewelry, silver is an industrial metal, used in electronics because of its conductivity.  LINK...
Some important points to take away from this article:
  • $50 of goods and services in 1980 is much different than what you can get for $50 today.
  • Today there are NO, Hunt Brothers trying to corner the silver market, ask yourself how many people you know that are "investing" in silver bullion?
  • Silver has been rising steadily since 2006 and it's thousands of small investors that are barely starting to get involved, not one big player.
  • There was no iPods or Blackberry's in the 1980's. The amount of silver in an iPod will not affect the price of the iPod, BUT the number of iPods around the world will certainly affect the price of silver.
  • The USA was still a creditor nation as opposed to now being the largest debtor nation in history.

Monday, May 2, 2011

Never Ending Money Printing

By Greg Hunter’s

The Federal Reserve held its first press conference in its 97 year history last week.  In my mind, it did this because it recognizes the deep financial trouble the U.S. is in.  It wants to put a positive spin on the mess it largely created and/or allowed to happen.  After all, it was Tim Geithner who was the head of the New York Fed during the go-go years of the mid 2000’s.   He was supposed to regulate the big Wall Street banks. You see how well that worked out—the entire system melted down and Geithner got a promotion to Treasury Secretary.

I’ll give my interpretation of a few of the important points the Fed was trying to get out to the public. Overall, the Fed wants people to keep their confidence in a system where money is loaned into existence. Yes, that’s right. Every time you swipe your credit card, you are not borrowing money but creating it. The banks love this because there is virtually no cost to them, and you have to pay back the money with interest just for the privilege of going into debt. Can you see why the Fed wants to keep this confidence game going?  LINK...
"The rise in Gold is NOT about the rise in Gold, rather the loss of confidence in the USD as the world's reserve currency."

True value cannot be measured in one currency alone. It must be compared to other things, like food, energy, foreign currencies, precious metals, equities and commodities. Historically GOLD maintains it's VALUE because it's rare and indestructible and cannot just be "created" like fiat currencies and credit. Gold has all the fundamental qualities of a stable means of exchange. This cannot be denied. Is a gold standard the best way to run an economy? History has proven NOT to be the case, however gold is necessary as a true measure of wealth and a protector of purchasing power.  BK

Sunday, May 1, 2011

Here's What REAL Inflation Sounds Like

It's Getting Harder to Bring Home the Bacon

New York

Mr. Pope is the chief executive officer of Smithfield Foods Inc., the world's largest pork processor and hog producer by volume. He doesn't mince words when it comes to rapidly rising food prices. The 56-year-old accountant by training has been in the business for more than three decades, and he warns that the higher costs may be here to stay.

Courtesy of? "I'm not going to say, 'a political policy,'" he tells me. (His senior vice president, a lawyer by training, sits close by, ready to "kick his leg" if his garrulous boss speaks too plainly.) But politics indeed plays a large role, as Congress subsidizes favorite industries and the Federal Reserve pursues an expansive monetary policy.

What triggered the upswing? In part: ethanol. President George W. Bush "came forward with—what do you call?—the edict that we were going to mandate 36 billion gallons of alternative fuels" by 2022, of which corn-based ethanol is "a substantial part." Companies that blend ethanol into fuel get a $5 billion annual tax credit, and there's a tariff to keep foreign producers out of the U.S. market. Now 40% of the corn crop is "directed to ethanol, which equals the amount that's going into livestock food," Mr. Pope calculates.  LINK...