Tuesday, June 28, 2011

Why is GOLD Valuable? Now and Forever! A Scientific Approach

University of Cambridge, Department of Engineering

For whatever reason, there is a continuous and deliberate "discounting" of GOLD by the financial media that it borders on insanity. I understand that in any investment you have to present both sides of the argument. However there's complete INCOMPETENCE being discussed in regards to Gold's intrinsic value and I would like to put this charade to rest once and for all!
  • First of all, "GOLD is MONEY, everything else is credit." JP Morgan. So you should NOT expect any interest or dividends, period. Gold is a store of VALUE, wealth, and savings. Perfect money has been described as: having value, portability, indestructibility, divisibility, stability and cognizability. Gold falls into every one of these categories, but take out a dollar bill or a stock certificate and apply these characteristics to it and see what you get? Gold cannot be destroyed or created, it is finite. Dollars can be created at will by Central Banks, so why would you want a store of value that can be created to infinity and ultimately becomes "valueless?" Think about any other monetary instrument that cannot be destroyed or go bankrupt? There is NONE! 
  • "Paper money eventually returns to its intrinsic value--ZERO."  Voltaire
  • Gold is the soul essence of "intrinsic value," it has no liability and no counter-party risk, it is value within itself. Any financial investment or currency is only as good as the institution running it, whether it's a government or a management team. It's all about CONFIDENCE!
  • AS THE CHART SHOWS:  Gold is valuable because of the dollar cost/kg and the energy cost/kg required to dig it out of the ground. It's RARE and difficult to mine. Gold is too expensive to be used as a utility metal, although it has better utility qualities than many other metals, therefore it has been used as money for thousands of years. Throughout history mankind has experimented with other forms of money like sea shells, salt, wood sticks, stones, tulip bulbs and silk, but gold is the only form of money that has stood the test of time and WON!
  • Gold is everlasting wealth and can be easily handed down from generation to generation. Why else do you think the Royal Families of Europe have maintained their wealth and power for so long?
  • Even if the cost of energy were to come down, gold will always be rare, and man's obsession with having something scarce will still demand a high price for gold forever.
  • Gold, MUST be a part of every investment portfolio because it's your insurance component in case something goes wrong. Any advisor that designs a portfolio without gold, is not looking out for your best interests. Ultimately it shows his ignorance to economic history and the meaning of money. Yes, of course there are times when you should only have about 5% invested in gold, but THESE are not those times. With all the debt, bailouts, frauds, wars and unemployment, do you really think 5% is enough to protect your wealth? Try 50%!
The question people should be asking is not, should I buy gold, but how much should I buy?

Friday, June 24, 2011

McEwen Says Gold at $5,000 in Four Years


Gold has NO Intrinsic Value???

This must be a joke? This interviewer should read Webster's Dictionary once in a while.

From Webster's Encyclopedic Dictionary

"Intrinsic: Inherant; essential; belonging to the thing in itself; not extrinsic or accidental (the intrinsic value of gold or silver, intrinsic merit)." YES, this is right from the dictionary! 

Please let's all finally put this foolish argument to rest. GOLD is the ultimate definition of "intrinsic value," it is everlasting and always valuble, no other paper investment or even physical asset can even come close to the historical significance of gold as value. People really need to WAKE UP!!!   BK

Wednesday, June 22, 2011



GOLD and SILVER bullion coins now availble for your RRSP, RRIF and TFSA accounts! 
Please call for more details

The Emerging New Monetarism: Gold Convertibility To Save The Euro

Professor Robert Mundell urges gold convertibility for the euro, the currency which he fathered, as well as for the dollar. This is a major step forward. Thought leaders are abandoning “old monetarism,” which was vainly fixated on quantity. Even its chief proponent, Milton Friedman, acknowledged old monetarism as unsuccessful in a 2003 interview with the Financial Times. An emerging “new monetarism” is quickly taking its place — one that focuses on the quality, not quantity, of money.

Empirical data suggest that the gold dollar represents the epitome of quality. As Forbes’ own Steve Forbes advised the presidential candidates last week, the “debate should be focused on what the best gold system is, not on whether we need to go back on one.”   LINK...
There is no question in our mind that GOLD will re-establish itself in the monetary system in some way or another. It's inevitable because there is no other substance on earth with such perfect qualities to perform as a medium of exchange(money). Yes, gold has its ups and downs but don't forget, it's NOT gold that changes, it's the value of the currency it's measured against that changes. Historically gold has always maintained its value when measured against real assets and the cost of living.

Don't forget gold's GUARANTEES:
  • It can never go bankrupt
  • It can never be worth ZERO
  • It can NOT be created in abundance
  • It takes the equivalent of 500 years of labour to produce just 1oz
  • It has NO counter-party risk
  • It cannot rust, corrode or tarnish
  • It is everlasting
  • It is easily divisible
  • It is the ONLY monetary asset that has outlasted EVERY government, currency or stock market that has ever existed in the world.
NO other asset class in history can even come close to the outstanding track record of gold as money. It is the ONLY standard by which your wealth should be measured against.  BK

Tuesday, June 21, 2011

IMF: EU crisis a threat to world economy


Tue Jun 21, 2011 2:32AM

The International Monetary Fund (IMF) says the mounting debt crisis in Europe is threatening the economic recovery throughout the world.
In a statement issued on Monday, the IMF warned that the ongoing crisis could have "large global spillovers" if decisive action is not taken, AP reported.
The IMF advised the eurozone to expand the powers of its bailout fund and further integrate its economic policies, stating that the failure to resolve the fiscal problems of the eurozone's periphery could rapidly spread tension to the core of the area.
Summarizing a report on the policies of the 17-country zone, the IMF said, "A broadly sound recovery continues, but the sovereign crisis in the periphery threatens to overwhelm this favorable outlook, and much remains to be done to secure a dynamic and resilient monetary union," adding, "Failure to undertake decisive action could rapidly spread the tensions to the core of the euro area and result in large global spillovers.”
It seems that the Greek people will not accept austerity and will choose to default. When this happens you can be sure that the banking system will be affected. Bob Chapman of the International Forecaster has a great piece on the Greek situation and if anyone would like a FREE copy please e-mail us at info@pfgmetals.ca .   BK

Saturday, June 18, 2011

Greg Hunter: Mainstream Media Missing the Real News

Greg Hunter interviwed on Contrary Investor Cafe

Tekoa speaks with Greg Hunter of USAWatchDog.com. Greg has nearly 10 years experience as an investigative reporter with news outlets such as ABC, CNN, Good Morning America and many more. Items are discusses are the growing likelihood of financial & currency collapse, major social unrest, gold and more.   LINK...
A MUST HEAR interview! Greg talks about all the really important subjects and why they're ignored by mainline news networks. Greg explains how the media is designed to keep the public in the dark.   BK


Thursday, June 16, 2011

US GOLD Shareholder Meeting June 14, 2011


We attended the US GOLD shareholder meeting and were very impressed with Rob McEwen and his team. We think there is good growth potential in USGOLD and Rob McEwen's track record speaks for itself. We were mostly impressed with the fact that Rob has invested more than 25 times the average mining CEO in his own company and that Rob does not take a salary, so he makes money the same way shareholder's do, stock value and company growth.  Bosko Kacarevic

DISCLOSURE:  We do not own any shares of US Gold at the moment, but are considering it soon. This post is not an endorsement of  US Gold and it is not in any way a recommendation to invest in US Gold. We recommend everyone seek the advice of a licensed financial advisor before making any investment in stocks. 

Dive in Silver Prices a "Set-Up," says Eric Sprott

By Damon van der Linde
Silver Investing News

“In my heart of hearts I believe it was a manipulation,” said Sprott in an exclusive interview with Silver Investing News. “There was no market, it was a setup. They’ve just pushed it down. It’s ridiculous.”

The recent price correction has largely been attributed to the increased margin requirements from the CME group. Between April 25 and May 5, COMEX increased silver margins to as much as 12 percent – or $21,600 per contract – from 6 percent, before silver tumbled 25 percent.    LINK...
The word on the street is that this summer will not be a quiet one in precious metals. If you haven't started accumulating, we suggest you start NOW!   BK

Wednesday, June 15, 2011

‘Tidal Wave’ of Gold Demand Coming From China, India as Economies Expand

By Pham-Duy Nguyen and Millie Munshi - Jun 14, 2011 11:11 AM ET

Gold may extend its decade-long rally as demand surges from emerging markets including China and India, according to the producer-funded World Gold Council.

“There’s a tidal wave of gold demand coming,” Jason Toussaint, the WGC’s managing director of U.S. and Investment, said today at the Bloomberg Link Money Managers Conference in Boston. “A key is the long-term fundamental change in emerging markets. The biggest markets of growth are China and India.”

Gold is up 7 percent in New York this year, touching a record $1,577.40 an ounce on May 2. The metal has gained fivefold since the end of 2000. India is the biggest consumer of the metal and China is the second-biggest, according to data from the council.   LINK...
REMINDER of our GSAP Account

Accumulate gold and silver monthly and take advantage of DOLLAR-COST-AVERAGING.

Friday, June 10, 2011

Quebec officials raid gold dealers

Quebec officials raid gold dealers

By Paul Delean And Lynn Moore, Postmedia News

Claiming widespread tax fraud in the gold refining and trading sector, Revenue Quebec and police investigators this week conducted searches and seizures at 70 locations, mostly in the Montreal area.
No arrests were announced, but the tax department said Thursday it had reason to believe several people were involved in producing false invoices for a number of companies.
One of the targeted sites was the downtown Montreal location of Kitco, a major buyer and seller of gold. A note on the floor of its office on Thursday said that "operational constraints" had forced the service counter to close this week.
A spokesman said the company was before the courts Thursday seeking clarification of its rights, and would likely issue a statement Friday.
Revenue Quebec said two networks of companies and individuals were at the heart of a false-billing scheme that had cost the province more than $150 million in tax on almost $2 billion in transactions. In addition to Kitco and Carmen International Inc., it said almost 125 other companies had been complicit in the scheme.
Events like this give the gold industry a bad name, but it also stresses the importance of dealing with a qualified and licensed broker when buying precious metals. President and owner of PFG Metals Canada, Bosko Kacarevic is a fully licensed Series-3 Commodities Broker and financial planner in Canada. We are also registered with FINTRAC.

Tuesday, June 7, 2011

GOLD Accepted as Collateral by European Parliament

This is GROUND BREAKING news, yet no mainstream media outlet is covering it? It is the second major institution that has made this announcement this year. Back in February we posted "HERE"  , "JP Morgan Accepts Gold as collateral for loans." Soon those that own physical gold bullion will have the "RED CARPET" treatment when they walk into any bank. LINK...

Monday, June 6, 2011

Gold & Silver Accumulation Program

Dollar-cost-average your gold and silver investments.

From $50/month to $5,000/month, you decide.
Build a solid gold nest-egg for you and your family.