Tuesday, January 31, 2012

Beef Prices Going Up Again This Year

Beef prices, already at near-record-high prices, are expected to be driven up for the second year in a row this year because of a limited supply of cattle.
There were about 91 million head of cattle in the United States as of Jan. 1, according to the U.S. Department of Agriculture. That’s down 2 percent from a year ago — and the lowest level since 1952. Retail beef prices, now near record levels, will likely rise 4 percent to 5 percent this year following a 10 percent increase in 2011, the Agriculture Department predicts.   LINK...

Wednesday, January 25, 2012

Jim Rogers: Abolish the FED


An old interview but relevant this week as the FED clearly states they plan to keep interest rates low and basically keep printing money to bailout who ever?
It still amazes me that these commentators continue to support these money printing policies, because they must be shopping and buying gas just like everyone else, and don't they see prices rising?
400 POINTS on the DOW! Big deal Maria, it's not like the DOW did it on it's own fundamentals! It's CHEATING! It's easy to make a company look good if they have endless supplies of money and credit. It's not as if the companies in the DOW performed better because they sold more units or developed a better product. It wasn't based on ingenuity or production, it was a "BAILOUT," because they failed! This is nothing to be proud of? The system has FAILED, it is broken and it continues to move along because the FED is creating money to keep it going. Like Jim says, "this is not good for the world."   BK

Monday, January 23, 2012

India to pay gold instead of dollars for Iranian oil. Oil and gold markets stunned

DEBKAfile Exclusive Report January 23, 2012, 5:57 PM (GMT+02:00)

India is the first buyer of Iranian oil to agree to pay for its purchases in gold instead of the US dollar, DEBKAfile's intelligence and Iranian sources report exclusively.  Those sources expect China to follow suit. India and China take about one million barrels per day, or 40 percent of Iran's total exports of 2.5 million bpd. Both are superpowers in terms of gold assets.   LINK...

Could this be the beginning of the end for the "petrodollar?" Gold will re-establish itself as the world's reserve currency and this is the way it has been for thousands of years. This is a monetary axiom.  BK

Silver Still Top Pick For 2012

Arabian Money (www.arabianmoney.net)

Silver is currently rather depressed in relation to its recent high, and unless we have seen the end of the 11-year bull market for precious metals then ought to be consolidating for another leap higher. That has been the pattern of volatile, wild price swings that we have come to expect from this precious metal.
So buy silver now and you are on the right side of this particular curve. Gold also clearly has room to pass its all-time high set this year and jump through $2,000 an ounce. But that could still trail the percentage gain in silver.   LINK...

Saturday, January 21, 2012


"The world suffers a lot. 
Not because of the violence of bad men.
But because of the silence of good people."

Friday, January 20, 2012

Bob Chapman on Gold Radio Cafe: Jan 20, 2012

John Williams Says Hyperinflation in 2014

John Williams of Shadow Stats (www.shadowstats.com) says the economy is headed towards hyperinflation in 2014 or sooner on the Financial Sense news hour with Jim Puplava (www.financialsense.com)


What does all this mean? Higher prices of all commodities, especially gold and silver. As we have said many times on this website, the rise in gold is not about the rise in gold, it's about the USD losing confidence as the world's reserve currency. Think about your cost of living and compare that to the performance of your investment portfolio. Are you any better off?  BK

Thursday, January 19, 2012

Gold & Silver The Legacy RRSP Assets For All Generations

"Gold is money, everything else is credit."
James P. Morgan

For twelve years gold and silver have been in a bull market. Gold has shown an average annual return of approximately 20% per year, even when measured in various global currencies, it has outperformed every other asset class in the past decade. The 70's saw gold rise from $35/oz to a high of $850/oz in 1980, that's a multiple of 24 times. Applying that multiple in this decades bull run, it would take gold from a low of $250/oz in 1999 to a high of $6,000/oz! With gold trading in the $1,650 range today, we're not even close to "BUBBLE" territory or a peak in gold.  Just ask yourself how many people you know that own gold bullion, and I don't mean ETF's, paper certificates or trusts, but the actual physical bullion? Probably very few? Besides the global economy was much different in the 70's. Chinese and Russian citizens were not even allowed to own gold. Now, China is actively promoting gold investments to its citizens. The USA was a creditor nation, now it's the largest debtor nation in the history of the world, with debt exceeding, hold on to your hats...$15 TRILLION! The problem is many fail to realize this bull market in gold is not about gold, it's about the USD losing confidence as the world's reserve curreny. Throughout history many countries have lost this status, from the great Roman times to the British empire. Paper currencies always, and without fail, eventually return to their intrinsic value of ZERO. However, gold is actually insurance and a true measure of wealth, that cannot be challenged. It has outlasted every government, currency, bank or stock market that has ever existed. Gold is the only unit of measure or medium of exchange that has survived throughout history as money. WHY, because of its natural composition. Gold cannot be destroyed, cannot be counterfeit, has no counterparty risk, cannot rust or tarnish, it's evenly divisible, fungible, transportable, very rare, globally recognized as a store of value and it takes real labout to produce, unlike paper or digital currencies created by central banks. Yes, of course gold and silver do not produce interest or dividends, but they're not supposed to because they are a unit of account, a measure of real wealth or MONEY! Besides, take a look at your "balanced and diversified" portfolio and compare it to gold & silver and the "cost of living," and ask yourself if you're doing any better? Gold is the only true method of protecting your wealth from the continuous inflationary policies of all central banks printing money and expanding credit. Besides, central banks keep gold in reserve, why not YOU!
The secret to everlasting wealth...
become your own central bank!

Consider this:
In 1970 $35 buys 1oz of gold or 140 loafs of bread.
In 2012 $35 buys 0.02oz of gold or ONLY 10 loafs of bread.
However, 1oz of gold today ($1,650) buys 470 loafs of bread. So what is a true STORE OF VALUE for any generation?

Tuesday, January 17, 2012

Global Gold Coin & Bar Demand Surges in 2011

Source:  www.goldseek.com 

Thomson Reuters GFMS annual gold survey released today shows that global investment increased 20% last year to $80 billion, leading to the nominal high last September of $1,920/oz.  This is primarily attributed to the physical buying of bullion.

Gold may climb to a new nominal record above $2,000/oz by early next year as concern about currencies and low interest rates encourage investors to seek a protection of wealth, Thomson Reuters GFMS said.   LINK...

ECB's Chief Warns Situation Is "Very Grave"

By Brian Blackstone

FRANKFURT—European Central Bank President Mario Draghi delivered his sternest warning to date on Europe's debt crisis, saying it could cripple financial markets and the economy unless effective actions are taken by governments.
"We are in a very grave state of affairs and we must not shy away from this fact," Mr. Draghi said in testimony to the European Parliament.
Three months ago, Mr. Draghi's predecessor, Jean-Claude Trichet, told the same group of lawmakers the crisis had reached "systemic dimensions." Mr. Draghi on Monday said "the situation has worsened further" since then.  LINK...

Friday, January 13, 2012

Monday, January 9, 2012

Why the Wealthy Own Gold

By Mark Motive, publisher and chief author of Plan B Economics.

Yet, I still talk to Wall Street analysts who clearly misunderstand gold's place in a portfolio. Meanwhile, many people who are part of the world's wealthy class are hoarding gold. What do they know that others don't?  LINK... http://news.goldseek.com/GoldSeek/1326119608.php

The Psychology of Gold

Yes that's very nice Professor, HOWEVER, one thing is for "certain," gold has outlasted every government, currency, stock market, bank or financial institution that has ever existed. It remains the only true unit of measure for wealth because of it's natural composition. It cannot be destroyed, counterfeit, corroded or just created on a balance sheet like fiat paper currency. It's very rare, evenly divisible, fungible, transportable, it requires hard physical labour to produce and is recognized as money around the world. People go to gold because they lose trust and confidence in paper assets, and lately I don't blame them. It's NOT about gold, it's about a system gone mad.
Yes there is a physical attractiveness to it and this is why it's used in jewellery, but so are diamonds and rubies, and you don't see central banks around the world holding diamonds in reserve do you? People can put any spin they want on gold, the facts speak for themselves. GOLD is everlasting wealth and there is a reason why the great powers of history treasure it!   BK

Saturday, January 7, 2012

The Chain of Custody Behind Gold is Breaking

January 4, 2012 | By Tekoa Da Silva

A candid interview with Ned Naylor-Leyland

In response to the current sell-off in gold, Ned commented, “You’ve got to bear in mind, they’re just selling leveraged paper, no one is selling physical. There is just a tsunami of paper selling in order to maintain the illusion of fiat value…and it will be overcome…the physical buying will ride over the paper selling.”

He further stated that this sell-off, “gives [investors] an opportunity to diversify and hedge themselves at a reasonable level, because in due course we’ll get a huge move and the market will have recognized what is really going on...we’ll get some kind of event in the market which will drive price discovery and a change in the way markets behave in one fell swoop. The substantial illiquidity of gold and silver will prove to be a big problem for asset allocators and people trying to come in at that point.”   LINK...

Wednesday, January 4, 2012

FED Bailout of Europe

And the money printing continues. What a coincidence, gold rallies on the first trading day of the new year? As many that we follow have said; the bailouts, stimulus, QE etc, will continue and gold will be your ONLY asset to protect the TRUE VALUE of your wealth.   BK

Tuesday, January 3, 2012

New Record For American Silver Eagles

January 3, 2012 By

Sales of the United States Mint’s gold and silver bullion coins rose for the month of December 2011, reversing the slow down experienced in the previous month. Annual sales totals include a new record for American Silver Eagle bullion coins.   LINK...