Wednesday, October 31, 2012

Why Germany Wants To See Its US Gold

By Sven Böll and Anne Seith

Bundesbank President Jens Weidmann wanted to personally convince Peter Gauweiler that the German gold was still where it should be. Early this summer, the head of Germany's central bank took the obstinate politician from the conservative Christian Social Union (CSU), a party that is a member of the government coalition in Berlin, and a number of his colleagues into the Bundesbank's inner sanctum: the gold vault.  LINK...
I wonder if they will take the time to test each bar?  BK

Tuesday, October 30, 2012

Gold Confiscation Started In 2006

"Fools Gold" In The 21st Century And The "New And Improved" Gold Confiscation Swindle
by Bosko Kacarevic

April 5, 1933 President Roosevelt announced Executive Order 6102 forbidding the hoarding of Gold Coin, Gold Bullion and Gold Certificates. Back then the USD was technically backed by gold, up until 1971 when President Nixon closed the Gold Window completely. Now the USD is a "fiat" paper currency backed by the full "faith and credit" of the US Government. Just saying that gives me chills. "Faith" in the USA is now questionable? "Credit" is definitely out of control with a national debt of over $16 TRILLION that will never be paid, not to mention the unfunded liabilities.
So the question is, will the USA confiscate your gold again? Ask yourself this: Is there a gold standard? Can the US FED just print the money they need? What is considered the global reserve currency today? As you can see there is absolutely no need for them to confiscate your gold when they can just create the money they need to operate, and that's exactly what they've been doing. What do you think TARP, QE, Stimulus and all the bailouts are all about? 
The angle that many gold commentators seem to overlook is the fact that governments and Central Banks around the world have no need to confiscate your gold because they can easily "confiscate your wealth" by expanding the money supply. It's really that simple. 
Now, here's the new and improved GOLD SWINDLE and the Fools Gold of the 21st Century. In my opinion, governments along with the help of banks have been confiscating your gold since about 2006 with the birth of paper gold, electronic gold, ETF's, ETR's and so on. Think about it? What do you really think these new derivatives of physical gold bullion really are? It's gold confiscation, because the money that you intended to invest in physical gold bullion is now in the "custody" of the banks, which really control the government, in my opinion anyway. The fundamental reason for owning gold to protect your wealth is backfiring. All you're doing by investing in paper gold is allowing THEM to continue "gaming the system."  So, you gold investors out there who are frustrated with the volatility in gold and tired of waiting for the BIG move, then get your money out of the banks custody and take the physical gold bullion out of the system. It seems that people have become so conditioned that the government doesn't even have to demand your gold with an Executive Order anymore. All they have to do is create a fancy new financial product that makes it "easy" to own gold. Let me tell you folks, real gold is anything but easy to own. Just ask a miner, refiner or a gold dealer like myself. First you have to find it, dig it out, refine it, store it, insure it, inspect it and protect it by any means possible. Remember that old saying, "if it's easy to get, then it's probably not worth having." Even in the 21st Century, "FOOLS GOLD" still exists in paper or electronic form, take your pick, it's easy, but don't complain when it's gone.
Folks, gold is never easy to own, otherwise it wouldn't be GOLD!

By Default, Gold Is Money.

A King World News recap from April 2012. Jim Sinclair explains how gold acts as the final settlement of payment between nations in times of stress. Any wonder why Germany is requesting an audit of their gold at the New York FED? Read between the lines folks, you must own "physical" gold to be safe.  BK

Jim Sinclair 4:25:2012.mp3

Monday, October 22, 2012

High Frequency Trading and Algorithms

Is this what capitalism has become? Who has the fastest computer? 
What happened to investing in the sound fundamentals of "the business," or investing in the quality of "the people" running the business. Something is seriously wrong when these trading systems can cause the price fluctuation of a company's stock to the point of collapse or bubble status and not based on any sound economic principles. Where have the fundamentals gone? Remember that old saying, "if it's too easy to get, then it's probably not worth having." Now, don't get me wrong I'm all for advancements in technology, after all I'm a college graduate in electronics, but the question is about the "integrity" of the system? Now a days anyone can trade stocks, commodities and mutual funds with no education or experience in business what so ever. Large financial institutions are now hiring anyone, as long as they pass the Mutual Funds Exam and can generate commissions for the company. Does this sound like a safe place for your hard earned money?
The evolution of markets have reached a point where "the trading system" has become more important than the investment itself and in this computerized environment who is really safe from "the system" crashing? It could be a computer hacker, a power failure or a simple "glitch" in the software that cause the entire system to go haywire. Read your account agreement or prospectus carefully and notice where the liability lies when a "technology failure" occurs and you suffer losses. Not only is the integrity of "paper" contracts at risk from fraud, but your investment is really a digital signal to some computer in the black hole of cyberspace.

Yet people still question the value of gold bullion in your hands??? Sorry folks, but I'll take gold's 5,000 years of real value over any computerized trading system. Think of the REAL hard work and risk that miners go through to find, dig and refine gold, and then tell me it doesn't represent true value. Better yet, I dare you to tell that miner who risked his life going hungry and thirsty for years to find the gold, that it doesn't have value. I work hard to build a good life for my family and a future for my children, and I'll be damned if some computer is going to take that away from me.   BK

Listen from 3:50

Also from USA Watchdog on the mortgage crisis.

Saturday, October 20, 2012

Bill Gross Says Gold Will Thrive

Bill Gross says only gold and real assets will thrive in fiscal ‘ring of fire’ October 2, 2012, 10:58 AM
The latest round of quantitative easing made gold “even more attractive” and owning the metal should be considered as part of a diversified portfolio, analysts at bond giant Pacific Investment Management Co. said in a white paper posted Tuesday on company’s website.
Pimco founder and co-chief investment officer Bill Gross, in his separate monthly investment outlook also posted Tuesday, said only gold and real assets would thrive in a “ring of fire” of U.S. fiscal problems.
Gold GG GCZ2 -0.15% elicits black and white responses, the Pimco analysts said. Some investors “have a deep, almost religious conviction that gold is a useless, barbaric relic with no yield,” while others “love it” and see it as “the only asset that can offer protection from the coming financial catastrophe” always just around the corner, they said.   LINK...
Gold is entering the mainstream investment arena. This should crush any idea of gold being in a "bubble." Also, could this signal a new gold backing coming soon?   BK

Friday, October 19, 2012

Gold Radio Cafe

The Gold and Silver Financial Review
With co-host Jeff Dunphy:

Listen on Blogtalk: HERE

Tuesday, October 16, 2012

Get Physical Before It's Too Late

ETF “Costs and Liabilities” Sees Investors Migrating to Physical Allocated Gold

The head of industrial and precious metals trading at Barclays, Cengiz Belentepe, has told Bloomberg that investors are selling their investments in gold ETFs and opting for the safety of allocated physical gold.
According to Barclays, gold holdings in ETF products are growing at a slower pace than in 2004-2009 because some investors may be moving to physical bullion after initial purchases of an ETF.
Gold holdings in ETPs have increased 9.6% this year to a record 2,582.98 metric tons, data compiled by Bloomberg show. They rose 7.9% last year and 19% in 2010. Growth in gold ETP holdings has exceeded 35% from 2004 to 2009, the data show.
Barlcay’s Belentepe said “the question is whether the pace of buying has slowed, or whether the people have become a bit more sophisticated in recognizing the costs and liabilities.”
‘‘We’ve seen instances of people coming in, whose first step is to buy an ETF, second step is to get educated on how the market works, third step -- I’m going to shift this in direct gold purchase and storage, fourth step -- let me allocate this metal into these locations. It’s the early step they are all migrating through, expressing the same view but in different ways.”    LINK...
Physical gold stored outside the banking system and fully insured with our "U-Vault Account." Your gold is allocated, segregated, sealed and unemcumbered with a global vault services company with 50 years experience. Call for details.   BK

Friday, October 12, 2012

Gold Radio Cafe

The Gold and Silver Financial Review
With economist & co-host Jeff Dunphy:

Listen on Blogtalk: HERE

Thursday, October 11, 2012

Gold Goes Mainstream

From our friends at: Thundering-Heard

Gross: Stock and bond managers today must be alchemists: turn lead into gold. NOT likely. Too much lead (bubbled assets).
–Tweet from Bill Gross, Founder of PIMCO, which manages $1.8 trillion

“Do you own gold?” “Oh yeah. I do…There’s no sensible reason not to have some.”
–Ray Dalio to the Council on Foreign Relations

This is being written to put the precious metals market in a larger context for those people who still see the world proceeding much as it has proceeded in the past, a world without the large financial and supply chain disruptions that we foresee.

Strong multi-year upmoves in the price of any asset, aka a secular bull market in that asset, go through three stages:
  1. The speculative, early-proponent phase during which the mainstream investment community ignores or derides the potential of that asset.
  2. The mainstream phase, where the mainstream decides that exposure to that asset is a good idea for just about everyone.
  3. The mania phase, where just about everyone feels that they must own that asset and will tell you so when you meet them by chance in the supermarket.   LINK...

Monday, October 8, 2012

Singapore Freeport

Dear readers,

This week on King World News, top trends forecaster Gerald Celente of the Trends Journal, says the smart money is storing their gold in Singapore, and that Singapore intends to be the next great gold trading market in the world. Here's the mp3 to the interview: Gerald Celente on King World News

For those interested in storing gold and silver in Singapore, we have the perfect solution for you with our U-Vault Account at the Singapore Freeport. A fully insured, fully allocated and segregated ownership of your precious metals. Our Singapore vault offers state-of-the-art secure technology, total confidentiality, international GST tax-free trade zone and easy access to the Singapore airport. For more information please contact us.   BK

Thursday, October 4, 2012

Gold Radio Cafe

The Gold and Silver Financial Review
With co-host Jeff Dunphy:

Dr. Paul Craig Roberts
From the Institute for Political Economy

Listen to internet radio with Gold Radio Cafe on Blog Talk Radio

Wednesday, October 3, 2012

South African Miner Strike


And while the dramatic risks and implications for both the South African economy, the region, and the world in general can not be overstated if this economic paralysis continues, the irony is that with each successive striking victory, more and more workers both in South Africa, and everywhere, will soon be empowered to demand equitable treatment, which means higher salaries, which means less corporate profits, which means higher prices for everyone.   LINK...
The "Golden Age" is coming, expect major changes globally in 2013 and beyond.   BK

Tuesday, October 2, 2012

Food Crisis

We do not discuss the food crisis much on this website, but as a former commodities broker, let me tell you that what Marcia Baker speaks of is a serious issue and people need to be mindful of it and prepare!   BK

PIMCO Calls Gold "Compelling Inflation Hedge"

Our bottom line: Given current valuations and central bank policies, we see gold as a compelling inflation hedge and store of value that is potentially superior to fiat currencies.

Read more: