Sunday, June 30, 2013

The 8 Worst Gold Price Predictions Ever Heard

Among other asset classes that got slammed in recent weeks, gold totally got torpedoed falling below $1,300 for the first time since 2010.
And with inflation falling and the dollar stronger, analysts across Wall Street are convinced the yellow metal will continue to lose its luster.
Unfortunately, this has been devastating for the gold bulls, especially those who expected easy monetary policy to send prices into the stratosphere.
While gold prices were on their ascent, we heard some bullish calls from high-profile Wall Streeters that would make dotcom era equity analysts blush. For whatever reason, gold ultra-bulls argued that the precious metal would be worth multiples of where it is today.  We've heard targets from $5,000 to $46,000.
With prices plummeting again (currently around $1,282/oz), we thought it would be a good time to revisit some of the wildest gold price targets we've heard in the last year.
Read more:
The gold soap opera continues, drama is the name of the game. Ignore the drama and focus on the facts. In the past 12 years gold is still the best performing asset class. Corrections like the one we're going through is normal and healthy for a bull market. Keep your mind on the fundamentals and ask yourself if the global economic condition and the geopolitical scene are now better or worse than they were in 2011 when gold hit its all time high of $1,925? Don't let this great buying opportunity pass you by.   BK

Wednesday, June 26, 2013

Comex gold inventories fall 32% in five months in bullish shake down

The day when gold is priced by the supply and demand of the physical metal rather than paper future prices in the Comex trading pit is coming closer, and with it a return of much higher gold prices.
A short history on gold in the past 100 years. We've had many changes in the way gold is represented in the financial markets, and surely some major changes are coming to the gold market in the years ahead. Will we come full circle and return to some kind of "gold standard" again? Possibly, but either way it's obvious to me that gold is a very important reserve asset for central banks because currencies come and go, but gold is forever.    BK 

  • 1920's Stock Market Boom.
  • 1929 Stock Market Crash.
  • Depression begins.
  • Pre-1933 we had a gold standard, gold fixed at about $22/oz.
  • Post-1933 a gold adjustment of about 50%, gold fixed at $35/oz.
  • 1933 Gold confiscation in the USA and a change to the gold standard.
  • 1934 President Franklin D. Roosevelt introduces the Glass-Steagall Act to end the depression.
  • 1940 WWII.
  • 1945 Bretton Woods Agreement, US dollar convertible to gold.
  • Early 1960's London Gold Pool was created to fix the price of gold.
  • 1965 French President Charles De Gaulle sells $300 million of his USD reserves for gold and threatens the viability of Bretton Woods.
  • 1971 President Richard Nixon closes the gold window on the USD and institutes floating currencies. Bretton Woods Agreement is cancelled.
  • 1970's Inflation runs rampant in the USA.
  • 1980 Gold hits all-time-high of $850/oz.
  • 1980 FED Chairman Paul Volker decides to raise interest rates and gold corrects down for the next twenty years.
  • 1999 President Bill Clinton repeals the Glass-Steagall Act and massive speculation in derivatives begins.
  • 1999 Bank of England Chairman Gordon Brown sells UK's gold at $282/oz.
  • 2001 9-11, the World Trade Centre is attacked and wars in the Middle-East begin.
  • 2007 The housing boom collapses.
  • 2008 Gold breaks its 1980 high of $850/oz.
  • 2008 Stock market and gold market crash and stimulus, bail-outs and QE begins.
  • 2011 Gold hits new all-time-high of $1,925/oz.
  • 2013 Gold corrects over 30% and "Bail-in's" are introduced and client's deposit money in banks is no longer segregated and clients are ruled to be "unsecured creditors" to the bank.

Tuesday, June 25, 2013

Barrick Gold to Lay Off 30% of Corporate Employees

Jun 24, 2013 Rob Gillies, The Associated Press

TORONTO – The world’s largest gold mining company has announced plans to eliminate 100 jobs at its corporate headquarters in Toronto.

Barrick Gold Corp. said Monday the reduction represents 30 per cent of the head office. Barrick spokesman Andy Lloyd cited a challenging business environment. Falling gold prices, rising costs and as sagging stock price have plagued the company. Since late 2011, the gold price has fallen by $600 — over 30 per cent.
Supply and demand fundamentals are starting to show.   BK

Weddings Could Boost Chinese Gold Demand Past India

With India's apex bank stating there is `ample available evidence' to suggest a moderation in gold imports appears to be underway in June, a new buyer has stepped in to snap up gold. China is set to overtake India as the precious metal’s biggest consumer, following the many restrictions plaguing Indian consumers.   LINK...

Thursday, June 20, 2013

Ron Paul: Gold Could Go To Infinity

He believes that "as long as we have excessive spending, and excessive computerized money, we are going to see gold go up," because the value of the dollar will be driven down. As each dollar becomes less valuable, it takes more of them to purchase an ounce of gold, meaning that the gold price measured in dollars rises.   LINK...
REMEMBER, "gold is money," and all this correction means is that it now takes LESS dollars to buy gold, which is a good thing. Considering the over all "stress" in global financial and geopolitical areas this is an opportunity to get in the gold market for cheap. Surely the powers that be do not plan one year in advance, they plan 5-10 years in advance and this could very well be a "set-up" for the future. China, on the other hand plans 100 years in advance and they are very bullish on gold. Do not be swayed by short term moves, focus on the long term and become self-relient and diversified.   BK

Wednesday, June 19, 2013

Kyle Bass on Japan and USA

Pay close attention to his recommendation to Japan's citizens and connect the dots to his comments on the USA debt crisis.   BK

Tuesday, June 18, 2013

Silver Gets AAA Rating

By Dr. Jeffrey Lewis

If bullion or any hard asset were to be compared to a debt security there is no reason it wouldn’t be triple-A.  Consider that a bet on bullion is essentially a bet on a future payoff.  This future payoff, which is hopefully more than the current purchase price, is cemented by indirect future cash flows.  Future inflation should give lift to any hard asset.

If the ratings agencies can comfortably assign a triple-A rating to any printing press, it should be clear that theoretically this rating should extend to hard assets.  Not only are hard assets tangible, always valuable, and historically understood to keep pace with inflation, but they’re also guaranteed to be deliverable.  There’s no risk in turning over fifteen, twenty dollar bills for a stack of silver bullion.  On the contrary, there is significant risk to turning over the same $300 for slightly more than $300 in the future.

This basic tenant of investing should not be lost for the purposes of greater sophistication.  Investors who want to realize a future outcome today with the greatest possible safety should turn to silver.
Hmmm, I wonder how these Ratings Agencies get paid in the first place?   BK

Friday, June 14, 2013

Gold and Silver Financial Review 06/14 by Gold Radio Cafe | Blog Talk Radio

Recorded LIVE Today at 12:00pm EST
With co-host Jeff Dunphy
Listen to internet radio with Gold Radio Cafe on BlogTalkRadio

Thursday, June 13, 2013

Deutsche Bank Opens $9 Billion Gold Vault in Singapore

Deutsche Bank’s customers will now be able to store physical gold at the bank's new vault in Singapore that can hold up to 200 tonnes of gold bullion, worth about $9 billion at current prices.
Officially opened on Monday at the Singapore FreePort, the storage facility located at aims to capture the rising demand for bullion in Asia, Reuters reports.
The institution began accepting bullion for the new Singapore vault over three weeks ago, joining other gold storage facilities in the country run by JP Morgan and Malca-Amit, among others.  LINK...
Do you really think Deutsche Bank would be doing this because the bull market in gold is over? We have not even begun the manic phase in gold yet. Just ask yourself how many people you know own gold bullion, and have over 20% of their portfolio in gold? This recent correction is par for the course and an invitation to "BUY LOW."  BK

Monday, June 10, 2013

Roubini vs Rickards on the Gold Argument

Bloomberg News
Federal Reserve Bank of St. Louis President James Bullard, who has voted this year in favor of maintaining stimulus, said inflation below the central bank’s 2 percent target may warrant prolonging the “aggressive” use of bond buying to spur growth and bring down unemployment.   LINK...
They say QE adds liquidity which greases the wheels of capitalism, however when the wheels of capitalism are broken you end up just spinning your wheels and going no where. The end result has always been hyperinflation and a loss of freedom and liberty. How can you maintain a 2% inflation target and print money at the same time? Only in Wonderland.   BK

Thursday, June 6, 2013

U.S. Bullion Coin Demand Still at "Unprecedented" Levels

(Reuters) - Demand for U.S. gold and silver bullion coins is still at "unprecedented" high levels almost two months after an historic sell-off in gold released years of pent-up demand from retail investors, the head of the U.S. Mint said on Wednesday.   LINK...

Tuesday, June 4, 2013

Macedonian Business Opportunity

Central Metals Corp., mentioned in the Windsor Star today about the possible opportunities of expanding our business into Macedonia.   LINK...

David Hall

Saturday, June 1, 2013

Mint Finds People Really Want Gold, Not ETR's

Gold Maple sales up 123% since same time last year.   LINK...
The saying goes, "he who holds the Gold, makes the rules," and surely the author of this quote meant gold bullion, not paper gold.  BK