Tuesday, July 30, 2013

Heraeus Market Commentary

Good Morning,

Today is shaping up to be one of those “calm before the storm” trading sessions as market participants gear up for not only month end but also the heavily anticipated Fed speak tomorrow as well as a slew of other economic data culminating in Friday’s NFP release. The Federal Reserve’s two-day bonanza kicks off today as Chairman Bernanke and his cohorts will attempt to get on the same page with this whole quantitative easing fiasco. Until then, we’re left to digest the S&P Case/Shiller Index that showed home prices had the biggest y-o-y gain since 2006 as prices rose 12.2% for the month of May. It is tough to decipher what that seemingly positive number means when one sees an article on Bloomberg titled “The American Dream Erased as Home Ownership at 18-year Low”…but I digress. Consumer confidence numbers are the other flavor of the day and will be released at 10:00 am EST. 2Q GDP and ADP employment figures will accompany tomorrows conclusion of the FOMC meeting. Have a great day!

Tom Hungerford
Heraeus Metals New York LLC

Monday, July 22, 2013

Student Debt, The Next Bubble?

Will Student Debt Be America's Next Financial Bubble?

Experts continue to debate whether student debt in the U.S. will lead to an economic bubble; one which, when it bursts, will mean dire consequences for the whole economy. As tuition rises, students are simply borrowing more and more; many financial experts worry graduates won’t be able to keep up. Most income levels don’t leave graduates prepared to handle large amounts of debt; when students make their monthly loan payments, they end up with less to spend on cars, houses and other consumer goods. So could paying off student debt cause the economy to plummet?  LINK...

Friday, July 19, 2013

Gold and Silver Financial Review 07/19 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

Bernanke: "Nobody Really Understands Gold Prices"

The "Chairman of the Federal Reserve" says he doesn't understand gold prices? WHAT??? Then why does the FED have gold in reserve in the first place? Last time Bernanke was asked, why the FED has gold, he said it was "tradition." This sounds like a circus to me? How can someone in Bernanke's position admit that he doesn't understand gold prices when gold is held in reserve by almost every Central Bank in the world and he's head of the most powerful Central Bank in the world. He also says that gold doesn't protect against inflation very well, and he did it with a straight face too? I don't know where he lives but over the past ten+ years my price of energy related products and food has gone up, BIG TIME! Gasoline was about $0.40/L ten years ago, now it's $1.35/L, a loaf of bread went from $0.75 to $2.25. Since gold has gone up in the past ten+ years from about $250 to $1,280, I would say that's a pretty damn good inflation hedge. Who is Bernanke trying to kid? Is this some kind of joke? What's really going on at the FED? How can any chairman of a Central Bank admit this and have any credibility in the future? Please wake me up from this Alice in Wonderland Economy.   BK

Tuesday, July 16, 2013

Germany's Gold, Is it Gone?

By Lars Schall

You may have heard about William Kaye’s assertion that Western central bank gold is being recast for purchase in Asia. The recent statements of the Fund Manager on King World News are making quite a circuit. However, when asked about it in order to investigate the matter, Mr. Kaye had to say a few things to avoid unnecessary misunderstandings
.   LINK...
Listen to the interview above. This proves that the PAPER gold market is headed for collapse. GET OUT NOW if you own any paper gold and silver products.  BK

Monday, July 15, 2013

Dominique Strauss-Kahn, Joins Russian Bank?

Shifting of economic powers to the East is well on it's way. I believe there are big battles being fought behind the scenes between the leaders of the global banking system. Regardless who wins, gold will be the safest place for your assets, and if you can store gold in Asia, even better.   BK

Friday, July 12, 2013

Gold and Silver Financial Review 07/12 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, July 11, 2013

Heraes Metals Markets Report

Good Afternoon,

Markets have been trading on every piece of news relating to QE and speculation on when the US FED will taper or stop the bond purchasing program. Bernanke further confused the market yesterday when he reiterated the Fed’s intent to keep the bonding purchasing program for the foreseeable future until there is significant improvement in the labor market. The Fed meeting minutes from the June FOMC meeting showed that many members want to see a reduction of QE before the end of this year if the US economy is able to sustain the recovery. A lot of traders were caught short in the commodities and Bernanke’s remarks sparked a short covering rally late yesterday afternoon and today. The higher than expected weekly initial jobless (360k vs. 344k last week) and continuing claims (2977k vs. 2953k last week) data further showed the stubbornly weak employment situation. Metals are trading and trying to hold some key levels: silver broke above $20 and is trying to hold that level, platinum is slightly above $1400 and holding, palladium traded above $725 but was not able to hold there, and gold failed to break above $1300. China slowdown/shift of their economic focus towards consumption, and potential banking issues there will continue to drag down the global economy and cast a doubt about the near term outlook. Unrest in the Middle East will keep oil prices high and hamper global recovery. We expect the debate about bond purchasing programs to rage on globally and throughout the summer. Thanks and have a wonderful day.

Best Regards,

David M. Lee

Heraeus Metals New York LLC
VP Trader 

Wednesday, July 10, 2013

Gold and the Weight of Paper Chains

Will gold finally break FREE of the paper chains holding it back? It seems to me that the physical demand for gold bullion is starting to show its true power and natural safe haven characteristics. You will never get "Bailed-In" if you hold physical gold. Ask yourself why Central Banks even have vaults with gold reserves in the first place? You really think banks build expensive vaults as a novelty? Come on folks, see the forest through the trees. Continue accumulating and gold bullion will not let you down. This has been proven time and time again throughout history. Besides, you would be doing yourself and your country a favour because, "he who holds the gold, makes the rules." 

The bottom might not be in yet, but surely we are very close? Dollar cost averaging has been the best strategy over the long run. Take advantage of this golden discount and increase your holdings a little more.  BK

Tuesday, July 9, 2013

Jim Rogers, Gold Bull Market is Not Over

Pay close attention to what Jim says about the "naked short" sellers. This is a point that many fail to mention in the gold media. For more information on this please contact us.   BK

Monday, July 8, 2013

Smart Money is Buying Gold

Five or six years ago, few private investors were very concerned about the price of gold. Then came the financial crisis. When major banks were failing, a sense of apocalypse focused investors' minds on the value of physical assets as never before.
But other factors were at work. The evolution of new investment vehicles and trading platforms suddenly made it easy for private investors to buy small parcels of real gold. With "physical gold" exchange-traded funds, for instance, investors buy shares quoted on the London Stock Exchange, where each share is backed by solid gold stored in a Docklands bank vault. You could buy and sell gold as easily as you could blue-chip shares.   LINK...

Gold Worth $40,000 Per Ounce?


Some believe that the paper money printed by a government should be backed by real money. At a time, one could exchange one’s paper money for real money, whether gold or silver. Then, the United States government ceased exchanging paper money for gold and silver and instead issued gold certificates and silver certificates. In essence, although you can’t get gold or silver for your paper money, you can sleep well knowing that your paper money is backed by gold and silver that the United States government is holding. Then that stopped.

Wednesday, July 3, 2013

Singapore Opens Physical Gold Exchange

SINGAPORE (Scrap Register): Singapore Precious Metals Exchange (SGPMX) has launched the world's first physical precious metals exchange with peer-to-peer bullion trading capabilities integrated into the trading platform in Singapore on Wednesday, amid Singapore's drive to encourage gold trading in the country.
As part of the launch, SGPMX also announced the entry into an MOU with Certis CISCO which will act as the custodian for bullion storage.
Certis CISCO has been providing secure and trusted storage of precious metals for renowned banks and international couriers since 1986. Storage with Certis CISCO will enable SGPMX to provide the platform for private individuals, traders and institutions to buy, sell, store and exchange precious metals including gold and silver bullion, without incurring high spread margins.  LINK...

Tuesday, July 2, 2013

Gold Demand Climbs

Gold prices advanced the most in nine weeks as demand for coins, bars and jewelry rebounded following the record quarterly plunge. Platinum posted the biggest gain in a year.

In the second quarter, spot gold tumbled 23 percent, the most since at least 1920 after Federal Reserve Chairman Ben S. Bernanke said that the U.S. central bank may scale back debt purchase this this year. The premium for the metal in China rose to $36 an ounce, the highest since April, according to Tim Gardiner, a managing director at TD Securities Inc. in New York.