Thursday, December 11, 2014

BAIL-IN Policy is Guaranteed!

Dear readers,

We have discussed this many times and warned people to prepare with our one-of-a-kind U-Vault Account.

Here are the links:

The latest from Greg Hunter

Tuesday, December 2, 2014

Raffle Winner

Congratulations Karissa!

Winner of the 10 oz Silver Kookaburra Coin.

Presented by Paul Campeau of Central Metals Corp., at the Guelph Chamber of Commerce.

We'd like to thank all those that attended the Kitchener, Guelph and Cambridge trade show Nov 18th, and a special thanks to those that took the time to visit our booth and sign up for the raffle.
For those of you that would like more information on our products and services and live in the Kitchener region, please contact our Account Manager, Paul Campeau at  OR  519-767-2033.


Bosko Kacarevic
Central Metals Corp.

Wednesday, November 26, 2014

Platinum and Palladium Supply Shortage

Heraeus Market Report

Very bullish news yesterday from the release of research by Johnson Matthey which indicates shortfall across all the platinum group metals. They are looking for shortfall of supply for platinum of roughly 1.13mm and in palladium 1.62mm ounces. Of course investment money is looked upon as demand and others view it also as above ground stocks which in platinum ETF holds roughly 2.67mm and palladium 2.98mm ounces of metal. Still this is bullish news for these white metals as auto sector demand continues to grow. Interestingly, Rhodium they also expect to end in deficit this year by 548k ounces against rising auto demand and meanwhile the ETP only holds a little more than 17k in metal. A very bullish signal for this white metal. Today Pt and Pd are holding their ground against the very good GDP report out of the USA this morning at 3.9% higher than expectations by .7%. Initially gold and silver came off on the bullish news for the US dollar and US investments but have since recovered some ground from the initial knee jerk reaction. The continued resilience of gold and silver against bearish news has surprised many traders. Good buying whether short covering or new longs from bargain hunters are slowly building a strong base for the metals. Expect the rest of the day to be quiet and tomorrow’s Durable Goods Orders release will be the last event of note before the Thanksgiving day holiday this week.

BUY NOW - Call 844-411-8656

Monday, November 24, 2014

Weekly Precious Metals Report

Heraeus Weekly Report

Gold could hold the price gains of the previous week and has not only been defending support at 1,180 $/oz successfully but also closed marginally above the 1,200 $/oz mark.  The metal thus recorded a weekly gain of 1%. After significantly increased gold imports in Q3 to India there are new discussions on regulatory measures like an increase of import duties. The latter is currently discussed by the Indian Central bank and the government for the purpose of compensation of the trade balance and an adjustment is expected shortly so that demand from India will suffer. Support was seen through central bank purchases: as for example the Russian Central bank explained last week that Gold makes up 10% of their reserves and that this year so far 150 tons have already been purchased. The Dutch central bank in turn got itself much talked about after pulling back gold from the US and returning it to Amsterdam.  (Read more...)

Wednesday, November 12, 2014

Real Competition For The IMF

China to Establish $40 Billion Silk Road Infrastructure Fund

(Reuters) - China will contribute $40 billion to set up a Silk Road infrastructure fund to boost connectivity across Asia, President Xi Jinping announced on Saturday, the latest Chinese project to spread the largesse of its own economic growth.
China has dangled financial and trade incentives before, mostly to Central Asia but also to countries in South Asia, backing efforts to resurrect the old Silk Road trading route that once carried treasures between China and the Mediterranean.

The fund will be for investing in infrastructure, resources and industrial and financial cooperation, among other projects, Xi said, according to Xinhua.   Read article...
The global monetary system is changing and there is a reason why China and Russia are buying so much gold, maybe they plan to back a new currency with it?   BK

Wednesday, October 8, 2014

1973 History Rhymes

 Dear readers,

January of 1973 was the end of the Smithsonian Agreement and Switzerland started to float the Franc. On October 19, 1973 an oil embargo was placed on the United States by Arab members of OPEC in retaliation to the U.S. government's support of Israel during the Yom Kippur War. The embargo would last till March of 1974, but not before causing one of the worst energy crisis in the history of the developed world. Oil prices TRIPLED in a few months. Arab oil revenues exploded - much of which was spent on GOLD, inspiring a 50% rise in gold from October to March. 

The current gold correction and the geopolitical situation in the Middle East remind me of the October 1973 Oil Embargo, when gold went from approximately a $60 low in 1973 to $190 new all-time high in March 1974, breaking the 1973 high of $135. The news then was Arab wars, currency wars, oil and gold. Today we have the same and it's even worse, we have sanctions on Russia, BRICS collaborating against USD reserve status and Saudi Arabia is pissed that the US is supporting Israel again. If history is any guide then gold will break the 2011 high of $1,925 and rise to $2,695 or 40% above the previous high just like in 1973-74. So assuming that some type of "Black Swan" occurs before the end of 2014 (maybe it has already occurred?) we could see gold skyrocket to new ALL-TIME highs by April 2015. If we don't get a "Black Swan" this year then maybe in 2015 and a new high in 2016? Either way gold is going to break the 2011 high within the next few years.

It would not surprise me at all to see gold go straight up to $2,600 before the summer of 2015.


Bosko Kacarevic

This chart is from the "History of Gold" picture in my office.

See section "10 and 11" on the chart:

Monday, October 6, 2014

Heraeus Gold Update

Heraeus New York
by:  Sonia Hellwig

Gold trades at 1,194 $/oz this morning and has hence breached the important support level at 1,200 $/oz. The lowest price was briefly “reached” with 1,183 $/oz in Asian trading hours. Gold’s slide therefore continued from September into October after the metal Gold had closed the previous month already with a loss of 6%. The looming rate increase in the USA hovers unchangedly over the precious metal. The again positive labour data (non-farm payrolls) led to strong sales and fresh short positions on Friday and let gold fall below the level at which it had started into the year. The development in the USD could not be more different: Not only against the Euro, the currency trades at a 4-year peak and impairs gold’s chances of a turnaround. However, it also means that the price in Euro had – until Friday’s correction - developed positively in the past two weeks. In this market environment the stocks of the largest gold-backed ETF, SPDR Gold Trust, also fell to its lowest since December 2008 (769 tonnes). The highest level was reached in 2012 with 1,353 tonnes. Speculative investors continue preferring to participate in the more promising stock markets. Sentiment appears different among physical investors according to the sales figures released by the US Mint: September saw the highest number of Gold Eagles coins (1oz) sold since January. Due to the lack of demand out of China in the course of the National Day holidays, support out of Asia will continue to stay weak until mid-week. It is important now that gold does not fall below 1,180 $/oz, the low from June 2013.

Silver continued to move within its downward trend channel and closed another 60 USD cents lower last week at 16.80 USD/oz. Also, compared to gold, silver devalued with a gold-silver ratio already above 70 now. Reasons for this decline continue to be found in robust US economic numbers and a consequently stronger USD. On the chart there is now room down to 15 USD/oz while 18 USD/oz should cap any upward movement. However, speculative short-positioning reside on record highs leaving some potential for rapid short-term upward correction. Regarding economic data releases this week, in particular jobless claims on Thursday and Chinese PMI on Wednesday may give impulses for price movement. Furthermore, Industrial Production from Europe will be released.

Analogously to Gold the other precious metals came under pressure during the reporting period. Thus also platinum continued its downward movement. While gold “reached” a 15-month low this morning, platinum dropped to its lowest value in 5 years with 1,183 $/oz. Platinum was hence unable to escape gold’s drag and only trades at a premium of barely 10$/oz to gold. Even if disruptions in production in the first half year were on a very high level the recent price developments speak for sufficient amounts of above-ground stock to serve the current market needs. It is safe to say that it will take a while until those stocks are fully depleted and result in price increases.

Since the beginning of the year until the end of August palladium had been performing extremely well and had reached with 900 $/oz the highest price level in 13 years. Yet since September the direction has changed and the metal continues its slide: Palladium has declined by 15% since it traded at its peak level. Palladium had started at 776 $/oz into the reporting period and closed again lower at 753 $/oz as net-long positions continue to be reduced. We see support at 692.50 $/oz – this year’s low. On lower levels industrial demand tend to picks up again. This could explain the slight premium increase for palladium sponge. While demand for cars in the US in September was below expectation, it showed nevertheless a 6% increase (YoY) and shows the generally more positive sentiment in this segment. Especially the US automotive industry represents an important market for the metal due to the catalysts needed for its petrol driven cars.

Saturday, September 27, 2014

Ten Bullish Signs for Gold

Dear readers,

I just returned from a Gold Miners trade show and I have to say it was poorly attended and rather boring. The keynote speakers had nothing new to say, and some are still blaming the "cabal" for manipulating the lower price. It was the same old debate about the USD, Central Banks and inflation. However the one sign that tells me the BOTTOM is in for gold, is that the biggest booth at the trade show was not even a gold miner, but a Medical Marijuana company, go figure?

The most interesting speaker panel was about raising capital on stock exchanges versus the new "Crowd Funding" method, which I believe is coming of age and will revolutionize financing just like Amazon and E Bay revolutionized retail. The debate between these two methods was interesting because the exchanges claimed that Crowd Funding is not "regulated" and investors are subject to fraud. I didn't get a chance to voice my opinion during the question period, but the so called "regulators" didn't do a very good job preventing fraud during the ENRON, MF Global and Bernie Madoff scandals did they? I believe Crowd Funding is true Capitalism because it forces the investor to do his own due diligence (Ceveat Emptor), not rely on a compromised regulator.

In closing let's never forget the first rule of investing, BUY LOW - SELL HIGH.   BK

My Ten Bullish Signs for Gold:
  1. Gold mining index is down 67% over three years. (Globe and Mail)
  2. Cost of production is higher than the gold price which is forcing some miners to shutdown, causing  supply shortages.
  3. BRICS create an alternative to the IMF and USD reserve monopoly.
  4. The $1,200 support level in 2010 was the launching pad for $1,920 in 2011. So $1,200 will be the new launching pad for $2,200 by 2016.
  5. Gold Miners trade show was poorly attended.
  6. USD is at a four year high.
  7. Bloomberg Commodity Index is at a five year low.
  8. USA engaged in a new war in Iraq and Ukraine.
  9. Opening of the new Shanghai Gold Exchange in China.
  10. Stock market at an ALL-TIME high.


Bosko Kacarevic
President, Central Metals Corp.

Tuesday, September 23, 2014

Dr. Tent: The Exploding Autoimmune Epidemic

Dr. Tent pulls no punches when it comes to cancer and vaccines.

Saturday, September 20, 2014

Dr. Tent: Essential Fatty Acids

Dear readers,

I discovered Dr. Tent recently and thought his message is very important regarding the food we eat and our healthcare system in general.


Wednesday, September 3, 2014

David Cay Johnston

An eye opening lecture that gives us a new perspective on the real economic system and how it affects our lives.  BK

Source: Jesse's Cafe Americain

Saturday, August 30, 2014

Steps Towards Free Gold

With BRICS nations moving away from USD settlement and more transparent gold pricing in the East, gold and silver should find their true value soon, which is much higher than todays price. There is clearly some "inefficiency" in the silver market when we know that silver is the only precious metal that has not broken its 1980 high. For that matter silver is the only metal period that is cheaper today than it was 40 years ago. Ask yourself if there is anything that you can buy cheaper today than 40 years ago? Not food, not gas, not homes, not cars, NOTHING is cheaper today than 40 years ago except SILVER! 

Remember the first law of investing, BUY LOW and SELL HIGH.  BK

Steps Towards Free Gold...

New Banks Give China Greater Control...

Friday, August 15, 2014

Joel Salatin For President?

This is the kind of brave, innovative and common sense type of thinking we need leading our nation! Mr. Salatin brings integrity back to farming and the same should be applied to all aspects of our economy. A VERY GOOD listen!   BK

Polyface Farms

Friday, August 8, 2014

Gold, A Perfect Imperfection

An ancient gnarled tree:
Too fibrous for a logger’s saw,
Too twisted to fit a carpenter’s square,
Outlasts the whole forest.  TAOISM

The late John Maynard Keynes, a revered economist and said to be the father of today’s western economic philosophy (Keynesianism) once called gold coins a “barbaric relic.”

Is gold like the ancient gnarled tree:
Too heavy to carry around as money,
Too laborious to find and too energy intensive to mint into coins?

Gold’s obscurity as wealth is still debated even today, yet it has been the desire of many powerful leaders in history. It has compelled men to risk their lives for it and many wars have been fought over it. Yet for some strange reason gold is commonly frowned upon by the average financial expert. They say it’s useless as an investment because it produces “no interest or dividends.”

Could this obscurity be why gold has outlasted all paper currencies, banks, governments and stock markets throughout all history, like the gnarled tree outlasting the whole forest? Is gold so important as money that it’s considered useless by many financial experts? Is this gold’s secret to success?

Even the great Warren Buffet is not in favor of investing in gold. Meanwhile his father and former governor of Nebraska, Howard Buffet was a strong supporter of the gold standard and oddly enough, Warren himself started his investing career in the jewelry business.

However, the founder of one of Wall Street’s biggest institutions, J.P. Morgan once said, “Gold is money, and nothing else.” Let’s explore this statement for a moment. So what is “money?” As defined by the 1980 edition of Webster Encyclopedic Dictionary; Money:  Coin; gold, silver, or other metal, stamped by public authority and used as the medium of exchange; in a wider sense, any equivalent for commodities, and for which individuals readily exchange their goods or services; a circulating medium; wealth; affluence. So, is money the paper currency we carry in our pockets or the deposits we have at the bank? Well, here’s what Webster defines as paper currency: bank notes, or other documents serving as a substitute for money or a representative of it.

You mean CASH is not MONEY!?
Bank notes or currency as they are commonly referred to, are issued by a country’s central bank and represent the DEBT of that nation, NOT money! For example; a Federal Reserve Note is issued by America’s central bank called the “Federal Reserve.” Currency with no gold or silver backing is called a “fiat currency.” This means the currency only has value based on the good faith and credit of the nation. It’s just like a promissory note between two individuals; one is the lender, the other the borrower. Similarly deposits at a bank are credit. You, the depositor are the lender and the bank is the creditor on your account. This is very important to understand in light of the recent “bail-in” policy passed by many governments, even the Canadian government in 2013. They are planning to confiscate your savings to keep the system afloat! Interesting however, practically every central bank in the world is a private institution that answers to no branch of government, not even the president of a nation. Sure, central bankers meet with government officials to discuss monetarypolicy, but they act independently and look out for the best interest of their stakeholders, NOT the citizens of a nation. Central Banks are owned by wealthy, powerful and elite individuals who have no allegiance to any one country, they consider themselves global citizens. Did you know that EVERY paper currency that ever existed, ended up being worthless like the Zimbabwe dollar and the German Mark during the hyperinflation of the Weimar Republic. Hyperinflation is the result of a central bank creating too much money and credit to keep an economy going artificially. This is exactly what the FED is doing with the USD and it will end up in hyperinflation as it always has. This means a cup of coffee could cost $1,000 and a gallon of gas $50,000! Your retirement portfolio will not even last two months. Coincidentally, almost all central banks keep gold bullion in reserve. Why not you?

The great Henry Ford once said, “It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” The fact is; central banks dictate interest rates on their own and create money to buy the debt (treasury bonds) of a government. Think of a central bank like a credit card company; they issue credit (currency) to a government in exchange for bonds and the interest on the bonds is paid by the taxpayer.Who do you think is on the hook for the massive “bail-out” from 2008 and the easy credit policy of the FED over the past decade? Yes, YOU the taxpayer! So, as a result of all this injection of money and credit into the system, we get inflation. Inflation is not an economic phenomena, it is planned by central bankers to keep a nation in debt and under control. Think about it for a second; why does a loaf of bread today cost ten times more than fifty years ago? It’s the same loaf of bread, just the currency it’s priced in has lost VALUE! An ounce of gold fifty years ago was $35, today that same ounce of gold is well over $1,000! Why did the price of real estate skyrocket over the past decade? Not because more value was added to the homes, but because too many lax mortgages were issued by the banks. Like the loaf of bread going up in price a house went up in price with no added “value.” Real estate prices were inflated artificially by the creation of easy credit and we’ve experienced the crisis of 2008 because of it. The fact is; the USD has lost over 90% of its value since the creation of the FED in 1913.

So what does all this have to do with the price of gold? Just ask one of the greatest gold traders of our time, Jim Sinclair of, who has been accurately predicting the price of gold for decades. He says based on the expansion of money and credit by the FED and the TRILLIONS in derivatives that have no market to settle in, gold will be at least… 
$3,500 per ounce!

Truth be told; gold is simply honest money because it is:

·       Rare and precious
·       Globally recognized
·       Transportable
·       A durable store of value
·       Evenly divisible
·       Everlasting

Gold maintains value because a thousand men can go searching for gold in a mountain for six months and only one of those thousand men will discover gold. So gold’s value is not only the labour of one man going hungry and thirsty for six months, but also the labour of the other 999 men who found nothing. Once gold is refined into a tradable form like a coin or a bar, it harnesses the productive powers of labour as “intrinsic value” and it’s locked into that gold coin forever! Gold is the only form of wealth or money that cannot be destroyed! This is why gold was used as money throughout most of history. Since gold cannot be created easily and lasts forever, it limits the creation of currency and credit by a central bank or a government. As a result, inflation and debt is contained because the money supply and credit issued by a government has to be backed by the gold in reserve. So, is a gold standard the best monetary policy for a government? I’m not sure, but according to a paper written by the late Howard Buffet, a gold standard is essential for the economic freedom and liberty of man. Personally, I believe having restrictions like a gold standard for the creation of currency and credit is definitely better than allowing central banks to create it freely on their own.

So is gold a “Perfect Imperfection?” Is it a “Barbaric Relic?” Does it produce “Interest or Dividends?”

Yes, all of the above. Gold bullion has all the requirements to perform as perfect money and for about 5,000 years it has done so, very successfully. So, thank you Mr. Keynes for calling gold coins a “barbaric relic.” I believe this is why central bankers keep gold in reserve. They know the truemeaning of gold and want to distract the public into other forms of wealth like currencies or stocks, making gold “imperfect” as an investment. It’s no secret that mainstream financial institutions discount gold investing because they want you to invest in “their” customized financial products. You don’t have to be a “gold bug” to buy gold coins, just do what central bankers do and keep gold in reserve to protect your true wealth. At least it’s real money and not a liability of any government. As for paying interest and dividends, just ask the major bullion banks like J.P. Morgan and Scotia Bank if they charge interest on the gold they lease to central banks and you’ll find your answer to that fallacy.

In conclusion, if we want to save anything for the future that maintains true value, then we need to change our culture and pay more attention to history and become our own “central bank” with gold in reserve!


Bosko Kacarevic

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