We’re not investing in gold. We’re just buying it

Thu Feb 27, 2014

Man and gold are not easily parted. Even as investment gurus made doomsday predictions through much of 2013, consumers gleefully added to their hoard of physical gold. Globally, 1,654 tons of gold were bought as bars and coins and 2,209 tons as jewellery. Overall, purchases of the yellow metal in physical form (and not as paper exchange traded fund units) jumped 21 per cent in 2013.

The World Gold Council reveals that consumption of gold bars and coins was the highest ever in 2013, registering a 28 per cent growth. With gold prices dropping 34 per cent in just nine months, lay buyers made the most of the opportunity. Larger investors in gold ETFs meanwhile sold the equivalent of 881 tons from such funds. The Indian consumer too displayed his/her voracious appetite for gold by continuing to buy, ignoring import curbs, gold-loan restrictions and import duty hikes. Demand for coins and bars recorded a stronger 16 per cent growth, while jewellery demand increased 11 per cent in India.  LINK...

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Essentially HALF the world is bullish on gold, when you consider China and India combined! You think these cultures and societies that have been around for thousands of years longer than Western society, knows something we don't?  BK

Precious Metals Weekly Commentary

GOLD

Gold overcame major hurdles in the past few days and closed last week with a profit of + 4.10%. It was the strongest week since mid-August 2013, during which the metal climbed above psychological resistance at 1,300 $/oz (high 1,321 $/ oz).

Several factors have contributed to the positive development,... READ MORE

Pick The Right Tool For The Right Job

Inspired by a post from Jesse's Cafe Ameriain, "pick the right tool for the right job, and remember nothing comes for free." 

I thought this would be a perfect slogan for our U-Vault Account because if you're looking for wealth protection and savings then why leave it with an institution that does not use the right tools for the right job? Savings in a bank account are only as solvent as the insurance company (FDIC or CDIC) backing those savings. Did anyone ever ask WHY there is even limits to these deposit accounts? After all it's cash in the bank, right? NO, it's not; it becomes bank credit the minute you deposit your money. So why can't these deposit insurance companies insure 100% of your money? Because your money is NOT there anymore! The bank took it and loaned it out at multiples of what you deposited. This is called "Fractional Reserve Banking," a great tool for the banks but not for you. 

So if you're looking to protect 100% your savings, whether it's $100K, $500K or Millions, than the U-Vault Account is the right tool for the right job, because there are NO LIMITS to the insurance on the funds in the vault, unlike FDIC and CDIC. How you might ask? NO fractional reserve banking, just your wealth collecting dust in a fully insured vault that you can access anytime. Yes, it sounds boring because it is, but it's also the safest place for your money!  BK

Jim Rickards: Gold Set For Massive Rally

I point out that the international monetary system has already collapsed three times within the last 100 years—1914, 1939, and 1971—and that another collapse would not be at all unusual. But it’s not the end of the world. It’s just that the major powers sit down and reform the system. I talk about what that reformation will look like.   LINK...

Silver Coin Demand Has Quadrupled

Market Watch

Silver bullion coin demand quadrupled between 2007 and 2013 the U.S. Mint noted in an eye-opening report this week explaining its silver “allocations” to authorized purchasers. LINK...

Gold Sales Jump in January

Sales of gold coins by the U.S. Mint rose 63 percent in January to the highest since April as futures rebounded.
The volume climbed to 91,500 ounces from 56,000 ounces in December, while sales of silver coins almost tripled to 4.78 million ounces, the highest in a year, mint data showed yesterday.  LINK...

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These low numbers in gold and silver will not last too much longer with demand continuing to break records.   BK