Gold Priced In Foriegn Currencies; April 2010

Dear readers:

This post is compliments of Jim Sinclair's web-site www.JSMineset.com , trader Dan illustrates how gold priced in various currecies other than the U.S. dollar proves that gold is the anti-fiat currency investment and returning to its natural form of wealth preservation around the world. Here's an interesting exercise for those who have time; take your personal investment portfolio priced in your domestic currency and convert it to the various currencies that Dan has used to price gold over the years. Then compare your performance to the performance of gold and see which is better. I'm sure you will find that gold has outperformed most investments around the world in any currency. LINK...

Gold is the "ONLY CURRENCY": Strategist

Gold is "the only currency" worth investing in as it is a good hedge against the eurozone’s fiscal troubles, said Mathew Kaleel, co-founder & portfolio manager, H3 Global Advisors.
"Gold, and every currency, is going up. It’s going up a lot more than (the) euro and sterling," Kaleel said on CNBC Tuesday.
He believes Europe’s fiscal issues have not ended as yet, saying the International Monetary Fund’s package for Greece is "literally a band-aid solution." LINK...

Bernanke Admits Printing $1.3 Trillion Out Of Thin Air

By Greg Hunter
USAWatchdog.com

Fed Chairman Ben Bernanke admitted the central bank created $1.3 trillion out of thin air to buy mortgage backed securities. This shocking admission came from the Joint Economic Committee hearing on Capital Hill last week. I was dumbfounded when I saw Bernanke shake his head in the affirmative as Representative Ron Paul said, “Well, where did you get the money? You created this money. So you did monetize debt, and that went into the banking system.” I was amazed he admitted this. I looked up the original hearing on C-Span to make sure the clip was not edited. It was not.
What is even more shocking is I could not find a single mainstream news agency that covered this revelation. Congress just finished voting on the bitterly contested Obama health care bill that is supposed to cost nearly a trillion dollars over ten years. (Some contend it will be more than twice that amount.) The mainstream media doesn’t even bat an eye over the Fed creating $1.3 trillion in a little more than a year to buy worthless debt no one else will touch. I do not get it. I guess we could have asked the Fed to print up a trillion dollars to pay for health care and avoided that drawn out battle in Congress. LINK...

*********************************

This shocking admission by the FED Chairman will be swept under the rug as soon as possible. But the fact remains that monetization of the U.S. dollar will send gold to new all-time highs very soon. GCC

Gold could hit $1,600/oz but silver, will likely outperform.

BMO Capital Markets Bart Melek says commodity prices are riding the global recovery wave with copper, platinum, silver met coal, and iron ore as his top picks.

Author: Dorothy Kosich
Posted: Friday , 23 Apr 2010
RENO, NV -

Under the right circumstances, BMO Capital Markets' Bart Melek says gold could rally as high as $1,600 per ounce by 2011.
In analysis published Thursday, Melek said, "Silver, platinum and palladium are expected to outperform gold, benefiting from their quasi-money properties and high use in industrial applications."
"Gold is projected to strengthen modestly, buoyed by long-term inflation concerns, sovereign debt, the U.S. dollar, fiat currencies generally and the expectation that the Fed will not raise rates aggressively," he said.

Goldman Sachs Vows to Fight SEC Charges

Jim Rickards says Goldman Sachs may go the way of Drexel. He says it may not be the actual finances of Goldman but their reputation that could end them. LINK...

**********************************

Folks, if this case goes either way it's not good for the economy and the reputation of the U.S. financial system, too many frauds and deceptions in the market. No body really knows what true value is anymore? This is underlying evidence that economic and political turmoil is a sign that gold will emerge as the asset of last resort. GCC

Canada's brewing debt storm

For every $1 of disposable income, Canadians owe a record $1.47. How did it come to this?

Paul Waldie and Steve Ladurantaye
From Saturday's Globe and Mail Published on Friday, Apr. 16, 2010 10:00PM EDT Last updated on Tuesday, Apr. 20, 2010 4:27PM EDT

Canadian borrowers are fast approaching a day of reckoning.
Lured by cheap money to buy up, buy in, expand and make over, families have pushed credit levels to a record high.
Now, mortgage rates are beginning to creep up and the Bank of Canada is poised to retreat from the record-low interest rates it adopted to fight the recession and spur recovery. LINK...

********************************

Yes folks even Canada is vulnerable to this debt crisis. With high debt levels a small hike in interests rates could be serious for many families whose incomes cannot meet the rising day-to-day expenses. One way to compensate for rising prices is to have investments in Gold/Silver, which act as a hedge against inflation. GCC

Precious Metals Prove White-Hot For Investors

Commpliments of the International Forecaster

*********************************
By Richard Evans and Emma WallPublished:
10:44AM BST 16 Apr 2010

All talk of metal investing in recent months has focused on the haven and inflation hedge of gold. Yet other metals, notably platinum and palladium, are gaining interest from investors.
Prospects of a global economic recovery, and the tentative signs that the motor industry is getting back on its feet, is boosting the price of the white metals again. Fund managers said that two main factors drive this metal to premium prices: demand from the Asian market and its use in catalytic converters. Half of all cars need these converters ensuring that demand remains strong. LINK...

Saudis Tighten China Energy Ties to Reduce U.S. Dependence

April 19, 2010, 5:12 PM EDT
By Henry Meyer

April 20 (Bloomberg) — Li Wei, a Chinese diplomat in Riyadh, had only just seen off a Ministry of Commerce delegation to Saudi Arabia this month when he started preparing for another Chinese governmental visit in two weeks.
“Every month we have delegations coming to Saudi Arabia,” said Li, who works in the Chinese Embassy’s commercial section in the Saudi capital. “We are too busy.”
China, the world’s second-largest oil consumer, and Saudi Arabia, holder of about a fifth of global crude reserves, are forging ever closer ties as the Persian Gulf kingdom responds to a Chinese drive to feed its rising energy needs. China in November overtook the U.S. as the main buyer of Saudi oil, and Saudi Arabian Oil Co. and Saudi Basic Industries Corp. are investing in refinery and petrochemicals projects in China. LINK...

********************************************

More evidence that the world is losing confidence in the U.S. dollar and that a major shift in wealth is moving from west to east. GCC

Eric Sprott Says "ALL-IN" On Gold

Legendary Canadian Hedge Fund manager, Eric Sprott is so bullish on gold he says that his multi-billion dollar funds are almost ALL-IN on gold and commodities. LINK...

*********************************
The Sprott Physical Gold Trust seems to be the next best thing to owning the actual physical gold yourself. Surely they will do well with it however, keep in mind the old saying;

"HE WHO HOLDS THE GOLD, MAKES THE RULES"

We'll leave it at that. GCC

Ground Breaking Interview With Jim Rickards on KWN

Jim Rickards of Omnis explains the motivation of global powers to acquire gold and why the individual investor should have "physical" gold in a vault. LINK...

Folks, this is a must hear interview because Jim clearly outlines the fundamental truths that are behind the gold bull market and why we are no where near the top. His comprehensive research is world renowned and his experience is top notch. GCC

Metal$ Are In The Pits

This article link was provided by the International Forecaster. Special thanks to Bob Chapman for his great research and newsletter. GCC

Trader blows whistle on Gold & Silver price manipulation

By MICHAEL GRAY
Last Updated: 4:33 AM, April 11, 2010

There is no silver lining to the activities of JPMorgan Chase and HSBC in the precious-metals market here and in London, says a 40-year veteran of the metal pits.
The banks, which do the Federal Reserve's bidding in the metals markets, have long been the government's lead actors in keeping down the prices of gold and silver, according to a former Goldman Sachs trader working at the London Bullion Market Association. LINK...

*****************************

News like this will be bombarded with all kinds of opinions, denials, conspiracies and misunderstandings. This kind of information challenges the mainstream financial firms and media, and as a result it will be swept under the rug and dismissed as irrelevant. However we believe that at its core the people in the “know” will be forced to face the fundamental truth that GOLD is the currency of last resort. GCC

Gold jumps to 4-month high as investors seek haven

Pham-Duy Nguyen, Bloomberg News Published: Saturday, April 10, 2010

Gold climbed to the highest price since December yesterday as investors sought an alternative to holding currencies.
The U.S. dollar fell as much as 0.8% against a basket of six major currencies. The euro headed for a weekly loss against the greenback on mounting speculation that Greece will default on its debt. Gold priced in euros and Swiss francs reached record highs. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, climbed to a record. LINK...

Jim Rogers says the commodities bull market is healthy and has a long way to go.

Legendary investor, Jim Rogers says that Gold and commodities still have a long way to go before any type of "bubble" forms. He says that on a global survey of money managers, 76% have never purchsed gold before and when that number goes to, let's say 6% then we could have a bubble in gold. GCC

AAA: The price of owning a car — any car — rose over the last year

April 8, 2010 5:53 pm

As with many things nowadays, the cost of owning a car went up over the last year, AAA said Thursday.
The average cost to operate a medium-sized automobile — such as a Ford Fusion or a Honda Accord — increased 4.8% in the last 12 months, according to AAA’s annual "Your Driving Cost" study. Based on driving 15,000 miles a year, it costs 47.6 cents a mile, or $9,519 a year, to operate a mid-size car, the study said.
Other models haven’t gotten any cheaper either. Small-car owners paid an average of 43.3 cents a mile, or $6,496 a year, on the same 15,000 miles-a-year scale, the study said. That category — made up of Chevrolet Cobalts, Nissan Sentras and similar-sized rides — rang up the smallest increase: 2.9%.
The most expensive type of vehicle to own was a four-wheel drive sport utility vehicle. AAA said Jeep Grand Cherokees, Toyota 4Runners and their kin cost an average of 73.9 cents a mile to operate, or $11,085 a year, a 10.7% increase from the previous year. LINK...

*********************************
And they tell us inflation is less than 2%??? It's almost laughable. GCC

King World News Interviews Rob McEwen

Mr. McEwen comments on the financial advisor industry and why they didn't recommend gold over the past ten years even though it has been the best performing asset class in the entire industry. Over the past ten years gold has more than TRIPLED while the DOW and S&P are in negative territory! GCC

OTPP facing $17.1B deficit

By Karen Mazurkewich, Financial Post April 7, 2010

Ontario Teachers' Pension Plan still faces a Sisyphean task managing its pension obligations for the 289,000 active and retired teachers in the province. Although the plan's investors scored a 13 per cent annual rate of return in 2009, the fund is recording a $17.1-billion deficit -- more than five times larger than the previous year.
OTPP recouped a "fair amount" of the money lost in 2008, when the plan announced a negative 18 per cent in investment returns, said Jim Leech, president and chief executive of the plan. "But we continue to face serious funding challenges."
With only 1.5 teachers for every retiree, the fund's future payouts are now greater than projected assets. But the lack of working teachers is not the main culprit creating this gap: the drop of real interest rates from 2.1 per cent to 1.5 per cent widened the deficit hole by $15 billion. LINK

*******************************

Isn't it funny how they make it sound like an accomplishment that the fund was up 13% in 2009 while the DOW index was up about 22% in 2009. So they are not even close to following the standard index. I'd like to know how the fund performed over a ten year period. If they have kept pace with the DOW or S&P 500 index then they are probably negative 20-25% or more. The real scary part is, their deficit in 2009 is FIVE times larger than 2008 the worst market decline since the Great Depression. GCC

Judge Napolitano and Gerald Celente Say America Is Fed-Up With Government!

Will Canada survive with a collapsing U.S.A.? What happens to a country when their biggest customer goes bankrupt? Folks, in times like these, strategic asset allocation and wealth protection is the name of the game. GCC

Canadian Dollar Rallies to Parity With U.S. Dollar

By Claire Sibonney and Jennifer Kwan

TORONTO (Reuters) - Canada's dollar strengthened to one-for-one footing with the U.S. currency on Tuesday for the first time since July 2008, powered by rising commodity prices and an economic rebound investors expect will soon trigger rate hikes.
The Canadian dollar climbed as high as C$0.9988 to the U.S. dollar, or US$1.0012, hopping the key psychological level after a string of firmer U.S. economic data helped fuel investor demand for commodity-linked currencies.
The currency has risen more than 5 percent against the U.S. dollar so far this year after gaining almost 16 percent in 2009.