Showing posts with label Gold Reserve. Show all posts
Showing posts with label Gold Reserve. Show all posts

Friday, July 19, 2013

Bernanke: "Nobody Really Understands Gold Prices"


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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

Sunday, February 10, 2013

Putin Turns Black Gold Into Bullion as Russia Out-Buys World

By Scott Rose & Olga Tanas - Feb 10, 2013 3:00 PM ET

When Vladimir Putin says the U.S. is endangering the global economy by abusing its dollar monopoly, he’s not just talking. He’s betting on it.
Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest gold buyer. His central bank has added 570 metric tons of the metal in the past decade, a quarter more than runner-up China, according to IMF data compiled by Bloomberg. The added gold is also almost triple the weight of the Statue of Liberty.   LINK...
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Don't be caught in the developing currency war. Eliminate counterparty risk between you and your assets with our U-Vault Account.    BK

Friday, January 25, 2013

The Truth of Musical Chairs

From a client and fellow Truth seeker... BK
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Hi Bosko

Just wanted to share with you something I just posted for my friends on FB, tangentical to your line of work.

I hardly know where to begin this, or whether it will proceed toward an orderly end. For you see, I've just come to the conclusion that what lies between the past and future, the events which we call the “moment,” are nothing more than will-o'-the-wisps, a phantasmagorical soup of so many ingredients that we can no longer discern what it's made up of. Metaphorically, of course, I'm speaking of truth, or rather, of Truth, the capitalized one, and the virtual disappearance of it from our conscious existence.

Okay, so it sounds a little wacky, but bear with me.

Truth, you see, is nowhere to be seen. Nowhere. I know,.I've looked all over for it, even beneath my couch cushions. Oh, don't get me wrong, I did find lots of the lower case truths (and some old doggie biscuits stashed there by my dog, Phoebe), but no Truths. Let's admit it: we're besieged, befuddled, besotted by truths. Just look at today's headlines in Yahoo Finance. “Political ideology blocking good policy,” screams one. There you go. No longer do we need to wonder why the world's all f*&%$# up. It's damn political ideology throwing chains and what-nots into the gears and cogs of policy! And another headline informs us: “Stocks Rise on Expectations Policy Makers Will Act On Crisis.” There you go! Now I know exactly why stocks rose today: policy makers are going to act! Yippie!

Bullshit.

Look at those two headlines. One says that we don't have good policy because political ideology hampers such, and the other headline says that stocks rose because we expect policy makers to act (presumably in a prudent and beneficial manner). I guess they'll just iron out that “political ideology” stuff pronto. And, so, there's the crux of the matter: two “truths” given to me, and they're diametrically opposed. Ergo, no Truth.

Nowhere did I read, “Gold, Silver Down On Blatant Manipulation, Justice Department to Subpoena JP Morgan/HSBC Insiders.” Also missing from the electronic front page of MSM is any critical analysis of our monetary system, and how its very structural make-up leads inevitably, mathematically, to the absolute certainty of unsustainable debt.

So, then, I must be going mad. That must be it. The evidence is all too clear. I picture myself unwittingly thrust into a game of musical chairs. The atmosphere is festive, although I'm not quite sure what the occasion is. The expectation and energy in the air crackles sharp as a ginger graham snapped in two. The game is about to begin. Spectators, masked and bedecked in jewels and finery of almost celestial origin, ring the participants. The lights dim suddenly, and the music starts.

Around and around we go. I don't quite know the tune; odd but somewhat familiar. The on-lookers are laughing uproariously, and I can't figure out why. The music plays. And plays. And plays. Just as I'm beginning to think it might never stop, it does. A mad scramble ensues. But to our horror, we realize that there are no chairs on the floor. We were circling nothing at all! The laughter is deafening. I realize then that the only winner is the music-maker; all the participants lose. And that, by golly, is our folly and foe.

Yeah, it's a metaphor for something, but I won't spell it out for you. What I will say is that it's important to keep looking for Truth, because when the music stops, you'll need some place to plant that fanny of yours. Hopefully something solid and intrinsically valuable. Is it any wonder that kings and queens construct their thrones with silver and gold?

Well, that's it. Hope all is well with you and yours.

Take care, 
Dan from Windsor

Monday, September 5, 2011

China's Shadow Gold Buying

From http://www.zerohedge.com/

by: Tyler Durden

Wondering why gold at $1850 is cheap, or why gold at double that price will also be cheap, or frankly at any price? Because, as the following leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar's reserve status. Putting that into dollar terms is, therefore, impractical at best, and illogical at worst. We have a suspicion that the following cable from the US embassy in China is about to go not viral but very much global, and prompt all those mutual fund managers who are on the golden sidelines to dip a toe in the 24 karat pool. The only thing that matters from China's perspective is that "suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB." Now, what would happen if mutual and pension funds finally comprehend they are massively underinvested in the one asset which China is without a trace of doubt massively accumulating behind the scenes is nothing short of a worldwide scramble, not so much for paper, but every last ounce of physical gold...   LINK...
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Here's an interesting video on the subject...

http://goldcoinscanada.blogspot.com/2010/03/15-billion-chinese-buying-gold-should.html