You may want to look at gold and silver right now if you are looking to get out of pure stocks. That might not be a bad idea given the current situation. There aren’t many good stocks to buy around, especially with all of the stuff going on around the world.
Gold has been the safe play for the last two years. In fact, it has really been the world’s currency for the last 4,000 years. The prices really shot up when the financial crisis hit and investors started to look for a safe place to put their money, so they bought gold.
Even those who saw the financial crisis coming and were shorting everything are currently buying precious metals. The reason they are doing this is because they see another crisis coming, one that will be much worse than the last one.
If you want to invest in gold or silver, there are ETF’s out there that will do the trick. For gold, you can look at the SPDR Gold Trust, or ZKB Gold ETF. For silver, you might want to consider the iShares Silver Trust. Continue Reading »
A conversation between Chris Martenson and Ben Davies of Hinde Capital.
Nice that Ben mentioned Buffett and his view on Gold. Here we are talking about Gold and the worlds most successful investor does not believe in Gold. More and more I keep on wondering why Buffett would have this view. Anyway I’m more bullish on Silver.
If peak oil is really a problem and the things that Chris worries about are real problems, in our semi-immediate future, I don’t see how holding gold is something prudent. I think the best way to prepare for the things that Chris thinks are coming is to own land in an isolated area that has high energy resources, good soil and good water. Gold is NOT going to protect your purchasing power if productivity drops because of oil scarcity, real prices, measured in gold, will still go up.
The dollar is NOT going to protect your purchasing power if productivity drops because of oil scarcity, real prices, measured in dollars, will still go up. If one already has the land, soil and water and they keep getting dollars, the dollars should be liquidated for gold immediately.
Monetary policy is now sexy. The young are into it. “End the Fed” rings out at Ron Paul’s political rallies like “We Will Rock You” used to ring out at Queen concerts.
There is, indeed, a direct relationship between the popularity of economics and monetary policy among the under 30s and the overwhelming support of this group for the candidate whose very political career begun on the day the U.S. went to a pure federally monopolized fiat fraction reserve monetary system back in ’71 when Nixon closed the gold window.
The fact that thousands of my readers know exactly what the preceding sentence means just proves the exciting change that is going on in this country, mostly thanks to Paul.
This rise of understanding of monetary policy among us commoners (those for whom the creation of money is a crime (the 99.999%)) is wonderful, but it has not yet undone a misunderstanding that prevails even among many of us who are fighting for real economic justice with our Bastiat and Hayek in hand. And this particular misunderstanding is important because it may be playing right into the very hands of the system, and even the people, we oppose. Continue Reading »
Australian gold miner, Kingsgate Consolidated, reported an almost 200 percent jump in profits for the second half of 2011 on Wednesday, boosted by robust sales of the precious metal. But, the company is planning a bigger push into silver in the coming years, according to the CEO Gavin Thomas.
“Silver is a fantastic opportunity…I see there’s a lot of upward price (for the metal), because of the lack of supply,” Thomas told CNBC on Wednesday, adding that silver could rise to $50 per ounce over the next 24 months.
Supply of sliver is under pressure because, lead and zinc mining, which silver is a bi-product of, is becoming less prolific, Thomas said. At the same time, he notes that demand for silver is increasing as medical and industrial uses for the metal are discovered and investment interest from India and China rise.
“India and China are slowly turning to silver as a means of hoarding wealth, as gold is becoming more difficult to obtain (due to higher prices),” he said. Continue Reading »
Spain carrying 17 tons of silver recovered from 1804 shipwreck
The 17 tonnes of silver discovered and salvaged by Odyssey Marine Exploration in 2007 are being flown to Spain today, and will become property of the Spanish Gov’t. The US Supreme Court this week ruled in favor of Spain over Odyssey who discovered the silver as well as spent millions recovering it, and the Peruvian descendents of the merchants who actually owned the silver. Clearly the phyzz rightfully belongs to the gov’t to which the ship was licensed under, rather than the treasure seekers who discovered it, the country whose waters it was discovered in, or the descendents of the actual owners.
So 17 tonnes of silver with historical significance are about to become the property of Spain, which will then be required to hand over the silver to the banksters in exchange for a Greek style bailout, along with its gold of course.
Just like taking candy from a baby.
A 17-ton haul of silver coins, lost for two centuries in the ocean’s depths aboard a sunken Spanish galleon, began its journey back to its home country on Friday after the deep-sea explorers who lifted it to the surface lost their claim to ownership.
Two massive cargo planes — Spanish military C-130s — took off just after noon from a Florida Air Force base with 594,000 silver coins and other artifacts aboard. They were packed into the same white plastic buckets in which they were brought to the U.S. by Tampa, Fla.-based Odyssey Marine Exploration in May 2007.
Odyssey made an international splash when it discovered the wreck, believed to be the Nuestra Senora de las Mercedes, off Portugal’s Atlantic coast near the Straits of Gibraltar. At the time, the coins were estimated to be worth as much as $500 million to collectors, which would have made it the richest shipwreck haul in history…
The company has said in earnings statements that it has spent $2.6 million salvaging, transporting, storing and conserving the treasure. But it is not expected to receive any compensation from the Spanish government for recovering it because the European nation has maintained that the company should not have tried to do so in the first place.
Peter Sorrentino, a senior fund manager at Huntington Asset Advisors in Cincinnati, talks about opportunities in emerging markets, the outlook for gold and his investment strategy. Sorrentino also discusses Greece’s debt crisis. He speaks with John Dawson on Bloomberg Television’s “First Up.” http://www.youtube.com/watch?v=Hzf1Re2P5_k
Today Egon von Greyerz told King World News that we will see some major fireworks in both the gold and silver markets by the end of March. Von Greyerz also discussed the extraordinary increase in world money supply. Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland. Here is what von Greyerz had to say about what is happening: “We spoke last week and I said gold would begin a strong move to the upside and that’s exactly what we’ve seen. I also mentioned we should see this strong move in gold continue for at least a month without any significant correction. We are about $60 higher this week and that was as expected.”
I believe that all the elements are now in place for a Gold break-out move from the current $1700/$1760 trading range. This move will happen very soon. There will be a short pause when it breaks into the $1,800 level, and then we are heading for new highs before the summer.
WHAT ARE THE KEY ELEMENTS TO THE COMING GOLD MOVE?
1) More Global Quantitative Easing (monetary stimulus) is on the way
Both Great Britain and Japan have recently announced massive increases in monetary stimulus programs. The Eurozone countries have currently given problem banks that are holding sovereign debt massive injections of euros, and are also preparing massive amounts of monetary assistance for Greece, Spain, Italy, and Portugal. While in the U.S., more than a majority of Federal Reserve Open Market Committee Governors favor another round of monetary stimulus (QE3) to keep our economic recovery on course within the United States. Continue Reading »
Where did it come from? Where did it go? These are the two principal questions being framed today, after Lord James of Blackheath (a member of the UK House of Lords) unveiled documentation (and accusations) concerning a mounting of illegitimate cash: $15 trillion USD.
At the moment, only Lord James is asking these questions. However, if he gets his way there will be an official inquiry into this massive, money-laundering operation. Already, Lord James possesses documents with the signatures of people like Alan Greenspan and Timothy Geithner on them, as well as massive transfers of funds to virtually every mega-bank in the U.S. and UK.
While Lord James (himself a former banker) is holding the “paper trail” for all of this dirty money, he himself has no firm ideas about either the source of the money nor the intent of all of these massive transfers (all in the $100’s of billions) to U.S. and UK banks. Perhaps I can help him out?
Regular readers will be familiar with some of my own speculation into U.S. money-laundering (and counterfeiting of its own currency). Of interest, my own theorizing was based on a series of logical deductions which implied that some massive money-laundering operation (of counterfeit currency) must be taking place in the dying U.S. economy. And now we have a detailed paper-trail on the largest (known) money-laundering operation in history. Continue Reading »
The European Central Bank (ECB) could stop buying Italian debt if the country does not follow through on financial reform, a member of its governing council has warned.
Yves Mersch, the governor of the Central Bank of Luxembourg, told yesterday’s La Stampa that that he believes the ECB’s bond-buying programme should not be used to “remedy the errors of policy”.
Mersch also said the bank would consider ending the programme if its efforts are “undermined by the lack of efforts by national governments”.
When asked whether this meant the bank would stop buying Italian bonds if the promised reforms are not completed, the governor told the newspaper: “If the board of the ECB comes to the conclusion that the conditions that led it to make a decision no longer exist, it is free to change this decision at any time. This is the perennial content of our discussions.”
Last Wednesday, Italy agreed on a limited package of budget reforms with the European Union. Italy has nearly €1.6 trillion (£1.4 trillion) of outstanding bonds, making the country Europe’s largest bond market.
Yields on Italian ten-year bonds hit a euro-era high earlier this morning, Bloomberg reports, after rising nine basis points to 6.46%.
Watching the euro melt has been like watching a train wreck in slow motion. You knew it was coming. You know which cars on the train are next line to be mashed. There is nothing you can do to stop it. You can only watch as it happens, with one car after another compressing like a tin can, and all you can do is say, “I told you so,” the entire time.
The whole European currency scheme was both brilliant and crazy. It was brilliant because Europe should have a united currency. In fact, the whole world should have a united currency. Once upon a time, it did. It was called the gold standard. National currencies were just another name for the same core thing — a nationalist spin on a global consensus. If some country had waved around an unbacked piece of paper and called it money, no one would have taken it seriously.
And the gold standard was internally policing. If one country debauched the currency, gold would flow out, the thing would lose credibility and capital would flee to places that took sound finance seriously. Governments were restrained, the hands of politicians were tied (they could only spend what they could overtly steal) and markets ruled the day. The politicians hated it, but markets were free, stable and growing.
So yes, there is a case for single currencies in regions, or even the entire world. Truly, why should people and multinational commercial institutions have to go through the ridiculous headache of changing currencies at the border? This is just pointless. Imagine if an inch meant something different in every country, and you had to come to a new understanding of its meaning in order to build on this, versus on that side of the border? Markets don’t like this kind of pointless exercise. The natural market tendency is toward unity in what matters (money) and disunity where it matters (competition and entrepreneurship).
So the European elites who cobbled together the euro after many decades of planning played to that sense, and developed a reasonable expectation of a wonderful Europe united with peace and free trade, all with a single currency. It seemed like a recreation of an older, freer, more-wonderful world. So why not?
Here’s why not: The gold standard no longer exists. It hasn’t existed since the politicians destroyed the last remnants of it in the early 1970s. And it was in 1970 that the idea of a single currency for Europe went from the dream stage to the planning stage. At the end of the gold standard, the idea should have been dropped, but it was not. The planning elites had it in their heads that this was the only way forward, and nothing would stop them.
Strong silver demand is here to stay. According to Thomson Reuters GFMS, silver demand on a net basis across the world will reach the highest point of all time: a demand valued at $10 billion!
Back in 2010, silver soared to a then-record-high of $6 billion in net demand – equivalent to 296.2 million ounces back then. Compared to other uses for silver, the investment demand contributed to 29% of silver’s overall demand.
Just four years ago in 2007, silver demand looked quite differently. Prior to the Lehman collapse, silver investment demand only made up 6% of total silver demand – with 57.2 million silver ounces attributed to investment demands for a net investment demand value of $800 million.
From the sounds of it 2011 will end as an epic year for silver demand. Take a look at this visual documenting silver’s ups and downs for the past year:
“A strong first and final quarter performance should be only marginally offset by a subdued outcome during the middle six months,” the report said. “However, investors’ commitment in value terms will post a fresh record total, with world investment…likely to reach $10 billion on a net basis for the first time.”
Thomson Reuters GFMS said there was a significant amount of unwinding of positions by institutional investors in the first half of 2011, then a fall toward the end of September to around $26 an ounce. As fears of a double-digit recession grew, silver “assumed its industrial mantle” and followed platinum group metals lower, the report said.
“In spite of these developments, a number of factors remain supportive of silver investment demand, both for the remainder of 2011, as well as into 2012,” the report said. “First, the outlook for silver prices remains bullish, with the potential of prices nearing, if not exceeding…$40, a realistic prospect as the fourth quarter develops. This is in part based on our forecast for gold to target the $1,900 level.”
Silver, as well as gold, has received a consistent boost as investors see both the precious metals as safe-havens. And China and India aren’t only interested in gold this year; they’re very attracted to silver too.
India has invested in over 45 million ounces of silver this year alone after investing in only about 29 million ounces last year. Chinese demand is growing exponentially and it is believed that it will “grow by 25% to over 8 million ounces.”
Moreover, the report indicates that exchange-traded funds now play an important role in the market and have for the past few years. The very first ETF emerged five years ago in 2006. In just four years (2010), global ETFs took in 600.3 million ounces of silver and then peaked at 621 million ounces in April. At the end of this past October, that number was right at 577 million ounces.