Will Current Expectations of a $ Devaluation Cause Gold to Breakout?

By Julian D. W. Phillips, GoldSeek

Some sage gold watchers are expecting a major $ devaluation before the end of the year! Some say it could be any day now. Certainly the fundamentals have pointed that way, as we have discussed for some time now, this despite the repeated “Strong $ Policy” statement from this and the last Administration. The concept is no doubt alarming and implies a radical change in global economics. We believe that should such an event occur it should be seen as a culmination of major changes precipitated by the ‘credit crunch’, the rise of China and the imperative need for a change in the currency world to accommodate these events. If such a change is not made, the currency world will see major structural fractures that will hurt the stability of the global economy, dramatically.

As you have seen from our work on this subject over the last few months and will see as this picture forms, major changes are inevitable. The question is, will they come about through a civilized adjustment or must confrontation and unilateral moves be needed?

Caveat
We issue a warning in case this should happen; the entire currency world will be thrown off balance by such a move and every currency on this planet will feel the reverberations of such a devaluation and for some time to come. If it happens in a civilized manner, it will still happen ‘overnight’ and catch us all by surprise. If confrontation is involved, add fear and trepidation to that surprise.

Read more….

Global Gold Production

By Scott Wright, GoldSeek

There is no denying gold’s store-of-value relevance throughout the history of the world. It has been and will always be the ultimate form of currency. Even today gold’s alluring and timeless qualities transcend every political, social, and monetary boundary that man puts into place. Gold’s core fundamentals will forever be rock solid.

Another key element to gold’s fundamentals is simple economics. And it is economics, supply and demand, that will always dictate gold’s price over time. On the demand side we have seen a big increase over the years due in large part to population growth and ease of access.

Gold is not just a metal for kings anymore. Over time a large global distribution network has been built that sells gold, in small or large quantities, to anyone who wants to buy it. And with such a rapidly growing world population, especially in the last 100 years, a greater number of people want to own this precious metal.

On the supply side, the onus is on the miners to bring enough gold to market to meet demand. But the miners can’t just turn a spigot and spew gold at will. One of the many reasons why gold is precious is its rarity. Simply put, this metal is hard to find. And when it is found, economically extracting it from the earth presents its own challenges.

So far the miners have been able to supply gold to the people. But they’ve really had to ramp up their efforts in the last century to meet skyrocketing demand. Interestingly over 80% of the gold mined in the history of the world has happened since 1900, with over two-thirds of this volume in just the last 50 years. We’ve also seen a double in world production just since 1980. This massive production increase is driven by the demand of a growing populace hungry for gold!

Read more….

Bernanke’s Collectivism

By Michael S. Rozeff, GoldSeek

Mr. Bernanke is the world’s premier central banker. He is a very smart man with a stellar academic record. He has carried the ways of the seminar into the FED. He thinks about central banking a great deal, and he lets us know what he thinks.

But, in the end, his thought is collectivist, and his political beliefs override economic facts. And I think that this is a very serious matter, because this collectivism entails the power to impose a monetary policy on all of us who have been deprived of a free market in money and banking. We are the losers. We are losing and have lost big time.

Ben Bernanke advocates price stability in no uncertain terms. In his speech in 2006, “The Benefits of Price Stability,” he extols the virtues of price stability. I will come back to that later. But first, let us keep our thinking as clear as possible. Let us examine the record of price stability in the United States. We have all seen this before, but I set it down before you again so that we know precisely what we are talking about.

I am going to assume that we can measure the price level. Otherwise, we cannot talk about it. I know all the problems involved in this measurement. But I think we all know that things generally cost more today than 50 years ago. We know that somehow we measure the price level and that the concept of the price level has meaning for us.

There is an inflation calculator here that will serve our purposes. And it uses standard data between 1800 and 2008. It’s easy to use. I insert $100 as a basic amount of money in every calculation, and the question is how much money it takes to buy the same goods at a later time.

Read more….

Silver Investing/Risk and Reward

By David Morgan, SilverSeek

One of the questions I am asked most frequently is, “Where can I invest in precious metals to maximize returns?” The answer is not as straightforward as one might expect.

An area that comes to mind for many is the futures market, where the leverage is great and the rewards can be just as great. However, to be successful requires much more time, effort, and money than many a novice “futures trader” can handle. The amount of success in trading the futures is a very low percentage, something on the order of 2%–3%. It has been my experience having done both futures and stock trading that stock trading/investing is much better suited to most private investors and allows leverage that is similar to and sometimes exceeds that of the futures market.

The advantages are that your risk is better controlled most of the time. I want to be clear: both futures trading and stock investing/trading are risky endeavors, but investing as a whole has risk, as does life itself. The point is, given the risk/reward profiles of futures or stocks, my experience is that stocks are more appealing.

This is a time period when gold and silver have been moving in a large trading range and the underlying mining equities have been reacting in a sluggish manner. That is to state, the mining shares generally have not performed in a manner providing greater leverage than the metals themselves.

There is still plenty of time for an investment in precious metals, but a wise investor should choose carefully ahead of the herd. It is my considered opinion that the window of opportunity exists right now for those who are not in this market or for those who wish to have further exposure to the precious metals. This window of opportunity may not last to the end of this year. In fact, let me go on record and state that the next two to four months should provide one of the best and safest times to purchase quality mining companies. If you can purchase during general stock market weakness and when metals prices are down as well, you can be pretty well assured you are buying low, before the next leg up in this market.

Read more….

The Goldsmiths—Part XCIII

By R. D. Bradshaw, GoldSeek

Many gold and precious metals advocates have developed a hope or anticipation that the status of gold and precious metals will change if the Chinese put their feet down and start buying gold instead of US treasuries. This Goldsmiths will examine one key reason why this has not happened and may not happen in the immediate future.

In the Goldsmiths, starting with this series in August 2008, I have expressed the conclusion that the Rothschild Cabal is in full control of the US financial and commodity markets at this time. In order for gold or commodities in general to break out of the Cabal’s manipulation and price suppression, something will have to happen on the global scene to alter the Cabal’s control over the markets. In the Goldsmiths (like 76, etc), I have listed a number of possibilities of things going wrong for the Rothschilds—like the China card which could upset their applecart if China refuses to take anymore of the Cabal’s fiat dollars, bonds and paper.

But No Change So Far

Yet, as noted above, the hope for the China card to upset the balance of Rothschild control over the markets has not materialized as yet. If anything, the Chinese are still even more subject to the Cabal’s power over the markets as we can see when we take a look at Chinese purchases and accumulations of US Treasury bonds and notes.

Treas.gov/tic gives this data on Chinese holdings of US Treasuries from Jun 2008 to May 2009 (in billions of dollars): 535.1, 550.0, 573.7, 618.2, 684.1, 713.2, 727.4, 739.6, 744.2, 767.9, 763.5, and 801.5. Except for April 2009 (at 763.5), it is clear that China continues to buy US treasuries each month; despite the Chinese outburst of laughter at the lies being dispensed by the Rothschild Cabal’s chief agent at the US Treasury—Tim Geithner. The Chinese may believe that Geithner is a liar, idiot or crook; but they continue to follow his advice by buying/accumulating US paper.

Read more….

NYSE Embraces A Ruinous Idea

By Rick Ackerman, GoldSeek

Sadly, another venerable American institution has lost its way: the New York Stock Exchange. We read the other day that the Exchange is building a fast-trade hub in northern New Jersey that supposedly will help secure its future in an increasingly electronic world. But raising capital for companies that could presumably help Build a Better Tomorrow is nowhere on their agenda. In fact, “fast trading” will be about as helpful in achieving that goal as placing five hundred slot machines in the NYSE’s lobby. Instead of one-armed bandits, however, the Exchange will be installing in its new Mahwah facility some very sophisticated computing equipment that will allow hedge funds and other firms to engage in high-frequency trading.

Read more….

Asian Metals Market Update

By Chintan Karnani, GoldSeek

What a recovery in base metals and energies as they pared all the week’s losses and went to create new yearly highs (base metals). This is due to positive news from the global economic front resulting in higher equity markets and higher base metals. The direct correlation between equities and precious metals and energies will continue into August also.

Silver I continue to remain bullish in the long term despite being disappointed repeatedly in 2009. I believe silver is the safest bet for the day trader and the short term trader. Silver is less volatile than gold and energies. But silver is still a poor mans gold in the mindset of the retail investor. I am very confident slowly and over a period of time silver will get its due. I am not talking of silver replacing gold but expecting greater retail participation in silver futures.

Read more….

Wiltshire’s largest gold coin collection set for auction

One of the largest collections of gold coins to be put up for sale in Wiltshire is to be offered at auction next month.
The collection of coins and tokens, which used to be owned by Richard Nutland of Poulshot, includes a rare Charles II gold five guinea piece dating from 1697 that is expected to see a sale price of about £1,000 alone.
The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Read more….

Gold found in Philippines by UK mining firm

UK-based Avocet Mining has discovered significant gold resources in a mine owned by Mindoro Resources in the Philippines.
The precious metal was found in southern Luzon at the Batangas mine, which is undergoing a programme of due diligence through an agreement formed by Avocet and Mindoro last year, BusinessWorld reports.
The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Read more….

We already have scale, says Xstrata-rejecting Anglo CEO

Diversified mining major Anglo American already has scale, its CEO Cynthia Carroll said at the weekend, reiterating the company’s rejection of Xstrata’s scale-and-size-providing merger of equals.

Mining Weekly Online asked Carroll if Anglo’s current scale-and-size could match that of a combined Anglo-Xstrata, which would refrain from cutting any operational jobs, Carroll said that Anglo’s target of 19 000 retrenchments remained.

Read more….

« Previous Page — Next Page »