Federal Reserve Public Enemy No 1

Currency, Euro Crisis, Federal Reserve No Responses »

Mar 172013

It doenst matter if we are living in Ireland or Austrailia, China or Iran. the fact is what ever Bernake does, what the USA does, affects us, it affects the gold price and the world economy. Wake up everyone there printing money like crazy, its even worse there producing digital money, So when the gold price goes down, jump on the dip, and buy. because gold and silver is your hedge to inflation. protect youre buying power. Listen to this interview with Gerald Celente, check out his site over at trend research http://www.trendsresearch.com. Im still buying especially silver now as the price is down. I take my advice from people like Mike Maloney and James Turk.

A Record High In Gold Holdings, Gold Price All Time High

Federal Reserve No Responses »

Oct 142012

A Record High In Gold Holdings, Gold Price All Time High

(Photo credit: Wikipedia)

Experts expect the worsening yet again of the fiscal situations in and around the Eurozone. The situation is irreversible, they even said. In anticipation to this, banks and governments are doubling their gold reserves. Financial analysts are advising investors to look into A Record High In Gold Holdings, Gold Price All Time High as this is the safest strategy in the present time.

The report from Yahoo Finance follows.

NEW YORK, NY–(Marketwire – Oct 9, 2012) – Gold Prices last week reached an 11-month high of $1,796.50 an ounce after comments by European Central Bank President Mario Draghi suggested that more bailouts may be forthcoming. Draghi had stated that euro is “irreversible,” and that the central bank stood prepared to purchase the bonds of indebted countries. The Paragon Report examines investing opportunities in the Gold Industry and provides equity research on Eldorado Gold Corp. ( NYSE : EGO ) ( TSX : ELD ) and AuRico Gold Inc. ( NYSE : AUQ ) ( TSX : AUQ ).

“We expect fears towards the fiscal outlook will likely intensify during the fourth quarter along with the possibility of a U.S. credit downgrade event. This will prove to be most beneficial to the precious metals complex and specifically gold, in our view,” Deutsche Bank analysts said in a report.
Commerzbank analysts noted that exchange-traded funds have recently increased their holdings of physical gold. ETF’s holdings of bullion on Wednesday reached a record of 2,554 tons, an increase of 164 tons since the end of July Commerzbank reported.

Paragon Report releases regular market updates on the Gold Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free atwww.ParagonReport.com and get exclusive access to our numerous stock reports and industry newsletters.

Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Brazil and Romania. The company recently reported that the Preliminary Environmental License (PEL) for the Tocantinzinho has been granted by the Environmental Council of Para State, Brazil.

AuRico’s core operations include the Ocampo mine in Chihuahua State, the El Chanate mine in Sonora State and the Young-Davidson gold mine in northern Ontario, which declared commercial production on September 1st, 2012. The company recently announced the appointment of Mr. Daniel Gignac as Vice President Operations, Mexico.

Check your regular financial news for useful updates on asset buying and investing such as A Record High In Gold Holdings, Gold Price All Time High.

Visit Yahoo Finance to see the full article.

Gold Holds Strong Amidst Developments in Eurozone

Federal Reserve, Gold Price No Responses »

Oct 082012

Gold Holds Strong Amidst Developments in Eurozone

Gold is holding strong in the course of protests and confusion in the Eurozone. Gold Holds Strong Amidst Developments in Eurozone is seen to keep going uphill as Central Banks continue with the pro-stimulus bullion trends.

Furthermore, a growing number of countries are upping their gold reserves by the tonnes showing renewed support for this precious metal. In the wake of this positive move, we can see private sectors doing the same. And it has been said before that this upward movement of the gold trend is far from over.

Here is the report from Reuters.

Scenes of large-scale protests against anti-austerity measures in Spain rekindled fears about the region’s three-year-old debt crisis. European Central Bank President Mario Draghi offered a vigorous defense of the ECB’s bond-buying plans and said it was now up to governments to follow with decisive policy steps of their own.

Gold is still 4 percent higher for September following a sharp rally on hopes the central banks will keep the credit flowing by offering bullion-friendly stimulus.

“Gold is likely to continue to consolidate. Maybe a shoe drops over in Europe and that knocks gold prices which are overbought at these levels,” said Phillip Streible, senior commodities broker at futures brokerage R.J. O’Brien.

Traders said that some disappointed futures investors sold as current prices were over $30 or 2 percent below the popular $1,800 call strike at the U.S. COMEX October gold option expiration at end of business Tuesday. (COMEX options interest: link.reuters.com/xaj82t)

The gold market was still underpinned by news earlier in the day that South Korea and Paraguay both significantly added gold to their reserves in July, highlighting strong interest in gold among the official sector.

Spot gold inched down 0.2 percent to $1,760.25 an ounce by 3:06 p.m. EDT (1906 GMT). The metal hit a near-seven month high at $1,787.20 an ounce last week, but has since met technical resistance to break above this year’s high at $1,790.30.

U.S. COMEX gold futures for December delivery settled up $1.80 at $1,766.40 an ounce, with trading volume about 20 percent below its 250-day average, preliminary Reuters data showed.

COMEX futures’ open interest, which measures outstanding long and short contracts, rose to a one-year high of 490,744 lots as of Friday. Open interest in U.S. gold futures has gained more than 25 percent in the past 30 days.

CENTRAL BANKS BUY GOLD AGAIN

Data from the International Monetary Fund on Tuesday showed South Korea raised its holdings of gold by nearly 16 tonnes in July. The country has doubled its bullion reserves in just one year after being one of the largest purchasers of gold in 2011.

Paraguay also raised its reserves in July from a few thousand ounces to more than 8 tonnes. So far this year, central banks have added a net 262.1 tonnes to their reserves, compared with 203.4 tonnes in the first eight months of 2011.

Private investors have also added to their holdings of gold through exchange-traded funds backed by physical metal, which now hold a record 74.1 million ounces.

In other precious metals, silver edged down 0.7 percent to $33.71. Platinum gained 0.7 percent to $1,626.25 an ounce, while palladium was down 0.9 percent on the day at $634.97 an ounce.

Platinum group metals rebounded, after palladium’s biggest one-day drop in six months on Monday, as platinum output appeared to return to normal in top producer South Africa. 3:06 PM EDT LAST/ NET PCT LOW HIGH CURRENT

While the Eurozone faces these hurdles, investors are not thwarted, be they government or private sectors. Gold Holds Strong Amidst Developments in Eurozone will cushion the crash when the inevitable comes, as what gold always has done in the past. The question is what will we do when the crash comes? The answer, do not wait until the last minute. Buy gold now.

Go to the Reuters article here.

Bullion Dealers See Gold to Elevated Levels

Federal Reserve, Gold and Silver Investment No Responses »

Sep 022012

Gold could go up to $1,700. That’s what financial experts (Bankers, Analysts, Asset Managers, & Bullion Dealers) predicted in the latest Kitco survey this week.

Sources from Forbes.com put forward this announcement following the said survey. Bullion Dealers See Gold to Elevated Levels according to those who replied to this survey.

Further positive outlook is being believed in anticipation of the updated Federal Open Market bulletin.

The following contents are from the Forbes website on Kitco news.

“After pushing through resistance at the $1,650 an ounce level, basis the December gold futures at the Comex division of the New York Mercantile Exchange, a majority of participants in the weekly Kitco News Gold Survey see gold prices building on the gains.

In the Kitco News Gold Survey, out of 32 participants, 24 responded this week. Of those 24 participants, 13 see prices up, while five see prices down, and six are neutral or see prices moving sideways. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Those who see higher prices said momentum could push values up, with a trip to $1,700 possible. Also, gold might try to hold its firmer tone ahead of the Federal Reserve confab next week in Jackson Hole, Wyo., as gold bulls hope Fed Chairman Ben Bernanke will tip his hand to show if there is any timeframe for possible stimulus. After this week’s Federal Open Market Committee meeting minutes for August were released, gold price rallied on thoughts the Fed was inching closer to action.

Those who see weaker prices said they expect some sort of retracement after this week’s gains, especially if there are no soothing words from Bernanke

Jimmy Tintle, owner, GreenKey Alternative Asset Services, said while another round of quantitative easing could be implemented, the question is when. “I don’t think the Fed is going to make any extreme moves (on) inflation until after the election and most likely not until 2013. This will put some bearish pressure back on gold,” Tintle said. “Reports from the U.S. have shown some stability in the economic recovery and I think the Fed understands this. The one report that may show a little more evidence in how the economy is looking going forward is September’s employment report. This will be a key report for me and probably many others on whether the Fed will release QE 3 before the end of the year.”

Those who are neutral on gold said they expect gold to consolidate at current levels after the sizable run up in prices this week.”

With this kind of testimony surrounding the gold price, it is clear where consumer support will prevail these coming days. While Bullion Dealers See Gold to Elevated Levels, the great majority should tag on the constructive prospect for a gainful conclusion.

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China’s Gold Take Over

Federal Reserve, Gold and Silver Investment No Responses »

Aug 302012

China has always been at the forefront of trading. But the Chinese government has also made sure of its power over its constituents & their loyalty. In this way, the government solely controls its economic growth. It has self preservation survival skills that have lasted for thousands of years. And so, China’s Gold Take Over move into the gold mining industry is an indication of where gold will lead us.

Lawrence Williams wrote this on Friday, Aug. 24, 2012 at the mineweb.com.

“China is currently in some economic difficulty which could impact internal stability and some feel that the global megapower is planning to utilize gold to reboot and pick its way out of an economic meltdown.

One thing that is most apparent about China relative to virtually any industry is that nothing is done without the approval, or instruction, of government. When you have an enormous population of over 1.3 billion – around 20% of the global population – the government’s policies are all aimed at maintaining order among its people, and for the past decade or so this has revolved around massive internal growth. This has been done, first by becoming the world’s supplier of cheap goods, and second the building of an internal demand economy to help support this massive annual growth.

Nearly half the country’s population has moved from the country’s old rural economy into a modern industrial one – but this is now seen as faltering under massive bank debt, much of it in potentially bad loans brought on by government-engendered cheap finance supporting the country’s internal manufacturing and infrastructural growth. Given the Chinese state-owned company aims are not necessarily to make money, but to provide employment, this may not be a sustainable economic model, which could have some dire consequences for those companies, particularly in the resource sector, which have been providing the raw materials that help keep the Chinese factories maintaining uneconomic production levels.

In the past we have seen Chinese companies begin to make inroads into securing future supplies through investing in and taking over resource companies around the globe, but while the emphasis has so far been in respect of industrial metals to feed the manufacturing behemoth, we are now seeing similar moves into the western gold mining sector – of which the most recent example is China National Gold Corporation’s interest in taking over control of African Barrick Gold. And prior to that the Zijin Mining takeover of Norton Goldfields among others. An earlier, but perhaps less well flagged deal was China National Gold’s offtake deal with Coeur’s Kensington Mine in Alaska whereby the mine’s output is processed in China, not in Alaska where the mine is located. It would seem that these deals, or prospective deals, could be the tip of the iceberg if some views on China’s gold policy are correct.

These views suggest that China is hugely expanding its own gold reserves, but doing so surreptitiously – a view we have expressed here beforehand. Last time China announced a gold reserve update was in 2009 when it suddenly announced it held 1,054 tonnes of the yellow metal – a 75% rise from its 600 tonnes reported in 2003. If a similar time gap is involved before China reports its reserves again, this will come in 2015 and some feel that the next reserve figure could show that China has accumulated more than a thousand tonnes of gold over the period. Indeed some have suggested a Chinese target of an additional 4-5,000 tonnes to bring it in line with some of the bigger Western gold holders.

There certainly have been a number of statements from senior figures in China suggesting that the country should be increasing its reserves and has been buying on price dips. Add to that China’s own official gold production, which may understate the actual figure, which has by law to be sold to the state and one certainly can’t rule out the likelihood that reserves are being increased substantially Even when gold appears weak there always seems to be a strong support level indicating a very big buyer out there. Could that be China?

China is also rapidly moving to become the world’s biggest importer of gold, while exports are prohibited – and here again, although there have been elements of gold fever in buying by Chinese individuals at various points over the past couple of years, it is certainly conceivable that some of this is being bought by official sources.

Now this is all surmise – but bear in mind that in a controlled economy like China’s the government tells you only what it wants you to know, or believe, and everything is aimed at the preservation of the state and the Chinese Communist party. There is little transparency in the Western sense.

Take global gold reserves – China’s official 1,054 tonne holding is but a fraction of that of many Western economies. China is also said to be sitting on a surplus of over $3 trillion in U.S. denominated assets – which is, in effect, monopoly money. It would therefore be logical that some of this could be converted into hard assets, notably gold, which the Chinese see as a more stable ‘currency’ than the U.S. dollar which, in China’s view, is continually being devalued by the U.S. Fed’s QE and associated monetary easing programmes.

Also, China has seen the huge advantages that have accrued to the U.S. from its currency being used as the global reserve currency. China would very much like to put itself in a position, perhaps not to usurp the U.S. – although this would be the ultimate target – where it has a dominant seat at the global trade table and there have been a number of recent moves which reinforce this interpretation of China’s aims with the setting up of bi and multi lateral yuan-based trade deals, and the development of precious metals exchanges where gold and silver will be able to be traded in yuan. Indeed, if moves continue at the current pace, and the country actually is growing its gold reserves at say 500 tonnes a year (which is certainly not impossible), by the end of the decade it could push its way through to pole position in the global economic stakes.

If it can do this it could then use its dominant currency base to stimulate its own trading sector – and China largely lives by trade, although its domestic consumer base rises by the day – much as the U.S. has over the past few decades since the dollar usurped the pound sterling as the global currency of note.

And, as we noted here back in 2009, China has also actively been persuading its citizens to buy gold and silver through its banking system, as well as through traditional traders, through TV, radio and billboard advertising. Should China announce at some time in the future a very significant jump in its gold reserves, this would really kickstart another significant gold and silver price leg up, thus substantially enriching its citizens who have been buying gold and silver. Some may see this as China embracing the capitalist system – but again we re-iterate that in China virtually no new initiative is taken without government approval and backing.

It is actually probably too soon for China to take the step of announcing a substantial gold reserve increase yet, but if the basic scenario is correct China will thus continue to support the gold price on dips until such time as it sees fit to upset the global gold apple cart.”

It is a well known fact that China has always been a top supporter of gold and the precious metals industry. Not only traders but Chinese individuals have been buying and saving gold as a safety precaution for the future. It would be wise to trail after this kind of instinct, like China’s Gold Take Over, & when the right time comes, it will surely be rewarded by the ripe fruits of labor.

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The Gold Price Movement, Some Predictions and Expectations

Federal Reserve, Gold and Silver Investment No Responses »

Aug 192012

Many are wondering in anticipation. Holding their breaths, fingers crossed. What now? After the fall of the Euro, we should be running to the Dollar. But people don’t seem to be doing this either. What is in store for our future? Does it really come down to a guessing game? The Gold Price Movement, Some Predictions and Expectations can be helpful to us.

This is what John Mylant said on his recent post on the Seeking Alpha website.

“The biggest influence on gold prices right now is the monetary easing policy that the market has been anticipating in the U.S. and/or Europe. If the central banks were to initiate another monetary stimulus designed to encourage growth in the economy, gold would be one of those benefactors. This would increase the pressure on long term interest rates, possibly fuel inflation fears, and weigh in the value of the dollar. All these things fuel gold prices. LGT Capital Management analyst Bayram Dincer shared this view on what central banks will do:

My general view is that for the time being major central banks will let go of the mandate of price stability in favor of spurring growth figures. This means that the central banks in an explicit or implicit inflation targeting regime will try to anchor inflation expectations around 3.0 percent,” he said. “This change would be gold price supportive.

There has been a lot of anticipation for this stimulus to come through but the winds may be changing.

Maybe The Stimulus Isn’t Coming!

The latest U.S. economic data may have reduced the probability of the third round of easing. Goldman Sachs Group said,

We have been writing for the last couple of months that the recent advances in the markets, now up 12% for the year, combined with unemployment claims falling, slow but increasing employment, and economic variables that are soft but not recessionary, will keep the Fed on hold for now.

When we observed the latest unemployment, retail sales, and industrial production numbers, they were inching their way up, not helplessly falling. With food and energy costs also rising, the numbers don’t appear to be supporting a Fed intervention.

Remember Draghi’s speech about “doing anything it takes?” Then Bernanke also created overtones of acting if necessary. Well, immediately afterwards the markets moved up quite a bit in anticipation of easing taking place. As stocks continue to rise, money would naturally rotate from bonds to the market. One would also think the credit markets would also be selling holdings (locking in capital appreciation) as it anticipates action from the Fed. Well, neither of these signs appears to be taking place. And wouldn’t money be flowing into equity funds from your average investor? Yet, recent data from ICI is showing funds still flowing towards bonds.

The Movement Of The Dollar Is Another Stimulus Sign

When the first stimulus from the Fed took place, the value of the dollar declined during this period but advanced for a time when it ended. It didn’t take long for the dollar to turn south again and the Feds come along with another stimulus with the same results. At the end of the second easing the dollar started to advance and it hasn’t stopped. Evidently someone has forgotten to tell the dollar we are at the brink of economic collapse and that faith in its value is dwindling. As it stands now, the actions one would anticipate for a third quantitative easing seems distant. Think about it. If those who trade currencies believed that Draghi’s speech had any real substance to it, don’t you think they would be moving into the Euro and out of the dollar? If the dollar would be holding the same pattern in anticipation of another stimulus, it seems money would be leaving, but as recently as August 10th, Jeff Opdyke of the Solid Investor wrote:

Most investors are dumping the euro – and just about every other currency – to hide out in the U.S. dollar, still perceived as a safe-haven.

Gold As Stimulus Sign

Just as the dollar’s pattern has been a sign of quantitative easing, so has the price of gold. As the fear of a failing economy grew larger and QE#1 and QE#2 came closer, the price of gold ran up ahead of each easing. But right now, it is just not happening. The price of gold is not going up in anticipation of anything.

It Doesn’t Look Like Anything Is Going To Happen

From the signs I see, an intervention by September does not look likely. The Fed’s intent with the easing would be to lift consumer confidence so that consumers spend, boosting the economy. This happens when asset prices are lifted. But the market is already supporting gains for the year and consumer confidence is still lagging from the reality of an economy that just can’t get moving. An intervention must happen in times of weakness with different elements like:

A possible recession looming

Market levels having a negative impact on consumers

Deflation on the rise

Well, it is just not happening right now. So as of this moment, I do not see a stimulus package happening and I do not see gold going up in value because of it.

What If You Own Gold Now Or Are Interested In Buying It?

If you own gold now, just hold on to it. Long term it will go up. Right now it is just in a long term consolidation pattern. Buying gold right now might be risky. The signs don’t point to any immediate price increase. If one buys now, be prepared to hold it for a while before any value comes to it. Another option would be to wait for impending signs of change like the dollar changing pattern and losing value or economic conditions to form a worsening pattern. These signs will be the first indication of a possible price change for gold.”

The Gold Price Movement, Some Predictions and Expectations makes things clearer and more sensible. Every now and then you can find answers in the ensuing chaos. You just have to open your mind, abd keeo upto date with the market

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Gold, the Secret Knowledge of the Financial Universe

Federal Reserve, Gold and Silver Investment No Responses »

Jul 242012

Gold and bureaucracy, Conspiracy theories, government secrets, federal cover ups, believe it or not, these go hand in hand with our present economic situation, which looks dire, at the least. The Media plays a role in making the monetary system a hush-hush topic. People who have a lot of power and those who want more power are in the running to let us, the ordinary mass of people, accept what they force feed us on a daily basis. What they don’t realize is, like them, we are intelligent human beings, who have the sense to put two and two together, and who won’t keep on buying what they have to sell us. So, however they may lead us to believe otherwise, and the more they mislead us with false reports and misinformation, the more their lies come bursting out of the seams of the thin fabrications that they are spinning.

Gold has been a long time controversy in the financial sector and in the world in general. Some people say it is a good investment, others think its a risky asset. Engaging in the gold business is another one of those immensely covered up industries. Authorities are highly secretive about its gold trade and movement. Why you may ask? In this article, you will learn of proofs, confessions, evidences and answers why officials are running amok by the mere mention of gold.

Chris Powell, Secretary/Treasurer of Gold Antitrust Action Committee Inc has this comment on recent conferences by the Standard Chartered’s “Earth’s Resources” Conference, The Henley Group Client Seminar and the Hong Kong Gold Investment Forum is concerning this precious yellow metal that we all yearn to acquire.

“This conference is important because gold long has been money and may again be the best and most important money. Most investment houses don’t understand this; some of the few that do understand it fear to acknowledge it. But far from being a quaint antique, gold is actually the secret knowledge of the financial universe.

Gold is so important that Western central banks — particularly the U.S. Treasury and its Exchange Stabilization Fund, the Federal Reserve, and allied central banks — rig the gold market every day, even hour by hour. Why do they do this?

It’s because gold is a powerful competitive currency that, if allowed to function in a free market, determines the value of other currencies and influences interest rates and the value of government bonds.”

Powell goes on to site different evidences of gold manipulation in the present financial organizations.

“There is much academic literature supporting gold’s influence over currencies, interest rates, and government bonds throughout history. Prominent in this literature is the study written by Harvard economics professor Lawrence Summers and University of Michigan economics professor Robert Barsky in the June 1988 edition of the Journal of Political Economy, a study titled “Gibson’s Paradox and the Gold Standard.” As with all the documents I’ll cite today, the Summers and Barsky study is posted at my organization’s Internet site, GATA.org:

http://www.gata.org/files/gibson.pdf

Summers went on to become treasury secretary of the United States, so his study of gold’s influence on currencies, interest rates, and bond prices is pretty good authority. The Summers and Barsky study implied that governments could achieve their ideal of low interest rates and strong government bond prices by getting control of the price of gold.”

Even throughout history, gold manipulation is an efficient way of controlling the masses. The repression and suppression of gold have been the instrument of many historical events to influence, if not dominate society in its growth.

Powell continues…

“As it turns out, controlling the currency markets generally by rigging the gold market particularly is the most efficient mechanism of imperialism. There is much history of this. Indeed, rigging the currency markets was the primary mechanism by which Nazi Germany expropriated occupied Europe during World War II. Expropriation by force of arms was actually only a small part of the Nazi conquest. The rigging of the currency markets turned every citizen of an occupied country into an agent of the occupation every time he used money. This currency market rigging directed all production in the occupied countries into Nazi Germany and blocked any return flow. It enabled Nazi Germany to run without consequence the same sort of fantastic trade deficit lately run by the United States. The United States learned all about the Nazi expropriation of Europe through currency market rigging because it was documented by the November 1943 edition of the U.S. War Department monthly intelligence letter, Tactical and Technical Trends:

http://www.gata.org/node/10457

While history repeats itself, the manipulation of gold is constant even in our society today. Modernization is only a means to the suppression of gold. There maybe new players, but the game stays the same. Today’s Western central banks are rigging the gold industry, even the European system is rigged. It is amazing how they do this just under our noses. They even have laws to make these sort of activities legal.

“Exactly how do Western central banks and particularly the U.S. Government rig the gold market?

They used to do it conventionally and in the open by dishoarding their gold reserves at strategic moments, and then by dishoarding their gold reserves regularly, every day, as the United States, United Kingdom, and seven of their Western European allies did during the 1960s through a public operation called the London Gold Pool. The London Gold Pool held the gold price at $35 per ounce until it collapsed in March 1968 under rising demand that drained the U.S. Gold reserve from 25,000 tonnes down to just more than the 8,000 tonnes officially reported today:

http://en.wikipedia.org/wiki/London_Gold_Pool

After the collapse of the London Gold Pool the United States and its allies regrouped to figure out how to rig the gold market surreptitiously — not just with dishoarding but also with the so-called leasing of gold; the issuance of gold derivatives, including futures and options; and, more recently, high-frequency trading undertaken through investment houses that were happy to serve as government’s intermediaries in the gold market as they could front-run government trades. When the rigging is done surreptitiously like this, much less central bank gold has to be dishoarded and the dishoarding that is done has far more suppressive influence on the price.

But Western central bank market rigging goes far beyond gold. In an essay published in 2001 and titled “The Debasement of World Currency — It Is Inflation, But Not as We Know It” –

http://www.gata.org/node/8303

– the British economist Peter Warburton discerned that central banks were using investment banks to issue derivatives throughout the commodity futures markets to siphon away money that was looking for a hedge against inflation — to siphon money away from the hoarding of real goods, hoarding that would have driven up consumer price indexes and made inflation plain to the markets and the public. These derivatives are essentially naked short positions that cannot be covered. Warburton concluded that the prerequisite of a hedge against monetary debasement would have to be some asset that was not associated with a futures market, like good farmland or clean water supplies. For as the saying goes: “The futures markets are not manipulated; the futures markets are the manipulation.”

Imagine if people find out that all these central banks are conducting in a make believe business? No wonder why this has been one of the best kept secrets they have ever fabricated. It would mean the end of the world as we know it, financial or otherwise.

With all these relentless criticisms going around in finance and politics, one can only face the facts. Powell states the facts:

“First, much if not most institutional investment gold and even central bank gold is only “paper gold,” only imaginary, a claim against financial institutions that do not have on deposit all the gold to which they have issued claims. So there is a huge naked short position in the investment forms of gold around the world. If you don’t have physical possession of your gold, or if it is not kept for you in “allocated” form outside the fractional-reserve gold banking system, your gold probably doesn’t exist and may not be available to you when you really want it.

Second, despite the silence in the West about gold market rigging, it is no secret in the East. Both the Russian and Chinese governments have issued public statements about it. That is, the Russian and Chinese governments know all about the Western gold market rigging scheme and are positioning themselves to profit from its end:

http://www.gata.org/node/4235

http://www.gata.org/node/10380

http://www.gata.org/node/10416

Third, gold investing is surrounded by political risk, including the risk of confiscation of both gold bullion and mining properties by desperate governments, the risk of prohibitive mining royalty requirements, and the risk of prohibitive capital gains taxes. Thus diversification in gold investing and gold location is vital.

And fourth, gold investing also offers the prospect of great reward upon a sudden official upward revaluation of gold. For example, a 2006 study by the Scottish economist Peter Millar concluded that central banks would need to raise the gold price by a factor of seven to 20 times in order to re-liquefy themselves, devalue their currencies, and avert the sort of catastrophic debt deflation that is occurring today:

http://www.gata.org/node/4843

And the U.S. Economists and investment fund managers Lee Quaintance and Paul Brodsky last month published a report asserting that central banks now likely are engaged in redistributing gold reserves among themselves in preparation for just such an upward revaluation of gold and for gold’s return as formal backing for currencies:

http://www.gata.org/node/11373

But the purpose of all this market rigging is to suppress not only the price of gold but to suppress commodity prices generally. It is just the latest manifestation of the everlasting war of the highest levels of the financial class against the producing class, only this time the producing class hasn’t yet figured out what’s going on. Most tragically, much of the gold mining industry itself doesn’t understand what is being done to it — doesn’t understand that it’s not just digging metal out of the ground but minting money and competing with all other issuers of money and that this competition is far more cutthroat than imagined.

GATA hopes to change that.”

Armed with this information, Gold and Bureaucracy, and with the effects of inflation clearly visible today, we should act on our own interest because no one else will do it for us. Financial predators are lurking in every corner of the world, but we can keep them at bay with the right knowledge and tool in investing.

For more of Chris Powell’s article, please visit here.

“The Euro Crisis, Will There be any Money Left”

Euro Crisis, Federal Reserve, Gold Bullion, Hyper Inflation, Inflation, Markets, Precious Metals No Responses »

Jun 272012

History repeats itself, that is the saying. And with The Euro Crisis Today, Will There be any Money Left? Like so many generations before us, people start off with trading tangible assets, may it be copper or bronze or silver or gold, This is substituted with paper money and derivatives. It then gets abused by politicians, law makers and such. The outcome? Inflation, deflation and economic turmoil. Everyone is suffering from it, the rich, the middle class and the poor.

”

Farage told KWN that ‘What you may see is a very desperate European Union begin to put in place capital controls and things like this … In a sense the proposal that is on the table next week, which is coming from Van Rompuy and Barroso, would be the first step toward that repression.” Farage also discussed the action in the gold market, but first, here is what Farage had to say about the crucial meeting in Europe next week: “I would be very, very surprised at that big summit next week, which incidentally I have a ticket to, not that I’ll be the most popular person in the building, but I just don’t think there is going to be an agreement of any great significance next week. I just don’t see it happening.

”

Farage continues to say that:
“

I hold to the theory that at some point in time, the markets are just going to overwhelm all of this, and then we will face the IMF global bailout situation. It would be better to admit we’ve made a terrible mistake and take losses on the money we’ve already foolishly thrown in and say, ‘Let’s start again boys.’

According to Farage there is something worst overhanging all of this in the banking system which is very much beyond our control. Farage continues…
“

The total amount of money that is needed to shore up the Spanish banking system is more like 400 billion (euros), some people even think 500 billion (euros). The trouble is that if Europe was to do that they would be penniless. Because in theory they’ve got that money in their stability mechanism, although in practice all they’ve got are commitments from countries to put money in. The cash isn’t actually there.

So you throw trillions (of euros) at the thing, but six months later you find that the economy is still contracting, we’re still heading into a downward spiral, unemployment is getting worse, people are rioting on the streets and demanding a different solution.

At the end of the day there is no way that these countries are not going to go back to their own currencies that float on the exchanges. What all of that means is that all of this money that’s been chucked in through the European Union and through the IMF, most of it in the end is going to be lost.

”

Farage also said that people thought communism would end sooner that it would because of its total failure. But through repression, they managed to keep the whole thing together.

”

What you may see is a very desperate European Union begin to put in place capital controls and things like this.”
In a sense the proposal that is on the table next week, which is coming from Van Rompuy and Barroso, would be the first step toward that repression. If they are able to put together a debt union from a European Union, if they are able to have total control over individual member states’ budgets and all of the rest of it, then we are heading very, very rapidly down that road towards repression.
Frankly, that’s the only way they can win now. The only way they can win is to take away from the citizens the ability through the ballot box to do anything about this. They are hellbent on doing it, but they know the electorates, particularly in the North of Europe, are, with every passing day, beginning to realize their little scheme, and we know the markets have no confidence in them.

”

Farage has been a long time gold investor. Here is what he thinks about gold.
“Given the mess that we’re in, and given this threat that we could possibly be facing a 1931-type movement, you have to be in this market. Got to be long gold, no question about it.”

After The Euro Crisis, Will There be any Money Left? , Greece could default, and Spain are getting there bailout, Italy will follow and just now Cyprus have asked for a 4 billion bailout package. so is this a domino effect, we are borrowing from our future generations.
We should go back to gold, start preserving your wealth by investing in gold and silver.

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Risks on Fiat Money Financial System

Currency, Dollar, Euro Crisis, Federal Reserve, Gold News, Inflation No Responses »

Apr 152012

As the current global market relies on the value of fiat money currency, we are now facing a global currency crisis with an anticipated domino effect on our economies.

As certain authorities said, one factor that props up the current global financial system is confidence. Meaning our money system which is fiat money has no real value which must be backed up with tangible assets.

Our global financial system is just a Ponzi scheme, it has no real value and is built on US debt which many considered wrongfully as a reserve currency. With the paper money having no tangible asset as a backup for its value, it solely relies on empty promises made by a government overwhelmed with debt.

Banks at the moment have little cash as percentage in deposits. And with the current global financial system there are just a few safe haven investments that you can turn to just in case things comes crumbling down.

Here are some of the evidences that the worst on economic scenario is yet to come.

We have already experienced the biggest credit, government debt, and real estate bubble in history.
The US economic status is not getting any better which is a sign that the government is bankrupt, and that the US dollar currency will continuously lose its value and that it cannot sustain any longer.
The global financial system is unstable due to its dependence of fiat currency which is very unsound money.
Banks are over leveraged.
We have witnessed the failure to save the western economy and that its ill effects are continuously suffered by the people.
The cheap oil era is near its end.
There will be a great competition over vital commodities as the population continues to explode.
US, Europe, China and Japan had simultaneously had weak economies.
Baby boomer’s peak of taxpaying and spending years is nearing its end.
Greater septicity of economic risks due to the inter-reliance and connectedness of different markets.

As based in history no fiat money has ever survived for a long period of time. As we are now facing economic crisis, let’s open our eyes to other ventures that offers safe haven investment from this crisis that we are facing today. Give gold and silver investment a try.

Inflation and its ill Effects

Currency, Dollar, Federal Reserve, Gold Bullion, Gold News, Inflation No Responses »

Apr 122012

Inflation and its Ill Effects

As Alan Greenspan once said that in the absence of gold standard, there is no way to protect ones savings from confiscation in the form of inflation. Inflation in short is simply robing people of its money; it takes in a form of a gradual and subtle reduction of people’s purchasing power through paper currency devaluation.

It has also been foreseen by the late president Thomas Jefferson that that entrusting a countries financial issue to bankers is too dangerous. As he once said “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”

As we currently experience the ill effects of inflation and dollar devaluation, we can say that Jefferson and Greenspan’s words on inflation is true. The reality about inflation is that it is indeed a theft since its gradually an ongoing basis that diminishes people’s purchasing power.

But despite this current dilemma of the people, still the Federal Reserve’s goal is to engineer and maintain inflation (through certain policies) for their greater advantage. They rob people the worth of their money, and transfer it to bankers who can borrow large sums of money on a lower or zero interest rate. As a result we now have a higher consumer price index rise than before the gold standard was abolished. Meaning, products that you could buy for only $10 way back in 1913 now cost you more than $220.

Basically higher inflation rates enslave people. It steals from savers, it results in higher taxes, it puts lenders on a disadvantage position that results in higher risk investments. With the ongoing increase in oil price, global geopolitical conditions and tensions between certain countries, it is presumed that inflation is unavoidable and will still continue to rob us blindly. All of these are due to our dependence on fiat money currency.

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