Silver

Peter Schiff: The Mother of All Bells

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There is an old adage on Wall Street that no one rings a bell at major market tops or bottoms. That may be true in normal times, but as many have noticed, we are now completely through the looking glass. In this parallel reality, Ben Bernanke has just rung the loudest bell ever heard in the foreign exchange and government debt markets. Investors who ignore the clanging do so at their own peril.

The bell’s reverberations will be felt by everyday Americans, whose lives are about to change in ways few can imagine. While nearly every facet of America’s economy has been devastated over the past six months, our national currency has thus far skipped through the carnage with nary a scratch. Ironically, the U.S. dollar has been the beneficiary of the global economic crises which the United States set in motion. As a result, our economy has thus far been spared the full force of the storm.

Related article: Terence Corcoran: Is this the end of America? (Financial Post)

This week the Federal Reserve finally made clear what should have been obvious for some time – the only weapon that the Fed is willing to use to fight the economic downturn is a continuing torrent of pure, undiluted, inflation. The announcement should be seen as a game changer that redirects the fury of the financial storm directly onto our shores.

Read morePeter Schiff: The Mother of All Bells

US is Already Bankrupt: Analyst (03/19/09)

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Technically, the U.S. is already bankrupt because it has a debt that is almost four times the size of its economy, says Puru Saxena, CEO of Puru Saxena Wealth Management. He tells CNBC’s Amanda Drury & Sri Jegarajah that the U.S. is at risk of hyperinflation.

Related video:
Fed to Buy Treasurys is Not a Good Sign (Chairman for Asia at Morgan Stanley)


Airtime: Thurs. Mar. 19 2009

Jim Rogers on Bloomberg: There will be civil unrest in the U.S. and other countries (03/17/09)

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Read moreJim Rogers on Bloomberg: There will be civil unrest in the U.S. and other countries (03/17/09)

Ron Paul: Obama Foreign Policy Identical To Bush

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Congressman: Absence of “change” underlines fact that both parties follow same agenda on major issues

Congressman Ron Paul has slammed Barack Obama’s foreign policy, saying it is identical to that of his predecessor George W. Bush, proving once again that both parties follow the same agenda on major issues.

Listen to the audio of the interview with Ron Paul below:

Paul compared Obama’s pre-election promises to those of his predecessor George W. Bush, who before his election in 2001 guaranteed that the U.S. would not be the policeman of the world or engage in nation building.

Since the inauguration, Obama has sent 30,000 more troops into Afghanistan and and rapidly expanded the Bush-era bombing raids on Pakistan.

“Even though Obama was the so-called peace candidate and was going to bring our troops home from that war in Iraq, I’m afraid there’s evidence now that shows he’s going to pursue the same foreign policy – which was my argument during the campaign, that no matter what happens, both major parties support the same foreign policy, the same monetary policy, the same welfare policy and there’s never really any change,” said the Congressman.

As we reported last month, Obama’s war chest for 2009 alone, when one includes the budget of the defense department, the vast majority of which is related to spending on new fighter jets and other weapons-related programs, is a whopping $805 billion dollars.

Every single component bar one of the DoD budget is up 5-10% compared to 2008, with the budget for “military construction” increasing by a mammoth 19.1%.

Meanwhile, despite public pronouncements by Obama that a plan to withdraw U.S. troops from Iraq is in progress, the details of the agreement actually establish a permanent presence of a sizable occupying force in perpetuity.

Obama swept to power on the promise that he would “immediately” withdraw troops from Iraq.

In reality, after the “withdrawal” of U.S. troops in 19 months, “Mr. Obama plans to leave behind a “residual force” of tens of thousands of troops to continue training Iraqi security forces, hunt down foreign terrorist cells and guard American institutions,” reported the New York Times.

Read moreRon Paul: Obama Foreign Policy Identical To Bush

Fund amasses bullion holding

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Gold holdings at the world’s largest bullion-backed exchange-traded fund jumped above 1,000 tonnes for the first time, the latest indication of investor demand for bullion amid increasing financial turbulence and economic slump.

The SPDR Gold Trust holdings have risen 228.6 tonnes so far this year, to a record 1,008.8 tonnes late on Tuesday, absorbing in the first seven weeks of the year about 10 per cent of the world’s annual mine gold output.

Related article: Gold hits record against euro on fear of Zimbabwean-style response to bank crisis (Telegraph)

The fund is now the world’s seventh largest bullion holder, behind a handful of central banks.

Read moreFund amasses bullion holding

Gold above $900/oz, hits new euro, sterling highs

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An employee uses a hammer to store pre-cast bars of gold in a box at a plant of bar manufacturer Argor-Heraeus SA in the southern Swiss town of Mendrisio. REUTERS/Arnd Wiegmann/Files

NEW YORK/LONDON (Reuters) – Gold climbed above $900 an ounce on Monday to the highest level in more than three months as interest in bullion as a haven from risk and a weaker dollar against the euro spurred buying.

Spot gold was at $906.90 an ounce at 1:52 p.m., up 0.9 percent from the last trade $898.10 on Friday. Earlier, it peaked at $915.30, its firmest level since October 10.

U.S. gold futures for February delivery settled up $13.00, or 1.5 percent, at $908.80 an ounce on the COMEX division of the New York Mercantile Exchange.

Gold priced in euros reached an all-time high of 701.55 an ounce, and in sterling of 661.55 pounds, as fears over the global economic slowdown and volatility in other asset prices spurred buying.

Read moreGold above $900/oz, hits new euro, sterling highs

Peter Schiff: We are the United States of Madoff (1/14/09)

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Source: YouTube

Read morePeter Schiff: We are the United States of Madoff (1/14/09)

Trading in gold soars by 60pc

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Gold, investors’ traditional safe haven in times of financial turmoil, experienced record levels of trading last year.


Trading in gold soars by 60pc

The turnover in gold increased by 58pc in 2008 to a record $20.2 trillion, according to International Financial Services London, a body that promotes the City of London. Silver trading also saw a dramatic increase during the year, rising by 39pc to a new record of $2.6 trillion.

The growth in turnover was partly due to an increase in prices of precious metals during the year, with gold reaching its highest ever price of $1,011 per ounce in March, IFSL said.

Daily reported net trading in gold on the London Bullion Market Association (LBMA) averaged $20bn in the first 11 months of 2008, a rise of 45pc on the same period of the previous year. Daily trading in silver on the LBMA increased by 32pc to $2bn.

“The actual volume of London market turnover is probably three to five times the reported turnover because transactions which are netted out do not appear in the published statistics,” IFSL added.

Futures and options trading of gold on exchanges increased by more than 80pc in 2008 to a record $5.1 trillion. Trading of silver also hit a new high, rising by 60pc to a $1.2 trillion.

Read moreTrading in gold soars by 60pc

Peter Schiff: We are on the verge of another major crisis

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Barack Obama’s policies will unleash a greater economic crisis than the world is now facing, believes US financial forecaster, Peter Schiff.


Added: 07 January 2009
Source: YouTube

Don’t miss:
– Beware the next bubble – bonds
– Peter Schiff: US Dollar is on the verge of collapse; This is hyperinflation; This is Zimbabwe (12/17/2008)
– Peter Schiff: Our economy is broken and there is nothing the government can do…
– Interview: Peter Schiff still grim on future
– Peter Schiff Was Right 2006 – 2007 (2nd Edition)
– Peter Schiff: The Economic Crisis Is Only Just Beginning (Nov. 24, 2008)
– Peter Schiff: The Truth About Bailouts
– CNN’s Glenn Beck and Peter Schiff: Inflation Nation and Martial Law

Panic Could Herald Dollar Rout

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One of the few things more troubling for an economy than government intervention is government intervention driven by panic. Time and again, history has shown that when governments rush to engineer solutions to pressing problems, unintended difficulties arise.

In the current crisis, there is growing evidence that Washington is in a state of increasing panic. Despite its massive cash injections, market manipulations and “rescue” plans, the recession is clearly deepening and spreading. With little to show thus far, politicians don’t know if they should redouble past efforts, break ground on new initiatives, or both. However, all agree, unfortunately, that the consequences of doing too little far outweigh the consequences of doing too much.

Although there are many parallels between the current crisis and the crash of 1929, one key difference is the global profile of the US dollar. In 1929, the dollar was on the rise, and would soon eclipse the British pound sterling as the world’s reserve currency. Furthermore, the American economy was fundamentally so strong that in 1934 America was the only major nation able to maintain a currency tied to gold.

Ever since, the US dollar’s privileged “reserve” status has been a principal factor in America’s continued prosperity. The dollar’s unassailable position has enabled successive American governments to disguise the vast depletion of America’s wealth and to successfully increase US Treasury debt to where the published debt now accounts for some 100% of GDP. The total of US government debt, including IOUs and unfunded programs, now stands at a staggering $50 trillion, or five times GDP! If the dollar were just another currency, this never would have been possible.

Read morePanic Could Herald Dollar Rout

Gold and Silver

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Secretary Paulson Remarks on the Economy Before the U.S. Chamber of Commerce
“The structure of our economy is sound and our long-term economic fundamentals are healthy.” – Henry Paulson
January 22, 2008
Source: Treasury

Paulson: U.S. Banking System Fundamentally Sound
“Our banking system is a safe and a sound one,” Paulson insisted on CNN’s “Late Edition.”
Mon Jul 21, 2008
Source: CNBC

Bush: US Economy is Sound Despite Problems
“We can have confidence in the long term foundation of our economy. And I believe we will come through this challenge stronger than ever before,” he said.
15 July 2008
Source: VOA News

The next bubble to burst will be US Treasuries and when this bubble bursts the dollar will be destroyed.

There will be a financial collapse in the US.

This mess will – most probably – be even worse than the Great Depression.

I urge you again to prepare yourself.

There is not much time left to get yourself ready.

Part I: “The End for the Dollar and all Fiat Currencies (1/5)“

Part II: “The Next Bubble to Pop! (2/4)“

Part III: “On Gold and Market Manipulation (3/5)“

Part IV: “The Significance of Gold Backwardation Explained (4/5)“

Part V: More on Gold and Silver Backwardation and Manipulation (5/5)

Supplement to explain futures market basics and backwardation: “The Money Matrix – What the Heck Are Derivatives? (PART 10/15)“

Gold Rises Most in a Week on Middle East, South Asia Tensions

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“The only possible explanation for gold’s gains are the geopolitical tension in Gaza and in India and Pakistan,”

The Treasury bubble will burst and the dollar will be destroyed in 2009. That is why Gold is starting to rise.

Dec. 26 (Bloomberg) — Gold prices rose the most in a week as mounting tensions in the Middle East and South Asia boosted the appeal of the precious metal as a haven.

Palestinian militants yesterday launched their biggest rocket attack on southern Israel in at least six months after a truce expired Dec. 19. Pakistani troops are being diverted from tribal areas near Afghanistan to the border with India, the Associated Press reported. Gold gained 4 percent this week.

“The only possible explanation for gold’s gains are the geopolitical tension in Gaza and in India and Pakistan,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois.

Gold futures for February delivery climbed $23.20, or 2.7 percent, to $871.20 an ounce on the Comex division of the New York Mercantile Exchange, the biggest gain for a most-active contract since Dec. 17. The metal is up 6.4 percent this month.

Silver futures for March delivery gained 18 cents, or 1.7 percent, to $10.53 an ounce. The metal is still down 29 percent this year. (Just wait!)

Read moreGold Rises Most in a Week on Middle East, South Asia Tensions

Why Gold Is Down, But You Can’t Get Your Hands on Any

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At first glance, it appears as if the gold bugs, those bullish on gold, have been stepped on this year. Spot gold is down nearly 30% from its peak of $1033 an ounce set earlier in the year.

But a two tiered market has developed where speculators have been badly burned trading gold futures, while some investors holding actual physical gold have not only managed to keep their shirts, but have held on to gains for the year.

Dealers and analysts are calling it an “upside down” market where physical gold, including coins and bars, are in short supply and far more expensive than the price quoted on New York Mercantile Exchange’s COMEX division.

What’s sparking the demand for physical gold? You need to look no further than the financial landscape surrounding investors.

“I’ve never seen anything like this,” says Scott A. Travers, author of The Coin Collector’s Survival Manual. “1979 and 1980, the go-go years of Jimmy Carter, gas lines, inflation, interest rates at extraordinary levels had people rushing to tangibles. The frenzied pace for yellow metal today has exceeded those tumultuous levels.”

Read moreWhy Gold Is Down, But You Can’t Get Your Hands on Any

US May Lose Its ‘AAA’ Rating

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The United States may be on course to lose its ‘AAA’ rating due to the large amount of debt it has accumulated, according to Martin Hennecke, senior manager of private clients at Tyche.


Source: YouTube

“The U.S. might really have to look at a default on the bankruptcy reorganization of the present financial system” and the bankruptcy of the government is not out of the realm of possibility, Hennecke said.

“In the United States there is already a funding crisis, and they will have to sell a lot more bonds next year to fund the bailout packages that have already been signed off,” Hennecke told CNBC.

In order to solve or stem the economic slowdown, Hennecke suggested the US would have to radically reduce spending across all sectors and recall all its troops from around the world.

As for a stimulus package, there is not much of an industry left to stimulate back into life, Hennecke said.

10 Nov 2008 | 07:49 AM ET

Source: cnbc

In 6 lousy weeks, all of the total credit in the banking system created by the Fed since 1913 was almost instantly doubled! We’re freaking doomed!

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Nightmares of Financial Misery

“But this monetary expansion thing is the stuff of nightmares, too, and one day soon you will wake up screaming in the middle of the night, bathed in sweat, jolted out of a nightmare of financial misery and suffering that is all but unimaginable…”

The astonishing news to me was that the Fed has pledged to plow $540 billion into the money market, which is composed of very short-term debt, which is, as I already said, pretty astonishing since the total money market is about $3.5 trillion, and which has had (according to Doug Noland in his Credit Bubble Bulletin) “a y-t-d expansion of $423bn, or 16.8% annualized”. And in an odd bit of symmetry to the just-pledged $540 billion, he goes on to report that “Money Fund assets have posted a one-year increase of $566bn (19.1%).” And now they need half a trillion dollars? Half a freaking trillion?

And since we are talking about things that are astonishing, get this: Total Fed Credit jumped by another $63.2 billion last week! I was going to try and add up the astonishing amounts of credit that the Fed has cooked up in the past month or so, but I am so Scared Out Of My Freaking Mind (SOOMFM) at what I might find that my hands are shaking too much to handle a calculator. That’s my excuse, anyway, and it’s a lot of work, besides.

Read moreIn 6 lousy weeks, all of the total credit in the banking system created by the Fed since 1913 was almost instantly doubled! We’re freaking doomed!

Austria witnesses new gold rush

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There’s a new gold rush.

The financial crisis is prompting people to look for safer forms of investment than stocks and shares.

Both international speculators and ordinary Austrians want to get their hands on gold

The interest in gold coins is so great that many of the world’s major mints are struggling to keep up with demand, including the Austrian Mint, which produces the Vienna Philharmonic – one of the best-selling bullion coins worldwide.

Sales of Vienna Philharmonic gold coins have gone up by more than 230% since last year.

Kerry Tattersall, the director of marketing at the mint, says production has gone into overdrive.

“We are running at present something like three shifts on all of the machines, on the presses, producing both gold and the silver bullion coins.


How gold coins are made

“We’ve actually got delays in delivering orders in silver. With gold, we are just about keeping pace, but it is a bit of a struggle.”

In September alone, the mint sold 100,000 ounces in gold coins – in normal times it would take three to four months to sell that much.

Read moreAustria witnesses new gold rush

The Dollar is Doomed

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When the precious metals were smashed out of nowhere and the dollar started climbing this summer I became very worried. I didn’t question my conviction that commodities are in a bull market, or that precious metals in particular are undervalued. I felt something sinister was at work. Neither move was justified on a fundamental level. I assumed that something very bad was about to happen and the metals needed to be brought lower in advance of the bad news.

Now we have a glimpse at the ugly consequences foreseen by the Treasury Department and the Federal Reserve. In early September, Fannie Mae and Freddie Mac were nationalized with a financial commitment of USD$200 billion from the taxpayers. Incredibly, the loan limits at the former GSEs were raised from $417,000 to $729,750 in March when it was more than obvious these institutions needed to be reined in. Like most bailouts and bank failures, this one was announced on a weekend to limit the impact on the stock markets.

As I mentioned in last month’s issue, Treasury Secretary Paulson was under severe pressure to act, as the Chinese started selling Fannie and Freddie bonds while threatening further retribution. Common shareholders were left with nothing, while bondholders like Pimco and Asian central banks benefited. The small investor was stung again, as taxpayer dollars were used to bail out foreigners and wealthy Americans in a policy that Jim Rogers terms “socialism for the rich.”

Unfortunately, $200 billion is just the tip of the iceberg. As the government has assumed responsibility for Fannie and Freddie’s $5.4 trillion in liabilities, the Congressional Budget Office correctly states that these institutions “should be directly incorporated into the federal budget.” The Bush Administration has strongly opposed this move.

Read moreThe Dollar is Doomed

Gold and silver dealer reports an unprecedented shortage of metals

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A surge for demand in gold and silver has resulted in an unprecedented shortage of the metals for retail investors in recent days, according to Gold and Silver Investments, a Dublin-based firm that allows retail investors to speculate on movements in the value of precious metals.

Gold and Silver Investments director Mark O’Byrne said the supply of gold and silver available for small retail investors suffered a dramatic deterioration within hours on Friday, as wholesalers reported that government mints and refiners, the primary suppliers of the metals, had stopped offering new supplies.

‘‘It’s absolutely unprecedented,” said O’Byrne, who said the shortages were likely to drive up the costs of gold and silver in the secondary market.

‘‘This did not happen even in the 1930s and the 1970s, and will result in markedly higher prices in the coming months.”

Read moreGold and silver dealer reports an unprecedented shortage of metals