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- Pan African looks to dice up Evander
- Hong Kong 2012 net gold flow to China hit record high
- An unusual currency development you should keep an eye on
- A huge new crisis could be growing in the Middle East
- Gold And Silver Stock Picks From Billionaire Precious Metals Guru Eric Sprott's Q4/2012 Filing
- The Case for Silver
- Podcast: The commodity base change and why gold currently looks cheap - Faber
- No Charts or Graphs, Just Some Common Sense
- Silver bullion and Gresham's Law going East
- China buys 834.5 tons of Hong Kong Gold in 2012
- Platinum hits 4-month high and outperformes gold
- Reduction in Gold price by almost 7 8% from the highs of Nov 2012
- Smuggling accounts for 25% of India Gold inflow
- Guest Post: The Case for Silver
- Feds end of easing programs makes things difficult for Gold
- Gold price inches higher as China increases their gold buying by nearly 100% in 2012
- Gold "could test resistance after consolidation”
- Yeah, this will work! …AND Sprott webcast next Tuesday!
- ‘China's gold reserves should reach 6,000 tons in the next 3-5 years and perhaps 10,000 tons in 8-10 years.'
- Jim Rickards: China Likely Has Accumulated 2,000-3,000 Tonnes of Gold Reserves!
- 10oz NTR Bars As Low As 79 Cents Over Spot
- China's gold imports from Hong Kong double to new record in 2012
- What Record US Mint Silver Sales Really Means
- Modern day alchemy: Gold prospectors to grow gold in a petri dish?
- China's Gold Imports From Hong Kong Double To New Record 835 Tons In 2012
- Pakistan buys more than two tons of Gold during H1 this fiscal
- ‘Germany appears to be waking up to a reality for which central banks around the world have been preparing'
- SGE to raise Gold , Silver margin for Lunar holiday trade
- Links 2/5/12
- RCM unveils final designs of wildlife Silver coin series
- Gold steadies around $1674
- Gold Miners: Growth vs. Performance
- With no one selling, European central banks seen letting gold sales limits expire
- Seven King World News Blogs/Audio Interviews
- Gold Reaches 155,180 Yen/oz - New Record In Japanese Yen
- The ever-changing yardstick
- Futures Market Retreat “Good for Gold in the Long Term”, Spain Hit by Political Crisis
- Do Silver and Platinum Have Higher Growth Potential Than Gold?
- Is Silver The Tech Industry’s Kryptonite?
- Feb 4, 1965 De Gaulles threat to accept gold as payment for his dollar surpluses
| Pan African looks to dice up Evander Posted: 05 Feb 2013 05:14 PM PST While the group is yet to complete its R1.5bn acquisition of Harmony Gold's Evander mine, CEO Jan Nelson, has already got firm views on which sections of the asset it wants to develop. |
| Hong Kong 2012 net gold flow to China hit record high Posted: 05 Feb 2013 02:57 PM PST Hong Kong's total gold shipments to China in 2012 jumped 94% from the 2011 total to over 832 tonnes. |
| An unusual currency development you should keep an eye on Posted: 05 Feb 2013 12:06 PM PST From Bruce Krasting: Say you're a Doc, working out of NYU Hospital on 1st and 34th, and on October 29, you park your car in the lot next door. Sandy rolls in, and the next morning your car is 20 feet underwater. You've got insurance, so a week later, check in hand, you look at new cars and narrow it down to two. A decked out Lexus LS460 and very nice Audi A8. The walk out price on both cars comes to 8o grand. Which one do you choose? That was just three months ago. At that time, the relative value of these cars was equal. If you assume that 80% of the cost of the car was the imported value, then you were "paying" 50,394 Euros for the Audi and 5,12o,000 Yen for the Lexus. At the exchange rates in early November, the Euro component of the Audi was $64,000 (80,000 X 80% X EURUSD 1.27). The Yen cost was also $64,000 (80,000 X 80% /80.00). The EURJPY exchange rate was 102. Today, the EURJPY FX rate is 1.2650. The dollar cost of those Euros and Yen have changed substantially. $68,900 is now the Euro component of the Audi (+3,900). The dollar cost of the imported Lexus has fallen to $55,350 (-$8,649). Looking at just the FX rate changes, the cost of the Lexus is down... More on currencies:       |
| A huge new crisis could be growing in the Middle East Posted: 05 Feb 2013 12:06 PM PST From Lew Rockwell: The Mideast is stumbling into one of its most dangerous crises in decades. I'm just back from the region – and as an old Mideast hand, I am very worried. This region is always tense, but right now, a series of separate conflicts are rapidly beginning to intersect. We see the Mideast, North Africa, and the Sahara buffeted by revolutions and counter-revolutions. Old colonial powers France and Britain, and the U.S., are trying to reassert their domination... More on the Middle East:    |
| Gold And Silver Stock Picks From Billionaire Precious Metals Guru Eric Sprott's Q4/2012 Filing Posted: 05 Feb 2013 11:14 AM PST By Ganaxi Small Cap Movers: Eric Sprott is well known in the investment community for his commitment to precious metals investing, and his track record of earning consistently high returns for his precious metals and natural resource-focused hedge funds. His Toronto-based hedge and mutual fund company, Sprott Asset Management LP, has over $10 billion in assets under management, including $848 million in equity assets per its most recent SEC 13-F filing for Q4/2012. The company was spun-off the asset management business of Sprott Securities, now called Cormark Securities Inc., which Mr. Sprott founded in 1981. The company is also a wholly-owned subsidiary of Sprott Inc. that is a gold- and resource-focused fund manager that has been offering managed accounts since 1981, the Sprott family of mutual funds since 1997 and a family of long/short funds since 2000. The fund is heavily concentrated in precious metals stocks, including gold, silver and platinum, that accounted for Complete Story » |
| Posted: 05 Feb 2013 11:00 AM PST Silver has no counter-party risk. It is not someone else's liability. The same is NOT true for hundreds of paper currencies that have become worthless, usually because the government or central bank printed them to excess to pay the debts … Continue reading |
| Podcast: The commodity base change and why gold currently looks cheap - Faber Posted: 05 Feb 2013 10:14 AM PST "I think we could still have a correction on the downside, where weak holders are forced out of the market and then, from there it should go higher." |
| No Charts or Graphs, Just Some Common Sense Posted: 05 Feb 2013 10:12 AM PST I want to discuss silver, interest rates and inflation in a little different way. No charts or graphs; just some common sense and basics. It's not uncommon for people around my age group to use money managers and brokers to manage their money. People who have a lot of money often invest in tax-free bonds. If you have a lot of money, and no income (retired), it seems like a smart thing to do. And it is – if you believe that inflation IS running around 2%. And that's what most people believe, because that's what most people are told by CNBC, their money managers, and their financial advisors. I understand. But what if inflation really isn't running at 2%? How dare I even suggest such a thing? Most of my readers know better. I'm always presenting John Williams (Shadowstats) "real" numbers (currently around 9%). An old friend (we go back to 1972) has been staying with me here in Miami. I always enjoy seeing him, so we can relive our crazy past. Anyway, he told me he recently found a stash of 30 Mercury Dimes (90% silver) and he checked out what they were worth on Google. He was thrilled. They were worth around $90.00. Let's talk in rough numbers. Currently, a bag of $1,000 face value pre-1965 silver coins (dimes, quarters or half dollars or any combination of these coins) is worth around $23,000 or more (depending on current spot price and market conditions*). In every-day common language, the kind of language that the guy next door understands – that means a silver dime is worth around $2.30! I'm not factoring-in a "numismatic" premium here; a plain old dime's (real money) value has INCREASED 23-times in roughly the last 50 years. In order for a dime to go from $0.10 to $2.30, according to the Rule of 72, it takes 4.5 doubles to get the necessary return to match the silver dime's performance. ($0.10 to $0.20 to $0.40, to $0.80 to $1.60. and roughly another half double, to get to $2.30). Let's just call it 5 double, in 50 years. That's close enough. That's a double every 10 years (50 years and five doubles). In order to double your money in a 10-year period, it requires an annual, compounded return-rate of 7.2% per year, every year. Using "real money," the dime, that's what it takes to break even, to make nothing, after inflation. Yes, your "money," the current non-silver dime, lost 7.2% of its value per year – for the last 50 years. Recently, when silver was closer to $50, the number would be $3.60 per dime, and it would have required double-digit returns, compounded, for the last 50 years. Personally, I really believe that silver will hit $50 in the next few years (or sooner). This is just another way of saying, for me, bonds of any kind, including the tax-free kind, aren't for me. Jim Sinclair pointed out that interest rates can't rise with QE. The very purpose of QE is to provide low interest rates. The inflationary programs will both cause interest rates to stay low and gold and silver to rise. It's pretty straight-forward and logical to me. Back to the bonds – if you need the income that they throw off, they are a good choice.., but if I'm correct, and the dollar falls (See Sinclair quote above), inflation will become a concern, and viewed with a longer-time line, the money you park in tax frees is losing value faster than it is throwing it off. Meanwhile, silver (and gold) are increasing at a rate faster than inflation. Actually much faster. No charts, no graphs, this is just the simple truth that a pre-1965 dime is now worth around $2.30 and will soon be worth $3.60 minimum (or twice that) as the Precious Metals Bull Market – and especially silver – enters into the final blow-off phase. A reader wrote in and said he liked the newsletter and most of the content, but why couldn't I be more up beat and positive? I wasn't aware that I come off that way, but if I do it's just because I am trying to be a realist. I'll tell you what – as soon as the "numbers" get better, our leaders in Washington D.C. and at the Fed cut way back on borrowing and QE money expansion – then I'll find a whole bunch of things I can write about that will be positive and fun. It couldn't happen a moment too soon for me. ______________________________________________
*Contact your Miles Franklin broker for current Junk Silver pricing: 800-822-8080Similar Posts: |
| Silver bullion and Gresham's Law going East Posted: 05 Feb 2013 10:05 AM PST Silver is not going away. Its ongoing popularity seems to fly in the face of the modernist, the Keynesian and the visionary who dreams of a world without physical currency or money at all.  |
| China buys 834.5 tons of Hong Kong Gold in 2012 Posted: 05 Feb 2013 09:24 AM PST China ramped up gold imports with double-digit annual growth over the last few years in a case of stock-building by commercial dealers, as well as to supply demand from buyers seeking bullion as an investment. |
| Platinum hits 4-month high and outperformes gold Posted: 05 Feb 2013 08:23 AM PST The metal hit a four-month high on Monday, extending its outperformance to gold after roaring U.S. car sales boosted demand. |
| Reduction in Gold price by almost 7 8% from the highs of Nov 2012 Posted: 05 Feb 2013 08:21 AM PST Technically, for the past 4 weeks the metal has been stuck within a $1643 to $1695 trading range. These long periods of sideways consolidation typically result in a break in the next direction of the trend. |
| Smuggling accounts for 25% of India Gold inflow Posted: 05 Feb 2013 08:19 AM PST About 25 percent of gold flowing into India is coming through irregular channels and further tightening of norms would increase that sharply. |
| Guest Post: The Case for Silver Posted: 05 Feb 2013 08:15 AM PST Submitted by Deviant Investor Silver has no counter-party risk. It is not someone else's liability. The same is NOT true for hundreds of paper currencies that have become worthless, usually because the government or central bank printed them to excess to pay the debts of governments that did not control spending. Since Nixon "closed the [...] |
| Feds end of easing programs makes things difficult for Gold Posted: 05 Feb 2013 08:06 AM PST Moreover in India, the market for physical gold remains quiet due to the increase in duty on gold. The Indian government lifted the import duty on refined gold to 6 percent from 4 percent and more than doubled the import duty on gold bars and ores. |
| Gold price inches higher as China increases their gold buying by nearly 100% in 2012 Posted: 05 Feb 2013 08:01 AM PST The gold price has inched higher this week as we got news that the staggering gold buying out of China in 2012 has showed no signs of letting up. Bloomberg reports: Gold imports into mainland China... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]           |
| Gold "could test resistance after consolidation” Posted: 05 Feb 2013 07:37 AM PST The Gold Investor Index, which tracks buying and selling on the world's largest physical gold market for private investors online, fell to 54.9 in January, down from a 12-month high of 58.3 a month earlier and its lowest reading since September.  |
| Yeah, this will work! …AND Sprott webcast next Tuesday! Posted: 05 Feb 2013 07:20 AM PST Argentina tries freezing prices to break 30 percent annual inflation spiral Argentina has announced that they are freezing prices for 2 months to try to "break the back of inflation." Oh yeah, this will work! This will work just like it always has in the past every single time anyone tried it. It reminds me of "WIN" back in the 70′s, remember "whip inflation now?" That was a good one! What will happen is that within a week to 10 days there will no longer be anything left on the shelves to buy. People will hoard. They will SPEND what "cash" they have NOW on "stuff." ANY "stuff." You see, people are not stupid. They may be gullible and easily "lead" around by the nose but they are not stupid. They know that a can of peas will surely "spend" for some toilet paper later or can be eaten (if you like canned peas… yuck). They don't know whether or not their "cash" will spend (or how much cash it will take) tomorrow. So basically by "government edict" the shelves in Argentina will shortly be bare of goods. This is pretty much the same concept in any market. If prices are held artificially high, the "product" will not sell and conversely if prices are held too low the product will be "over" purchased until shortages become evident. This is exactly what has been happening in the precious metals markets for years now and recently coming to a crescendo in the physical market. It is this concept that will ultimately be the reason that the silver market blows up and none will be for sale for "cash" proceeds, only "stuff." Sprott Precious Metals Round Table – Get The Real Story |
| Posted: 05 Feb 2013 07:17 AM PST China Imports Record Amount Of Gold In December On Price Drop |
| Jim Rickards: China Likely Has Accumulated 2,000-3,000 Tonnes of Gold Reserves! Posted: 05 Feb 2013 07:10 AM PST The Daily Ticker's Lauren Lyster interviewed Jim Rickards regarding the Bundesbank's recent announcement that it will repatriate over 600 tons of German gold from the NY Fed and the Bank of France, and its implications on the gold market over the short and long term. Rickards stated that the Bundesbank's gold repatriation is world historical, [...] |
| 10oz NTR Bars As Low As 79 Cents Over Spot Posted: 05 Feb 2013 07:04 AM PST Doc's Deal Of The Day 10oz NTR Bars As Low As 79 Cents Over Spot!! Click Here Or Call 614-300-1094 To Order!! 50+ Bars Only 79 Cents Over Spot!! 10-49 Bars Only 99 Cents Over Spot!! 5-9 Bars Only $1.19 Over Spot!! 1-4 Bars Only $1.29 Over Spot!! ANY SILVER PURCHASE OF 100 OUNCES OR [...] |
| China's gold imports from Hong Kong double to new record in 2012 Posted: 05 Feb 2013 07:04 AM PST Gold imports into mainland China from Hong Kong almost doubled to new high in 2012 as Chinese people continue to play catch up in terms of gold ownership. The Chinese were forbidden from owning gold for more than 50 years.  |
| What Record US Mint Silver Sales Really Means Posted: 05 Feb 2013 06:44 AM PST Andy Hoffman discusses what record US Mint silver sales really means in Monday's podcast with Kerry Lutz of the Financial Survival Network: What Record US Mint Silver Sales Really Means
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| Modern day alchemy: Gold prospectors to grow gold in a petri dish? Posted: 05 Feb 2013 06:18 AM PST A story in Nature, the international weekly journal of science, caught our eye today. It appears to be suggesting that a species of bacterium can be used to grow nanoscale gold nuggets in a petri... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]       |
| China's Gold Imports From Hong Kong Double To New Record 835 Tons In 2012 Posted: 05 Feb 2013 05:41 AM PST Gold imports into mainland China from Hong Kong almost doubled to new high in 2012 as Chinese people continue to play catch up in terms of gold ownership. The Chinese were forbidden from owning gold for over 50 years. Rising incomes, economic jitters and concerns about currency debasement and inflation in the world's second largest [...] |
| Pakistan buys more than two tons of Gold during H1 this fiscal Posted: 05 Feb 2013 04:56 AM PST Pakistan's gold imports in December 2012 stood at $36.373 million against the imports of $19.602 million. |
| Posted: 05 Feb 2013 04:46 AM PST The Bernanke Shock Peter Schiff Euro Pacific Precious Metals Posted Feb 5, 2013 The financial world was shocked this month by a demand from Germany's Bundesbank to repatriate a large portion of its gold reserves held abroad. By 2020, Germany … Continue reading |
| SGE to raise Gold , Silver margin for Lunar holiday trade Posted: 05 Feb 2013 04:09 AM PST All margin requirements will return to normal after the week-long holiday, which ends on February 18th. |
| Posted: 05 Feb 2013 03:50 AM PST Richard III: DNA confirms twisted bones belong to king Guardian. This is really cool. Lots of related stories. You can see how bad his scoliosis was. Racism is Poisoning Online Ad Delivery, Says Harvard Professor MIT Technology Review. Wow, this is even worse than you might think. Lots of research that suggest that third party expectations influence outcomes. Google IS evil (not that you had any doubts…). Top dollar puts Sydney higher on expense scale Sydney Morning Herald (Glenn C). Wow, I lived in Sydney when it was cheap relative to NYC. No more! Sydney is a terrific city. Wish I were living there. The shadow of 1914 falls over the Pacific Gideon Rachman, Financial Times The 49 Best British Films of all time, by Barry Norman Telegraph No recovery until 2018, warns NIESR Telegraph 'Volcker Rule,' EU-Style Wall Street Journal S&P 500 Has Biggest Drop Since November on Europe Concern Bloomberg Spanish corruption scandal and Italian election spook markets – as it happened Guardian Naked beaten Egyptian blames police BBC (Lambert) Israel plans defence buffer inside Syria Sunday Times (jsmith) NYC Officials Threaten Funding of College Over Israel Event Glenn Greenwald, Common Dreams (jsmith) Baghdad Today Counterpunch (Carol B) US control is diminishing, but it still thinks it owns the world Noam Chomsky, Guardian EXCLUSIVE: Justice Department memo reveals legal case for drone strikes on Americans NBC Catfood watch. It's baaack!
10 States Where People Are Living On The Edge Of Financial Ruin Clusterstock US to Become a Second-Rate Power Counterpunch (Carol B) Vote to Eliminate Ban on Gays in Boy Scouts Is on Agenda at Board Meeting New York Times Super Bowl blackout could be traced to last-minute upgrades to Dome's electrical system Nola (Lambert) Graphic: Detroit Then and Now National Post (frosty zoom) First City in U.S. Passes Resolution Against Drones David Swanson Hackers Post Private Data From More Than 4,000 US Bank Executives DailyFinance (Carol B) MEMORANDUM OF THE STATE ATTORNEYS GENERAL INTERVENORS ADDRESSING THE JANUARY 16, 2013 ORDERS TO SHOW CAUSE New York State Courts. Nice find by Deontos. Schneiderman and Biden argue on behalf of the three Federal Home Loan banks' demand for more disclosure. Despicable Me Paul Krugman. OMG, Mish was crazy enough to cite Hans Hermann-Hoppe??? Yes I know Mish is a libertarian but even by libertarian standards, Hermann-Hoppe is an incoherent nutcase (or maybe not, he takes libertarianism to its logical conclusions, which are extreme and brutal). We published a series by Andrew Dittmer with Hermann-Hoppe as the centerpiece: see Part I, Part II, Part III, Part IV, Part V, Part VI and a response to reader comments. He's just set the cause of legitimate criticism of Krugman back about 5 years. The coming catastrophes and the Rawlsian veil of ignorance Ian Welsh Antidote du jour (martha r): And a bonus antidote. I assume most Americans have seen this. The Super Bowl fave:         |
| RCM unveils final designs of wildlife Silver coin series Posted: 05 Feb 2013 03:16 AM PST The 2013 Wood Bison Silver Bullion Coin features a depiction of the animal galloping in a display of strength and endurance. |
| Posted: 05 Feb 2013 02:40 AM PST Analysts said the precious yellow metal is likley to remain highly volatile during the day as improved global economic outlook might prevent any immediate movement. |
| Gold Miners: Growth vs. Performance Posted: 05 Feb 2013 02:38 AM PST  We often hear the claim that gold producers have not met investors' expectations for the past couple years. While there are many potential reasons for this, one explanation for their underperformance lies in the fact that producers diluted their share structures, leaving shareholders with smaller gains than they would have otherwise harvested. To show how this dilution has impacted the industry, let's first review how gold miners performed last year compared to the S&P 500. The chart is hardly a surprise: the precious-metals producers had a poor showing, losing 26.6% in 2012 - something we think will reverse this year - while stocks in the S&P 500 delivered a solid 14.2% annual gain. |
| With no one selling, European central banks seen letting gold sales limits expire Posted: 05 Feb 2013 02:38 AM PST  European central banks are unlikely to renew an agreement to limit gold sales when their current pact expires next year, a leading gold market consultant said, after selling evaporated over the agreement's previous term. The amount of gold the region's central banks can sell in any given period has been capped by a series of Central Bank Gold Agreements (CBGAs) since 1999, after a spate of disposals by the official sector, including a 395-tonne sale by the Bank of England, shook up the bullion market. But George Milling-Stanley, an independent consultant and former managing director of government affairs with the World Gold Council, said he saw little chance of signatories opting to extend a ceiling on bullion sales for a fourth time. |
| Seven King World News Blogs/Audio Interviews Posted: 05 Feb 2013 02:38 AM PST  1. Michael Pento: "The Greatest Bubble in History Will Lead to a Gold Explosion". 2. Robert Fitzwilson: "The Approaching End Game and How to Benefit From It". 3. |
| Gold Reaches 155,180 Yen/oz - New Record In Japanese Yen Posted: 05 Feb 2013 02:38 AM PST  Gold bullion for delivery in December climbed as high as 1.2% to 5,000 yen per gram on the TOCOM. In ounce terms, the yen fell to 155,180/oz against gold, its lowest level since 1980. According to the data on Bloomberg, the all-time record high for gold priced in yen was 204,850 yen on January 21, 1980. Thus, yen gold remains 33% below the record intraday nominal high from 1980. Given the Japanese determination to devalue the yen to escape deflation, the record nominal high will almost certainly be reached in the coming months. |
| Posted: 05 Feb 2013 12:07 AM PST The ever-changing yardstick The following is excerpted from a commentary originally posted at www.speculative-investor.com on 3rd February 2013. To illustrate the difficulty of measuring performance in terms of the US dollar, today we are presenting three inflation-adjusted (IA) gold charts. Our method of inflation adjustment was outlined in the December-2010 article posted HERE. First, we present the long-term monthly chart that we normally use to show gold's 'real' performance. This chart puts historical prices into current (in this case, December-2012) dollar terms, which means that prices from past times are adjusted upward to reflect the estimated decline in the dollar's purchasing power from the past time to the present. For example, we calculate that the January-1980 gold price of $722 is the equivalent of around $3100 in current dollar terms. This means that by our calculations it takes more than four dollars today to buy what one dollar would have bought in January-1980, or, to put it another way, the US$ has lost more than 75% of its purchasing power since January of 1980. Note that our chart uses monthly closing prices for gold. For example, the 1980 high of around $3100/oz shown on the chart is the current-dollar equivalent of $722, the monthly close in January of that year. Had we used intra-day prices then our chart would show a 1980 high of around $3600, since $3600 is roughly the current-dollar equivalent of the January-1980 intra-day high of $850. Next, here's the long-term monthly gold chart in terms of January-1980 dollars. In January-1980 dollars, today's gold price is around $400/oz. Last, here's the long-term monthly gold chart in terms of 1959 dollars. In terms of a 1959 dollar, today's gold price would be around $250/oz. That the gold price in current dollar terms is about $1650/oz means that it now takes about $6.60 to buy what $1 would have bought in 1959. The above charts look identical. The only difference is the scale on the Y-axis. This illustrates the problem of measuring performance in terms of a 'yardstick' that is constantly changing (shrinking). A related point worth explaining is that if there hadn't been any depreciation of the US$ from 1959 through to today, that is, if the dollar had the same purchasing power today as it had in 1959, then the gold price would not now be $250/oz (our calculation of the current gold price in 1959 dollar terms). It would probably still be around $35/oz. The increase from the $35/oz price of 1959 to today's price in 1959 dollar terms of $250/oz constitutes a large real gain. This real gain stems mainly from the long-term economy-weakening costs of currency depreciation. As we've argued many times in the past, if all that happened due to monetary inflation was a reduction in the purchasing power of the currency then monetary inflation wouldn't be a big deal. Who cares if all prices rise uniformly across the economy? Everyone will have to spend more money, but they will also have more money to spend. The problem isn't so much that prices rise in response to monetary inflation. The problem is that due to the way money makes its way into the economy, prices rise non-uniformly and interest rates are distorted. This causes some people, businesses and economic sectors to benefit at the expense of others. It also leads to investment booms. Each large-scale investment boom, in turn, leads to a vast wastage of resources and eventually an economy-wide bust. In short, monetary inflation causes the boom-bust cycle. As the economy oscillates between boom and bust, a long-term effect is that capital gets allocated less efficiently and the rate of economic progress slows. In addition, the more aggressive the efforts of the central planners to alleviate the pain caused by the bursting of an inflation-fueled boom by creating even more inflation, the greater the economic oscillations and the slower the long-term rate of real economic progress are apt to become. There is no doubt that the central monetary planners became far more aggressive in their efforts to manipulate the economy after the monetary system was 'cut loose' from its golden anchor in 1971, the result being booms and busts of greater magnitude and a pronounced slowdown in the rate of real economic progress. The long-term decline in the rate of economic progress stemming from the more aggressive and more regular use of the monetary inflation policy-tool has had important side effects. One of these side effects is an increasing propensity to save in terms of something with money-like attributes that can't be debased by the policy-makers. That's why gold is in a very long-term upward trend in REAL terms. It's also why analysts who try to calculate a fair value for gold by only considering changes in the supply of money and the supply of gold tend to be too pessimistic about gold's prospects. Regular financial market forecasts and  |
| Futures Market Retreat “Good for Gold in the Long Term”, Spain Hit by Political Crisis Posted: 04 Feb 2013 11:59 PM PST WHOLESALE MARKET gold prices hovered just below $1665 per ounce Monday morning in London, having failed to hold onto gains in earlier Asian trading, as stocks and commodities also ticked lower along with the Euro, which retreated from recent highs following news of a political scandal in Spain. Silver erased most of Friday's gains this morning, dropping below $31.60 an ounce. The gold price in Euros meantime regained some ground this morning as the Euro fell against the Dollar. Last Friday, gold in Euros dropped to its lowest level since May last year as Euro-Dollar touched a 14-month high. In New York, the so-called speculative net long position of Comex gold futures and options traders fell to its lowest reported level since last August during the week ended Tuesday 29 January, weekly data published Friday by the Commodity Futures Trading Commission show. The spec net long is calculated at the difference between 'bullish' long and 'bearish' short contracts held by traders such as hedge funds which are classified as 'noncommerical', and is regarded as an indicator of short-term sentiment in the derivatives markets. "The 'weak hands' are further retreating from the gold market, which is a good thing in terms of the long-term price prospects," says today's commodities note from Commerzbank. Spanish prime minister Mariano Rajoy, who travels to Berlin today for talks with German chancellor Angela Merkel, denied allegations in the Spanish press over the weekend that he received illegal payments from a slush fund run by his Popular party (PP). Support for the PP has fallen six percentage points to 24% since the allegations were made, according to a poll published by Spanish newspaper El Pais, while 77% of those surveyed said they do not approve of Rajoy. The number of unemployed in Spain meantime rose to 4.98 million last month, official figures published Monday show. Last month brought news that the unemployment rate rose to record levels above 26% towards the end of 2012. In Italy, prime minister Mario Monti today criticized his predecessor Silvio Berlusconi's proposal to reimburse taxes paid on primary residences that were levied by Monti. "Berlusconi wants to buy the votes of Italians with the money that Italians had to turn over to cover up the shortfall left in the public accounts by Berlusconi," Monti said. A poll published last week showed Berlusconi had cut the lead of front runner Luigi Bersani to five percentage points ahead of elections in three weeks. Bersani's Democratic Party (PD) has faced criticism for allegedly receiving funding from Siena-based Monte dei Paschi (MPS), the world's oldest bank dating back to 1472, which is currently being investigated for covering up losses on derivatives trades and overpaying for its 2007 acquisition of Banca AntonVeneta. MPS lost an estimated €2 billion-plus in 2012, following a €4.6 billion loss in 2011. In Germany meantime, politicians have expressed skepticism over whether to accede to Cyprus's request for a bailout from the European Union and International Monetary Fund. "Without the introduction of effective controls on money-laundering and urgently needed structural reforms, we need not even discuss financial aid," Rainer Bruederle, a member of the Free Democratic party which shares power with Merkel's party, said over the weekend. "Cyprus is based on a business model that damages us all," added Johannes Kahrs of the opposition Social Democrats. "Yet it is now supposed to be saved by the EU. The SPD will not support that." "There's general unease…about the fact that Cyprus takes in a good deal of cash from Russians," explains a note from Standard Bank. Over in India meantime, traditionally the world's biggest gold buying nation, Rupee gold prices fell to five-month lows Monday as the Rupee touched its highest level against the Dollar since October. At the start of the year Indian gold dealers imported increased quantities of gold ahead of a rumored import duty hike, with the authorities duly raising the duty from 4% to 6% last month. "Not many deals are happening [at the moment]," one dealer at a state-run bullion importing bank told newswire Reuters this morning. "[The] market has to clear the old stocks, which could finish this week." Ben Traynor Gold value calculator | Buy gold online at live prices Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics. Ben can be found on Google+ (c) BullionVault 2013 Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.  |
| Do Silver and Platinum Have Higher Growth Potential Than Gold? Posted: 04 Feb 2013 11:58 PM PST We at Sunshine Profits suggest holding three precious metals (in a physical form) as long-term investments in a "default" precious metals portfolio – gold, silver and platinum. There are, of course, other viable options, such as palladium, depending on one's preferences and needs, but these three mentioned above will suit virtually any precious metals investor. Gold is and has always been the most popular and usually attracts the most attention both from investors and the general public and could be viewed as the safest bet. What is more, recent bottoms visible in the long-term charts suggest that a huge rally in the gold market is likely some time this year. However, the other two are tempting as well, as many factors suggest that they may outperform the yellow metal in the coming months and years. As far as silver is concerned, we would like to mention two important arguments. Firstly, when silver reached its all-time high in April, 2011, it merely reached the level of 1980 high (only in nominal terms, as in real terms this high was much, much lower) whereas gold's all-time high from 2011 was more than double the one form 1980 (again, in nominal terms) – this itself shows a great potential relative to gold. The second argument is more technical in nature, but very much in tune with the above one and consists of various price projections for the white metal that we featured two weeks ago. A detailed explanation why platinum is likely to outperform gold can be found in one of our recent essays, but the most important factors here seem to be the fact that platinum has historically been the more expensive metal, with last year being an exception and that just recently platinum's price has exceeded gold's. And when we add to that the supply problems, which are the result of strikes in South Africa (which produces 75% of world platinum supply) the outlook for platinum does indeed seem encouraging. To see how the above arguments fit into technical picture, let us jump straight into the world of charts. We will begin with silver's long-term one (charts courtesy by http://stockcharts.com.) Today we begin with the long-term chart in order to emphasize the importance of looking at the big picture which should always take precedence over short-term charts. In silver's long-term chart, we see that prices tried to break down below the long-term support line but failed. They are now back above this line, and, after rallying, touched the resistance-support line once again. We clearly have a bullish situation with bullish implications for the long term. Now, let us move on to the platinum market. Here, we will use platinum to gold ratio, as this chart seems to exert the most influence on the price of platinum currently. In this chart, we see the ratio is now above 1.0, and the breakout is being verified (successfully so far). Platinum is now more expensive than gold. The ratio broke above 1.0, moved back to it and has moved slightly higher again. We could see more consolidation here, but the long-term implications remain unchanged. Platinum is expected to outperform gold in the months ahead, and the ratio is therefore expected to move higher as well. A major bottom was seen at the end of 2011 (close to the powerful long-term turning point) and in early 2012. A breakout has now been seen above the long-term declining resistance line in this ratio, and it seems that a big comeback for platinum to much higher prices is likely. This will pay off big time for those invested in platinum for the long run. Summing up, the technical implications are bullish for both white metals and so do the fundamental ones. Both of them are positively correlated with the general stock market in the long run because of their industrial uses and with stocks moving higher, it is this part of the precious metals sector that may move the most in the coming months. While we continue to believe that diversification is the way to go, it seems that platinum and silver will outperform gold in the medium term. Use the following link to sign up for a free, no-obligation trial of our Premium Service and read the complete version of this study that is over 10 times bigger. You'll also receive Market Alerts when things „get hot" on the precious metals market and when the trial expires, you'll start receiving our free newsletter. Additionally, you will also receive 12 gold best practice emails. Thank you for reading. Have a great and profitable week! Przemyslaw Radomski, CFA * * * * * About Sunshine Profits Sunshine Profits enables anyone to forecast market changes with a level of accuracy that was once only available to closed-door institutions. It provides free trial access to its best investment tools (including lists of best gold stocks and best silver stocks), proprietary gold & silver indicators, buy & sell signals, weekly newsletter, and more. Seeing is believing. Disclaimer All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.  |
| Is Silver The Tech Industry’s Kryptonite? Posted: 04 Feb 2013 11:43 PM PST Is Silver The Tech Industry's Kryptonite? Virtually nothing has been said anywhere, really until GoldCore's article this week which mentioned the delay of the iMac. The Silver Doctors, as well, have covered the iMac story. But, that there are at … Continue reading |
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