Feb 20th 2013
It’s Time To Go All In On Gold & Silver -In addition to record high central bank buying, the following are some of the bullish Gold factors:
1. World Gold supplies declined 1.4% in 2012, and are projected to drop again in 2013.
2. Central banks and large investors are not buying Gold as an inflation hedge; Gold is an alternative investment to paper currency.
3. World Debt is growing at an unprecedented pace ($16.5 trillion in the U.S.)
4. Although there may not be a QE4 in the U.S., look at growing monetary stimulus in Europe, Great Britain, Japan, and China.
5. As the U.S. economy recovers there will be growing U.S. demand for Gold/Silver.
See the current U.S. Mint record Gold and Silver sales records.
6. George Soros did lower his stake in paper Gold, but we are seeing large investors switching to physical Gold stored in depositories. Large investor John Paulson has not sold any of his 2.18 million ounces of Gold.
7. While overall volume was down 4% from 2011 at 4,405.5 tonnes, the total 2012 value reached an all-time high of $236.4 billion.
8. Basel III is set to upgrade the status of Gold to a Level I bank asset in 2015.
Jim Rickards, author of “Currency Wars”, speaks with Jim Puplava on Financial Sense Newshour to discuss the new age of global financial warfare and its potential outcome on savers and investors around the world. Rickards states that we are experiencing the start of traditional war games using financial warfare only, and that the global currency wars will continue to escalate as Currency War 3 has just begun.
Embrace Silver’s Volatility All the Way to the Bank – On average, silver rises higher and falls further than gold. This is true as much today as it was in the 1970s. The difference has reached as much as 15 percentage points during this cycle, while it hit 30 during the last mania. This means that investors:
1) Must be able to stomach the bigger moves, regardless of the direction. If you have a tendency to get emotional about your investments, you may want to reduce your exposure to silver.
2) Have an opportunity to get better prices on silver than gold. If you buy during the downdrafts, you will likely reap a bigger percentage gain than gold, as history has shown.
When It Comes To Gold, Stick To The Facts -During short-term gold corrections, it’s much more important to focus on the facts, including the fact that gold is increasingly viewed as a currency. Rather than buying real estate, lumber or diamonds, central banks around the world are buying gold. According to the World Gold Council (WGC), over 2012, central bank demand totaled 534 tons, a level we have not seen in nearly 50 years.
Fed Minutes To Be Released Today – Expect Market Volatility! “They probably got a little bit nervous given the reaction the bond market had in January. They also worried if they keep giving signals they want to stop QE at some point in the future and that elicits a selloff in bonds that probably hurts the recovery and is counterproductive. I think the doves probably get the message across,” he said. Goncalves said further rate increases could pressure mortgage rates, and hurt the housing recovery.
Fed Buys Back 30 Year Bond Auctioned Off Last Thursday – Earmuff time for those people who believe that the Fed does not monetize the US debt.
Peter Schiff – Markets Will React Big When Reality Sets In. His explanation of why gold is not higher… YET!