I hope you had a chance to read the message I released yesterday, Sunday. If you didn’t, I’d like to ask you to be sure you review it. Have a great Day!
Jim Rogers: We’re Wiping Out The Savings Class Globally, To Terrible Consequence – In America, many people saved their money, put it aside, and didn’t buy four or five houses with no job and no money down. They did what most people would consider the right thing, and what historically has been the right thing. But now, unfortunately, those people are being wiped out, because they are getting 0% return, or virtually no return, on their savings and their investments.
We’re wiping them out at the expense of people who went deeply into debt, people who did what most people would consider the wrong thing at the expense of people who did the right thing. This, long-term, has terrible consequences for any nation, any society, any economy. I own gold and silver and precious metals. I own all commodities, which is a better way to play as they debase currencies.
In February 2013, the U.S. Mint reported that it sold almost 3.7 million ounces of silver in coins. In the same period of 2012, it sold 1.49 million ounces of silver. Simple calculation would show that’s an increase of more than 148% in demand for silver coins in one year! (Source: U.S. Mint) Looking at the long-term chart of silver, we see it is still in a bull market
David Morgan: Is $300 Silver Possible? – David Morgan of The Morgan Report is predicting a major move in silver, soon. Morgan argues that after a 10-year bull market and a long, 2-year consolidation period, silver is poised for a major move to the upside. He said, “Perhaps 90% of the move is left to go.” The largest moves in any market upturn are near the end, when explosive gains can occur.
In 1980 silver peaked at about $50 an ounce, which is about $143 in today’s dollars. Morgan said that, if he is correct, “the majority of the move lies ahead.” He sees the possibility of silver reaching $300 an ounce. Even if silver only goes half that high, the return on investment of a purchase of silver today would be significant.
Fed Injects Record $100 Billion Cash Into Foreign Banks Operating In The US In Past Week– the Fed injected a record $99 billion of excess reserves into foreign banks As the most recent H.8 statement makes very clear, soared from $836 billion to a near-record $936 billion, or a $99.3 billion reserve “reallocation” in the form of cash – very, very fungible cash – into foreign (read European) banks in one week.
The Excuses They Find To Take More Control Are Astounding! NYSE prepares disaster backup plan – (Reuters) – The New York Stock Exchange is readying plans to be able to operate without human traders in case another disaster, such as Superstorm Sandy, forces the shutdown of its historic trading floor in downtown Manhattan
Silver is back in the news again. Not because the prices are up but because they’re down. Since reaching a recent peak near $35 an ounce last fall, silver prices have fallen almost 20% and are once again trading below $30 an ounce. At that level, the metal is once again in the buy zone. The slump is a function of improving investor sentiment towards America and the beleaguered European Union.
America is slowly leaving behind the financial crisis it imposed on the world through years of wrongheaded monetary, fiscal and budgetary policy … and the euro zone, despite the troubles that still exist, is on the mend. As such, the fear premium that has undergirded precious metals for the last five years has diminished. But the fear premium was always a temporary phenomenon; it was destined to fade at some point – and it was never the real reason to own silver and gold.
What isn’t temporary is the fiscal disorder that characterizes much of the Western world – and most significantly, America. And that disorder is why silver and gold should be a part of your asset-protection plan. I have demonstrated many times that precious metals today serve more as a currency than a commodity … and you can see what I mean in these two charts. The top chart plots gold against the dollar.
The two move in almost-perfect opposition, just like every currency pair in the world. The implication is that as the dollar weakens or strengthens, gold pursues the opposite path. (Though the dates are missing, this chart stretches from late-1980 through 2012.
This opposition is important because of what the second chart says about the dollar as it relates to America’s increasingly incontinent fiscal and monetary policies. This second chart – which runs from 1973 through 2012 – shows the same Dollar Index as above, but I’ve included notations describing the overarching monetary theme for each broad period of dollar strength and weakness. What’s clear from this chart is that the dollar’s long-term health matches the underlying health of America’s monetary situation.
Combined, these two charts tell you that the U.S. dollar will not strengthen meaningfully over an extended period unless America’s monetary environment improves. And right now, America’s monetary environment is playing out increasingly like the final scene from Thelma & Louise.
Washington’s policies are pushing our currency toward a cliff, weakening the inherent value of the greenback the closer we get to that edge. If that happens, the world’s only store of known, respected value will be silver and gold.
For that reason alone – for the insurance they provide – precious metals demand a place inside your portfolio.
Submitted By:Jeff D. Opdyke, Editor of The Sovereign Individual