Silver News

The Mission Of The Silver News Surfer Has Always Been & Will Always Be - To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

May Health Wealth And Success Be Yours!


Here’s Why There Is A War In Gold At The Key $1,300 Level

August 6, 2013 9:22 am est

The Mission Of The Silver News Surfer Has Always Been & Will Always Be – To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

May Health Wealth And Success Be Yours!

On to the business of protecting your wealth…

Picking up where we left off yesterday, I was writing about the pros & con’s of investing in precious metals. If you missed it, we started with the con’s (view here) and I could only list 3.

Overnight I received an email giving me one more and that is…

Manipulated:

Yes, that’s true. However, as I’ve stated so many times, all markets are manipulated – Forex, Equities, Bonds (which is coming to an end) and libor rates, etc. With that said, if I have to put my money to work for me and all markets are manipulated, I would rather be in a physical (manipulated) market, than a paper one. The reason is counter-party and systemic risks – which is where I will start on the pros today.

PROS of Physical Silver & Gold

Carries no counter-party:

When held outside the banking system, silver and gold is a stand alone asset not subject to the counter-party risk as that of a stock that has CEO’s and board members who make decisions on the direction of the company.

Carries no systemic risk:

If the financial system came crashing down again, silver and gold stored at home or in an independent depository would be above the crash. Sure it could go down in price/value, such as the case of 2008, but it will never go bankrupt (Lehman Bros & Bear Sterns) it never gets down graded by Moody’s (Global Banks & US Credit rating) and again, for 5,000 years, silver and gold have always had a place in an investors portfolio.

Money:

Yeah, yeah, we all know that people talk about silver & gold as money, but you can’t eat the stuff! True, it is very hard to digest physical metal, but then again, you can’t eat paper currency either. Silver and gold have always been a medium of exchange, similar to paper currency – But in the event of a currency collapse or hyperinflation, find someone who will take your paper over metal. (remember rock, paper, scissors?)

Intrinsic value:

Paper currency throughout history has always returned to it’s intrinsic value – ZERO.  Some have suggested that silver and gold have an intrinsic value — that unlike other commodities it is valuable in and of itself. For a commodity to have intrinsic value means that there is value apart from that imparted to the commodity by an individual. There is, in other words, a permanent, stable, objective value separate from any human desire or need.

Ability to create generational wealth:

Some time ago, I read an article from famed investor Jim Rogers. Jim said: If I had to bury a box in the ground for my kids and grand-kids to open when I die, would I rather stuff it with wads of cash, stock certificates or bars of gold & silver – What is more likely to have value?

His analogy was spot on and I never forgot it. Who knows what or if the cash will have value in 20 years – Who know if the companies of the stock certificates will still be in business and not bankrupt – But for thousands of years gold & silver have always had value!

Investing:

When acquiring physical gold and silver it is not investing, it is buying it. One should not approach phyz as an investment – It offers no dividend. What it does offer is safety in times of geo-political turmoil (such as the recent threats of terror attacks that has embassy’s shut down for a week) it offers a hedge against inflation, dollar debasement, dollar decline and reckless government policies.

You know I could go on and on, but because of time, I must stop here, but as you can see, unless I am missing something, the pros far outweigh the con’s. When an investor wants to protect purchasing power, preserve wealth and create generational wealth – They always turn to physical silver and gold.

 

 

Allow me to assist you in understanding these ever changing and challenging financial markets and more importantly, how you can profit on the upside potential and protect yourself from the downside risks….

Now, onto the breaking news that matters…

Here’s Why There Is A War In Gold Near The Key $1,300 Level – “COT data for week ending 7/30 show Commercials reduced their Net Short Position by 8,922 contracts to -25,774.  We still hold by our idea that gold maintains at/above $1300 for the next few weeks, then begins a sustained rally to new highs.  All signs are that we’re at a major turning point for the metal right here.

In sum, the taper talk will likely fade into the background as time goes by with no signal of reduced asset purchases by the Fed.  In our estimation, the opposite will occur and the Fed will move to increase purchases.  We must also consider that a Detroit bailout may happen, with other states getting in line.  On top of that, perhaps even some form of student loan debt forgiveness (the $trillion$ ticking time bomb).

Nothing has changed since the recession began and, as evidenced by the macro data, the economy is stalling right here.  Taper?  I don’t think so.  Once investors realize the Fed is in the game indefinitely, gold and silver will lurch higher and faster than anyone anticipates.

Read More Here

Casey Research: Poor Economy = Low Gold Price? –  While there are many variables at play and no two economic time periods will be the same, this history lesson signals that a sluggish economy is not necessarily an obstacle for gold doing well. Indeed, some of these factors directly contributed to the rush to gold, which is not just a commodity, but the single best tool for storing and transferring wealth (money) ever devised.

In short, there is no contradiction between Doug Casey’s gloomy global economic outlook and his bullishness on gold. In our view, the former is the reason for the latter, and a very good reason to buy. If the history of the current bull cycle for precious metals even slightly rhymes with what happened in the 1970s, the market mania that lies ahead should bring us the biggest and fastest gains on our investments to date.

Read More Here

Eric Sprott: “All The Paperwork Has Been Laid Out—For Bail-Ins As The Solution In The West” – This event that we’ve gone through…which I think is now officially over on June 28th, is setting us up for a gargantuan rise in precious metals equities. It’s my own view that gold will go to a new high within the next twelve months and…I think when it goes to new highs, we’ll see a lot of people come into the space…such that I can imagine a very, very significant increase in precious metal prices. I have in my mind 300% to 500%.

Read More Here

Falling dollar means go long precious metals – Right now, the evidence suggests the dollar is poised for a new round of weakness as the euro and yen perk up. And that suggests that dollar-sensitive assets, such as foreign stocks, crude oil and precious metals, should all be headed higher.

Read More Here