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…
Here are 6 Things To Ponder This Weekend and as you do, please, please, don’t let me hear Things are getting better; the nice man on the TV said so... again, look at the facts.
Be careful what you ask for… Yesterday, when I said “pick up the phone and call me” I wasn’t expecting the response I got – Thank you, I appreciate you taking your time and calling and I also appreciate the fine compliments on my work.
As I’ve stated, I might not “know it all” but when you have questions, I will find the answers. One of the top questions was what’s the Fed’s ‘hidden agenda’ behind money-printing this piece was the only “make sense” to the point piece I found.
Of course, everybody is up in arms by the upcoming new distraction away from the bigger problems we have and that’s the debt ceiling and potential government shutdown, but the Congressional shutdown fight is nothing. Stay tuned to this…
On another note…
The following piece was written by a publication that I subscribe to (one of the many) Instead of quoting it, I thought it best you read it word for word.
5 Reasons Why The Price Of Gold Will Decline
Date: September 26, 2013
Reporting From: Santiago, Chile
This morning I received a research note from a private bank I work with occasionally. Buried in the text was a call for lower gold prices, and the analysts listed five reasons why they think gold prices will decline. Here’s what they had to say:
1) “We expect the scaling back of [the Fed’s] stimulus to happen this year at the December meeting. A reduction in monetary stimulus . . . shall reduce the attractiveness of gold as a zero-income asset.”
2) “Inflation pressures in the developed world should remain subdued, lowering demand for gold as an inflation-hedge.”
3) “We expect the US recovery to accelerate, reducing the attractiveness for gold as a safe-haven asset.”
4) “A subsequent improvement in investor sentiment shall also reduce demand for gold as safe-haven asset.”
5) “Physical demand from India should be discouraged by the gold import duty increases and other measures that aim to reduce the current account deficit.” My analysis? These guys are completely missing the point.
The reality is that today’s financial markets are controlled and manipulated by central bankers who are destructively expanding their balance sheets to the point of insolvency. Many central banks are already insolvent. Most “rich” countries are bankrupt. And the “richest” country in the world has entered yet another sad, farcical episode public fiscal humiliation. The US government is so broke that they fail to collect enough tax revenue to cover mandatory entitlement spending (like Social Security) and interest on the debt. And that’s with interest rates at all-time lows. The debt is growing by the day.
The US government reached its statutory debt limit back in May, and as soon as they raise the debt ceiling, they’ll quickly reach the new limit again. The US government cannot even afford the 1.968% average interest that it is currently paying. (This is compared to 6.620% back in January 2001, and 3.665% in September 2008 when Lehman collapsed…)
Politicians are seizing pension funds, raiding bank accounts, and raising taxes. They’ve imposed capital controls, and even restricted gold importation and ownership. Investors are addicted to cheap money like meth junkies. Stock markets are at all-time highs. Bond markets are near all-time highs. Many other asset classes (US farmland) and commodities (cattle) are also near all-time highs. There’s very little in this world that makes sense. I own farmland in South America as the ultimate hedge against inflation, system disruptions, and economic decline. Plus it generates great cash-flow. But farmland isn’t terribly portable or liquid.
That’s why gold is such a great option. Precious metals are like an insurance policy. It’s a policy you hope you’ll never need to cash in. But if the need ever arises, it’ll probably be because the financial system has collapsed, and the gold price has gone to the moon… potentially even tens of thousand of dollars. (Jim Rickards, author of the excellent book Currency Wars, made a very compelling and rational case for this at our event in Chile six months ago…) If that day ever comes, you’ll be thankful that you had the foresight to trade away some paper currency for real savings.
Until next time,
Senior Editor, SovereignMan.com
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…
Mike Maloney – The Ongoing Price Manipulation Is A Gift For Silver & Gold Buyers –
Rick Rule: Big Picture Great For Gold But Bad For Millions Of Americans – Regarding the debt ceiling, the US is simply spending way more money than it is taking in. We are undoing all of the things that made the United States great and strangling ourselves with regulation. In the midst of this circus, politicians are trying to score political points.
As a firm, we have positioned ourselves in things that will benefit tremendously from the coming chaos such as precious metals and precious metals equities. I am afraid that the set of circumstances, which will give us $70, $80 or $100 silver might favor me personally, but they wouldn’t be good for the bulk of the people in the United States. From that point of view I am troubled.
I am afraid that the average person in the United States has no idea what’s going on. So I have real concerns about this country and where the financial markets are headed as a whole. But I would say that I am more confident than ever that investors in gold and silver are going to be correct in their investment strategy.
Disastrous Error Has Increased The Risk Of A Major Collapse Gold is in backwardation with the near month trading at a premium to later periods. In sum, we believe the huge pick-up in demand has caused a dramatic drawdown of supplies, exacerbated in part by the price drop, fears of confiscation, hedge buying and expectations of a gargantuan short squeeze. Even that bullion bank, JP Morgan has gone from net short to net long.
Our view is that with limited supplies of physical gold and a decline in mine output, there is simply not enough gold to satisfy demand. Already central banks’ purchases have caused tightness in the gold market. America’s flood of dollars will only fuel higher gold prices. Gold will continue to rise as long as the US budget is in deficit, Washington remains dysfunctional and Barack Obama is in the White House. We thus believe this bull market is only half over.
Marc Faber – We Have A Bull Market And Gold & Silver Are Relatively Inexpensive – Marc discusses, Europe Bankrupt along with the United States & Japan because they can’t meet the Unfunded Liabilities. He believes they will print & print more money. Also China’s Slowdown, Janet Yellen, & finally Gold & Silver in a Bull Market being Relatively Inexpensive
Flash Trading Hits US Treasury Bonds – The US Treasury Bond market breakdown is in progress, all part of the general US Dollar global rejection that is taking the world by storm. Of course, residents inside the US Dome do not notice, since they only perceive it as the native currency.
The bond market has converted into a Flash Trading arena within the bank syndicate to maintain bond prices. This is an explosive development; indicative of unsustainable sovereign bond prices kept up by round robin marked by internal sales within the Federal Reserve banks themselves. Worse, speculation is about to rise that the US Fed as a financial firm is suddenly subject to capital rules, with inherent risk of failure. It has stacked up over $3 trillion in impaired assets, much of which are truly toxic.
The death of the COMEX gold market is within view. With thefts of private accounts (see MF-Global), with refusals to deliver in gold COMEX futures contracts (see June and July and August), with drained COMEX inventories (see the massive decline since January), with drained JPMorgan inventories (see the massive decline since January), with the regular price ambushes led by naked shorting (see mid-April ambush, and subsequent ambushes), the death of the COMEX is within view.
Better get yours while you can…
Debt Clocks Tell the Story: Vicious Upward Debt Spiral Gaining Momentum – Take a Look – A vicious upward debt spiral is gaining momentum. The budgets of most advanced economies, excluding interest payments, need 20 consecutive years of surpluses exceeding 2% of gross domestic product – starting now – just to bring the debt-to-GDP ratio back to its pre-crisis level.