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!


WARNING: QE Is Hazardous To Your Retirement… Here’s Why

November 26, 2013 8:56 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!

Now, onto protecting your wealth…

In my position, there is nothing better than talking with someone who “gets it” – Someone who understands what is happening behind the curtain.

Yesterday I had a long talk with someone who called in. He was asking when the best time is to buy silver and gold. (by the way, my advise to him was to buy around this lower end of the trading range) He told me his friend says that silver will drop down to $12 or $15 and he should wait.

His concerns were these… If the miners are struggling to survive at this manipulated low price because they’re not making money, that means they are not mining as much as they could, so in effect; the above ground supply is diminishing because of the industrial and investment demand for silver…

So what if silver does drop that low and then there is no supply to buy? Or what’s more… because the lack of supply, the premiums go through the roof. If silver is at $15 and there is no supply to sell to “mom & pop” investors, they could very well charge a $5 premium ($20.) for physical, which is where the price is today – (such as the case in India with their premiums on gold and the case this year when the silver price crashed and physical demand raised the premiums and the US Mint suspended sales due to lack of supply… remember?)

If we look at the price of silver hovering around $20 right now and if you look at the US MINT.GOV website, they are selling a 1 ounce silver eagle (uncirculated) for ONLY $43.95 – That’s more than double the current spot price!

If we continue down this path (of price destruction in the US)

Future Demand For Gold Will NOT Be Met – Here’s Why 

His other question was “how much has US Dollar lost in purchasing power over the years”? Although that is difficult to pin-point to exact science, we all know its lost a lot:

17541_20130506071902-screen-shot-2013-05-06-at-7-18-33-am.png

This is what I found this morning… US Dollar and It’s Purchasing Power (or lack thereof) The charts below show clearly just how far the once mighty US Dollar has fallen in relationship to gold –

Since 1999, the dollar has fallen in value from about 123 mg of gold to less than 21 mg today – a drop of more than 80%. Overall, from 1900 to 2010, the dollar fell from 1500 mg to 25 mg, losing over 98% of its purchasing power.

Penny candy now costs 50 cents. The “Five and Dime” is now the Dollar Store.

shrinking-dollar

One last thing. If anyone knows how to get their wife on board, please let me know… She thinks he’s nuts for wanting to buy silver & gold.

There you have it – Real stories and real concerns from real people just like you. I appreciate the calls and value the trust you have placed in me.

On another note…

Unlike most commodities, there are many shades to gold. Some of shades include the Love Trade’s buying gold for loved ones, the Fear Trade’s purchasing gold as a store of value, gold in relation to monetary debasement (through QE and other central bank initiatives), dynamics of the physical vs the paper gold market, and so forth.

Read 50 Shades of 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…

WARNING: QE Is Hazardous To Your Retirement – A mid 60s woman was chatting with two friends at a Starbucks.  I overheard the conversation.  It went something like this…

“When my husband and I retired, our financial advisor said we had enough money to last until we were both 95 years old.  Now he is concerned that our savings might not last until we are 80.”

It gets worse.

“But if either of us dies then our pension income is reduced and the survivor has to make a choice – pay the mortgage or eat.”

It gets worse.

“And we still have to worry about healthcare.”  She went on about sky-high health care costs, Obamacare, and her pre-existing conditions that prevented her from changing insurance.

She probably does not see how much worse it can become.

The lady mentioned at the beginning understands that she and her husband are earning much less money in their retirement accounts than their financial advisor had projected, and so their retirement money will not last as long as originally hoped.  What she probably does not realize is that her interest income will be kept low for the foreseeable future while her living expenses are very likely to substantially increase.

In short, their retirement funds probably will be depleted well before she and her husband reach 80 years old.  That is not a happy thought for her family and for millions of others who expected more “normal” interest earnings before the government and The Federal Reserve chose to bail out the financial industry.

That bailout occurred at the direct expense of the taxpayers and at the indirect expense of savers, pension plans, and other retirement systems because of the unexpectedly low interest earnings created by the ZIRP and QE.

Read More Here

Historic Run On Comex Gold To Create $200 Daily Moves – We’re telling people just to ignore the noise in gold.  It certainly looks like a bottom and feels like a bottom.  I can’t recall when sentiment has been this negative.  Pretty much every technician is also negative about the breakdown.  However, in the face of all of of this bearishness the fundamentals keep getting stronger.

I think we have some positive things coming from the Far-East, in particular for hard assets and for the gold market.  All of this is happening as China is the largest producer and consumer of gold in the world.  In fact, there is a lot of global demand for physical gold.

The reality is that this paper market, the Comex market, is a precarious market.  It is very much a manipulated market.  Those coordinated sales smack of huge short sales.  So there is going to be a run on the Comex.  When this run on the Comex begins in earnest, we will have stunning $100 to $200 increases in the gold prices in a given day.

Read More Here

Harsh Changes Are Coming For Global Markets & Mankind – A few thoughts about gold.  Never buy gold for a profit, gold is a measure of wealth.  Count your gold holdings in the number of ounces, not the current worth in dollars.  You don’t price the home you live in every day, or with each passing week.  Nor should you price your gold holdings in dollars with each passing day.  Gold is a timeless wealth asset; an asset that will have a value with the passing of time.

Remember this:  Of the original issues that made up the Industrial Average, only one remains.  And that stock is General Electric.  And what happened to all the rest?  In investing, nothing is permanent except gold.  But remember; do not buy gold with the idea of making a profit.  Buy gold because it is pure wealth, and may be the last man standing.

Read More Here

Inflation is Raging – If You Know Where to Look – Most people – certainly most governments and economists – define inflation as a general rise in prices. But this is wrong. Inflation is an increase in the money supply, of which a rising general price level is just one possible result – and not the most common one.

Clearly, inflation is raging. But because so much of society’s wealth is flowing to the top 1% — who after all can only drive one car at a time and tend to eat no more than the rest of us – inflation isn’t showing up in food, suburban houses or other mass-market products. Instead, trillions of disposable dollars are pouring into real assets that are then hoarded in mansions and high-end storage facilities. This is a truly startling asset grab when you think about it.

In terms of the amount of paper currency being used to buy them – you could say that gold and silver are by far the most popular tangible assets in the world. China, India, and Russia between them have snapped up about 4,000 tons of gold this year, worth about $153 billion at the current price. That’s a lot more than was spent on art. It’s just that these purchases, massive though they are, aren’t moving the price.

But they are moving something: the gold reserves of the Western central banks that are sending their gold eastward. Those reserves are falling, at an unsustainable rate. So Western central banks face a tough choice: keep sending their gold to Asia until it’s gone, or let the super-rich bid it into the stratosphere in line with art and diamonds. Sooner or later, the central banks will have to choose door number two.

Read More Here