It seems very likely that physical gold is moving from weak to strong hands which is the people who recognize the monetary value of gold and chose to physically own it. They prefer to hold their metal which they consider more important than price swings. On the other hand, the investment community is not at the point yet where they chose for the metal for its monetary protection.
While we reported earlier this week that Arizona was as good as ready to adopt gold and silver as legal tender, after the Senate voted 18-10, it now appears that Arizone Governor Jan Brewer vetoed. In this short article we publish the letter that the Governor has written in which he explains his veto.
This week it is Arizona who is one step away of adopting gold and silver official as currency on a state level. The Senate voted 18-10. It is the governor who needs to sign off (but could refuse as well in extremis). The bill will make gold and silver coins legal tender as of mid-2014.
They can mine some more gold, but they can’t print gold at the rate the central bank is printing money. I see gold as another currency, it’s that simple; I don’t view it as a commodity.
The Austrian view on economics – many know it from the surface, but a minority has studied the principles. This article explains the basics and applies it to today’s economy. It appears that the world could avoid a lot of suffering by applying the sound principles of Austrian economics.
Currency devaluations travel around the world, in cycles, and they are reflected in the gold price in the affected currency. The dollar remains fairly strong because every time there is a panic it goes with a flight to quality. The dollar maintains its value, so will keep on printing, until very suddenly and unexpectedly, there will be a loss of trust in the dollar.
Today, the West and its bankers are desperately hoping to prevent a hyperinflationary collapse of paper money should confidence in fiat paper money evaporate. Russia and China, however, are preparing for that very day; they are stockpiling gold as fast as they can in anticipation of a coming currency crisis triggered by the West’s increasingly suspect paper money.
Germany recently announced its plan to bring home part of its massive gold reserves. While Germany’s announcement is no longer front-page news, it is important to consider the reasons behind this move, and the message being sent to investors by central banks around the globe – gold is money. So fasten your seatbelt, this around-the-world tour is about to begin.
The global economic scene is focused on additional monetary easing and continuing currency debasement in order to inflate their debts away. This is the only time in history where ALL countries globally are living on a paper based (fiat based) currency system. What we know from history is that every single fiat currency in history has collapsed. Gold is set to rise higher. Precious metals owners should be rewarded with much more than only preservation of purchasing power.
A new paper published by the Official Monetary and Financial Institutions Forum describes the gold is ready to become officially part of the monetary system … again. In order to stabilize the world monetary system, in the light of a deteriorating global currency war and the lack of a real alternative world reserve currency, gold is the only alternative currency that is ready to take on a leading role. One thing is for sure, it is the ONLY time tested currency as ALL paper based money systems have failed in history. Although the Renminbi is a candidate to play an leading role in the future, it is not ready to take up that role yet. Gold was money and gold continues to be money, although we temporarily somehow “forgot” in it in the West.
We often read or hear quotes like “paper money eventually fail” and “paper money always returns to its intrinsic value which is zero.” In this article, we provide evidence why these statements are true, backed by research in which 599 different forms of paper money have been analyzed. We explain in an easy to understand way what money fundamentally is, how monetary policies of governments are affecting everyone of us and how gold is first and foremost an alternative form of money (for each and every one of us, not only for an elite). Courtesy of Vince Cate for the incredibly valuable research and David Morgan who referred us to [...]
We wouldn’t believe a year ago that even the mainstream media would be talking about “the gold standard” so often as they did over the past few months. Even the number of searches in Google has been increasing, which is a sign that the topic is gaining in “popularity”. Now what exactly is “the gold standard”? Is it correct how most describe it as a state where money is backed by gold? In the latest edition of The Gold Standard Journal, an article appeared in which the author Thomas Allen explores this question in more detail. He goes back in time to provide a well argued explanation. We highly encourage [...]
This article is written by Brecht Arnaert who is the editor of www.safecapital.eu, an in-depth newsletter for preservation of capital, with the support from Global Gold. 2012 has been a year of great turmoil for the euro. But our economy is not the only thing that is in crisis. Our economic theory is too, and even more so: for decades macro-economic policy has been conducted within a Keynesian framework, and while no Keynesian economist has predicted this crisis, or even is able to explain it’s causes, we are still listening to them today to get out of the mess they brought us into. I would say that this is a problem of [...]
Hera Research released an extremely interesting paper. The research company focuses on relationships between macroeconomics, government, banking, and financial markets in order to identify and analyze investment opportunities with extraordinary upside potential. In their paper, Hera analyzes the potential triggers of a collapse in the US dollar, which in turn would trigger a hyperinflation. The research company clearly expects we are approaching such an epic event, quoting Austrian economist Ludwig von Mises: “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later [...]
Forbes published an article on its website entitled Gold can save us from disaster. The article is written by Steve Forbes himself and will appear in their magazine in the October 22nd edition. We find it remarkable, not because of the fact Forbes is writing about gold (they are in fact publishing regularly precious metals related content) but because of the types of statements and thoughts in it. This sentence is an important one in promoting the awareness around precious metals: “Unless Mitt Romney educates himself quickly on the need for monetary reform, we are going to have to seriously and deliberately begin the process of education and experimentation”. It’s just [...]
Gold And Silver – Markets Provide Us The Best Information
Even with the sharp decline from last month, and the overall decline since September of 2011, there is still bullish spacing. It occurs when the current swing low is above the last swing high, from 2008. It tells us that buyers have been willing to buy into the market without waiting to see how the last swing high will be tested, an overall bullish condition.
Gold Settles Higher On May 23d – Finds Support From Drop In Dollar
With the present economic conditions in the US, there are various ways in which the fluctuations in the price of dollar will make the gold price rise and fall according to the rates. If you’re an investor, you should take into account the bigger picture so that you can take an informed and measured decision in the long run.
Gold & Silver Price Overreact to Fed Speech
The metals have been subject to the same type of trading behaviour. It became blatant once again today. In fact, it is the third time this week that we witness extreme speculation in the metals. Silver, for instance, saw its peak today at $23.20 and its lows at $22.15, a difference of almost 5% intraday. Note that the peak on the charts was during the speech of Mr. Bernanke. A bit later, prices came down triggered by one specific sentence in the speech.
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