Tag: safe haven

Jim Sinclair: Gold Confiscation in 1933 Was What QE Is In 2012

When Mr Gold talks, you better make sure you listen. Jim Sinclair requested via his website to control emotions and writings with regard to gold confiscation. It’s quite unlikely that gold will be confiscated in 2012 like it happened in 1933. In order to understand the reason why, it’s mandatory to have some basic monetary insights. This is how Jim Sinclair explains it it: In the 1930s gold was to the monetary system what QE is today, a means of increasing the supply of money for Fed and Treasury discretionary use. The US Secretary of the Treasury and President Roosevelt set the gold price higher at their daily breakfast together […]

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Part II – Did You Get These Warnings? Gold?

| October 24, 2012 | Articles: Insights

The author does a terrific job again, this time in summarizing the most important thoughts about the current economic effects on the monetary policy of the US government (in casu QE3). Although a lot has been written about QE3, it can be difficult for people with no economic background, to connect the dots between monetary actions, economic effects, personal risks. Furthermore, with a limited understanding of monetary matters, it can be difficult to distinguish the benefits that are argued by policymakers versus the real benefits / risks. From that point of the view, the following article succeeds in bringing an understandable summary of what really is happening in our economy as […]

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Gold: Inflation hedge or something more?

| October 16, 2012 | Articles: Insights
Gold: Inflation hedge or something more?

Gold serves numerous functions as an investment. Traditional reasons for investing in gold include: Inflation Investment market declines Burgeoning national debt Currency failure War or other extreme events Social unrest Some would argue these entire phenomenon are related. For instance investment market declines can lead to war which can be followed by inflation which can lead to currency failure – just look to Germany in the 1920s for proof of this (albeit in a mixed order of events). Basically, gold is protection against various ugly or undesirable societal, political, economic and financial occurrences. That reasoning broadly explains gold’s rise from $650 in 2007 to approximately $1800 today. Gold has risen […]

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Forbes Promotes The Benefits Of Gold

| October 14, 2012 | Articles: Insights

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 […]

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Survive the Coming Financial Tsunami by Holding Physical Gold and Silver

Survive the Coming Financial Tsunami by Holding Physical Gold and Silver

After trading within a hair of $1800 an ounce last week, gold prices have met with some resistance and have pulled back slightly. As the yellow metal struggled to break through this key level of resistance, it notched up new record highs in euros and Swiss Francs. And, in South Africa as the gold price has risen, the Rand fell by around 10% in a month due to the on-going strikes at the various gold and platinum mines as well as general unrest throughout the country.  This pushed the prices of Krugerrands on the domestic market to above R16, 000 each for the first time ever. Although it is evident […]

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Egon Von Greyerz: Money Printing vs Allocated Physical Gold

Egon Von Greyerz: Money Printing vs Allocated Physical Gold

Things don’t always need to be complex, they simply need to be clear. From that point of view, we really like the simplicity  which Egon Von Greyerz uses to describe the dynamics of the debt crisis. It all starts with excessive money printing and the absence of a currency backed by any hard asset. That’s the trigger for a distorted economic system in which the value of money decreases, real rates become negative, the currency devalues and price inflation increases (possibly ending up in hyperinflation). Some traditional thinkers will probably argue that “economic growth” can be the result of money printing. Some even believe that the more money is printed, the […]

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The Bank Was Saved, and the People Were Ruined

By Jeff Thomas, International Man The above quote is from William Gouge, commenting on the Panic of 1819. The panic had been caused when the First Bank of the United States had first expanded the money supply dramatically by offering loans, then contracted the money supply by tightening its requirements for new loans, causing a crash. This is a useful quote, as, in its simplicity, it states the very nature of crashes brought on by irresponsible banking practices. In every case in which this occurs, it is possible through the complicity of the government of the day. The origin of this syndrome goes back to Mayer Rothschild, a very clever […]

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Did You Get These Warnings? Gold?

| October 8, 2012 | Articles: Insights

Editor’s Note: It’s easy not to see the fundamental developments because of the day-to-day news streams and information overload (we tend to call it “noise”). So it can take some time to start  connecting the dots and clearly see a red line. In this article, people who are not seeing it clearly yet, get some hints. As far as the link with precious metals is concerned, it’s very simple in our view: could there be a link between the warnings described in this article and the price of gold? “Oh … so it’s not the gold price going up, but something else coming down?” November 21, 2002: Bernanke gave his “helicopter” […]

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Michael Pento Confirms Gold Is The Answer To Excessive Money Printing And Inflation

Michael Pento’s latest commentary on the markets is published below. Mr. Pento is the founder and President of Pento Portfolio Stragies, a company that offers (separate) managed accounts. In a nutshell, he explains why the stock markets are going up while economic data clearly show there is no growth in the economies all over the world. Basically the Central Banks are destroying the value of their currencies with their monetary policies, which leaves investors with one valuable option on the longer run: gold, silver, energy, agriculture. An anecdote worth mentioning: during a recent interview on King World News, Michael Pento mentions a quote from Ben Bernanke in which the Chairman […]

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Fed QE and Gold, Silver

| October 6, 2012 | Articles: Insights
Fed QE and Gold, Silver

After the Federal Reserve launched QE3 last month, investors and speculators are growing excited about its future impact on gold and silver. Though the Fed’s QE3 campaign started out relatively small, its open-ended nature is utterly unprecedented. Thus an unknown amount of future inflation will be spawned. Naturally gold and silver thrive in such environments, as they proved during QE1 and QE2. Of course QE stands for quantitative easing. Even as a lifelong student of the financial markets, I don’t recall hearing this term before late 2008’s epic stock panic. Central banks are notorious for trying to cloak their actions. So although “quantitative easing” was universally derided historically, it was […]

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Nick Barisheff: The Destruction Of Currency And Rise Of Gold

GoldSilverWorlds had the honour to discuss some important topics related to precious metals with Nick Barisheff, CEO of Bullion Management Group Inc. and author of the book “$10,000 Gold: Why Gold’s Inevitable Rise is the Investor’s Safe Haven” which will be released later this year and is available now for pre-order on Amazon.com. This article is the first one in a five part series. The topics that we covered: the current transfer of wealth from paper to hard assets (primarily gold & silver), ongoing currency destruction, tips for low risk-high reward investing, and the ignorance of mainstream media towards gold’s huge advance. Today’s discussion is based on the primary trend […]

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Less than 900 days for hyperinflation in the US?

| September 30, 2012 | Articles: Insights
Less than 900 days for hyperinflation in the US?

John Williams, who is the founder of ShadowStats.com, stated during a recent interview that the US is on track to become victim of hyperinflation the latest in 2014. He believes that “open ended QE” (which is nothing more than monetizing debt) is the key problem. He explains there is an annual deficit of 5 trillion dollar per year in the US, which includes the unfunded liabilities.  He declares the situation “beyond containment”. Central planners are responding to the current economic problems by simply increasing the amount of printed money. John Williams his expectations are that  we’ll soon see a heavy sell off in the dollar, quickly followed by a significant […]

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The Fed is trapped – Gold is the exit

| September 26, 2012 | Articles: Insights
The Fed is trapped – Gold is the exit

On September 13th, the Fed announced QE3, a policy of open-ended bond purchases which would add $1 trillion annually to the Fed’s balance sheet. The Fed’s decision to provide liquidity ad infinitum, i.e. QE etc, was framed in reasonable and carefully chosen language: …These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative… http://www.federalreserve.gov/newsevents/press/monetary/20120913a.htm The measured wording gave the Fed sufficient cover to mask its increasingly desperate condition, i.e. how to keep its fatally-wounded credit and […]

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Manipulation of the Gold Price & the Crash of Paper Gold

| September 24, 2012 | Articles: Insights

By Jeff Thomas, Internatioal Man There is much discussion these days as to whether the price of gold is being manipulated. The answer is simply “yes.” It is likely that most potential gold investors would agree that the major financial institutions have the ability to influence the gold price. They would also agree that to do so would be of benefit to those institutions. Yet, many investors still have difficulty making the final leap to agree that, if the institutions can manipulate the gold price and, by doing so, will profit from it, they will actually manipulate the price. Odd, as this would seem to me to be the easiest […]

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