By Chris Martenson and James Turk – Posted Wednesday, 13 July 2011
“The rule of law has basically been thrown out the window. Money printing is the order of the day. And when politicians take control of central banks, which they have done in the United States and they are also doing in Europe, that basically destroys the currency. It puts the currency on the road to what I call the Fiat Currency Graveyard, so I expect there are going to be massive currency problems as we go forward. The financial crisis that we have been dealing with for the last several years has not been solved.”
So cautions James Turk, widely-respected precious metals expert and founder/chairman of GoldMoney. In this detailed interview (recorded in June), Chris and James explore the probable outcome of the current US debt-ceiling operatics, the likelihood of future Fed money printing, and strategies for preserving wealth. In short, James believes we are witnessing the decline of the world’s major fiat currencies, and expects gold to be remonetized in the aftermath.
James explains why he expects:
Juli 4th, 2011
Ronald Stoeferle, commodities analyst from Vienna based Erste Group Bank, released today his new gold report, “In GOLD we TRUST.“ In the following comprehensive interview, Stoeferle outlines the major aspects of the report such as a renaissance of investment demand and why some features of the financial/economical situation provide the perfect environment for gold, the antagonist of uncovered paper currencies.
By Lars Schall
Ronald Stoeferle, born October 27, 1980 in Vienna, Austria, is a Chartered Market Technician (CMT) and a Certified Financial Technician (CFTe). During his studies in business administration and finance at the Vienna University of Economics and the University of Illinois at Urbana-Champaign, he worked for Raiffeisen Zentralbank (RZB) in the field of Fixed Income / Credit Investments. After graduating, Stoeferle joined Vienna based Erste Group Bank (http://www.erstegroup.com), covering International Equities, especially Asia. In 2006 he began writing reports on gold. His first four benchmark reports on gold drew international coverage on CNBC, Bloomberg, the Wall Street Journal and the Financial Times. Since 2009 he also writes reports on crude oil. The latest oil report by Stoeferle, entitled “Force Majeure – Middle East,” was published earlier this year – see “The Smouldering Political Risks are not Fully Priced into the Oil Price” under: Continue reading “Gold Will Continue To Thrive”
27 June 2011
Thank monetary politics and emerging Asia for the Gold Price gains of the last 10 years…
GOLD HAS BEEN rising consistently for more than 10 years, says Geoff Candy, host of MineWeb’s weekly podcast, and with each new high people are calling for a gold bubble and saying that the Gold Price is going to come off.
Joining me on the line to discuss this today [Mon 20 June 2011] is the head of research at BullionVault, Adrian Ash. You recently wrote a piece that looked to explode a few of the gold bubble myths. Why would you say that gold isn’t in a bubble given its rise over the last 10 years?
Adrian Ash: You can understand why journalists and commentators who don’t follow the gold market very closely look at it and see there’s a bubble. We have just had the second highest weekly close ever in US Dollar terms and the highest ever weekly close in both Euro and Sterling terms – but what a lot of people get confused, I think, is they look at the gold rise over the last 10 years and particularly over the last five years and they confuse longevity with speed. Bubbles really are about that parabolic rise, that parabolic blow off but most typically what you are also looking for is for that to be happening at the same time as the fundamentals no longer hold true. Continue reading Gold Price “Got to Be a Bubble”
Posted Sunday, 19 June 2011
By Paul de Sousa
“Betting against gold is the same as betting on governments.
He who bets on governments and government money bets against
6,000 years of recorded human history.”
–Charles de Gaulle
There is much confusion today over the role of gold. It is viewed as a commodity, as an investment, as a position to be traded. But if we set aside these preconceived notions and examine why gold and precious metals are resuming their historical role as money the world over, if we establish a gold mindset, we will see that their real value lies in forming the foundation of an investment portfolio, because precious metals provide the ultimate in wealth protection.
While gold is a commodity that has multiple industrial uses in the fields of electronics, engineering and medicine to name a few, it is much more than that. Quite simply, gold is money. Throughout history there have been many forms of money, from salt to grain to shells to the fiat (paper) currency that is used today. Most don’t stand the test of time. Gold, however, has endured as money for over 3,000 years. This is because it meets all the criteria for money, where others have failed. Continue reading The Value of Gold
Open Pit - Gold Mining in Australia
Jun 12, 2011 – 02:37 AM
Each morning you turn to your favorite gold investment website to see the current gold price. What you see is the correct price, but in the currency of your choosing. There are two prices, the buy and sell price. You assume these prices allow the dealer to make an income from the difference. You assume that these prices are an accurate reflection of supply and demand.
But are these prices accurate? The answer is far from easy.
We begin by observing the global market.
Gold’s Global Market
The day starts just after the dateline in Japan and China. If you were there and wandered down to your friendly neighborhood bank and asked for the latest gold prices, they would give you prices they were prepared to buy and sell gold. They allow their costs to get the gold from source, transporting it to their branch. From there, they are onto the ‘international’ price spread, widening it to their quote price. Continue reading The Real Gold Price
31 May 2011
By David Viens
I am about to reveal a secret I discovered that is NOT revealed in the media, or by anyone!! This should be breaking news!! Here is the secret.
First, there is a lot of information in the media about rising prices, and the rising value of gold. The media talks about the economy improving! I see businesses struggling and closing.
I hear people talking about how they don’t have any money! I know the economy is getting worse and I know why. The value of the U.S. Dollar and most world currencies are failing! Why is this happening? What can we do?
The secret I am sharing with you that is not being talked about is that currencies are backed by DEBT! In other words, it is backed by more paper currency! Currencies around the world are called fiat currencies, meaning nothing valuable is backing it. Continue reading Gold is Not Backing Currencies, DEBT is …
27 May 2011 at 12:25
LONDON (Commodity Online): Tuesday’s unanimous agreement by the European Parliament’s Committee on Economic and Monetary Affairs (ECON) to allow central counterparties to accept gold as collateral, under the European Market Infrastructure Regulation (EMIR), is further recognition of gold’s growing relevance as a high quality liquid asset.
World Gold Council provides four reasons that make gold the perfect collateral:
1. Nil credit risk
Gold is having no credit risk especially as government bonds are losing their sheen in the wake of financial crises and facing downgrade possibilities. Real estate, currency, notes, bonds or bills; every collateral faces one or the other kind of value erosion. Gold is immune to such value fluctuations that damage growth and investments.
2. Transparency in pricing
Gold is arguably best in maintaining a transparent pricing system even as a majority of trading happens in the OTC market. Even there, the market makers are obliged to quote a two-way price in gold continuously throughout the day. Continue reading Four Reasons Why Gold is the Perfect Collateral
By Minyanville Staff May 13, 2011 12:45 pm
Surprising facts about the ongoing and controversial history of the world’s most in-demand metal.
1. Bullion is “safest.”
If you’re buying gold to protect against an all-out financial meltdown, experts recommend buying bullion. The only catch? Gold bullion must be stored with agencies that have the right insurance and storage capabilities, and it’s unclear whether worried bullion investors would have access to the metals in the event of a crisis.
2. The “karat” was once a “carob.”
The gold “karat,” which measures the purity of a gold piece, was originally a weight measurement equivalent to the heft of a carob seed. The unit originated with ancient merchants in the Middle East. Carob tree pods weigh about one-fifth of a gram. Continue reading 19 Things You Didn’t Know About Gold, Including Where to Find More of It
New York Hard Assets Investment Conference 2011 Online Review
By: Philip Burgert (Published 5/12/2011)
Bullish factors weighted against bearish factors suggest that gold will continue higher with the highest probabilities being that the yellow metal will likely end this year around $1,600/oz to $1,610/oz and possibly next year over $1,800/oz, Martin Murenbeeld, chief economist for DundeeWealth Economics told the New York Hard Assets Investment Conference.
The economics research unit of Toronto-b ased DundeeWealth Inc. published its latest forecast in April but has since revised probabilities toward a stronger gold price scenario, according to Murenbeeld’s presentation.
Among factors the economist listed as arguing for higher prices are global fiscal and monetary reflation, inflation in emerging markets boosting “Chindia” demand, a fundamentally weak dollar, excessive global foreign exchange reserves, a re-emergence of central bank gold buying, modest mine supply growth, increasing investment demand and the “many years to run” in the commodity price cycle.
Staring with reflation, Murenbeeld said that was “good for gold” while recession and monetary tightness are simply not good for gold. Global reflation, he said, is centered around the sovereign debt crisis and includes fiscal stresses from baby-boomer retirements, the impact of the great recession pushing budgets to record deficit and interest rates in the eurozone that have “converged” to German rates while “undisciplined” governments continued to borrow excessively. Continue reading Murenbeeld: Bullish Gold Arguments Heavier
Apr. 30 2011 – 2:36 pm By Robert Lenzner
The Fed chairman is between a rock and a hard place. He can’t raise interest rates to stop the dollar’s descent, because higher interest rates will damage the already weak recovery. So, he is forced to keep money cheap to help stimulate activity– which is the fundamental force driving stock prices– and the hottest commodity prices higher. It’s a win-win for macro hedge funds using leverage.
So, he is faced with a quandry. Unsold homes, mortgage foreclosures, lower household wealth, high unemployment, modest income growth, are between the rock and the hard place. As the dollar keeps weakening, gold, silver and oil keep strengthening.
Gold has madly rushed to $1556.40 an ounce, without any real correction. Oil prices are up 7.3% in April as speculative fervor in the futures market recognizes the repeat of a classic momentum trade. Silver is getting ready to make its final push through $50 an ounce just as the regulator and market participants are madly raising margin requirements. Continue reading Ben Bernanke Can’t Stop The Gold, Silver,Oil Speculation