buy gold and silver bullion

Tuesday, 26 July 2011

The Dollar is a Mess!

“To me the only thing I watch is how gold, which is the real money today, acts against all currencies.  I think we’ve moved into a situation where if somebody says, ‘Oh look, the dollar is strong and that’s bad for gold’, that’s the most ludicrous comment of all because if the dollar is strong and representing the strongest currency in the world at that moment, that’s the best reason I can think of for owning gold because the dollar is a mess. "


- John Embry, Via a King World News Interview

Sunday, 24 July 2011

From The Hill: "Asian Markets? They Are On Their Own - Deal Today Looking Unlikely"

With 10 minutes remaining until 4 pm, and no newsflow to the contrary, it was pretty obvious that there would be no deal, at least in the immediate future. This has now been confirmed by ABC News's Jonathan Carl: "Asian markets?  They are on their own. A Republican source tells ABC News negotiators do not expect to have a deal or even the framework of a deal on the debt ceiling by 4 p.m. today, as House Speaker John Boehner had said he wanted to steady jittery Asian markets when they open." And here is why the dip buyers will be having a field day today: "In fact, the source says a deal today is now looking unlikely." Remember: under Bernanke, nothing can possibly ever go wrong. So buy everything, buy with both hands, buy on margin. In fact, take out a 4th lien on your unborn child and margin that up while buying every dip. Remember: there is no risk. The central planners have spoken.


Read the full Story at ZeroHedge Here:


http://www.zerohedge.com/news/hill-asian-markets-they-are-their-own-deal-today-looking-unlikely

Thursday, 21 July 2011

Raising The Debt Ceiling Does Not Fix The Problem

The idea that an increase in the debt ceiling is a solution to anything is nonsense. The event would be simply a can kick forward for a very short period of time. Increasing debt is not a solution to a debt problem. It actually makes the problem worse It is an act of extending your Federal credit card borrowing line so you can use it to pay your mortgage.

Calling increasing the debt ceiling a solution to a debt problem is too stupid to be stupid. The unwind is deeply entrenched since the failure of OTC derivatives in 2008. There has been no meaningful intervention in this economic downward spiral at the level of the cause. The downward spiral therefore continues unabated.

All downward spirals go to zero unless an intervention takes place at the level of the cause of the problem in the first place. OTC derivatives are what turned a four year correction into the greatest economic accident in human history.

OTC derivatives only go one way in size and that is up. Changing the way nominal value is determined does not solve the problem. All that does is add camouflage to the problem. It does not solve it.

$1600 in gold is simply another round number which will create drama, but no opposition to the increasing price.

Nothing additional is required for a higher price of gold. The damage is done. The debt of the entire 
Western world is beyond out of hand. The so called solution, just like raising the debt ceiling, will be acts of kicking the can down the road.

We have come to the end of the road. The result of no financial discipline anywhere in the Western world is unfolding.

Gold will challenge $1764 where a hyperbolic price appreciation will start.

Respectfully,

Jim Sinclair of JSMineset.com

Wednesday, 20 July 2011

Fed planning for potential US default!!

The US Federal Reserve is actively preparing for the possibility that the United States could default as a deadline for raising the government's USD 14.3 trillion borrowing limit looms, a top Fed policymaker said on Wednesday.

Philadelphia Federal Reserve Bank President Charles Plosser said the Fed has for the past few months been working closely with Treasury, ironing out what to do if the world's biggest economy runs out of cash on August 2.

Read the full story here:

http://www.moneycontrol.com/news/world-news/fed-planning-for-potential-us-default_567386.html 

Moody’s Now Threatening Downgrade on 5 U.S. States

Moody’s (NYSE:MCO), which in recent weeks has warned that it will downgrade its AAA on the debt of the United States Federal Government, has now issued a new slate of threats to individual states. Today the “investor’s service” released a statement announcing that it has placed five states, Maryland, New Mexico, South Carolina, Tennessee, and the Commonwealth of Virginia, on review for possible downgrade from their current AAA bond ratings. The agency cites the states’ high federal employment and medicaid exposure as reasons for the review, which will affect a total $24 billion of rated debt.

Read the full Story here:

http://wallstcheatsheet.com/stocks/moodys-now-threatening-downgrade-on-5-u-s-states.html/ 

Monday, 18 July 2011

Sold, Bought, Consolidation, Rise!

So while on board the last rocket ship that took silver to almost $50 per oz, I recommended a sell in the $46-$48 Level. In hindsight that was spot on.

I then said it would consolidate to the $34-$36 level, in hindsight that appears to be almost exactly what happened.

I then recommended a buy once it reached the $34 level. Again another good move.

Once the buy (which hopefully you placed) occured I warned that it would be slow going for the next couple of months as both Gold and Silver consolidated to build their new launching pad.

Well the predictions appear to have played out exactly as planned. Which rarely they come together so precisely!

I hope everyone took some form of this recommendation over the last couple of month. If you did you are sitting pretty and ready to ride this wave to its next leg higher. Good work and enjoy!

- Yours Truly

Gold and Silver Shorts to be Crushed!

“The all important thing to watch is the pit close (Comex).  If we get a pit close today in the US above either $1,600 gold or $40 silver, then you are going to see some huge capitulation by the shorts.  $40 silver is the trigger, there is a significant amount of money which did not want to enter the silver market until it cleared $40.”

- London inside Trader, King World News

Sunday, 17 July 2011

Europe Scrambles For Swiss Safety As EURCHF Plummets At Open To All Time Lows

Someone is very, very nervous in Europe as it took precisely zero time for the various CHF crosses to plunge to all time lows. The chart below shows the EURCHF which just opened about 140 pips lower than the Friday close. And while there is little if any movement in the crap currencies, i.e. the USD and the EUR, the flight to fiat safety has never been as profound. Since the CHF is a direct proxy of gold in the commodities space, look for gold to take out $1,600 as early as a few hours from now when the market reopens. Also, expect a possible SNB intervention any minute as the Reuters IFR article below speculates. 

Read the full story at ZeroHedge, Here:

http://www.zerohedge.com/article/europe-scrambles-swiss-safety-eurchf-plummets-open-all-time-lows

Thursday, 14 July 2011

Salt on the Wound - S&P Places U.S. ‘AAA/A-1+’ Rtgs On CreditWatch Negative

July 15, 2011– 

Standard & Poor’s has placed its ‘AAA’ long-term and ‘A-1+’ short-term sovereign credit ratings on the United States of America on CreditWatch with negative implications.

– Standard & Poor’s uses CreditWatch to indicate a substantial likelihood of it taking a rating action within the next 90 days, or in response to events presenting significant uncertainty to the creditworthiness of an issuer. Today’s CreditWatch placement signals our view that, owing to the dynamics of the political debate on the debt ceiling, there is at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days. We have also placed our short-term rating on the U.S. on CreditWatch negative, reflecting our view that the current situation presents such significant uncertainty to the U.S.’ creditworthiness.

– Since we revised the outlook on our ‘AAA’ long-term rating to negative from stable on April 18, 2011, the political debate about the U.S.’ fiscal stance and the related issue of the U.S. government debt ceiling has, in our view, only become more entangled. Despite months of negotiations, the two sides remain at odds on fundamental fiscal policy issues. Consequently, we believe there is an increasing risk of a substantial policy stalemate enduring beyond any near-term agreement to raise the debt ceiling.

– As a consequence, we now believe that we could lower our ratings on the U.S. within three months.

– We may lower the long-term rating on the U.S. by one or more notches into the ‘AA’ category in the next three months, if we conclude that Congress and the Administration have not achieved a credible solution to the rising U.S. government debt burden and are not likely to achieve one in the foreseeable future.

Read the full story here:


http://www.reuters.com/article/2011/07/14/market-ratings-creditwatch-us-idUSWNA372820110714

Wednesday, 13 July 2011

Headshot! - Moody's may cut U.S. debt rating

The failure to agree on a debt ceiling could have nasty repercussions for the U.S. dollar. - The failure to agree on a debt ceiling could have nasty repercussions for the U.S. dollar. 

The United States may lose its top-notch credit rating in the next few weeks if lawmakers fail to increase the country’s debt ceiling, forcing the government to miss debt payments, Moody’s Investors Service warned on Wednesday.

Moody’s was the first among the big-three rating agencies to place the United States’ Aaa rating on review for a possible downgrade, which means a negative rating action is impending.

In a statement, Moody’s said it sees a “rising possibility that the statutory debt limit will not be raised on a timely basis, leading to a default on U.S. Treasury debt obligations.”

More to come...

Read the Article from the Globe and Mail, here:

http://www.theglobeandmail.com/report-on-business/economy/moodys-may-cut-us-debt-rating/article2096334/ 

Ron Paul Burns Ben Bernanke today - July 13th 2011

Wow watch this until the end, Ron Paul traps Ben Bernanke in a question about whether or not Gold is money. Watch Bernanke sputter at the end. Another great job by Ron Paul.

QE3 is coming Gold, Silver, Everything SURGES!

Told you many times, told you yesterday, QE3 is coming. This is straight from the horses mouth. Ben Bernanke had this to say today;


"The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might reemerge, implying a need for additional policy support. The Federal Reserve remains prepared to respond should economic developments indicate that an adjustment of monetary policy would be appropriate."

Interpreted, get  ready for QE3...

Tuesday, 12 July 2011

Stock Market up? Gold up Huge? Wondering why? Look no further...

QE to Infinity, as stated many times, they have no choice:

Fed Minutes Released: "Some FOMC Members Think QE3 Would Be Appropriate"

The only section that matters: "Some participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate and if inflation returned to relatively low levels after the effects of recent transitory shocks dissipated, it would be appropriate to provide additional monetary policy accommodation....A few members noted that, depending on how economic conditions evolve, the Committee might have to consider providing additional monetary policy stimulus, especially if economic growth remained too slow to meaningfully reduce the unemployment rate in the medium run." Translation: QE3?

Read the full story here:

http://www.zerohedge.com/article/fed-minutes-released-some-fomc-members-think-qe3-would-be-appropriate

It was only a matter of Time... Europe considers Greek default

European Union leaders are poised to hold an emergency summit after finance ministers acknowledged for the first time that some form of Greek default may be needed to cut Athens’ debts and stop contagion to Italy and Spain.

Read the full story here:

http://www.theglobeandmail.com/report-on-business/international-news/europe-considers-greek-default/article2094500/ 

Monday, 11 July 2011

EUR Plunges After Lagarde Intimates On Greek Bankruptcy

It appears that the market refuses to be baffled with bullshit any longer. The EURUSD just took a big tumble following a report that Christine Lagarde, the IMF's new boss, announced that her new agency has not yet discussed Greek aid details, and made it clear that "nothing should be taken for granted on Greece." Since the only thing that is being taken for granted is that Greece will be bailed out, it is easy to see why the EURUSD just lopped off 60 pips in seconds. Not very surprisingly, this fits with what the Chairman of Commerzbank Martin Blessing told the Frankfurter Allgemeine Zeitung earlier. It appears that the dining room table is being set for what the EUR's chef believe will be a brief feast on the Greek carcass, following the country's plunge into SD, or temporary default status. What will happen next, however, is the same thing that happened when Lehman filed: sheer panic, as a global bank runs ensues, and the USD, not to mention gold, all go parabolic. The only possible brief saving grace is once again China, which just reported that its FX reserves rose from $3,197 billion to $3.233 billion. The bulk of that money is now going to purchase EURs and keep Europe afloat one more day.

Read the full story here:

http://www.zerohedge.com/article/eur-plunges-after-lagarde-intimates-greek-bankruptcy 

Friday, 8 July 2011

Straight Up Theft! WOW!

Boiling Frog Alert: Congress Wants Automatic Wage Deductions To Pay Down The Debt:

 

Folks… you just can’t make this stuff up. On July 6th, just two days ago, at least a dozen busybody Congressmen sponsored the introduction of HR 2411, the “Reduce America’s Debt Now Act of 2011.” They always come up with fantastic names for these pieces of legislation… and rest assured, the better/more patriotic the name, the more ominous the bill. This one follows the pattern. HR 2411 states that every worker in America should be able to voluntarily have a portion of his/her wages automatically withheld and sent directly to the Treasury Department for the purposes of paying down the federal debt. “Every employer making payment of wages shall deduct and withhold upon such wages any amounts so elected, and shall pay such amounts over to the Secretary of the Treasury…” That’s right. Uncle Sam is so broke that he wants to give all the good little Americans out there the opportunity to contribute an even greater portion of their paychecks to finance government largess. Desperate? Hmmm…. Don’t worry, it gets better.



- Read the full story at ZeroHedge here:


http://www.zerohedge.com/article/guest-post-boiling-frog-alert-congress-wants-automatic-wage-deductions-pay-down-debt

India to import 350 tons of gold, 1200 tons of silver

NEW DELHI (Commodity Online): 

India’s state-owned trading company—Minerals and Metals Trading Corporation (MMTC)—said on Thursday that it would import 350 tons of Gold and 1,200 tons of Silver in 2011-12 as demand for the precious metals is rising fast.

"We plan to 350 tons of gold and 1,200 tons of silver in the 2011-12 fiscal as the domestic demand for these metals are fast rising," MMTC Marketing Director Ved Prakash told reporters.

India is one of the largest importers and consumers of gold and silver in the world. As the domestic production of these precious metals is negligible compared to their rising consumption, India has been importing hundreds of tons of gold and silver every year.

Prakash said that import of gold by MMTC in the current fiscal is expected to increase by more than 40 per cent with the yellow metal fast emerging as a safer investment option.

"We are stepping up import of Gold this fiscal due to rising demand for the nobel metal. Also, its value as a safe option, in the current volatile market, is rising,” he said.

More…

Thursday, 7 July 2011

Shut your Brain Off and Enjoy the Ride...

"What’s going to happen to the price of silver is it’s going to go up, way up.  All you had to do was close your eyes and hold it and shut your panicked membrane to all of the fools who say it’s too high.  I tell you now that the price of silver is going far higher than anybody realizes.  it’s going far higher than $50, it’s going to test the $100 an ounce level, and beyond that somewhere between $300 and $500 an ounce.  Believe the unbelievable or not.”

- James Dines

The best Time to Buy Home Insurance is Before your House Burns Down

"They are all running the printing presses.  Mark my words, if you don’t own gold you will rue the day you decided not to buy it.” 

- James Dines

Wednesday, 6 July 2011

Whistleblower Maguire - This Will Destroy Gold & Silver Shorts

“China is keen to diversify their cash holdings and is also encouraging citizens to make investments in gold and silver.  The Pan Asia Gold Exchange is another step in this direction by opening up ease of access to physical gold and silver to their bank customers.  This physical backed exchange is going to be a big game-changer.

Just look at the scale of this to get an idea of how massive this game-changer will be, The Agricultural Bank of China has over 320 million retail customers and 2.7 million corporate customers and has integrated its customer account information system with this platform.

By creating the first ever rolling spot contract, Chinese bank customers will for the first time have ease of access to 10 ounce gold contracts in Renminbi directly from their bank accounts and with the click of a mouse.  To give a further idea of scale, if just 1% of their customers bought a single 10 ounce contract, that would equate to 1,000 tons of physical gold being drawn down...."

Read the full interview at King World News, Here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/7/6_Whistleblower_Maguire_-_This_Will_Destroy_Gold_%26_Silver_Shorts.html

Gold Surges On Reminder It Is The Only Currency Without Liability And Counterparty Risk

A few days ago, Erste Bank shared the following spot on description of gold's function in the modern monetary system: "The possession of gold is tantamount to pure ownership without liabilities. This also explains why it does not pay any ongoing interest: it does not contain any counterpart risk. Along with the International Exchange and the Chicago Mercantile Exchange, JPMorgan now also accepts gold as collateral. The European Commission for Economic and Monetary Affairs has also decided to accept the gold reserves of its member states as additionally lodged collateral. We also regard the most recent initiatives in Utah and in numerous other States as well as in Malaysia, and the planned remonaterisation of silver in Mexico as a clear sign of the times. The foundation of a return to “sound money” seems to have been laid." Today, we get a quick reminder of this all too often forgotten truth, after gold has surged by one percent in the span of an hour as the world once again realizes that the best the ECB Titanic (and shortly thereafter, the Fed) can hope for is merely to delay, not prevent, the sinking of the broken monetary system. Furthermore, that this is happening even as China hiked rates for the 3rd time this year may indicate the inflection point in gold has now come and the take out of nominal highs, just $30 higher, is next.

Read the full story here:

http://www.zerohedge.com/article/gold-surges-reminder-it-only-currency-without-liability-and-counterparty-risk

Sunday, 3 July 2011

Alleged Rape Case against Former IMF Managing Director Collapses

 As I stated from the beginning, this appeared to be a setup. Looks like that is the case now.

"Dominique Strauss-Kahn, former head of the International Monetary Fund, was released without bail Friday after a court hearing at which the rape case against him appeared to collapse. Prosecutors admitted that the credibility of the woman who is the complaining witness is now in question.

The prosecutors gave no details at the hearing, but a long article in the New York Times, published Friday morning, included quotes from two unnamed “law enforcement officials” suggesting that the alleged rape victim had been linked to drug dealing and money laundering and had been overheard discussing how she might benefit financially from the charges against Strauss-Kahn."

Read the full Story here:

http://www.globalresearch.ca/index.php?context=va&aid=25498

Saturday, 2 July 2011

Sad, but True, the New Reality!


- Picture Via JsMineSet.com

Peter Schiff - Silver has bottomed in the Low 30's

Peter Schiff was recently asked by King World News if he believed Silver had bottomed, this was his response;

“I think it probably has in the low 30’s, you’ve got a lot of support building that used to be resistance on the way up, so now it makes sense it’s support on the way down.  The real resistance now is at the $50 level which was a double-top, initially that was the spike top in 1980.  I think the market will take that double-top out and then I think $50 will be the new $30.  Whereas $50 is now resistance, I think at some point we will be looking south at $50 as the support, and people will be looking to buy silver on a dip back to $50.”

Read the full interview here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/7/1_Schiff_-_Reckless_Fed_to_Drive_Gold_North_of_$10,000,_Oil_$300.html