Why I Favor Silver Over Gold

Chris Duane of "The Greatest Truth Never Told" released an amazing video breaking down why you should choose silver over gold as your primary investment of Choice. 

I am a strong advocate of diversification and believe that you should have a portion of your income divided into both gold and silver, although I strongly lean towards silver as my primary investment.

As explained nicely in this video, silver is not only a monetary metal like gold, but is also an industry metal that is being rapidly consumed and is in just about everything we use in our modern lives.

The reasons to invest in silver are countless. I believe this video does an amazing job at breaking down the pro's and con's of both metals. It is definitely worth 12 minutes of your time.

Cyprus - Exiting The Euro Is A Debate We Must Have

Last week we laid out the apparent 'blueprint' from the EU Commission for every other country with a banking system in which non-performing loans are soaring. With Mario Draghi's patsy in place at the Cypriot Central Bank, happy to hand over the nation's gold at the beck-and-call of the EU leaders - despite the Cypriot President's disgust at the 'coercion' of the new deal chiding the central bank for "catching the government by surprise," it now seems, as this Cyprus Mail op-ed explains, that the people of this nation are ready for change - real change, , otherwise, "we may wake up one morning and find the country has completely shut down, crushed under the weight of its mounting, unserviceable debts with no banks, businesses or services able to operate."

- Excerpt from a recent Zero Hedge post, read the full post here:

http://www.zerohedge.com/news/2013-04-14/cyprus-mail-exiting-euro-debate-we-must-have

Alf Fields - Gold Could be at a Major Low

"Late Friday afternoon in New York (April 12, 2013) gold plunged through the critical support level around $1525 level that has held resolutely since the start of this 19 month correction from $1900 in September 2011. In the process of this sudden drop, confidence in gold by long term investors has been badly shaken.

The sad thing is that this late afternoon selloff was an orchestrated event by people wishing to see the gold price lower so that they could cover short positions in the paper gold markets. Proof of this is that London PM fixing on Friday was $1535. Once the London physical market closed, the orchestrated selling in the paper markets gathered momentum. By the close of the Comex paper gold market, gold had dropped $60 in just the last couple of hours on very high volume.

This is not something new. Observers of the gold market have been aware of many other occasions where similar events on a smaller scale have taken place on Friday afternoons. There is little point getting one’s knickers in a knot about this because every short sale in the paper market has to be covered by a corresponding purchase in due course. Thus if people who bought into the selling spree simply hold onto their positions, a short squeeze will eventually develop as the short sellers try to cover their positions, causing the gold price to rise.

Often the physical markets come to the rescue as the lower prices generated by the Friday selloff sparks increased buying in the physical markets, helping to spur the recovery. The result is that the price of gold recovers fairly quickly after a Friday afternoon selloff. The coming week will show whether this happens again this time.

In January this year I published an article indicating that there seemed to be a reasonable chance that the long gold correction was over. That article indicated that if gold dropped below $1636, that the analysis was incorrect and that something else was happening. Gold did drop below $1636 and has continued to decline, proving that the January analysis was faulty.

At that time last January I had assumed that the rise from $1540 to $1790 in 2012 was the first upleg of the new bull market and that the correction to $1636 was the first minor correction of the new bull market. These were incorrect assumptions. The big correction from $1900 in September 2011 was still under way. The low had still to be reached.

In my Keynote speech to the Sydney Gold Symposium in 2011 I had a target of $1480 for the low of the expected correction. Despite several plunges into the low $1500’s, the price never achieved that $1480 target. The low price for Comex was $1523 and the lowest PM fixing was $1531 in late December 2011.

It bothered me from time to time that gold had not achieved my target. Now the late Friday selloff last week has driven the gold price to a closing level of $1477, finally reaching the target of $1480 set 19 months ago. What remains to be seen is whether this target holds and that the bull market resumes. The coming weeks should indicate what is happening.

What we need to look for is a swift recovery to above $1500 and an ongoing strong up-move in a truly impulsive manner. The fundamentals for holding gold are as strong as ever. Gold is an insurance against a range of financial disasters that we don’t need to go into now. You do not cancel your fire insurance when you can see fires burning all around you.

Certainly confidence in gold has been shaken and sentiment indicators are at record lows in some cases. This is exactly what one would expect at a major low in the market after a brutal 19 month correction. The conclusion is that factors are now in place which could support a major low in the gold price."

- Alf fields, via JSMineset.com:

http://www.jsmineset.com/2013/04/14/gold-confidence-shaken/

Ron Paul - The Great Cyprus Bank Robbery

"Remember that under a fractional reserve banking system only a small percentage of deposits is kept on hand for dispersal to depositors. The rest of the money is loaned out. Not only are many of the loans made by these banks going bad, but the reserve requirement in Euro-system countries is only one percent! If just one euro out of every hundred is withdrawn from banks, the bank reserves would be completely exhausted and the whole system would collapse. Is it any wonder, then, that the EU fears a major bank run and has shipped billions of euros to Cyprus? The elites in the EU and IMF failed to learn their lesson from the popular backlash to these tax proposals, and have openly talked about using Cyprus as a template for future bank bailouts. This raises the prospect of raids on bank accounts, pension funds, and any investments the government can get its hands on. In other words, no one's money is safe in any financial institution in Europe. Bank runs are now a certainty in future crises, as the people realize that they do not really own the money in their accounts. How long before bureaucrat and banker try that here?"

- Source, ZeroHedge, read the full article here:

http://www.zerohedge.com/news/2013-04-02/ron-paul-great-cyprus-bank-robbery

The Banks Are No Longer Safe

Sad but true, this is coming to a bank near you.

Another Gold Shortage? Dutch ABN To Halt Gold Delivery

Based on a letter to clients over the weekend, it appears ABN Amro is changing its precious metals custodian rules and "will no longer allow physical delivery." Have no fear, they reassuringly add, your account will be settled at the bid or offer price in the 'market' and "you need to do nothing" as "we have your investments in precious metals."

- Source, Zero Hedge, read the full article here:

http://www.zerohedge.com/news/2013-03-24/another-gold-shortage-abn-halt-physical-gold-delivery

Arizona Considers Making Gold and Silver Legal Tender

"Arizona could soon become the second U.S. state to recognize gold and silver as legal tender if the Arizona House approves SB 1439.

The bill has already won the approval of Arizona’s State Senate and the Arizona House Financial Institutions Committee which voted the legislation out of committee on a 4-2 vote Monday. The measure now goes to a vote of the Arizona House.

Thus far, only the State of Utah has officially recognized gold and silver as legal tender, (See: Gold, silver coins now officially legal tender in Utah) although the issue has been under consideration this year in four states including Arizona. The Arizona bill defines legal tender as a mode of paying debts and taxes.

The measure also states that any coin or bullion that has gold or silver content and is issued by the United States Government can be defined as legal tender. However, no one can be compelled to accept coin or bullion containing gold or silver. The measure would also mandate that coin or bullion containing gold or silver issued by the U.S. Government cannot be taxed as property since it is to be considered money..."

- Source, MineWeb, read the full article here:

http://www.mineweb.com/mineweb/content/en/mineweb-political-economy?oid=182807&sn=Detail

Jim Sinclair - All Hell Is Breaking Loose After Cyprus Catastrophe

“Well, it should have frightened many of the players involved, and served as a wake-up call. There was a great miscalculation made with regards to Cyprus, and the situation has quickly turned into a catastrophe. There was no real understanding of the entities that were behind the Russian corporations which have money in Cyprus, and the effect of what is in reality the confiscation of Russian ex-KGB money.

The people at the IMF, which have spearheaded this disaster, never expected the ‘Cyprus Solution’ to blow up in their face the way it has...."

- Jim Sinclair via a recent King World News interview, read the full interview here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/3/18_Sinclair_-_All_Hell_Is_Breaking_Loose_After_Cyprus_Catastrophe.html

The Party's Over - How the West Went Bust

"In the teeth of the worst financial crisis in living memory, BBC business editor Robert Peston examines how the world got to this point and how the colossal imbalances in the global economy have left the UK in need of a radical economic overhaul.

In this first of two programs Peston examines how, thirty years ago, momentous decisions were taken which shaped the world we live in today. In China, Deng Xiao Ping opened up the country to foreign capitalists; in Britain and America, the free market revolution was unleashed by Margaret Thatcher and Ronald Reagan. The Party's Over compares the lives of workers in a Chinese company with their co-workers in Britain.

Robert Peston interviews bankers, politicians and economists, and concludes that the boom we enjoyed before the crash was based on an illusion, and that the world's economy is now so unbalanced that in the West we face a sobering wake-up call.

In the second program Peston asks how Britain can compete in the new world economic order. After years of living beyond our means the country surely needs to wean itself off the consumer society, but doing so threatens our retail dependent economy. In Germany the model of thrift and investment, far from the quick buck mentality of the City of London, has produced a powerful manufacturing and exporting economy that Britain, once so proud of its modern finance based approach, is desperate to imitate.

It is a long road to re-balancing the British model and with the Eurozone crisis still threatening further financial Armageddon  Peston asks whether we are in for decades, rather than years, of sluggish growth. Featuring interviews with senior economists, bankers and politicians, as well as the ordinary people in several countries, whose livelihoods depend on the outcome of this vast economic reordering of the world."

- Source:

http://www.bbc.com/news/business/

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Dylan Grice Explains How Crackpot Central Bankers Are Destroying Society

"With their crackpot monetary ideas, central banks have been robbing Peter to pay Paul without knowing which one was which. And a problem here is this thing behavioral psychologists call self-attribution bias. It describes how when good things happen to people they think it’s because of something they did, but when bad things happen to them they think it’s because of something someone else did.... When we look around we can’t help feeling something similar is happening. The 99% blame the 1%; the 1% blame the 47%. In the aftermath of the Eurozone’s own credit bubbles, the Germans blame the Greeks. The Greeks round on the foreigners. The Catalans blame the Castilians. And as 25% of the Italian electorate vote for a professional comedian whose party slogan “vaff a” means roughly “f**k off ”, the Germans are repatriating their gold from New York and Paris. Meanwhile in China, that centrally planned mother of all credit inflations, popular anger is being directed at Japan, and this is before its own credit bubble chapter has fully played out. (The rising risk of war is something we are increasingly worried about…) Of course, everyone blames the bankers (“those to whom the system brings windfalls… become ‘profiteers’ who are the object of the hatred”)."

- Source, Zero Hedge, Read the full Article here:

http://www.zerohedge.com/news/2013-03-11/dylan-grice-explains-how-crackpot-central-bankers-are-destroying-human-society

Rick Rule - Gold Poised to Bounce

(Video cannot be embedded, please click to watch)

"I think the technical are scary, but the fundamentals are pretty good. What you find in gold bull markets is retrenchments are fairly frequent, and this is nothing particularly unusual."

"It's worth noting, of course, that the fundamentals are excellent," he added. "Gold is denominated in U.S. dollars, and the government seems to be doing their best to depreciate the denominator."

- Rick Rule, via a recent CNBC interview, see the video here:

http://www.cnbc.com/id/100476032

The Hidden Secrets of Money - Currency Vs. Money

"Hidden Secrets of Money is a completely free series that reveals the economic reality that has been hidden from you in plain sight. Discover the secrets that will allow you to unlock the greatest wealth transfer in history. We created this new free video series to allow viewers to turn today's economic crisis into opportunity by simply learning from history."

- Source, Gold Silver.com:

http://goldsilver.com/

Debt Collapse - The Case For $20,000 oz Gold by Mike Maloney