21 February 2012
SilverDoctors: Gold & Silver Break Above Cartel Cap
SilverDoctors: Gold & Silver Break Above Cartel Cap: Gold and silver have just burst through the firm cartel cap that have held the metals in check under $1750 and $34 for the past 2+ weeks. ...
Gold Speaks Up
By Jeff Clark, Senior Precious Metals Analyst
Have you ever had any doubts about gold? Does it sometimes feel like it should be performing better? Are you concerned about its volatility? Do you worry about how it might perform in the future? Have you ever wondered about its true purchasing power? Maybe nervous about a big drop in price again? I decided to go directly to the source to address these concerns: Gold himself. He put his arm around me and asked me to tell you a few things…
I hear that you've had some worries about me. I understand. Your world is a very uncertain place right now. And when it comes to money, it looks as though your leaders don't understand some basic monetary principles, making things even more unsettling.
But I want you to know that the problems you're experiencing are actually nothing new. I've seen these monetary, fiscal, and economic difficulties many times before. And I can tell you this: you're safe with me. That's a bold proclamation, but I've provided monetary protection numerous times throughout history – too many to count, in fact. I've served all kinds of people over the centuries, from kings and counts to serfs and servants.
To put your mind at ease, let's review my core characteristics, along with some history, to show how I can protect you against the monetary danger that's likely to worsen in your near future. We'll also take a look at your peculiar set of circumstances to see how I can be of service. By the time we're done, I think you'll feel much better about my ability to help your portfolio withstand whatever is thrown its way.
Enduring Characteristics
Let's start with the basics. I have some characteristics that no other matter on Earth has…
I cannot be:
Printed (ask a miner how long it takes to find me and dig me up)
Counterfeited (you can try, but a scale will catch it every time)
Inflated (I can't be reproduced)
I cannot be destroyed by;
Fire (it takes heat at least 1945.4° F. to melt me)
Water (I don't rust or tarnish)
Time (my coins remain recognizable after a thousand years)
I don't need:
Feeding (like cattle)
Fertilizer (like corn)
Maintenance (like printing presses)
I have no:
Time limit (most metal is still in existence)
Counterparty risk (remember MF Global?)
Shelf life (I never expire)
As a metal, I am uniquely:
Malleable (I spread without cracking)
Ductile (I stretch without breaking)
Beautiful (just ask an Indian bride)
As money, I am:
Liquid (easily convertible to cash)
Portable (you can conveniently hold $50,000 in one hand)
Divisible (you can use me in tiny fractions)
Consistent (I am the same in any quantity, at any place)
Private (no one has to know you own me)
I am internationally accepted, last for thousands of years, and probably most important, you can't make any more of me.
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Have you ever had any doubts about gold? Does it sometimes feel like it should be performing better? Are you concerned about its volatility? Do you worry about how it might perform in the future? Have you ever wondered about its true purchasing power? Maybe nervous about a big drop in price again? I decided to go directly to the source to address these concerns: Gold himself. He put his arm around me and asked me to tell you a few things…
I hear that you've had some worries about me. I understand. Your world is a very uncertain place right now. And when it comes to money, it looks as though your leaders don't understand some basic monetary principles, making things even more unsettling.
But I want you to know that the problems you're experiencing are actually nothing new. I've seen these monetary, fiscal, and economic difficulties many times before. And I can tell you this: you're safe with me. That's a bold proclamation, but I've provided monetary protection numerous times throughout history – too many to count, in fact. I've served all kinds of people over the centuries, from kings and counts to serfs and servants.
To put your mind at ease, let's review my core characteristics, along with some history, to show how I can protect you against the monetary danger that's likely to worsen in your near future. We'll also take a look at your peculiar set of circumstances to see how I can be of service. By the time we're done, I think you'll feel much better about my ability to help your portfolio withstand whatever is thrown its way.
Enduring Characteristics
Let's start with the basics. I have some characteristics that no other matter on Earth has…
I cannot be:
Printed (ask a miner how long it takes to find me and dig me up)
Counterfeited (you can try, but a scale will catch it every time)
Inflated (I can't be reproduced)
I cannot be destroyed by;
Fire (it takes heat at least 1945.4° F. to melt me)
Water (I don't rust or tarnish)
Time (my coins remain recognizable after a thousand years)
I don't need:
Feeding (like cattle)
Fertilizer (like corn)
Maintenance (like printing presses)
I have no:
Time limit (most metal is still in existence)
Counterparty risk (remember MF Global?)
Shelf life (I never expire)
As a metal, I am uniquely:
Malleable (I spread without cracking)
Ductile (I stretch without breaking)
Beautiful (just ask an Indian bride)
As money, I am:
Liquid (easily convertible to cash)
Portable (you can conveniently hold $50,000 in one hand)
Divisible (you can use me in tiny fractions)
Consistent (I am the same in any quantity, at any place)
Private (no one has to know you own me)
I am internationally accepted, last for thousands of years, and probably most important, you can't make any more of me.
MORE
Silver Price Could Double by Year End
BY: Jason Hamlin
MORE
Following the record gains in silver during late 2010 and early 2011, the metal crashed towards $25 and has since rebounded to around $33. Investor sentiment has crashed along with it. The threat of Euro nations defaulting, banks announcing they are, well, bankrupt, and a series of other factors have scared away many of the Johnny-come-lately silver bulls. I think too many investors are underestimating the power of the central banks. While I agree they are running out of options, it seems that their ability to kick the can down the road has yet to expire. Given that the United States is heading into election season and President Obama is in full campaign mode, I expect the administration to pull out all stops in order to continue the illusion of economic prosperity a while longer. Every economic fire of consequence is being extinguished with fresh liquidity, more funny money or new legislation. In case you missed it, QE3 has been in full force for quite some time, albeit executed in a somewhat stealth manner. The implications for silver (and gold to a lesser degree) are going to be incredibly bullish. Absent a deflationary sovereign default that spirals out of control and takes down major banks with it, stocks will continue to creep higher in volatile trade throughout the year. Once fear begins to subside, look for precious metals to come roaring back to new highs by mid-year. Whenever the next financial crisis finally hits, we are likely to witness a new injection of quantitative easing that is even stronger than what transpired in 2008. |
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Keiser Report - Episode 252
In this episode Max Keiser and co-host, Stacy Herbert, discuss London bars and cafes introducing Facewatch for criminals on the lower ladder of crime while Mayoral candidate, Ken Livingstone, proposes an altogether different solution to end the banking crime wave higher up the ladder. They also discuss Greek heists and tweets from Syntagma Square. In the second half of the show, Max talks to Zeus Yiamouyiannis about Greek tragedies and Greek solutions.
Silver and Opium
by Antal E. Fekete – Professor Fekete.com
Originally published February 20th, 2011
The opium wars do not belong to the glorious episodes of Western history. Rather, they were instances of shameful behavior the West still has not lived down. Mercantilist governments resented the perpetual drain of silver from West to East in payment for Oriental goods (tea, silk, porcelain) that were in high demand in the Occident, facing low demand in the Orient for Occidental goods. From the mid-17th century more than 9 billion Troy ounces or 290 thousand metric tons of silver was absorbed by China from European countries in exchange for Chinese goods.
The British introduced opium along with tobacco as an export item to China in order to reduce their trade deficit. Under the disguise of free trade, the British, the Spanish and the French with the tacit approval of the Americans continued sending their contraband to China through legitimate as well as illegitimate trade channels even after the Chinese dynasty put an embargo on opium imports. Because of its strong appeal to the Chinese masses, and because of its highly addictive nature, opium appeared to be the ideal solution to the West's trade problem. And, indeed, the flow of silver was first stopped, and then reversed. China was forced to pay silver for her addiction to opium smoking that was artificially induced by the pusher: the British.
Thus silver was replaced by opium as the mainstay of Western exports. In 1729 China, recognizing the growing problem of addiction and the debilitating and mind-corrupting nature of the drug, prohibited the sale and smoking of opium; allowing only a small quota of imports for medicinal purposes. The British defied the embargo and ban on opium trade, and encouraged smuggling. As a result, British exports of opium to China grew from an estimated 15 tons to 75 by 1773. This increased further to 900 tons by 1820; and to 1400 tons annually by 1838 -- an almost 100-fold increase in 100 years.
MORE
Originally published February 20th, 2011
The opium wars do not belong to the glorious episodes of Western history. Rather, they were instances of shameful behavior the West still has not lived down. Mercantilist governments resented the perpetual drain of silver from West to East in payment for Oriental goods (tea, silk, porcelain) that were in high demand in the Occident, facing low demand in the Orient for Occidental goods. From the mid-17th century more than 9 billion Troy ounces or 290 thousand metric tons of silver was absorbed by China from European countries in exchange for Chinese goods.
The British introduced opium along with tobacco as an export item to China in order to reduce their trade deficit. Under the disguise of free trade, the British, the Spanish and the French with the tacit approval of the Americans continued sending their contraband to China through legitimate as well as illegitimate trade channels even after the Chinese dynasty put an embargo on opium imports. Because of its strong appeal to the Chinese masses, and because of its highly addictive nature, opium appeared to be the ideal solution to the West's trade problem. And, indeed, the flow of silver was first stopped, and then reversed. China was forced to pay silver for her addiction to opium smoking that was artificially induced by the pusher: the British.
Thus silver was replaced by opium as the mainstay of Western exports. In 1729 China, recognizing the growing problem of addiction and the debilitating and mind-corrupting nature of the drug, prohibited the sale and smoking of opium; allowing only a small quota of imports for medicinal purposes. The British defied the embargo and ban on opium trade, and encouraged smuggling. As a result, British exports of opium to China grew from an estimated 15 tons to 75 by 1773. This increased further to 900 tons by 1820; and to 1400 tons annually by 1838 -- an almost 100-fold increase in 100 years.
MORE
SilverDoctors: Eurozone Reaches Deal on 2nd Greek Bailout
SilverDoctors: Eurozone Reaches Deal on 2nd Greek Bailout: The dollar just fell off a cliff, dropping 50 basis points in seconds, and the EUR/USD went vertical on the Eurozone announcement of the New...
SilverDoctors: Eric Sprott: One of My Aims in Life is to Have a S...
SilverDoctors: Eric Sprott: One of My Aims in Life is to Have a S...: Eric Sprott Exclusive Radio Interview With SilverDoctors.com With the Greek crisis nearing a climax, The Doc spoke with Eric Sprott of S...
Norcini - Crude Oil Breakout to Carry Gold & Oil Much Higher
With oil breaking above the critical resistance level discussed in the KWN Weekly Metals Wrap over the weekend, today King World News interviewed legendary Jim Sinclair’s chartist Dan Norcini. Norcini had been talking about the critical $105 level in Saturday’s interview and here is what Norcini had to say now that oil has broken out to the uspide: “Oil has broken above the critical $105 area of resistance. If we can get a couple of closes above $105 we should see a substantial spike higher in the price of crude oil. The next move should take crude $10 higher to the resistance area at $115.”
Dan Norcini continues:
“It is worth pointing out that we are not even in the heavy usage time frame and it has been a relatively mild winter. So we are now in between the heating oil consumption months of winter and summer driving demand, and yet here we are with crude oil breaking out and threatening a move to the $115 area.
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Dan Norcini continues:
“It is worth pointing out that we are not even in the heavy usage time frame and it has been a relatively mild winter. So we are now in between the heating oil consumption months of winter and summer driving demand, and yet here we are with crude oil breaking out and threatening a move to the $115 area.
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Eveillard - Fear of Contagion, This is the End of the Road
Today legendary value investor, Jean-Marie Eveillard told King World News that fear of a contagion is building and we are at the end of the road. Eveillard, who oversees $50 billion at First Eagle Funds, had this to say about the situation, “Well, what’s happening is that the Greeks are trying to convince the Germans that the German taxpayer should subsidize the Greeks, and the Germans are reluctant to oblige. At the same time, in Europe nobody wants to see a country, even a country as small as Greece, leave the eurozone because there is a fear that there will be contagion.”
Jean Marie Eveillard continues:
“If the Greeks leave the eurozone, then maybe Portugal will. And if Portugal leaves, then maybe Spain and Italy would be under attack. The big problem, of course, is the solution would be a European government. I mean the initial mistake twelve years ago was to have a monetary union, but not a fiscal union.
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Jean Marie Eveillard continues:
“If the Greeks leave the eurozone, then maybe Portugal will. And if Portugal leaves, then maybe Spain and Italy would be under attack. The big problem, of course, is the solution would be a European government. I mean the initial mistake twelve years ago was to have a monetary union, but not a fiscal union.
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