My Money Where My Mouth Is

By Silver Shield, on January 22nd, 2012

I am more bullish about silver today, than I have been at any other time since I have been involved in the silver market.  As many of you know, I sold my house in 2005 to invest in gold, silver and oil stocks.  I paid the penalty and sold my 401k to buy more silver.  I sold my silver 4dr Wrangler this past summer to buy more silver.  I have gone through the house looking for anything that I can sell to buy more silver. (To think that I sold a old DVD player for the equivalent of an ounce of silver…) Today I am announcing today that I have not only divested myself of all paper assets, I have traded my last tubes of gold for Constitutional Silver at a 57 to 1 last week. (The Gold American Eagles had a higher premium.) I am now 100% invested in physical silver.

• It is tough not having a computer screen assuring me that everything is “ok” in my bank.
• It is tough leaving a job with insurance and a steady income to do this.
• It is tough putting out the amount of educational material, because I still feel there is time to save people.
• It is not easy to ween your self off of the fiat junk, but it is worth it.

Vincent Browne v The ECB

MISH'S
Global Economic
Trend Analysis

The video below is from a European Central Bank press-conference in Ireland. Journalist Vincent Browne demands that the ECB representative explain why the ECB required the Irish people to bail out a bank's uninsured creditors. The bureaucrat mouths bland reassurances, then asserts (despite all appearances to the contrary) that the question has been answered. Browne doesn't let up.

Nuclear Iran is past its point-of-no-return, yet oil sanctions remain on paper

DEBKAfile Exclusive Report January 21, 2012, 3:07 PM (GMT+02:00)


Israeli Prime Minister Binyamin Netanyahu advised visiting Chairman of the US Joint Chiefs of Staff, Gen. Martin Dempsey Friday, Jan.20 that the time for action against Iran was now, for two reasons: First, the conviction that Iran has passed the point of no return for developing a nuclear weapon; and second, the diminishing prospects for a US-led embargo on Iranian oil to catch on before it is too late.

The Obama administration disputes the Israeli prime minister on both points, insisting there is still time for tough sanctions to incapacitate the Iranian economy and stop Tehran before it reaches the point of no return in its drive for a nuke. Israel insists that this pivotal point was reached four years ago in 2008.

Gen. Dempsey was exhaustively briefed on the Israeli position during his whirlwind interviews Friday with President Shimon Peres, Defense Minister Ehud Barak and three conversations with Chief of Staff Lt. Gen. Benny Gantz, one with key General Staff officers.

Silver’s Surge

By: Warren Bevan

Fundamental Review

This past week we saw US 10-year treasuries dip below 2% briefly. It is amazing how low the yields have gone. Even more amazing is that people actually accept that rate. It’s not even above the official rate of inflation!

Why they don’t seek out dividend yields much higher as we do, I just don’t understand. We get between 10% and 20% annually with our select dividend stocks. Now that is a return.

We saw three banks fail this past Friday after the close and kick off this years list of biggest losers. It’s been over a month since we saw a bank fail so it’s nice to get back on track.

While this week it was revealed that Newt Gingrich had asked his ex-wife for an open marriage, he himself is open to and open currency. He is calling for a review on how the US can return to a hard currency status, one which is backed by gold. Whether he’s serious or just trying to capture some of Ron Paul’s supporters is debatable though and I try to steer clear of politics for the most part.

The high and volatile cost of nickel is forcing Canada to transition to using brass coated steel to produce their $1 and $2 coins, otherwise known as a loonie and a toonie.

Iran is hoping to increases their gold production by 350% in an attempt to better their dire economic condition right now which is hefty inflation and many sanctions, neither of which are good, but gold is money and they know that and it will be accepted in trade, period.

And for fun here are all the Texas republican candidates agreeing that we need to audit the Federal Reserve. Whether it would ever actually happen is another story and one I won’t believe until I see it.

Please sign up to receive my free weekly letter along with any relevant info or articles I write, and if you like what I have to say and think I can help you make some money, and I know I can, then consider subscribing to our daily updates and trading alerts.

Until next week take care and thank you for reading.

Warren Bevan

In my free, nearly weekly newsletter I include many links and charts which cannot always be viewed through sites which publish my work. If you are having difficulties viewing them please sign up in the left margin for free at http://www.preciousmetalstockreview.com/ or send an email to warren@preciousmetalstockreview.com with “subscribe” as the subject and receive the newsletter directly in your inbox, links and all. If you would like to subscribe and see what my portfolio consists of please see here.

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Gold Analysis:Gold Bull Market To End In 2 Years At $6000 Or More?

Greek Debt Talks Stall, More Negotiations "By Phone" Later Today; IMF Germany Think 4% Coupon Too High; Greek Haircut Calculator

MISH'S
Global Economic
Trend Analysis


For weeks we have been hearing "agreement soon" on Greek bond haircuts. The theme for the day today as it was yesterday and as it was a week ago is "tomorrow".

One problem with all of these "deal is close" announcements is none of them have included an agreement from those who stand to benefit if there is a credit event. Until those CDS holders are made whole, or at least the CDS holders are satisfied, there is no deal, just noise.

The Wall Street Journal reports UPDATE: Greek Debt Talks Appear To Stall Saturday

Talks between Greece and its private sector creditors over a debt writedown plan appeared to stall Saturday as the banks' top negotiator left Athens amid signs of fresh disagreements over how much Greece would pay its bondholders in the future.

Money Supply to Hit $24 Trillion, More Bubbles & Higher Gold

Gold Big Picture – Gold Comparison Of Now Vs 70s Shows Big Rise In Price Yet To Come

Gold may remain bullish, but don't rule out silver in 2012

NEW YORK (Commodity Online): Gold may remain bullish in 2012, but don't rule out Silver and keep an eye on stocks for good value investments, says David Skarica, editor of The Gold Stock Adviser.

According to David Skarica, the United States will likely roll out more extraordinarily loose monetary policies such as quantitative easing, not solely due to necessity, but also to keep the dollar competitive with a weaker euro.

Italy Faces 2-Year Recession says IMF; European Recession Neither Mild Nor Short

MISH'S
Global Economic
Trend Analysis


Slowly but surely global growth estimates have been ratcheted down. Courtesy of Google Translate from an Italian news site, please consider IMF estimates two years of recession for Italy

Deep red for the Italian economy in the next two years. Against the background of a global recovery stalled, slowed by the crisis in the eurozone in particular, Italy is preparing to reach out to two years of recession in 2012 and 2013. The cold shower comes from the International Monetary Fund put in hand as usual to their predictions gave a general scissor kick to the estimates of growth around the world.

Last update at the World Economic Outlook that the Ansa news agency is able to anticipate its spread before the official next Tuesday, the IMF finds in the euro area's main patient who staggers a little and infects all international economies. "The global recovery is threatened by the growing tensions in the euro area," considered the "main reason" the deterioration of economic prospects.

Mike Maloney on Credit-Based Money, Feudalism, and Financial Enslavement

Silver Update 1/20/12 Comex Credibility

SilverDoctors: Silver COT Report 1/20/12

SilverDoctors: Silver COT Report 1/20/12: The commercials increased their naked short silver positions by a net 1,320 additional contracts (6.6 million ounces) in the week ending 2/1...

SilverDoctors: Is Sprott Making a Dent into Silver Prices?

SilverDoctors: Is Sprott Making a Dent into Silver Prices?: UBS analyst Edel Tully, finally caught wind yesterday that Sprott was making a huge purchase which "may" have an impact on silver prices.  T...

Ben Davies - Funds Will Pile into Gold after Missing the Rally

CURRENCY WARS! Exclusive Interview with James Rickards

Peter Schiff: U.S. Will Never Pay Off Debt

Posted by Brittany Stepniak - Friday, January 20th, 2012

See how one of America's most popular video bloggers, Peter Schiff – stock broker, economist and author – uses humor in a critical commentary of the U.S. government, debt, and China.

In his argument, he explains how foolish China was for lending to such a debt-ridden nation.

Does anyone truly believe we intend, and will succeed, in paying off our $15+ trillion in debt? Here's what would have to happen for that far-fetched fairytale to actually come to fruition...

James Dines - This Will be a Dangerous Collapse & Endgame

QE3, $2,200 Gold, and the Trillion Dollar Bazooka

January 20, 2012

By Peter Krauth, Global Resources Specialist, Money Morning
It's the beginning of a new year, and there's no shortage of big headlines...

Europe is on the financial brink, Iran is a powder keg, and precious metals like gold have retreated.

It's also a time when there is no shortage of financial forecasts.

Even though these kinds of predictions about the future can be tough to make, I'll admit it's kind of fun to look forward and see what the future may hold.

Like in December 2010, when I said I expected gold to reach $1,900/oz in 2011. Some people thought that I was crazy. At the time, gold was trading for just $1,390/oz.

But just nine months later, that turned out to be a pretty good call as gold hit a new high of $1,923/oz. before eventually pulling back.

Better yet, in January 2010, I even said gold would eventually top $5,000. Of course, most people thought that call was preposterous.

Now, even Standard Chartered bank's analysts expect gold to climb to $5,000.

Nomi Prins: Bailouts + Downgrades = Austerity and Pain

Tuesday, January 17, 2012 at 5:07PM

The markets (read: traders with big books at mega financial firms and hedge funds) weren’t particularly shocked by last week’s wave of heavily pre-broadcast S&P sovereign debt downgrades. For months, the question wasn’t ‘if’, but ‘when.’ True to form, just as with the US downgrade, S&P’s reasons skated the surface of prevailing wisdom – governments have too much debt, and not enough income. That’s only a fraction of the story.

Nowadays, when any sovereign (including the US) gets downgraded by a rating agency, it's not just because its debt repayment ability is questionable (the publicized logic of rating agencies), but because it incurred more expensive debt to float its banking system. It chose to subsidize banks over people.

The S&P likes moving on Friday nights. It was on a Friday night that it downgraded US debt to AA+ from AAA. On Friday night, January 13, 2012, it downgraded France and Austria from AAA to AA+, and 7 other European countries, too; Cyprus, Italy, Portugal, and Spain by two notches; Malta, Slovakia, and Slovenia, by one notch. Portugal, Cyprus, Ireland and Greece are at junk status. Germany’s AAA rating is intact.

Nowhere in S&P’s statement about “global economic and financial crisis”, did it clarify that sovereigns were hit due to backing their largest national banks (and international, US ones) which engaged in half a decade of leveraged speculation. But here’s how it worked: