currencies

Gold, Silver, Copper, Nickel and the Slow Death of Money

Gold, Silver, Copper, Nickel and the Slow Death of Money

A huge opportunity to hedge against both inflation and deflation is lying out there in the open. There are no transaction costs and right now there’s even a built-in discount. But most people will never realize any of this. In 1933 President Franklin Delano Roosevelt signed Executive Order 6102, which made it illegal for U.S. citizens to hold gold bullion. Prior to that, the $20 bill was essentially a warehouse receipt for a one-ounce gold coin. Prior to the Federal Reserve Act of 1914, the $20 bill actually told you this. After Executive Order 6102, $20 notes weren’t allowed to be exchanged for gold anymore. Americans couldn’t legally own or trade gold as money and savings, only as jewelry or collectible coins. A year after making monetary gold ownership illegal, FDR revalued gold from $20.67 per ounce to $35 an ounce with the Gold Reserve Act. The Act also required all gold and gold certificates to be turned over to the Treasury. The dollar was debased. A chunk of the gold it used to be good for was legally removed. Instead of  “containing” 1/20 an ounce of gold, each dollar now only contained (or represented) 1/35 an ounce. And of course you couldn’t actually own the gold itself. In 1971 Nixon severed the last official ties between gold and the dollar. The dollar quickly sunk to its real value, which had been debased by years of money supply inflation. By 1975 Americans were allowed to own bullion gold again, but during the roughly 40 years bullion gold ownership had been illegal, the dollar had been drastically debased. At its former lowest point in the summer of 1980, the dollar …

Continue Reading »

How to Replace Austerity with Freedom, Independence and Prosperity

The Economic Collapse Blog has this list of examples of how European-style “austerity” is already hitting the U.S., including cities closing schools and fire stations, and states eliminating whole state agencies and raising taxes. That includes the state of Illinois whose legislature has passed a “temporary” 66% personal income tax hike that the Democrat governor will sign. Rest assured, this income tax hike will be as “temporary” as the one in Massachusetts , still in place since 1989. Such austerity measures may lead to the same kind of social unrest Europeans have been experiencing. The Economic Collapse Blog concludes, We are entering a time of extreme financial stress in America.  The federal government is broke.  Most of our state and local governments are broke.  Record numbers of Americans are going bankrupt.  Record numbers of Americans are being kicked out of their homes.  Record numbers of Americans are now living in poverty. The debt-fueled prosperity of the last several decades came at a cost.  We literally mortgaged the future.  Now nothing will ever be the same again. To say that “nothing will ever be the same again” is just pessimistic and unnecessary. We actually can return to the prosperity of the past, by replacing debt and austerity with freedom and independence. There is no need for Americans to suffer through what European countries are suffering, because nearly all the problems we face are caused by governmental intrusions into many aspects of our personal and economic lives — intrusions by federal, state and local governments. Regardless of the good intentions that the welfare and military socialism statists have in justifying their use of compulsory government powers, what America needs is to cut the shackles of State-imposed dependence, restrictions, regulations, taxation, all those policies of moral relativism that involve violations of the Rule of Law: theft, trespass, denial of Due Process, and other acts of State-initiated criminal aggression. Freeing Americans includes repealing all forms of intrusive presumption-of-guilt regulations and restrictions that are in place having nothing to do with whether any individual is suspected of any crimes against others. Regulations are before-the-fact demands by the government that presume the individual and one’s business guilty, in which one must submit one’s private personal or financial information to the government to prove one’s innocence. Government regulations and arbitrary restrictions are literally searches and seizures by the government of information that is none of anyone else’s business, and effect in the stifling of everyday citizens’ growth and prosperity. Ending all personal income taxes , corporate taxes, estate taxes, and capital gains taxes frees people who own or share in the ownership of businesses — i.e. employers and prospective employers — to invest in their own research and development and in the expansion of their businesses, which is the genuine force behind jobs creation, in both blue collar and white collar sectors. Ending all personal income taxes frees people to explore their own ideas and inventions, and to start their own businesses that will employ more people and advance society further. Also…

Continue Reading »

Time to Buy Gold Stocks…Again

Filed in Australian Gold, currencies, featured, Gold, Gold Miners, miners, o by on January 26, 2011 0 Comments

Gold stocks are seen as relatively cheap in this essay with reference to the Market Vectors Gold Miners ETF and declining fain the the paper monetary system. … Western central banks are trashing their own currencies at unprecedented rates , while Eastern central banks are slowly tightening policy and accumulating gold bullion . If current trends in government spending and central banking continue, gold could soar to multiples of its current price. …

Continue Reading »

The Day They Burned the Price Chopper

Filed in BP, commodities, currencies, Ford, Gold, GOld juniors, Gold Market, inflation, o, target by on January 17, 2011 0 Comments
The Day They Burned the Price Chopper

There are food riots going on around the world. People are burning stores in India, Chili, China, Egypt, and Algeria. One man was forced to stop selling fruit along a Tunisian roadside because he didn’t have a permit. When he lit himself on fire, the ensuing riots ended a multi-decade-long dictatorship. People will put up with a lot — corruption, nepotism, cruel laws, and barbaric prisons — but they tend to lose it when they can’t afford food. This is especially true when they blame the ruling class for their misery… Food riots have ended reigns in France, Russia, and British India. Today the Egyptian stock market sold off on fears the riots might spread. Food prices hit fresh highs According to the UN’s Food and Agricultural Organization (FAO), its food price index hit a new high above the previous record in 2008. Soaring sugar, cereal, and oil seed prices were the main drivers. In one month— from November to December — sugar was up 6.7%, cereals were up 6.4%, and oils were up 8%. This is on top of a relentless 80% climb in prices over the past ten years. Wheat, in particular, has been hit hard. Wildfires in Russia shut down 11% of global exports from the country. Add to this the recent floods in Australia, which also makes up 11% of global exports, and you start to have a real problem… In the United States, the limit for corn-based ethanol has been raised, which drove up the price of cereal. There were also La Nia-driven droughts in Argentina, the second biggest exporter of corn after the U.S. If we get one more natural disaster — say, the Mississippi River has another hundred-year flood — the world would be in serious trouble. Food inflation: Wheat 10-year chart The forecast for 2011 is too early to tell with any clarity, but most of what I’ve been reading is that the world’s supply and demand balance for cereals is expected to tighten, with total consumption eclipsing world production for 2010/2011. This will require a six percent dip into stockpiles. ~~SIGNUP_WD~~ Hoarding The real worry is hoarding. When countries start to shut down exports — like Russia did after its historic fires, or India, Bangladesh, and others did in 2008 — those who need to buy agricultural commodities will chase the price higher. You will see the results on your store shelves. Here is a chart that shows U.S. food stamp participation: As you can tell, it’s been a hard…

Continue Reading »

Don Coxe webcast – updated (January 14, 2011)

Filed in BP, commodities, currencies, economy, Gold Prices, o by on January 15, 2011 0 Comments

Don Coxe has updated his popular webcast on Friday, January 14, 2011. Click through for the recording …

Continue Reading »

Commodity Roundup – Markets on your Radar

Filed in commodities, copper, currencies, Debt, economy, euro, Gold, o, outperform, silver, ubs by on January 8, 2011 0 Comments
Commodity Roundup – Markets on your Radar

MB Wealth Corp. is not responsible and does not endorse anything outside of the content of this article authored by Matthew Bradbard President of MB Wealth. As most followers recognize, I break the commodity markets into seven sectors: financials which include the indices and debt markets, energies, currencies, livestock, metals, grains and finally the softs. So let’s examine sector by sector what should be on your radar as we conclude one trading year and a fresh year of opportunity is upon us. Financials While the first part of the year brought uncertainty and perhaps too much pessimism after a bottom formed in the summer indices have appreciated lifting the Dow and S&P approximately 25%. From here, we think prices have gotten ahead of themselves and expect a 5% depreciation from their current levels. Aggressive clients have started to purchase March ES bear put spreads . Reflecting back on the year, Treasuries have had an inverse relationship to the indices enjoying trade higher in the first half of the year reaching an interim top in the summer and falling off since. The greatest loss has been in Q4, as yields have increased and 30-yr bonds and 10-yr notes have lost considerably. We expect to see a bounce into the new year and have advised aggressive clients to buy dips in 30-yr bonds, 10-yr notes or to position themselves in NOB spreads with their directional bias in the direction of bonds. Energies There has been a powerful force lifting prices higher in crude oil and the distillates virtually all year and we see no reason for that to change. Continue to use price retracements as buying opportunities as we see $110/115 in Crude by mid 2011. Assuming we are correct with this assumption, both heating oil and RBOB would likely be 20-25% higher as well. Natural gas remains a dog unable to make any significant headway all year. There have been fits and starts but the range bound action for the last six months has been discouraging and lost my clients money on several attempts. From here we may opt to scale into long…

Continue Reading »

Dow sinking after our Dec 13th target

Filed in commodities, currencies, Gold, Gold Bullion prices, o, silver, target by on January 7, 2011 0 Comments

On Dec 13th we wrote that we see Dow breaking the previous peak at 11,460s and pushing ahead to mid 11,700 however, this breakout wouldn’t be a typical break as the index would be stuck between 11,460 and 11,550 which we referred to as the jitter zone and only after clearing the jitter zone it shall rise and post a high of mid 11,700. As we wrote in our January 3rd Newsletter that on the first trading day of the new year Dow breaks 11,700 and we erred to the sidelines for our target was almost in sight however, yesterday we went short of Dow as our target of nearly fully achieved and we now sit quietly with our 1 unit short on the Index. We also went bearish of FTSE on its first day of the trading of the year on Tuesday and in our Jan 5th newsletter gave a sell call on FTSE as well for it too gave a made a new high inline with our expectations and thus we are 1 unit short of FTSE as well. We maintain our corrective bearish stance on the equities as the profits have been marked and regardless of the markets going higher during the year what matters is when you buy and when you sell and we feel the time right now is to sell and not hold on to those long positions. By Bari Baig At www.marketprojection.net we make real time forecasts of commodities, currencies and equities

Continue Reading »

Gold has taken a hit but is it really bad

Okay, in short it seems bad, price falling from $1,420 to $1,368s as we write and earlier today it tumbled to $1,358s from where it recovered but is it really a big drop? We’d answer that shortly but what is interesting is that how quickly the sentiment is changing regarding Gold. When prices fell from the previous peak or the peak before [$1,430 and $1,420] the sentiment stayed firmly in place whereas the drop from $1,420 peak in early November was a rather sharp one and Gold price retreated almost $100 yet the sentiment stayed firmly bullish which is not the case this time. We yesterday raised a cautionary flag on Gold and stated that if the short term support of $1,363 is given away the probability of gold trading down to $1,300-20 per ounce cannot be ruled out. We stand by it even now and in terms of percentage drop it comes at 8.7% which is in line with the previous corrective spells. As we have written before and most notably have made a part of our recommendation that it is better to own gold in non U.S Dollar terms, now that gold is correction we believe it makes even more sense. As Dollar is strengthening and gold is getting weaker so that’s a double impact whereas with Euro started to weaken before gold did thus it acts as a hedge and the drop thus far rather Gold has pushed ahead in euro terms. Recently commodities have showed the tendency to overcome inverse correlation with the Green back and move upwards as green back strengthened but that is not always the case and it is very much evident right now. At current price Gold is at a pivot region, a slight lean to the downside would be enough for the gravity to get hold of gold and sink it lower. Corrections are good and drop

Continue Reading »

What happens when SNB is stopped out?

We have brought up the Swiss National bankers and what they have been doing for last several months by buying Euros in their attempt to weaken the Swiss Franc but the market keep pushing the Franc higher and Euro lower. A while back SNB kneed down to the market in a statement by the central bank in which the bank stated they wouldn’t buy Euros anymore. Well, SNB banker did pause for a while and guess what? Swiss Franc actually weakened instead of gaining strength versus the Euro. Perhaps it was that very market move which forced the SNB bankers to get to the kill again. What amazes us is that Swiss take pride in banking and thus are known as the smartest of bankers, but what have they been doing since past year? Are they not worried about their jobs? For we have stated several times in the past we’d hate to be at the helms of SNB when it had such a large exposure of Euros. A year earlier the pair stood at 1.48 whereas today and as we write it stands at 1.249s. The interventions efforts which we can imagine would have been discussed and deliberated upon many many times in closed rooms shall prove to the stupidest decision the bank has ever taken. This reminds

Continue Reading »

Top Picks 2011: ProShares UltraShort Yen (YCS)

Filed in Bank Gold, currencies, Debt, o, shares, Yen by on January 4, 2011 0 Comments
Top Picks 2011: ProShares UltraShort Yen (YCS)

Filed under: International Markets , Newsletters , ETF Investing , Japan , Currency , Best Stocks for 2011 This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011 . This special report is courtesy of TheStockAdvisors.com . “Bloomberg recently reported that China has recorded two straight months of reducing its holdings of Japanese debt; t.his suggests that the Japanese yen has reached the point where it’s become too ‘strong’ for its own good — or at least for China’s taste,” says global stock specialist Keith Fitz-Gerald . The editor of The New China Trader explains, “Considering China has become the world’s de facto financier, we’d be wise to pay attention. Continue reading Top Picks 2011: ProShares UltraShort Yen (YCS) Top Picks 2011: ProShares UltraShort Yen (YCS) originally appeared on BloggingStocks on Tue, 04 Jan 2011 10:40:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Continue Reading »

Junior Gold Stocks to Shine in 2011

Junior Gold Stocks to Shine in 2011

Last Friday, I urged Wealth Daily subscribers like yourself to buy gold and silver ahead of major buying that needed to take place this week to satisfy contractual COMEX obligations before the end of the trading day today… Gold and silver prices have remained volatile in both directions since October. But indications from the COMEX show suggest we may see a spike in these precious metals prices next week… Contracts for gold and silver December futures that demand physical metal must be met by then. But there appears to be a significant shortfall in the actual physical metal required to meet these demands — especially in silver. If these contractual obligations are not met by the 12/31/10 deadline, then we could see a default scenario, which would drive the metals prices even higher and cause great instability for other markets as well. This is exactly what happened. Advertisement This Play Just Keeps Making Money – 155%… 323%… 900%… ???% A few months ago, I released a special video on a tiny Mongolian oil company. I predicted this little-known company would go absolutely ballistic once drilling results came in. And boy was I right. Early investors had a shot at 900% gains. And the way I see it, we’ll see a repeat very soon. So check out this video on the matter and make sure you’re one of the early birds this time around.  Significant buying of physical gold and silver to meet COMEX futures drove bullion prices much higher this week. Take a look: While the physical bullion market is rising, junior mining shares are starting to get some attention once again. Junior mining stocks are even more speculative— but their risk/reward tradeoff amplifies potential gains even further. And when junior gold stocks are in favor, they can quickly return legendary gains. There’s just one little problem… There are over 1,000 junior mining companies listed on the TSX Venture exchange alone. And it’s very difficult to sort through all the promotions and scams to find solid junior gold stocks. Going through all those companies was a very time-consuming and nerve-racking ordeal… So, if you don’t …

Continue Reading »

Dollar Hits Low Against the Swiss Franc

Filed in commodities, currencies, euro, Gold, New Gold, o, silver, swiss franc by on December 28, 2010 0 Comments
Dollar Hits Low Against the Swiss Franc

Filed under: Market Matters , Currency Three intermarket commodities are on the move today. The Financial Times reported that the U.S. dollar hit a low against the Swiss franc. Why is this noteworthy? First the Swiss franc is a separate currency, not part of the euro. With Europe in disarray, the only safe currency is the Swiss franc. Anyone wanting to hedge against the eurozone getting worse would buy the Swiss franc. On the futures market, the March Swiss is trading at 1.05610, up 0.0138 (9:20 EDT). The March U.S. dollar is trading at 80.18, down 0.49. Continue reading Dollar Hits Low Against the Swiss Franc Dollar Hits Low Against the Swiss Franc originally appeared on BloggingStocks on Tue, 28 Dec 2010 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Continue Reading »