gold bugs

Money to Burn: 10% of Cash Supply to be Destroyed

Money to Burn: 10% of Cash Supply to be Destroyed

Here’s a story that is sure to leave the gold bugs shaking their heads. It seems as though Uncle Sam can’t even print his own fiat currency without screwing it up. A full 10% of all existing U.S. currency is going to be quarantined and burned at a cost of over $120 million. From Yahoo News by Zachary Roth entitled: Government can’t print money properly “ As a metaphor for our troubled economic and financial era — and the government’s stumbling response — this one’s hard to beat. You can’t stimulate the economy via the money supply, after all, if you can’t print the money correctly. Because of a problem with the presses, the federal government has shut down production of its flashy new $100 bills, and has quarantined more than 1 billion of them — more than 10 percent of all existing U.S. cash — in a vault in Fort Worth, Texas, reports CNBC. “There is something drastically wrong here,” one source told CNBC. “The frustration level is off the charts.” Officials with the Treasury and the Federal Reserve had touted the new bills’ sophisticated security features that were 10 years in the making, including a 3-D security strip and a color-shifting image of a bell, designed to foil counterfeiters. But it turns out the bills are so high-tech that the presses can’t handle the printing job. More than 1 billion unusable bills have been printed. Some of the bills creased during production, creating a blank space on the paper, one official told CNBC. Because correctly printed bills are mixed in with the flawed ones, even the ones printed to the correct design specs can’t be used until they ‘re sorted.It would take an estimated 20 to 30 years to weed out the

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Ben Plans, Commodities Soar

Welcome to the Wealth Daily Weekend Edition— our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. Don’t look now, but the Fed has just driven the magic bus right off of the cliff. Nowhere to run, nowhere to hide, it’s break on through to the other side. With nearly $1 trillion in new money now set to roll off the printing presses, the Fed has finalized its course. Inflation is the destination. It does so with a giant magical checkbook that creates money out of nothing. And as we know, since the 70s, it is one that is no longer tied to gold. It’s what the gold bugs mean when they denounce the dollar as being nothing more than “fiat money.” That is, it’s backed up only by the “full faith and credit of the U.S. Government.” That’s why commodity prices have been going nuts as of late, as investors place their bets against all of Big Ben’s phony new greenbacks. For instance, did you know that copper has surged 28% on stronger demand and a weaker U.S. dollar? Or that cotton and gold traded recently at all-time highs for the same reasons? They have— and along with everything else, including oil, commodities are likely headed much higher from here… In fact the dollar’s weakness, inflationary pressures, and stronger emerging-market demand, all mean that commodities are going to be very bullish over the next 12 to 18 months. Advertisement The Options Guide Your Broker Doesn’t Want You to See… Most people think profiting from options requires years of investment experience or a seasoned stock broker. That’s why people are losing thousands of dollars everyday. Our in-house options expert Ian…

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Five Gold Investment Alternatives

Five Gold Investment Alternatives

Gold prices are soaring. Last month, the price of gold breached a new all-time record high of over $1,387 an ounce. But with gold increasing almost 20% in three months, speculators concerned with a correction in prices may want to consider other hard asset commodities as an alternative investment. So with that in mind, today I bring you five hard asset alternatives to gold to consider. Five gold investment alternatives Gold is a commodity. As such, the yellow metal derives a large part of its value from the balance of supply and demand. The majority of the world’s supply of gold comes from mining (58%) and recycling (42%). Meanwhile, global gold demand is dominated by the jewelry and investment sectors. The applications, market, and dynamics of its supply-demand balance make the first investment alternative to gold obvious. Gold Investment Alternative #1: Silver and other precious metals Like gold, world supplies of silver and other precious metals — including platinum and palladium — are dominated by mine production and recycling. In the case of silver, 80% of global supplies are mined while 19% are recycled. Meanwhile, worldwide supplies of platinum and palladium are more dependent on recycling and stockpiles. Unlike gold, the demand for silver, platinum, and …

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ASA Limited (ASA): Gold Fund Earns Another Look

Filed in Bank Gold, commodities, Gold, gold bugs, gold coins, gold-stocks by on October 25, 2010 0 Comments
ASA Limited (ASA): Gold Fund Earns Another Look

Filed under: Newsletters , ETF Investing , Commodities , Stocks to Buy “In keeping with our ongoing strategy of buying stocks that have announced splits, I am now zeroing in on ASA Limited ( ASA ),” says Neil Macneale . The editor of 2-for-1 Stock Split Newsletter explains, “I originally passed over this stock when it announced its split last April. I now think things have changed enough to warrant a second look. “What has changed since I first reviewed this issue is my perception of the world’s demand for precious metals. Gold is near an all time high and, for the time being, the gold bugs may have it right. Continue reading ASA Limited (ASA): Gold Fund Earns Another Look ASA Limited (ASA): Gold Fund Earns Another Look originally appeared on BloggingStocks on Mon, 25 Oct 2010 13:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Gold and Stocks Can’t Dance Together Forever

Filed in currencies, earnings, economy, Gold, gold bugs, inflation, shares, silver by on October 15, 2010 0 Comments
Gold and Stocks Can’t Dance Together Forever

Stocks and bullion are moving so closely in-step these days that gold bugs may soon find themselves in the uncomfortable position of rooting for higher share prices. For many of them this will be quite a stretch, since gold and silver are popular now mainly because they’re regarded as hedges against the kind of economic disaster that would sink the stock market. To be sure, there are some who see the concurrent strength of shares and bullion as stemming from the same source – namely, inflationary pressures. The argument is solid and there is no way to refute it, since no one can say exactly why shares are rising. Whatever the reason, bullion’s ascent is easier to understand: It is occurring simply because the central banks have been inflating their respective currencies to the point of valuelessness. But while this ever-accelerating process of debasement has the potential to drive precious-metal prices into the ozone, it seems unlikely that share prices would benefit from such a scenario, implying as it does a looming catastrophe for the global economy. What this suggests is that although bullion quotes could conceivably be goosed to the moon if the world’s currency system were to collapse, shares prices could be driven only so high by panic. For in the final analysis, corporate stocks are tethered to the real world of earnings multiples, cash flow, inventory and depreciation in a way that gold and silver are not. And while the imagination can run wild with gold and silver valuations in a world presumed to have lost all trust in paper money, the future value of, say, IBM’s service contracts is going to be limited ultimately by more mundane concerns. Extreme Predictions So, if the stock market were to plummet, do we expect gold and silver prices fall with it? The answer is no, but only because we think stocks will ultimately be undone by a collapsing dollar. That’s not exactly a black-swan event, since nothing could be more predictable than the collapse of a currency that is already fundamentally worthless. But we strongly doubt that shares and gold would decouple

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Gold Prices Forecasted Higher

Filed in Gold, gold bugs, Gold Futures, Gold Investing, Gold Prices, silver by on October 11, 2010 0 Comments

On Friday, gold futures for December finished at $1,345.30 an ounce… the second highest close on record. We spent some time last week discussing whether gold prices are overheated or not. Just before the weekend, the gold bugs spoke up about what fac…

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Weekend: A September to Remember

Weekend: A September to Remember

Welcome to the Wealth Daily Weekend Edition— our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. Thank goodness that’s over with… I was beginning to think that I’d never be able to wear my smiley face button again. According to the National Bureau of Economic Research, the longest recession since World War II officially ended in June 2009 or a full 16 months ago. That’s the good news. The bad news is that nobody really believes it. And why would they? Advertisement The Next GE Thanks to a push to revolutionize our power grid… A small group of hi-tech startups is about to take a major chunk out of a $297 billion/year market. In the coming years, these outfits will become the next GE, the next Google, and the next Microsoft. Get their names and ticker symbols now , before they take off. As this chart from Gluskin and Sheff’s David Rosenburg shows, it really is different this time… What is supposed to be up at this point is still down across the board. That’s because on a percentage basis, corporate earnings, shipments, housing starts, retail sales, home sales, industrial production, commercial construction, real GDP, orders, and non-farm payrolls are all usually up big by now. Instead, what is happening this go-round is actually…

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The 21st Century Yukon Gold Rush

The 21st Century Yukon Gold Rush

The mining history books will have to be rewritten. Brand-new discoveries of large — and incredibly rich — gold deposits in Canada’s Yukon Territory have sparked the imaginations and excitement of geologists across the globe. And with these impressive discoveries, the Yukon Territory is once again gaining a reputation as one of the world’s hottest gold exploration targets. For investors, this means the opportunity to profit from ground-floor area plays in the rapidly re-emerging Yukon gold district — which geologists are already comparing to the world’s top gold regions. Some of these stocks have already started paying off. In just a second, I’ll tell you about two junior gold stocks that have already yielded quadruple-digit gains after the companies hit pay-dirt in the Yukon’s prolific White Gold district. The Yukon region’s legendary gold history and wealth of remarkable new mineral discoveries are quickly making the territory one of the industry’s most intriguing regions for exploration. Investors are advised to take a close look at quality junior gold exploration companies with assets in Canada’s Yukon Territory. And this will get you started… Advertisement The “War on American Retirement” EXPOSED While our nation’s eyes are fixed on Iraq and Afghanistan, Congress launches a hidden assault right here in the homeland … Against your IRAs and 401(k)s. You can surrender and lose everything – or make this “guerilla wealth” move and retire rich, with your assets intact . Click here to learn more Canada’s 21st century Yukon gold rush The gold mining industry has been ingrained in the Yukon culture for over a century. Beginning with the great Klondike Gold Rush in 1896, a total of over 12.5 million ounces of gold have been produced from the Yukon Territory. Yet despite having already produced resources that are worth $15.6 billion today, many geologists still regard the Yukon Territory as ‘virgin country’ in terms of gold exploration and mining. That’s because the full potential of the Yukon Territory is still undetermined. Less than 3% of the Yukon’s known mineral occurrences have been tested with modern gold exploration techniques. Today there are about 80 mineral…

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Liberty Media’s John Malone Clueless on Gold

Liberty Media Corp.’s Chairman John Malone was talking about his investment strategy recently, and said the strange statement concerning gold and why he wasn’t investing in it. Malone said this, “I’m not a gold bug. There’s just something about gold that seems artificial to me.” Both assertions show his ignorance. First of all, being a gold bug has absolutely nothing to do with investing in

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