Tag: dollar

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 …

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How High Will Gold Go in 2011?

The next major scene in gold’s bull market act is about to take stage… with prices expected to skyrocket. Rapidly increasing demand and stagnant mine production levels are quickly leading to a deficit in supplies, forcing gold prices higher. Meanwhile, gold’s upward momentum will become greater as more and more investors and institutional funds wake up to the fact that they need to get out of the U.S. dollar. ~~SIGNUP_WD~~ Next year, I believe we could see gold prices in the $1,500-$2,000 range as the dollar continues to wane in value. Just this week, Russia and China decided to reject the U.S. dollar and use their own domestic currencies for bilateral trade — a move that’s part of a developing economic relationship between the two countries. Back in September, for instance, Russia and China inked a $6 billion deal for coal and coal-to-liquids projects over the next 25 years. Once other countries decide that they need to follow suit, the entire house of cards could come tumbling down. In the short term, the powers that be will try to prop up the system while they get their own personal affairs in order. But it is inevitable that they will lose control. And gold prices will be forced to scream higher. Gold to scream higher in 2011 The main driver of rising gold prices will not be the short-term speculative demand that comes from mining shares or commodity futures, but from longer-term buying interests seeking risk protection for their savings due to depreciating worldwide currencies. Gold is moving up against all currencies worldwide. And while some may flee the U.S. dollar to go into the euro or some other fiat currency for a time, most will eventually come to gold as the only true safe haven for their savings. These buyers are strong hands with long-term interests who will be seeking to protect wealth. This trend is already underway, but will accelerate greatly in 2011. You have to remember that there have only been about 150,000 tonnes of gold ever mined out of the ground. (If you melted it into a giant cube, it would only measure 20x20x20 yards.) That means it only takes a small percentage of investors to move into the gold market to move prices much higher. Changing of the guard The unsustainable U.S. debt structure looks like it’s getting ready to implode. This instability translates into a worldwide diversification away from the dollar. A changing of the guard appears to be underway— meaning the days of the dollar as the international reserve currency appear to be numbered. Keep this in mind as you make your investment decisions for 2011… Gold should do very well this year— and for many years to come. One way I’m hedging my portfolio is with a new, one-of-a-kind investment vehicle designed to double the return of gold prices. Mind you, this investment has been all but ignored by media since its launch… After all, gold has never been understood or appreciated by the mainstream, despite its historic economic significance. Still, for every 1% increase in the price of gold, this new gold investment vehicle delivers a positive 2% return. My colleague Luke Burgess just finished filming a presentation explaining the details of this investment. You can check out this short video here. Good Investing, Greg McCoach Analyst, Wealth Daily Investment Director, Insider Alert and Mining Speculator How High

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ConocoPhillips (COP): An ‘Excellent Value’

Filed in Bank Gold, commodities, earnings, o by on November 22, 2010 0 Comments
ConocoPhillips (COP): An ‘Excellent Value’

Filed under: Newsletters , ConocoPhillips (COP) , Commodities , Oil , Stocks to Buy “ConocoPhillips ( COP ) is one of my favorite ideas for investors seeking a reliable (and increasing) income stream and modest upside potential,” says Nathan Slaughter . The editor of Street Authority Market Advisor explains, “With the dollar sliding, oil prices have climbed back above $87 per barrel and could soon flirt with the $90 mark. And ConocoPhillips produces 1.72 million barrels every 24 hours. “Through the first nine months of 2010, adjusted earnings in the core exploration and production segment at ConocoPhillips are up more than 100%. Continue reading ConocoPhillips (COP): An ‘Excellent Value’ ConocoPhillips (COP): An ‘Excellent Value’ originally appeared on BloggingStocks on Mon, 22 Nov 2010 13:20:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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The Fed Thinks you’re Stupid

Consumer prices are going up… but there’s no inflation, says the Fed. Not only do they want you to believe that, they want you to believe they’ll never monetize debt – another lie Wealth Daily has pointed out. Today, even as consumer prices “rose moderately,” there was little sign of inflation because auto, clothing and hotel prices fell. Well woop-dee-friggin-doo… energy and food weren’t accounted for in the core number. And, according to “experts,” “ Fears about a potential outbreak of inflation from the Fed’s recent moves are massively overblown and are completely out of sync with the reality of extremely competitive markets for … products and services,” said Brian Bethune, an economist at IHS Global Insight. Are they kidding? Or are they just this nave? Even a Wal-Mart survey says inflation is here . As the Wall Street Journal points out, “Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. And food makers and retailers including McDonald’s Corp., Kellogg Co. and Kroger Co. have begun to signal that they’ll try to make consumers shoulder more of the higher costs for ingredients.” Food prices are actually rising faster than inflation numbers. CPI, which excludes food and energy, was up 0.8% to its lowest 12-month increase since March 1961. Unfortunately, the food index was up 1.4%. And the U.S. Agricultural Department is predicted overall food inflation of about 2% to 3%, says The Reformed Broker. Let’s take a look back at what I said recently in Wealth Daily. In the months since Bernanke told us QE1 would not jeopardize the stability of prices, the price of oats is up 40%. Orange juice is up 45%… rice is up 50%… coffee is up 60%… copper is up 70%… and silver is up 100%. Passing the price to consumers The prices are, and will continue to be, passed on to consumers. Kraft just told investors about half of the company’s input costs have spiked 20% to 30% year over year, and the company had to raise prices on consumers. Just last week, Kraft Foods (KFT) posted a 26% rise in Q3 revenue; however, due to rising material costs, profits fell close to nine percent. Plus, Kraft is hiking prices some 40% shortly… Kroger announced it would have to raise prices. McDonald’s, Safeway, and Domino’s are all doing the same. General Mills is raising prices by “low digits” on 25% of its cereals on November 15. For crying out loud, bacon is up 16% in September 2010 from September 2009. Even UPS just announced it was raising shipping rates an average of 4.9% in January. Is it possible all these companies lost Ben’s memo that inflation was under control? All Bernanke has managed to do iscreate an environment where companies are forced to raise prices… And it’ll only get worse, as the dollar drifts lower. Bill Gross, for example, thinks the dollar will fall another 20% if the Fed continues this monetary easing policy. Companies are paying more for the things that produce the things you buy. When the prices you pay go up, that’s inflation. That’s what’s happening right now, even as you read this. Cat’s …

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World's most wanted gold stocks – Mineweb

Filed in African Gold, Bank Gold, Gold, Indonesian Gold, o by on November 10, 2010 0 Comments

Investors have had ample time to line up the winners, among hundreds of gold stocks listed across the planet; as long as a decade, if the start of the dollar gold bullion bull market is used as a kick off point. …

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Jim Rogers: Obama "doesn’t know anything about economics"

Filed in commodities, Gold, GOld juniors, inflation, Jim Rogers, obama, silver, US Dollar by on October 19, 2010 0 Comments

Here’s Jim Rogers again. This time he appeared on Fox News to talk up gold, silver and commodities among other things. Great stuff. Related Articles: Jim Rogers: $2000 Gold is a “Given” Jim Rogers on Oil and the US Dollar Jim Rogers on Gold, the Dollar, and Inflation Jim Rogers Warns the Dollar Faces a “currency crisis” Jim Rogers: “This is not going to solve the problem” To learn more about Wealth Daily click here Advertisement The Biggest Investment of the 21stCentury It’s called the smart grid… and it’s about to revolutionize the way we use our electricity. GE and Google have already committed billions to this technology… But a handful of “super-ups” are poised to dominate this $297 billion/year industry… Get their names and ticker symbols here. Jim Rogers: Obama “doesn’t know anything about economics” originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Crude Oil Tops $83 a Barrel

Filed in Federal Reserve, inflation, Spot Gold by on October 19, 2010 0 Comments
Crude Oil Tops $83 a Barrel

Filed under: Oil , Federal Reserve , Currency The price of oil jumped 2.3% to close at $83.08 per barrel on Monday, The Wall Street Journal reported. The trigger was a report by the Department of Energy stating that Inventories fell to 1.13 billion barrels from a high of 1.44 billion barrels in September. Since June, oil has been range-bound between $70 and $80 per barrel. Now, with inventories lower, there is a fundamental reason for oil to trade higher. Continue reading Crude Oil Tops $83 a Barrel Crude Oil Tops $83 a Barrel originally appeared on BloggingStocks on Tue, 19 Oct 2010 11:20:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Forex: Speculators trim Euro, Yen, Aussie long positions in Currency Futures

Filed in British Pound, currencies, euro, Gold, swiss franc, US Dollar, Yen by on October 18, 2010 0 Comments
Forex: Speculators trim Euro, Yen, Aussie long positions in Currency Futures

By CountingPips.com The latest Commitments of Traders (COT) report, released on Friday by the Chicago Mercantile Exchange, showed that futures speculators slightly pared their bets in favor of the euro and the other major currencies against the US dollar. Non-commercial futures positions, those taken by hedge funds and large speculators,were overall net short the US dollar by $29 billion against the other major currencies, down from a total short position of $30.5 billion on October 5th, according to data published by Reuters . Currency speculators were net long the euro against the U.S. dollar by 41,511 contracts as of October 12th. This is a decline of nearly 7,000 contracts following net long positions of 48,243 contracts on October 5th and breaks a string of five straight weeks of improving positions for the euro. The COT report is published every Friday by the Chicago Mercantile Exchange (CME) and shows futures positions as of the previous Tuesday. It can be a useful tool for traders to gauge investor sentiment and to look for potential changes in the direction of a currency or commodity. Each currency contract is a quote for that currency directly against the U.S. dollar, where as a net short amount of contracts means that more speculators are betting that currency to fall against the dollar and net long position expect that currency to rise versus the dollar. Open interest is the number of open contracts that have not been closed by a transaction or by delivery. The British pound sterling had been the last major currency on the short side against the dollar in the CME futures market but in early October the British currency positions …

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Dollar Sharply Lower, Causing a Rush into Commodities and Equities

Dollar Sharply Lower, Causing a Rush into Commodities and Equities

Filed under: Before the Bell , Major Movement , International Markets , Market Matters , Commodities , Oil , Federal Reserve , Currency The big story today is the U.S. dollar. The December dollar futures are trading at 76.69, down 0.597 (as of 7:30 EDT). That was the trigger and it is off to the races with Asia-Pacific shares hitting their highest level since July 2008, according to the Financial Times . Stocks also opened higher in Europe with the FTSE All World Index up 0.8% to 210.4. Now you are wondering, what is happening? The answer is the Federal Reserve. The Fed minutes stated that the central bank was ready for another round of quantitative easing to stimulate the economy. That means more inflation and a scramble to buy risk orientated commodities and securities. Continue reading Dollar Sharply Lower, Causing a Rush into Commodities and Equities Dollar Sharply Lower, Causing a Rush into Commodities and Equities originally appeared on BloggingStocks on Thu, 14 Oct 2010 10:30:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Is the U.S. Trying to Devalue the Dollar?

Is the U.S. Trying to Devalue the Dollar?

Filed under: Federal Reserve , Currency The U.S. dollar has been under siege since June when the U.S. dollar futures index reached a high of 89.11. In today’s trading the index traded at 77.34. According to Federal Reserve minutes released Tuesday, it looks like the Fed is behind this — engineering a weaker dollar to boost commodities and the stock market and give U.S. exporters an edge in world trade, The Wall Street Journal reports. The very fact that the Fed plans additional purchases of U.S. Treasuries to stimulate the economy is almost a sure bet to further devaluation of the dollar. The Fed prefers inflation because it is deathly afraid of deflation. The Fed sees inflation as the better of the two evils. Continue reading Is the U.S. Trying to Devalue the Dollar? Is the U.S. Trying to Devalue the Dollar? originally appeared on BloggingStocks on Wed, 13 Oct 2010 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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You Heard it Here First: China’s Plan to Dethrone the Dollar Continues to Unfold

Filed in commodities, Gold Investing, Gold Prices, lead, silver, stimulus, ubs, yuan by on October 12, 2010 0 Comments

The U.S. dollar is on the way out as the world’s top reserve currency. And as Money Morning Chief Investment Strategist Keith Fitz-Gerald predicted more than a year and a half ago, the yuan could be set to replace it. The greenback has served as the world’s benchmark reserve currency since the mid-20th century, but soaring deficits and the U.S. Federal Reserve’s loose monetary policy have drained the dollar’s value. Meanwhile, emerging markets – many of which are vibrant manufacturing hubs, net creditors, and have rich caches of commodities – are more fiscally sound than the United States, which has a $1.3 trillion budget deficit. “If you look at the fundamentals of a lot of these emerging markets, they are considerably better than developed markets,” Kenneth Akintewe, a Singapore-based investment manager at Aberdeen Asset Management PLC told Bloomberg in an Oct. 11 interview . “Who wants to be holding U.S. dollars at this stage?” China, which leads the world with more than $2 trillion in currency reserves held mostly in U.S. Treasuries, is chief among the countries seeking respite from the dollar’s decline. Beijing has long bemoaned the depreciation of the dollar , stating outright that it should be replaced as the world’s main reserve currency.

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Family Dollar Stores (FDO) – Bull of the Day

Filed in Gold Investing by on October 11, 2010 0 Comments

Family Dollar Stores (FDO) – Bull of the Day

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