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Tracking all things that relate to and affect the price of gold.
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Bernanke Seeks Gains for Stocks in Push for Jobs: Economy

Bernanke Seeks Gains for Stocks in Push for Jobs: Economy | Gold and What Moves it. | Scoop.it

By Caroline Salas Gage and Jeff Kearns

 

"Chairman Ben S. Bernanke is increasingly aiming for gains in stock prices as the Federal Reserve reaches for new tools to spur the three-year recovery and reduce unemployment stuck above 8 percent.


"Bernanke, setting the stage for a third round of quantitative easing in an Aug. 31 speech in Jackson Hole, Wyoming, said the strategy works in part by boosting the prices of assets such as equities. In a speech yesterday in Indianapolis he said higher stock and home prices would provide further impetus to spending by businesses and households.

 

“It’s pretty clear that the stock market is the most important transmission mechanism of monetary policy right now,” said Peter Hooper, chief economist at Deutsche Bank AG in New York. “That’s where you’re getting most of the action in terms of lift to the economy. It’s the stock market that’s going to have to be carrying the load.”


"The Fed’s large-scale asset purchases will probably lift stocks by 3 percent over the two years following the Sept. 13 announcement of QE3 as low yields on government bonds push investors into risker assets, according to a Sept. 27 report by Deutsche Bank economists. They also estimate that QE will lift home prices by 2 percent over two years, assuming the Fed maintains purchases of Treasuries and mortgage debt through 2013. ..."

 

hat tip to www.drudgereport.com

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Watching one of the first showings of Part II of Atlas Shrugged was a surrealistic experience | Downsizing the Federal Government

Watching one of the first showings of Part II of Atlas Shrugged was a surrealistic experience | Downsizing the Federal Government | Gold and What Moves it. | Scoop.it

Rand O'Toole writes:

 

"Watching one of the first showings of Part II of Atlas Shrugged was a surrealistic experience for me after testifying earlier in the day (September 20) to the House Transportation Committee about Amtrak. In the movie, government officials piously argue that for the “greater good” they need to provide “guidance” to the nation’s capitalists—and the more guidance they give, the more capitalism fails, which naturally justifies even more guidance.

 

"In the hearing, I testified that Amtrak can’t be reformed because, as a government entity, it will still be controlled by politics, and the only solution was privatization. This led Peter DeFazio, my own former congressman (I moved to an adjacent district four years ago) to reem me out for not having faith in government.

 

“You don’t believe government should run our air traffic control? You don’t believe government should run our highways? You don’t believe government should subsidize the Port of Los Angeles?” Before I could fully answer each question, he would roll his eyes and interrupt me with incredulous moans. Fortunately, one of the other committee members rescued me and gave me a chance to answer.

 

"Ironically, one of DeFazio’s own questions should have been his undoing. Somehow, he didn’t think ..."

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Across Latin America, the quest for gold brings both riches and conflict | Gold Anti-Trust Action Committee

Across Latin America, the quest for gold brings both riches and conflict | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it

By Tim Johnson
McClatchy Newspapers
via the Kansas City Star, Kansas City, Missouri
Monday, October 1, 2012

.

http://www.kansascity.com/2012/10/01/3843039/across-latin-america-quest-for.html

 

MEXICO CITY -- Steadily high prices for gold are having a dramatic impact on parts of Latin America, bringing a flood of foreign investment and stirring a gold bug among wildcat miners in the jungles.

 

Some of Latin America's poorest nations -- Bolivia, Honduras, and Nicaragua -- have seen their balance sheets strengthened by gold production, while major producers Peru and Mexico reap billions in foreign exports.

 

But even as miners unearth deposits of gold, they also open up veins of social discontent. Protests over gold mining have become the coin of the day in areas where villagers complain of water pollution, a lack of jobs, and environmental devastation. ....

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Morning Gold Market Report 10/2

GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Despite the easing move from the Royal Bank of Australia overnight, gold prices in the early US action weren't giving off definitively positive vibes. Rising unemployment readings from Spain and ongoing talk about the US fiscal cliff have tempered macro economic views into some private US employment survey figures later this morning. However, expectations for the ADP report call for a fairly solid result and while positive news might be supportive for some physical commodity markets, the gold market recently has become very dependant on the prospect of more easing from the US Fed.

 

At least to start today, gold is benefiting from favorable currency market action and from higher US equities. Gold might also see some minor support from news of a minor up tick in a gold derivative holdings yesterday afternoon. However, traders should expect somewhat of a noted reaction to the private jobs report due out early in the session, as jobs news is thought to be the primary focus of the Fed.

 

Comex Gold Stocks were 11.013 million ounces up 3,968 ounces.

While the RBA easing move overnight should provide fresh support for gold prices, a large measure of the gains in December gold over the last 5 trading sessions has come from hope of either Chinese or US central bank easing and therefore the gold trade is likely to fixate on economic information. In addition to the ADP figures, the markets will also see September Auto sales results and that news could also contribute to the easing/no easing debate. ...

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Sam Zell On "Class Warfare Crap", #QE3 Unreality, And Why Everything Is Mispriced Due To The Fed | ZeroHedge

Posted on www.zerohedge.com by Tyler Durden:

 

"QE-whatever has created artificial numbers that the underlying won't support" is how Sam Zell sums up his view of the Fed's actions, adding that the Dow should be more like 9000, not 14000. The typically optimistic bottom-feeding real-estate magnate says he is not buying here, is gravely concerned about liquidity needs, and in his assessment "everything is massively too expensive." This epic CNBC interview-fest, where the less-than-cheer-leading Zell was allowed to speak, includes his views on a pending recession (as he sees capex planned projects being delayed) and while trying not to play the political card too strongly, he asks that we "stop this class warfare crap" and that the animal spirits are unleashed - as the game is being stacked against him. "We're kicking the can down the road... and with QE, there is now too much capital chasing too few opportunities - even when nobody has confidence in the future!"

 

Click through for the rest and the great three videos of Zell discussing things right now. Good stuff.

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Turk - No Profit Taking In Gold & Silver, Even After Huge Run

Today James Turk spoke with King World News about, “... the currency cliff the world will fall over when the dollar collapses.” Turk also said, “... gold just made new record highs against both the euro and Swiss franc, and continues to climb higher in both of these currencies.”

 

Turk also noted, “It's important that there are no signs of profit-taking after last month's big gains, which is a particularly significant point given that Friday also marked the end of the quarter.”

 

Here is what Turk had to say: “We are already starting to see the effects of QE3, Eric, and they are not what the central planners were hoping for. The inflationary pressures are building. To take energy as just one example, jet fuel prices are at the highest level since 2008, even as the growth in air traffic slows. ...”

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Gold is Good Money - Rep. Ron Paul

by Representative Ron Paul (TX-14):

 


Last year the Chairman of the Federal Reserve told me that gold is not money, a position which central banks, governments, and mainstream economists have claimed is the consensus for decades. But lately there have been some high-profile defections from that consensus. As Forbes recently reported, the president of the Bundesbank (Germany's central bank) and two highly-respected analysts at Deutsche Bank have praised gold as good money.

 

Why is gold good money? Because it possesses all the monetary properties that the market demands: it is divisible, portable, recognizable and, most importantly, scarce - making it a stable store of value. It is all things the market needs good money to be and has been recognized as such throughout history. Gold rose to nearly $1800 an ounce after the Fed's most recent round of quantitative easing because the people know that gold is money when fiat money fails.

 

Central bankers recognize this too, even if they officially deny it. Some analysts have speculated that the International Monetary Fund's real clout is due to its large holdings of gold. And central banks around the world have increased their gold holdings over the last year, especially in emerging market economies trying to protect themselves from the collapse of Western fiat currencies.

 

Fiat money is not good money because it can be issued without limit and therefore cannot act as a stable store of value. A fiat monetary system gives complete discretion to those who run the printing press, allowing governments to spend money without having to suffer the political consequences of raising taxes. Fiat money benefits those who create it and receive it first, enriching government and its cronies. And the negative effects of fiat money are disguised so that people do not realize that money the Fed creates today is the reason for the busts, rising prices and unemployment, and diminished standard of living tomorrow.

 

This is why it is so important to allow people the freedom to choose stable money. Earlier this Congress I introduced the Free Competition in Currency Act (H.R. 1098) to permit people to use gold as money again. By eliminating taxes on gold and other precious metals and repealing legal tender laws, people are given the option between using good money or fiat money. If the government persists in debasing the dollar – as money monopolists have always done – then the people would be able to protect themselves by using alternatives such as gold that are both sound and stable.

 

As the fiat money pyramid crumbles, gold retains its luster. Rather than being the barbarous relic Keynesians have tried to lead us to believe it is, gold is, as the Bundesbank president put it, "a timeless classic." The defamation of gold wrought by central banks and governments is because gold exposes the devaluation of fiat currencies and the flawed policies of government. Governments hate gold because the people cannot be fooled by it.

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Gold set to rise on inclusion as Tier 1 banking asset | MINING.com

Gold set to rise on inclusion as Tier 1 banking asset | MINING.com | Gold and What Moves it. | Scoop.it

by Marc Howe:

 

"Gold prices are set to a receive a major boost from their adoption by banks are a core asset should the world's leading banking regulatory authority opt to raise their asset status.

 

"According to independent stock analyst Rick Millsof Ahead of the Herd the Basel Committee for Bank Supervision (BCBS), which is responsible for forging global capital requirements, is undertaking a study into the categorization of gold as a bank capital Tier 1 asset.

 

"Tier 1 capital serve as a key indicator of a bank's fiscal health for regulatory purposes, and thus plays a crucial role in determining how much banks are permitted to lend to borrowers.

 

"This core capital from the perspective of regulatory assessment is comprised in the main of common stock and retained earnings, and subject to strict conditions to ensure that lenders remain in rude health.

 

"Gold was traditionally categorized as a Tier 3 asset, and their market value slashed in half when determining a bank's permitted lending volume.

 

"The inclusion of gold as a Tier 1 Capital asset by BCBS would enable banks to lend more with less equity capital, and gold would become in Mills' own words "the new backstop for debt, currencies and bank equity capital. ..."

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Gold Bullion Coin Sales Soar 76% In September, Silver Sales Up 13%

Gold Bullion Coin Sales Soar 76% In September, Silver Sales Up 13% | Gold and What Moves it. | Scoop.it

"According to the latest report from the U.S. Mint, demand for both gold and silver bullion coins during September surged to the highest levels since January.


"Total sales of the American Eagle Gold bullion coins during September soared 75.6% to 68,500 ounces from 39,000 ounces in August. Monthly sales of gold bullion coins have fluctuated widely during 2012 with a high of 127,000 ounces in January and a low of 20,000 ounces in April. The average monthly sales of gold bullion coins through September is 53,500. ..."

 

Click through for the full list of of numbers over fhe years.

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Iran Gold coin price rockets to 12 million rial

According to Gold & Coin Union of Tehran price of the gold coin has reached 12 million rials and appears to be rising by the day.

 

TEHRAN(BullionStreet): "Sanctions hit Iran's currency dropped to an all-timelow against the dollar while the price of a standard gold coin in Iranian markets surged to 12 million rials.

 

"According to Gold & Coin Union of Tehran price of the gold coin has reached 12 million rials and appears to be rising by the day.

 

"A standard gold coin weighs around 8.13 grams. It is also sold in smaller denominations of half a coin and a quarter of a coin.

Iran's currency, the rial has fallen to a historic low despite all efforts by the Ahmadinejad regime to control the market.

 

"The dollar was traded at the record level of more than 30,000 rials last week. The dollar was traded at about 12,000 rials last year at this time and began a gradual rise when U.S. and EU sanctions against Iran’s oil and financial sectors kicked in.

 

"Gold & Coin Union of Tehran said the rising price of gold and foreign currencies is due to low supply in the face of rising demand. ..."

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$2m in gold, gems stolen in California State Mining museum heist

$2m in gold, gems stolen in California State Mining museum heist | Gold and What Moves it. | Scoop.it

The California Highway Patrol is leading the search for robbers who stole a sizable portion of a 132-year-old mining, gem and gold collection dating back to California's Gold Rush Era.

 

by Dorothy Kosich:

 

RENO (MINEWEB) -

 

"Authorities are search for armed robbers who made off with as much as $2 million in gold and gems from the California State Mining and Mineral Museum in Mariposa, California.

 

"At about 4 p.m. Friday, two armed men, dressed in black and wearing face masks and night goggles threatened a museum curator and a museum guide with pickaxes. However, neither woman was harmed.

 

"The robbers then used pickaxes to break open displays and tried to access the Fricot Nugget, believed to be the largest intact crystalline nugget of California's Gold Rush era, at 201 troy ounces (13.8 pounds). The nugget is kept in a safe within a vaulted room at the museum. The thieves could not get into the safe, but managed to escape possibly with other gold and gems. ..."

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IMF to use windfall #gold profits for loans to poor countries

IMF to use windfall #gold profits for loans to poor countries | Gold and What Moves it. | Scoop.it

As a pre-condition, countries must give assurances that they will make at least 90% of the $2.7 billion available to a trust fund that lends to low-income countries at zero percent interest rates.

 

by: Sandrine Rastello

 

"The International Monetary Fund said today it agreed to distribute $2.7 billion in windfall profits from gold sales to subsidize loans to poor countries.


"The IMF's 188 members will receive a payment in proportion to their weight within the institution, the IMF said in an e- mailed statement today. As a pre-condition, countries must give assurances that they'll make at least 90 percent of the $2.7 billion available to a trust fund that lends to low-income countries at zero percent interest rates.

 

"The strategy endorsed today by the executive board ensures the IMF is better positioned to help our low-income members absorb future shocks and underpin their efforts to achieve stronger and sustainable economic growth," IMF Managing Director Christine Lagarde said in the statement. ..."

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Look Out Silver, Here Comes Solar Demand - Has Japan just ignited a surge in worldwide silver demand?

Look Out Silver, Here Comes Solar Demand - Has Japan just ignited a surge in worldwide silver demand? | Gold and What Moves it. | Scoop.it

By Alena Bialevich and Jeff Clark

 

"In early July, Japan set a premium price for solar energy that was three times the rate of conventional power. This meant utility companies would be paid three times more for electricity sourced from solar. It's widely expected that the premium will ignite the use of solar power – and solar uses a lot of silver.

Silver Demand from PV Panels

 

"As you may know, silver is used in photovoltaic (PV) technology to generate solar power. A typical solar panel uses a fair amount of the metal – roughly two-thirds of an ounce (20 grams). To put that in perspective, a cellphone contains around 200 to 300 milligrams (a milligram weighs about as much as a grain of sand). A laptop contains 750 milligrams to 1.25 grams.

 

"Photovoltaic technology is relatively young, but each year its use is growing rapidly. Just since 2000, the amount of silver consumed by solar-panel makers has risen an average of 50% per year. Demand grew from one million ounces in 2002 to 60 million ounces in 2011. Last year demand from the PV industry represented almost 11% of total industrial demand for the metal (excluding jewelry). According to statistics from CPM Group, demand grew by 11.2 million ounces, the strongest volume growth of all major sources (jewelry and electronics). And this was before the Japanese announcement was made. ..."

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What Changes in the Gold Market? Who is Buying? | Julian D. W. Phillips | Safehaven.com

What Changes in the Gold Market? Who is Buying? | Julian D. W. Phillips | Safehaven.com | Gold and What Moves it. | Scoop.it
By: Julian D. W. Phillips | Tue, Oct 2, 20


"A look at the gold market over the last few months shows that the pattern of price movements has changed from the traditional patterns. If you take the time factor out of charts on the gold price, the pattern of behavior becomes simple. It is a strong rise followed by a narrow, short consolidation pattern before a further move forward. This is unlike the saw tooth pattern we are used to as buyers and sellers reassess price prospects constantly, giving rise to more extended consolidation patterns over longer periods.

 

"Until June of this year, the gold and silver prices appeared to be following the more traditional pattern that tended lower. Then between $1,530 and $1,550, the price turned and headed upwards. It was then that the day-to-day pattern changed. A closer look at the long consolidation period that sent the gold price from $1,930 to $1,530 over the last year and more shows a changing pattern of large movements followed by narrower consolidations holding round a central price that held for a long time.

 

"Quantity, Not Price


"What's clear is that there were buyers who came in on the fall and restrained those falls to a narrower trading range. These buyers did not simply say, "Buy at a certain price" but appeared to ask their dealers for offers of gold and probably large ones too. Then these buyers took all that was offered to them. Their interest lay in the quantity of gold and not the price to be paid. What sort of buyer would not be concerned at the price but only at the quantity? ..."

 

Click over for the rest of the interesting article: Traditional, Investors, India, China, and Central Bankers.

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If You Prop Up an Artificial Economy Long Enough, Does It Become Real?

If You Prop Up an Artificial Economy Long Enough, Does It Become Real? | Gold and What Moves it. | Scoop.it

Charles Hugh Smith writes:

 

"Does carefully nurturing a facade of health actually lead to health? No; all it does is perpetuate a destructive illusion.

 

"The policy of the Status Quo since 2008 boils down to this assumption: if we prop up an artificial economy long enough, it will magically become real. This is an extraordinary assumption: that the process of artifice will result in artifice becoming real.

 

"This is the equivalent of a dysfunctional family presenting an artificial facade of happiness to the external world and expecting that fraud to conjure up real happiness. We all know it doesn't work that way; rather, the dysfunctional family that expends its resources supporting a phony facade is living a lie that only increases its instability.

The U.S. economy is artificial in three important ways:

 

"1. The Federal Reserve has distorted the market for borrowing capital by reducing interest rates to zero. Those holding capital (savings) receive essentially zero interest income while favored borrowers (banks and large corporations) can pursue marginal-return speculations for free (when measured in real terms), creating systemic moral hazard of the most pernicious sort. ..."

 

Click through for the remaining two points and the rest of his post. Most always good stuff.

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Gold Hits Record High in Euros and it’s Setting Up for Another Rally

Gold Hits Record High in Euros and it’s Setting Up for Another Rally | Gold and What Moves it. | Scoop.it
BY Chris Vermeulen | October 02 2012 9:15 AM


The price of gold hit a record high this past week . . . in euro terms (at about 1380 euros). The record came after a number of actions by central banks around the world, trying to stimulate their respective economies. The actions, usually centered around money printing, once again had investors looking for refuge in gold.

 

Since the beginning of September, investors have bought about 75 tons of gold through exchange traded funds. Reuters says that gold ETFs, such as the largest gold ETF – the SPDR Gold Shares (NYSE: GLD), are on track for their biggest quarterly inflows in over a year, of 3.285 million ounces. Finally, according to UBS, investors have also raised their bullish bets on gold futures to the highest level in more than a year.

 

All the world’s major central banks took action recently including the Bank of Japan which launched a fresh round of monetary stimulus. The main action though was centered in Europe and the United States. The European Central Bank has promised to buy an unlimited quantity of eurobonds going forward. And the Federal Reserve announced its third round of monetary stimulus, QE3, that promises to buy $40 billion of mortgage-backed securities monthly on top of its ongoing Operation Twist program of buying long-dated Treasuries. ...

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Jesse's Café Américain: Gold Daily and Silver Weekly Charts - There and Back Again

Jesse's Café Américain: Gold Daily and Silver Weekly Charts - There and Back Again | Gold and What Moves it. | Scoop.it

Jesse's Café Américain:

 

"Gold and silver had an early pop into tougher resistance, but then got hit hard later on in the morning almost to unchanged, and then managed to recover a little into the close. An intraday chart showing the sharp early morning rally is shown below.

 

"I had expected a much stiffer gut check on the longs, and we may still get it. I do not expect any breakout through resistance here to be easy.

 

"But if we get the breakout and stick it, and the bears panic, look for a swift run to the next line of defense where the big shorts will once again attempt to make a stand.

 

"Looking at the chart it seems pretty straightforward. There have been three major attempts to break through it, with this being the most recent, after the big blow off top.

 

"I think this resistance will be ..." click through for the rest of his analysis.

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Twitter / _blissdavis: Americans May See Smaller ...

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Most likely see new currencies backed by gold at multiples of today’s gold price - Ed Steer's Gold&Silver Daily

Most likely see new currencies backed by gold at multiples of today’s gold price - Ed Steer's Gold&Silver Daily | Gold and What Moves it. | Scoop.it

Ed Steer posted a short commentary that Wesley Legrand, of Grand Private Equities Pty Ltd. Here's a snippet I found interesting:

 

"Gold is now entering its strongest seasonal period of the year, but the recent catalyst has been the latest folly of incompetent central banks in repeating that which has already failed – to print more money – as they have few options remaining after already manipulating interest rates to zero in a deliberate policy of ‘financial repression’. The European Central Bank announced ‘unlimited’ bond purchases and the US Federal Reserve announced ‘open-ended’ quantitative easing, whilst the Banks of Japan and England have naturally reacted by turning to the printing presses again as well, as the ‘race to the bottom’ in debasing fiat currencies escalates into a black hole, all the while robbing the people of the world of their purchasing power and wiping out the savings of the once dominant middle classes. This endless money printing now serves but one primary purpose; to bail out the grossly insolvent global banking system. So as we have been explaining since 2009, the west’s dominant fiat monetary system is coming to an end, and eventually we will most likely see new currencies backed by gold at multiples of today’s gold price."

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KWN Exclusive - Today The Fed Unofficially Announced QE4

KWN Exclusive - Today The Fed Unofficially Announced QE4 | Gold and What Moves it. | Scoop.it

Today Michael Pento stunned King World when he said, “... the Fed doubled down on QE3 this morning and unofficially announced QE4.” Pento believes the mainstream media does not understand what just happened today, but he said it will have massive implications for the markets, including gold and silver.

 

Pento has been incredibly accurate regarding his predictions of central bank moves. Pento noted, “... he (Charles Evans) did not indicate that these new and additional purchases, which will start in January, would be sterilized. ...”

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Gold Will Break Previous High in Near Term: Brien Lundin | The Gold Report

Gold Will Break Previous High in Near Term: Brien Lundin | The Gold Report | Gold and What Moves it. | Scoop.it

Brien Lundin expects money printing by the Federal Reserve to raise gold above its $1,920/oz high, and as editor and publisher of Gold Newsletter, he considers it his job to show people how to profit. In this exclusive Gold Report interview, Lundin explains why he believes it is time to be aggressive in equity positions and names companies that could benefit the most from the coming leg up.

 

The Gold Report: We just had a third round of bond buying in quantitative easing (QE). Will QE3 help the economy?

 

Brien Lundin: It will not help the economy, but it will help Wall Street. It will help elevate the stock market, including precious metals and resource stock prices. Although that was not the Fed's stated goal, it will be the ultimate result.

 

As I have written lately, we now have "QE as far as the eye can see." There is no end to it. The Federal Reserve will use QE until it works. If it does not work, the Fed will ratchet up the program and print more money until it does work.

 

The Fed is using the brute force of money creation to eliminate the U.S. unemployment problem, but that is not a foundation upon which a sustainable recovery can be built. At the same time that the Fed is trying to build a towering economy, it is eroding the very foundation of that economy by issuing vast pools of liquidity.

 

TGR: At a recent Casey Research Summit, some speakers suggested that the stage is being set for inflation. Do you agree?

 

BL: I see the danger, but I think it is important for investors to recognize the differences between monetary inflation and price inflation.

 

Price inflation is a symptom of the underlying disease, which is monetary inflation. Every new piece of fiat currency created in the world that is not backed by gold raises the relative value of tangible assets, primarily the monetary metals gold and silver, but also other commodities.

 

For a number of reasons, I do not think we will see soaring price inflation in the U.S. as we saw in the 1970s anytime soon. There are other very powerful parallels with the 1970s, but I do not think that retail price inflation will be one. We are living through monetary inflation right now. That is why precious metals prices are rising.

 

click over for the rest

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Breathtaking Audacity

Breathtaking Audacity | Gold and What Moves it. | Scoop.it
I don't normally spend time parsing the words of The Bernank. However, parts of his speech today in Indianapolis were so audacious, so utterly disingenuous, that I am compelled to discuss it here.
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Should precious metals investors fear October?

Should precious metals investors fear October? | Gold and What Moves it. | Scoop.it
By Tim Iacono

 

LONDON(BullionStreet): "For the second week in a row, precious metals prices were little changed. However, it was a stellar third quarter for both gold and silver, with the former gaining 10.7% over the last three months as the latter surged an impressive 25.5%, and the same positive forces that have been in play in the late-summer are likely to drive metal prices even higher in the months ahead, though there could be further weakness over the very near-term.

 

"These positive forces include heightened investor demand in both ETF and bullion form due to central bank money printing and rekindled inflation fears, strong demand from emerging market central banks who are swapping out their euro and U.S. dollar reserves, and a host of bullish technical factors after the metals emerged from their lengthy correction over the summer.

 

"New demand drivers that are likely to develop in the period ahead include renewed jewelry and investment demand in both China and India along with what, in my view, could be the biggest price driver of all: a tumbling dollar should the U.S. "fiscal cliff" fail to be resolved in a way that bolsters confidence in the currency as detailed here back in July. ..."

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Gold Versus Paper: Silver and the Myth of Diminishing Returns From QE

Gold Versus Paper: Silver and the Myth of Diminishing Returns From QE | Gold and What Moves it. | Scoop.it

by Adam on Gold Versus Paper:

 

"There is lots of talk in the financial media about how there are diminishing returns from QE (i.e. money printing) with each successive round of counterfeiting. This is only true because such commentators are stuck in paperbug world and focusing on common stocks. But common stocks are in a secular bear market, so it makes sense that there could be diminishing returns on common equities related to bailing out banks and governments by destroying the purchasing power of the currencies of the world.

 

"But before we dismiss money printing as ineffective, we have to view it from the perspective of the investor that holds silver instead of paper money, certificates of confiscation (government bonds) or common equities. Helicopter Ben's experiment with everyone else's savings is going quite well from the perspective of one invested in silver. ..." click through for the rest and the charts.

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Santelli On QEternity: "Deflation Vacation Or Inflation Gestation" | ZeroHedge

by Tyler Durden on www.zerohedge.com

 

"With gold being horded in Iran and hitting 2012 highs this morning, CNBC's Rick Santelli addresses the 800lb gorilla in the Fed's room - the threat of inflation. Critically noting that the hyperinflation of Weimar Germany "did not happen overnight" but was gestated quietly until it was unstoppable by currency debasement; the question remains of what exactly the Fed thinks it is doing. Santelli makes the important point that if we look at 'printing money' as any type of solution then why not take it to the extreme - "if we just print a million dollars for every man, woman and child and handed it to them, wouldn't that fix everything?" As he adds "if it was that easy there would be no need for economist, no need for even CNBC, but it isn't that easy," Reflecting on Evans' earlier inability to quantify any metrics for whether QEternity was working, Santelli notes that the Fed man falls back to 'confidence' (animal spirits) but worries that inflation is a lot like soybeans; need sun, water, and time but eventually will grow rapidly."

 

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