This is from a random every day Joe in the United Kingdom, writing about the sudden economic troubles and his response in the gold market…a simple, common sense reaction to the events of the last 28 months.
“I am just another nobody, who wanted to know why the UK banks were all failing and why my tiny life savings were earning no interest anymore. I didn’t even know what ’sub-prime’ meant. So I read up on the internet and discovered how our bankers and politicians have been playing with money like gambling addicts; throwing debt and credit cards at even the unemployed for years! I discovered how the Fed hasn’t had an independent audit since 1951 and is run like a private club. I watched J.P. Morgan and Goldman Sachs make big profits out of all the hand outs they have been given, for FAILING. I learned why Gordon Brown sold off half of the UK’s gold reserves for next to nothing. So, I’m sitting here in my damp, rented farm cottage and I know nothing about investing in stocks and shares, so I buy myself some gold coins. If I am doing that – with no background at all in Markets – then how many other folk are doing it? Quite a few I would think (like all those Chinese people who have worked their butts off producing cheap goods for the spoilt, lazy West). Anyone who understands what ‘Quantitative Easing’ means is not going to hang on to cash savings! Even if gold does drop down, I’d rather lose my money in gold than see it become worthless confetti due to the mad money printing going on. So, I am the real answer to why gold is going up, i.e. one of the millions of nobodies who has had to wise up and put their faith in gold and silver instead of any fiat currency…”
From a self titled “nobody” in the U.K.
Categorized in FINANCIAL MARKETS
As I type this, gold is trading $1,121, another new all-time high, over $1,000 for about two months now. Here is a video that had to have been shot earlier this week, as the guy talks about gold being $1,100, which it just broke through on Monday (Nov 9).
This video takes place in a beachside community, looks like in California…and none of these people are interested in buying 1 oz. of gold for $50 from this guy, or even cheaper…amazing and sad to watch…a microcosm of the decline of our country, that its citizens are so clueless about real money.
P.S. This video is also proof the gold/silver bull market has a very long way to go…
Categorized in FINANCIAL MARKETS
For months we’ve heard about the IMF and their plan to sell 403 tons of gold to help fund their daily operations and programs…well India today announced it bought almost half, and you can be sure that China would love to buy the other half. What’s interesting is that China wasn’t the first announced buyer…were they stubbornly waiting for a bigger dip? Was it planned this way? I can assure you that if it’s not China buying all or at least most of the remaining 203 tons, the markets will be surprised.
As it is, gold popped to a new record close on the news, $1,084/oz., and is currently trading there now in the Asian markets (Tues night 11/3/09 9:30 PST). Silver is lagging, currently $17.21, not even reaching its 2 week old highs of $18, let alone the 19 month highs over $20. Bargain, bargain, bargain….get some cheap!!!!
Categorized in FINANCIAL MARKETS and SILVER
So since my last post Mon night 10/5/09, gold & silver initially broke out to new highs on the oil & dollar news. Of course the major players denied the story – why alert your enemy? A major tell to the legitimacy of this precious metal breakout is that they’ve held in the face of denial beutifully, and are now (Wed night 10/7) breaking yet again into new high territory – gold all time high right now $1,053.50, silver still a bargain at 14 month highs of $17.85. Here’s a link to multiple different time period gold charts from intraday to 10 years. Look close at the 5 year chart and 2 prior consolidation periods and breakouts. We are currently at the 3rd breakout point, with a world of fundamentals and momentum that both point to much higher prices ahead. Then remember that the silver story, largly due to its industrial consumption, variety of uses, and more scarce above ground stocks, is far more compelling than gold.
As I type this this, the Silver:Gold Ratio is 59.1, its lowest in over a year, but still higher than where it settled during the first 9 mos of 2008 until the Sept madness began. The ratio ranged from 75 to 80 at the turn of the new year. Incidentally, a 100 oz of silver bullion on EBAY is currently a shade over $1,900. The days of buying silver for under $20/oz might be coming to a close.
If for no other reason, buy gold & silver for the coolness of the different coin designs…like this that incorporates both metals into one coin.
Categorized in FINANCIAL MARKETS and SILVER
This story of a large pact between China, Russia, Japan, France, and the oil producing Gulf states to end conducting oil deals in dollars is the latest, and maybe the largest sign yet marking the swift, sharp fall of both the dollar and US financial dominance of the globe. The story is from the United Kingdom paper ‘The Independent’, confirmed by Chinese bankers in Hong Kong and Gulf bankers as well. You can be sure it will get mimimum play in the US. This is a major body blow to the gut of the dollarand our country, and will likely be folowed by more. It’s also tremendously good news for gold and silver.
Categorized in FINANCIAL MARKETS
