Tuesday, August 14, 2012

Keith Barron on Gold, Silver, The Euro and QE3

** Highly recommended interview for all Gold, Silver and Uranium bugs **

Dr. Keith Barron in a far ranging discussion talks about the current market in Gold, Silver and Uranium, the future of the Euro and European economies. Listen to the KWN interview with Eric King here

If you have to own one precious metal buy silver not gold

By Peter Cooper of ArabianMoney.net

Veteran investor and an early spotter of the commodities bull market, Jim Rogers says if he could only invest in one precious metal this summer it would be silver. Why is that?

Silver prices are more volatile than gold. And over the past five years gold has actually been a slightly better performer. The central banks hold gold, not generally silver.

Money printing

As an investor you always look at two things: upside and downside potential. So if you are optimistic about the outlook for precious metals – and with all the central banks of the world with their fingers on the button to let the printing presses roll this is a logical conclusion – then does gold or silver have the most upside?

It does just have to be silver. Consider this: silver is the only major commodity not to have reached a new all-time high in this bull market; silver is still cheaper than it was 32 years ago, prices are astonishingly depressed.

Then you can consider the impact of an economic slowdown on silver. Yes its industrial use will go down but so will its production because that is linked to the output of copper and zinc mines.

Investment demand for precious metals will take over in any case from industrial demand. And once the gold price heads up then silver will follow. You get 50 times more silver for your money than gold.

Historically it was 12 to 15 times the amount of silver for gold, so that also looks like a correction just waiting to happen. Why is it that silver has become so cheap by historical standards?

It goes back to the price collapse of 1980. Prices then got to such a huge spike due to the cornering of the market by the Hunt Brothers that production was ramped up and huge stocks were accumulated. The Hunts market manipulation invited a similar response from global central banks.

Once silver prices slumped from $50 there was a 20-year bear market with enough oversupply to keep prices down for two decades. Silver’s recovery since the millennium has been spectacular, from $3 an ounce to almost that previous all-time high 15 months ago.

Autumn season

But the best is yet to come. Will it be this autumn when the central banks turn on the printing presses to maximum to save the world economy? The Fed with QE3 and the others following?

Or will there be a 2008-style financial market crash with Greece as the next Lehman? That would be bad for precious metal prices as it was in 2008, although they made a spectacular recovery very swiftly.

You never can be guaranteed success in investment. Patience and a lack of borrowing always buys you time and that is the greatest asset of all. But we think those who stick with silver over gold will get their pay day soon.

The next edition of the ArabianMoney subscription newsletter will consider how best to invest in silver (subscribe here).

Brother JohnF - Silver Update: Fooled Again

Aug 14, 2012 by

Keiser Report: Jamieville, Crookland

Aug 14, 2012 by

In this episode, Max Keiser and Stacy Herbert discuss Jamie-villes in Ohio, suicide dummies in Vegas and truckloads of evidence piling up outside the Justice Department and yet no fraud can be spotted. In the second half of the show, Max Keiser talks to John Aziz of Azizonomics.com about rehypothecation and deal flow in the City of London, the Cantillon effect and the cram down.

False Flag Computer Banking Virus

 Aug 12, 2012 by

Writer & researcher Susanne Posel of Occupycorporatism.com joins me for an in-depth conversation about the government's plans for martial law in the United States. Susanne shares her insights about the preparatory measures the DHS and military are taking, and why: "They know the collapse is coming," says Susanne. "So they are preparing for it." Susanne also shares shocking information about a computer banking virus that may be used as the excuse to shut down banks internationally. "If you hear about this in the news, you have 72 hours to do whatever you plan to do before the collapse." This is a 2-part MUST HEAR interview with one of the best new media writers and researchers on the scene today.

Capital Account - The Political Derivative of a Romney-Ryan Presidency in the Kleptocratic Age

Aug 13, 2012 by

A squeeze for bullion is brewing

By Sandeep Jaitly

A squeeze for bullion – and especially silver – is brewing

We tend to forget in the modern day that silver and gold are money : the universally acceptable ultimate extinguishers of debt. The use of silver as the medium of exchange and unit of account dates back countless millennia. The very names of ancient currencies like the rupee or pound sterling are testament to this. Silver and gold have what is termed constant marginal utility – the personal satiation point of these two metals is so far removed as to be infinitely far away. As a consequence of this, the above ground stock of silver and gold is many multiples of the amount mined annually.

Prior to the turbulent and forced introductions of gold standards throughout various countries across the world in the 19th century, financial obligations – such as bills or bonds- were denominated in a weight of fine silver. Interest rates: that market rate which amortises the principle of a bond, were quoted with reference to silver. The universal acceptance of silver allowed the natural social interaction – or economics – to flourish. Were it not for this substance there would have been no mutually acceptable measure with which to conduct business.

What does it mean to have ‘fiat money’ as we do today? Strictly, this is a misnomer and the term should be ‘fiat credit.’ It means that credit can be extended without due respect to the mutually acceptable measure of the credit – the concept of credit only being possible a posteriori with a universally acceptable substance like silver or gold. Credit has been totally fiat on a global basis since 1971. Is there any limit to the volume of fiat credit that can be extended without due regard to silver or gold? There is indeed and it is measured by the extent of the backwardation in the bullion markets.

Backwardation in the bullion markets – where the respective metals trades at a premium to their nearest future contract – is the first warning sign that credit has been unnaturally extended beyond a certain bound. Fiat interest rates have been manipulated downwards so low, that the same cannot be achieved in the bullion lending markets. This causes a premium to be induced in the spot metals over deferred ownership. The integrity of the fiat credit is being called into question.

How have the bullion markets been faring with regards to backwardation? Silver and gold are both in elevated states of backwardation; indeed silver has been backwardated for nearly two years. Of late, the extent of the backwardations – with respect to September silver and August gold has been deepening dramatically. No one – private person or public authority – is willing to lend bullion at rates lower than fiat rates currently. Which begs the question, why not now, if it could be done in the past? The volume of lendable bullion has shrunk significantly and the principle suppliers of bullion to the lending markets is becoming more reticent. Why? Probably because there isn’t much bullion left. The government vaults have been replaced with IOUs. IOUs which do not mature into bullion at a rate quick enough for it to be lent to depress the bullion lending rates below fiat rates.

A squeeze for bullion – and especially silver – is brewing.

Sandeep Jaitly, London, 14th August

Japan's economic growth stumbles

Aug 13, 2012 by http://www.euronews.com/

 Japan's economy expanded by just 0.3 percent in the quarter from April to June compared with the first three months of the year.That was just half the pace that economists had expected. Growth from the same period last year was 1.4 percent.

The figures provide fresh evidence of a global slowdown hitting the United States, Europe and even China and economists fear the slowdown for Japan is not over yet.

New coup looms for Egypt?

Aug 13, 2012 by

Egypt's president has taken his most decisive step yet to assert power over the influential military - sacking two top generals. The Defence Minister, who served as the country's interim leader after Hosni Mubarak was ousted, was dismissed along with the Chief of Staff. Morsi started to move more boldly against the army after an attack by militants in Sinai that killed 16 border guards. For more, RT talks to Asia Times correspondent Pepe Escobar.

Aug 13, 2012 by

Egypt's military signalled its acquiescence on Monday to President Mohammed Morsi's surprise decision to retire the defence minister and chief of staff and seize back powers that the nation's top generals grabbed from his office.

TrapWire: American cities under total surveillance?

Aug 13, 2012 by

A secret surveillance program known as TrapWire was revealed by WikiLeaks last week, but continuing distributed denial of service attacks have in turn eliminated access to the site for many people. The loose-knit hacktivism collective Anonymous has pounced on the TrapWire story, though, and has launched an operation to expose the truth behind the program and the companies it is connected to. RT Web Producer Andrew Blake broke the story last week and is back to bring up the facts about an effort to blanket America in a state-of-the-art surveillance system.

Professor William Black - We've Decriminalized Fraud

Aug 12, 2012 by  

Professor William Black is a former bank regulator and professor of law and economics. He is also an outspoken critic of Wall Street bankers, and he says, "Outright fraud caused the great recession and they are able to do it now with impunity." Not a single financial elite that caused the crisis has gone to jail. Because laws are not enforced and crooked bankers are allow to do whatever they wish, Black says "Each crisis is getting bigger by an order of magnitude." Meaning the next financial meltdown is assured to be much greater that the last. Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Professor William Black.

Max Keiser and Alex Jones discuss Gold and Silver

Aug 13, 2012 by

On the Sunday, August 12 edition of Infowars Live, Alex hosts Max Keiser discussing the ravaged state of the U.S. economy and fragility of markets as published in a recent Fox News article The Coming Economic Collapse.