Silver The Undervalued Metal
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By Eva Kovacs
Silver The Undervalued Metal
So where’s our Silver Cinderella!
Like gold, silver’s fate now lies in the hands of the individual investor and institutions. Regal Assets!
The advent of gold and silver exchange-traded-funds (ETFs) over the last decade has resulted in a massive consumption boom as these funds lunge after physical supplies.
Silver industrial demand has historically closely tied to the global economic cycle. But industrial demand has now taken a back seat to ETFs. Provided ETFs continue to command a larger percentage of total available supplies in the silver market, spot prices will continue to rise. Read More→
China Emerging As A Global Leader
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By Eva Kovacs
China Emerging As A Global Leader
“Hot off the press!”
China has the gold! It has overtaken Japan to become the world’s second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty. Now, just depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others. Read More→
The Hidden Health Care Bill
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By Eva Kovacs
The Hidden Health Care Bill
So, what is this next Shoe Dropping?
This is no hocus-pocus, thanks to the new reporting requirements sneaking into the health care reform bill. I just read that “Every U.S. business, and individuals as well, will be forced to obtain the tax ID number and/or the Social Security number of everyone with whom they do more than $600 worth of business in a year.
This is not a joke, but you need to know that this does take effect on Jan. 1, 2012 — and it applies to all U.S. business and private transactions.” Says Bob Bauman (July 27, 2010)…
“Americans are already outraged by President Obama’s new health care law. And now, many are up in arms about a little-noticed provision buried deep in the 906 pages of that law,” says Bob. Read More→
FDIC Is In Hot Water
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By Eva Kovacs
FDIC Is In Hot Water
Banks are failing throughout the world…but lets get to the bottom of the page, help is on the way!
Joe Schmo wrote: “Yes, we will have fewer banks after the recession is over, but fewer more risky blood sucking banks.”
Oh boy…But wait…keep on reading this is serious stuff…
No, its not a pretty picture in Europe either
Seven of Europe’s 91 largest banks could not survive an unexpected decline in economic growth or a sharp deterioration in the value of European government bonds.
And what about our home Turf—USA
China Continues To Ditch US Dollars
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By Eva Kovacs
Did you just say China and Japan is jumping ship?
Yes, you’re right, I can’t ignore this one! Are you absolutely sure? I recall growing up, my mother always said, according to the Bible; two gigantic markets will rule the post-dollar world: one in Europe, focused on Germany, and one in Asia, focused on China and Japan. Strange how it’s coming to fruition! The way these two markets will grow to dominate trade, and will do so at our expense, just hit me like a slingshot!
Sure, we made mistakes…who hasn’t! It’s no secret that our government is bleeding the single greatest gushing of red ink in history, but really, are we talking Hyperinflation here?
Just how much is our total U.S obligations—I mean the gross federal debt outstanding, plus the net present value of unfunded liabilities?—$ 66 trillion, you say? Unbelievably high! These numbers are truly beyond my conception! I can’t even write these figures down…How many zero’s…oh never mind…
Read More→
Saudis Covertly Double Their Gold Holdings!
By · CommentsBy Eva Kovacs
Hmmm… Dang it! I’m trying to remember the time, when Mammoths walked the earth with dragons and dinosaurs–the first pages of the chronicle of mankind–before men became the top dog. My point is–what has for centuries supposed to have raised man above the beast is not the cudgel but an inward music an irresistible power of unarmed truth…Ethics! What a bummer! He never got it right!
By Eva Kovacs
Do you feel like your going up the creek without a paddle, spinning your wheels to understand what’s in the next financial crisis? You are not alone! The trend of what may lay ahead, a bad day at the office, or suddenly being unemployed, is like the budget, changing every hour, everyday. So what do you do if the Bush tax threatening to expire by 2011 happens? And or will the gold still rises against the top marginal income-tax rate set to increase on the first day of 2011 to 39.6 % from 35%. And, will it hold against the phase-out of itemized deductions that will lift that, effectively, to 40.8%. Or in 2013, the 3.8% Obama’s health-care tax on investment income that will kick in, make the top rate 44.06% to such degree, that this tax hike will push us into double-dip territory?
Gold Will Hit $1300 An Ounce Shortly
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By Peter Costa
As the economic turmoil unfolds worldwide the future for gold is looking more and more promising. It would literally take an entire essay to map out why gold is going to become the most valuable asset on the planet in the coming times. For the more immediate term I am going to map out why I feel gold will hit $1300 an ounce before the end of the fall. At this point in time everyone knows that gold is the ultimate asset. We have seen billionaires and central banks pouring their wealth into gold or gold related investments as a flee for safety from paper based assets. There are many reasons why gold is going to have precipitous growth in the coming times but I have narrowed it down to my top 3 reasons. Here are the top 3 reasons why I feel gold will hit $1300 an ounce before the end of the fall.
THE BANKING CRISIS
The banking crisis is only escalating in the United States and in the last 3 years we have had the most bank failures since the great depression. The current amount of failed banks for 2010 is at a staggering 86 and is only growing by the week. This same time last year there were 40 failed banks making the current number double what last year was. In addition 247 banks and counting have failed since 2008 and the number of banks on the troubled list has been increased from 500 to 750. This year alone we could see more banks from the troubled list close their doors for business. In lieu of the pending banking crisis troubled banks have begun issuing 7 days warnings letting depositors know that if things continue to escalate they could take up to 7 days to get depositors funds from checking, saving or money market accounts. In a time where banks are failing left right and center, the Federal Reserve has to print up enough money to protect depositors. This alone will cause massive inflation catapulting the price of gold.
LOW INTEREST RATES
Ben Bernanke head of the Federal Reserve has no plans to raise interest rates and may not raise interest rates until late 2011 therefore guaranteeing inflation in the United States. Inflation is the plan for the next while and Bernanke feels we can have positive inflation. As gold hit new record highs on June.18, 2010 closing out at almost $1264 an ounce, Bernanke denied inflation. This was the response Ben Bernanke had in regards to fears about rising inflation and the price of gold:
“Gold is out there doing something different from the rest of the commodity group. I don’t fully understand movements in the gold price, but I do feel that there is a lot of uncertainty and anxiety in financial markets right now; and some people believe that holding gold will be a hedge against the fact that they view many other investments as being risky and hard to predict at this point.”
“There is a great deal of uncertainty and anxiety in the financial markets right now,” Bernanke said. “Some people believe that holding gold will be a hedge against the fact that they view many other investments being risky and hard to predict at this point.”
We only have two ways to go in the US economy and it is inflation or deflation. There is no possible way Bernanke is going to let deflation happen because it could very quickly escalade into a great depression. We have become a consumption based economy in the United States and our industry relies heavily on consumption. If citizens begin massively cutting back on spending than we could quickly spiral into a great depression because many companies rely on our consumption and would become bankrupt. This would in turn create even more unemployment and would be the catalyst for a great depression. Everyone knows in an inflationary period gold soars. Historic record to back this fact up is the last inflationary period we had which was 1970 to 1980 where inflation peaked out at 13.3%. Due to such a high inflation rate gold grew 2400% in 9 short years it went from $35 an ounce to $850 at its peak.
STRENGTH IN THE YUAN
The yuan could appreciate by as much as 3% this year after which the yuan’s value would be dictated by supply and demand in the open market. Some analysts argue that the yuan is undervalued by as much as 40%. News of the Chinese allowing gradual appreciation in the yuan is expected to further bolster demand for gold in China as the Chinese consumers’ and investors’ purchasing power is increased. It was illegal in China to own physical precious metals until 2009 when they lifted the ban. Citizens are now allowed to purchase precious metals and are now being encouraged from the government to purchase gold and silver. With this recent ban being lifted there is one stipulation, citizens can not in any way export the precious metals they buy, they can only hold onto them. Chinese demand for gold has been growing at an average of 13% per annum over the past five years and it now has to import gold to meet national demand, despite being the largest producer of gold in the world. With gold still priced in US dollars the strength of the yuan will allow citizens to buy gold at a mere fraction of the price creating massive demand and a surge in gold prices.
I am predicting gold will hit $1300 an ounce before the end of fall this year. Before the dollar is grossly over inflated and the cost of gold is absurd, start transitioning your wealth into gold. Regal Assets has made it effortless with their website www.regalgoldcoins.com and also provide up to the minute market values for your position so you can track the growth yourself. It is not a question whether gold will grow in the coming times the only question is how fast it will grow and if the average household investor will be able to afford it.
Physical Precious Metals – The Ultimate Safe Haven
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By Peter Costa
The rush for gold has not even begun according to billionaire Thomas Kaplan a New- York born commodities mogul. In fact he is so convinced of this that he has put $2 billion of his own money into physical gold through his company Tigris Financial. With this move Mr. Kaplan has now joined the likes of world market gurus such as John Paulson, George Soros, David Einhorn and Warren Buffet to name a few who have started to amass large quantities of physical precious metals. The key to their investment strategy is physical possession of precious metals that they store on their own and is something all precious metal investors need to take note of.
As the gold rush continues to unfold investors are being swayed into the paper asset of precious metals rather than the physical asset. Just like the old days when traveling merchants would hand their gold over to banks and would receive a promissory note in return, exchange traded funds are promising the same. Instead of a receiving physical metals these various ETFs promise to hold your gold and when your contract is up you are able to receive physical delivery of precious metals or you can sell the contract for cash. This strategy is becoming increasingly popular and such fund as GLD, SPDR, COMEX and SLV are experiencing incredible demand. The problem with this strategy is similar to the problem that arose centuries ago and is doomed to repeat itself. The main driving force behind the popularity of this paper asset is none other than registered financial advisers pushing these securities on their diminishing clientele base. Since there has been a complete loss of confidence in stocks and mutual funds these registered financial advisers are scrambling to find alternative paper assets so they can continue to keep clients money under management.
Centuries ago when a bank would create a promissory note for the traveling merchant and realized that nobody was cashing in the note for the gold being held, the bank would begin creating more promissory notes then they had gold. Once word got out in the land that this bank had more notes circling around than they had gold they were flooded with depositors wanting physical possession of their gold. Once this happened the bank would immediately become bankrupt and would have no choice but to close their doors for business due to lack of gold holdings. This event alone would devastate economies and more importantly the merchants who worked hard for their wealth. For centuries this cycle continued and mass amounts of wealth were vaporized due to greedy banks.
As much as we have had technological advances the same issues still remain today that plagued societies centuries ago. The exchange traded fund strategy is nothing but a more advanced version of what banks did centuries ago to vaporize wealth and will soon do the same thing to millions of hard working individuals. While the current state of humanity is greed based, I find it extremely difficult to believe that these various funds are actually holding the exact amount of precious metals that are trading. As banks have practiced fractional reserve banking for the last century loaning out $9 for every $1 they receive I feel the exact same strategy is being utilized for these various funds. I feel strongly that they are holding a mere fraction of what is trading through their fund and that if the whistle is blown on their operation there will be a 1 to 100 ratio meaning, if everyone requested physical delivery of their contracts 1 out 100 would receive their metals. Furthermore with this kind of a faulty fractional reserve operation these various funds are suppressing the true value of precious metals by creating a fictitious market place. Millions upon millions are trading these contracts on what they feel is physical precious metals none the wiser to the reality of the situation that they are trading a useless piece of paper just as useless as the greenback and all fiat currencies.
Smart money are already cognizant to the illusion of these various exchange traded funds and have begun ditching the paper asset of precious metals for physical possession. In the coming times as this fractional reserve practice is revealed with various ETFs, the illusionary price of precious metals will evaporate, setting in stone a new heightened floor for all precious metals. Only the owners of physical precious metals will be the recipients of this growth story leaving behind the owners of paper assets in shock and awe as their wealth evaporates. In 2009 legendary hedge fund manager David Einhorn who was the largest holder of the GLD fund with over 4.2 million shares, sold his entire stake in favor of physical gold. This strategy is being favored by world renowned investors such as John Paulson, George Soros, Warren Buffet, Thomas Kaplan, Jim Rogers who combined have purchased over $100 billion in physical precious metals. On May.22, 2010 Thomas Kaplan made front page news with the Wall Street Journal on his decision to purchase over $2 billion in physical gold that he stores on his own. “I’ve reached a point where I feel the only asset I have confidence in is gold” stated Mr. Kaplan in an interview at Tigris’s midtown Manhattan headquarters. The smart money knows what is coming and are focusing primarily on the acquisition of physical precious metals in preparation for the coming times.
It is not by chance that billionaires and smart money alike are rolling over their wealth into physical precious metals rather than the paper asset. Exchange traded funds, the green back, and all fiat currencies for that matter….will end like any fatally flawed system: With an unhappy ending. We are in a time of great change and as history has shown us we are about to learn a great lesson in owning paper assets over physical assets. If you have the paper asset of gold do yourself a favor and sell it now before the option no longer exists. Physical precious metals are the easiest asset to acquire and sites like www.RegalGoldCoins.com have made the transition seamless. As more and more paper asset based financial advisers are put out of business heed the warnings and position your wealth appropriately.
DOW Dropped 1000 Points, Is It Time To Exit?
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By Peter Costa
It is staggering how so many individuals use the stock market as a gauge for economic recovery. They look blindly at the levels of the S&P 500 and the DOW Jones in hopes of finding the answer to where we are in the recovery stage. Whether the stock market is up or down, these simpletons continue to foolishly dump their hard earned wages into the market place. They are incognizant to the reality of our financial system and have no interest in learning the truth.
The world stared in awe as the DOW dropped 1000 points within a 15 minute time span on May.6, 2010. This was the largest drop the DOW has ever had in a single day since its inception. As the DOW scrambled to recover rumors began to surface that the event was triggered by a negligent trader. Apparently he meant to type $10 million for a trade and instead typed $10 billion. Thanks to our experts and market analyst being on the ball we learned that the fatal drop of the DOW had to do with the letter “b”. Simple mistake that anyone can make and now that we have it all figured out the DOW will go back to record highs. Who are we kidding? How “birdbrain” does one have to be to believe this rhetoric? There is no way that the DOW took such a precipitous drop due to $10 billion. This is a sign to all that are still in the market place to GET OUT.
I strongly believe that the stock market is just as illusionary as our monetary system. I feel like so many have become accustomed to using the stock market as a gauge for economic recovery that those in charge have an interest in keeping it up. The greenback is on such volatile ground right now that any loss of consumer confidence could bring down a collapse of the whole system. I’m coming to believe that most of the money being printed up right now is being used to prop up the stock market to give it illusionary growth. Companies are continuing to be bailed out and funneled more money so that the stock market can show some sort of recovery. It seems like Wall Street has become more important than the citizens of the United States. While citizens are being handed out food rations and barely surviving, Wall Street is being handed billions of dollars to keep the stock market propped up. Unfortunately the reality is that more people are exiting the stock market than entering and this is the reason the DOW took such a tumble on May.6, 2010. Further more for almost 3 years now the smart money has quietly exited the marketplace leaving nothing but the uninstructed to fend for themselves.
I am calling for a complete crash in the stock market within the next 2-5 years. Based on copious research I have come to conclude that there is no possible way for the stock market to survive in the coming times. There are 3 major factors guaranteeing the demise of the stock market and they are as follows:
HYPER INFLATION:
There is no doubt that hyper inflation is about to rear its ugly head in the United States. Ben Bernanke has stated on several occasions that he would rather create inflation than deflation. He has kept interest rates extremely low to guarantee this and has no interest in the immediate future of changing things. The economy has hit such a breaking point in the US where the printing press at the Federal Reserve is churning out strenuous amounts of money. The amount of money being printed right now is unprecedented from anytime in the nation’s history and the demand is only growing. We are projected to spend trillions of dollars in the coming years guaranteeing the devaluation of the greenback. The banking crisis alone is projected to cost the US $23.7 trillion to solve. This number does not even include social security, outstanding treasury bills to foreign nations or the toxic mortgage debt that continues to grow among many other things. As the dollar continues to be printed it will encounter precipitous devaluation. As the dollar crashes investors will jump ship from the stock market scrambling to put whatever they can into tangible assets such as gold and silver.
UNEMPLOYMENT:
Unemployment is at record highs and has no sign of recovery. The problem that lies ahead is the amount of people getting cut off of unemployment insurance. For the first time in decades they recently had to extend unemployment insurance for all recipients. This solution was temporary and in 2010 millions will be cut off of assistance. Here is where things get sticky. With most people unable to find employment they are now being forced to cash out of their retirement plans. As millions of IRAs and 401(K)s are cashed out, billions of dollars are being pulled out of the market place. The majority of retirement plans in the US are invested heavily in the stock market with over 90% in mutual funds and various stocks. As these are cashed in and the money is pulled out of the market place we are guaranteed to see a drop in the stock market. If things continue the way they are going in 3 short years we could see billions upon billions of dollars pulled out of the stock market in an attempt for unemployed people to survive. If $10 billion was really the reason the DOW dropped 1000 points in a day imagine what this will do.
LOSS OF CONFIDENCE:
With the stock market on such volatile ground it has caused a ton of uncertainty in the market place. Since the drop of the DOW on May.6, 2010 hundreds of thousands of investor have begun to quietly pull their money out of the stock market. Many have interpreted the drop of the DOW as a fore warning to get out of the market and have begun to act accordingly. In less than 2 weeks of this event millions of dollars have already been pulled out of the market place. We have already lost confidence from some of the largest investors in the world including Warren Buffet, John Paulson, David Einhorn and George Sorros who have begun pouring their wealth into commodities. Warren Buffet who has made billions investing in US stocks is now turning his strategy over into precious metals and recently made a substantial investment in silver. John Paulson owner of Paulson and Co. who runs a $60 billion hedge fund has positioned over 50% of its assets in gold or gold related investments and opened up a gold only hedge fund this year with $250 million of his own money. This is a sign of the times and will only increase as things take a turn for the worst.
If you are currently in the stock market heed my warning about the coming collapse. It is not by chance that the DOW took such an enormous drop; it is truly a sign of the times to come. For almost 3 years now all of the smart money have been quietly exiting the market place and changing their strategies into hedges. It is not by chance that most successful investors in the world right now are hedge fund managers. This is a time of hedging not investing. When the dollar is strong and showing a lot of possibility that is when you want to double it and make investments. When the dollar is dropping like a rock in value and being printed like monopoly money you want to hedge against it. Take a look around the world and see the change in the market place this is not a time for investments it is a time for hedges. If you have not properly hedged yourself now is the time to take action. When everything takes a turn for the worst it will happen suddenly and without warning. As we all saw on May.6, 2010 the DOW dropped 1000 points in 15 minutes without warning. You have worked hard your entire life do not let the wealth you have accumulated go down the drain. Physical possession of precious metals such as gold and silver are the easiest way to begin hedging. If you need help in doing this please visit www.regalgoldcoins.com and get started right away. Regal Assets is one of the most trusted names in the precious metals industry and has some of the best prices when it comes to precious metals. Take this action before you are left with paper that has been stripped of all its monetary value.
