Silver

Don’t Keep Silver

 with ANY Banks!

(Or Brokerages, not just JP Morgan!)

Silver Stock Report

by Jason Hommel, December 10th, 2010

Not even the Swiss banks are safe!

Dec. 7, 2010, 5:49 AM
Jim Rickards: At Least One Swiss Bank Has Started Refusing To Hand Over Physical Gold To Clients

http://www.businessinsider.com/jim-rickards-take-gold-out-of-the-bank-2010-12

Jim Rickards of Omnis has an interesting anecdote about global gold mania.

He tells King World News of a client of a major Swiss bank who was refused access to his one ton of physical gold ($40M) and was forced to make threats to convince the bank otherwise:

“Correct, and through all of that eventually the individual did get his gold — it took lawyers, it took threats of publicity, it took a lot of pressure to do that, which my inference is that, that gold was not there.  The bank had to scramble, go out and find it somewhere before they could make good delivery.”

To be safe, Rickards says you should take out your gold out of the banks before governments freeze physical holdings.

The risk isn’t unfeasible. Gold is already treated as a paper asset, sold in futures, options and ETFs. All you need is a government order and “gold” becomes something that isn’t to be backed by real gold. At which point you’d be wise to have real gold in a treasure chest at home.

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Some banks unwilling to hand over client-

held physical gold and silver?

Anecdotal evidence, so far, suggests some banks may be having trouble laying their hands on client-owned bullion in their own vaults.
Author: Lawrence Williams
Posted:  Thursday , 09 Dec 2010

http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=116632&sn=Detail&pid=92730

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JP Morgan’s short position made the news for sfgate, Home of the San Francisco Chronicle.
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/12/06/benzinga668905.DTL

The article notes:

An article by Max Keiser which appeared in the Guardian on December 2, 2010 claims that the size of the short position is 3.3 billion ounces of silver.

Max Keiser’s 3.3 billion oz. number was my 3.3 billion oz. figure, from my Nov 13th article:
http://silverstockreport.com/2010/shareholders-jpmorgan.html

I wrote:

See, the problem is that the silver price will hit $500/oz. just for starters, by the time only 1% of people in the USA alone try to protect their wealth from inflation by buying silver and gold, and the way things are going in government, that’s nearly a given by now.

If my reading of the OCC report is any indication, then JP Morgan’s short position in silver could be as high as 25% to 50% of the entire world banking system’s short position of $200 billion in silver (and that was when silver was $15/oz.)!

JP Morgan’s short position in silver could thus be as high as 3.3 billion ounces if we are conservative, and estimate their position at only 25% of the BIS report numbers.   By $500/oz., JP Morgan’s short position could be worth a negative $1.5 trillion, and that’s just for starters.  It could grow worse if they add to their short position, in a misguided attempt to manipulate a market that is clearly moving against them.

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Rob Kirby tries to look more closely at JP Morgan’s silver short position by looking at the BIS report and comparing to the OCC report.

Something’s Wrong in the Silver Pit: But It’s Much Bigger than J.P. Morgan
http://www.kirbyanalytics.com/

Rob Kirby analyses the BIS report and the OCC report of derivatives, and notes that JP Morgan and HSBC, together, might only be responsible for 10% of the world banking short position in silver!

(Must be a member to read the full report.)

In sum, the OCC (US, such as JP Morgan and HSBC) silver derivatives are about 13 billion, but the BIS silver derivatives are about 127 billion.

The total open interest in silver paper vs. gold paper ranges from 3:1 (world BIS Report), to 10:1 (COMEX and OCC reports), suggesting that those might be more appropriate price ratios for the metals, suggesting that silver prices should rise to anywhere between $150 to $500/oz. without gold moving a bit. 

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I looked at the BIS report numbers again, and noted something changed!  They changed prior numbers in their reports, perhaps due to the increased scrutiny that the reports are getting!  But I recorded my notes on their report in my archives! 

I note that I started quoting the BIS report over a year ago.  I noted recently as of April of 2010, that the June 2009 column listed the notional value of silver derivatives as $203 billion, at which point, the heat on JP Morgan started turning up. 

http://silverstockreport.com/2010/doj.html

“The BIS, the Bank of International Settlements indicates that the notional value of “other precious metals” (silver) in the “over the counter” category increased to $203 billion by June of 2009. 
http://www.bis.org/statistics/otcder/dt21c22a.pdf“

At some point since then, the data was changed!   It now lists the period of June 2009, as only $93 billion!

So, either the BIS report is lying, or someone, or many banks, who reported numbers to the BIS changed the numbers for the prior period!

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If you have had, or are currently having, trouble getting delivery of any precious metals from any bank, and want to publicize it, please send me your name, phone number, and the bank you are dealing with, and I will gladly publish that information.  Email:  j@silverstockreport.com

Unfortunately, most gold and silver investors desire privacy, and so, obtaining that data might be difficult.

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It appears to me that banks don’t know where to get silver or gold anymore, or they don’t want to have to go into the market to buy it, as they know that would bid up the price that they are actively suppressing!  Their monopoly on printing paper money is in danger of collapsing and is rapidly coming to an end as people wake up. 

As I see it, if the banks were short $203 billion of silver in June of 2009, when silver was $15/oz., then they are probably more like $400 billion short now that silver is $30, or perhaps they are short even more!

Yet, physical silver is being purchased at only a mere 100 million oz. per year, worldwide, which is only a $3 billion worth!

Yet, the banks typically charge a 1% storage fee on silver that does not exist, which may range from $200 to $400 billion.

THE BANKS ARE LIKELY CHARGING STORAGE FEES OF ABOUT $3 BILLION PER YEAR, ON UP TO $300 BILLION OF SILVER THAT DOES NOT EXIST, WHILE PHYSICAL INVESTORS ARE ONLY BUYING ABOUT $3 BILLION PER YEAR OF PHYSICAL SILVER!!!!

I’ll say that again, in another way! 

99% of “investors in silver” do not own any silver, but only a promise of silver from a bank that has no silver.

The “world” of silver investors are paying about the same in “storage fees” for silver that does not exist, as they are actually paying for in total physical silver that they are getting for deliver!

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The “world” continues to remain utterly clue less about silver.

Foolish Forbes acknowledges JP Morgan’s silver short position and CFTC investigation, but recommends SLV, where JP Morgan is the custodian, anyway!

http://blogs.forbes.com/robertlenzner/2010/12/06/silver-about-to-begin-new-sustained-uptrend/

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The “world” continues to remain utterly clue less about silver.

In these markets, silver wins by default
By Tim Shufelt and Peter Koven, Financial Post December 6, 2010
http://www.montrealgazette.com/business/fp/these+markets+silver+wins+default/3936245/story.html

“The fundamentals of the silver market certainly don’t support a spike that on Monday surpassed US$30 an ounce, the highest price since 1980 and an increase of more than 75% this year alone, analysts say.”

Analysts say?  Analysts say?!  What analysts?  Names?  None mentioned!  Nadler?  Christian?  Maybe?  Insane.

The fundamentals of silver are that $3 billion is being purchased per year, out of $300 billion in demand, because most banks are defrauding people!  Because, at $30/oz., 700 million new oz. per year of new mine supply is only $21 billion, which is not nearly enough to satisfy all silver investors without the price rising sky high,.

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Mainstream analysts remain clue less about silver, and admit ignorance.

$30 silver is it a buy or a sell?
http://www.mineweb.com/mineweb/view/mineweb/en/page31?oid=116416&sn=Detail&pid=31

“I am not sure what has moved this market to this 30-year high. To the best of my recollection, the use of silver has diminished over the years for different products such as photography and in the X-ray field,” said George Nickas, a broker of FC Stone in New York.”

Not sure what has moved this market?  Insane.

Years ago, back in 2003, in nearly every article, I wrote the following, in large print, in every “issue” of the silver stock report, so nobody could miss it:
http://www.silverstockreport.com/reports/silverstockreport15.htm

Long before 1% of U.S. paper dollars tries to buy gold, gold will be going up well over $1000/oz., and silver will be headed up over $50/oz.

Back then, that was unthinkable, laughed at.  Back then, silver was about $5-6/oz., actually, $5.76 in that report. 

Here, today, at $28/oz. for silver, we see the supply/demand numbers.  Only $3 billion of silver purchased by investors per year, about 100 million oz.  That’s 1.6% of 1% of the paper money supply of $18,000 billion!

We are still a long way away from, and well under, when 1% of paper money tries to buy silver.  Our store will have 50 times as many customers by then!  By then, silver will probably exceed $500/oz.  How else can $180 billion fit into a $20 billion market???!!!  It’s no surprise.  Not sure what has moved this market?  Please!  How dumb can the analysts get? 

Such writers must have fried eggs for brains!

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Did I mention yet that he “world” continues to remain utterly clueless about silver?  They probably think it’s only a color, not a metal.

Silver – 2010′s most popular car color
http://www.independent.co.uk/life-style/motoring/silver–2010s-most-popular-car-color-2156495.html

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MUST WATCH: The Curious Case For $936 Ounce Silver
http://www.youtube.com/watch?v=Bru2tVghbqw

Silver at $936 per ounce? Believe it. GATA’s Adrian Douglas makes the case for bullion bank metals price suppression, and for the TRUE value of one ounce of gold.

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www.OneOverSpot.com is listing more and more silver and gold for sale. But our prices at www.jhmint.com are currently cheaper, and we have more available! But if we begin to run out, we may start listing our bullion for sale on their platform more and more!
 
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Follow Max Keiser’s latest on “Crash JP Morgan, Buy Silver”!
http://maxkeiser.com/

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Insider Info on Silver on “the JP MORGUE”  Hilarious!  (A bit dirty, but funny.)
http://www.youtube.com/watch?v=Gl47z2g2EvI

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I strongly advise you to take possession of real gold and silver, at anywhere near today’s prices, while you stil can.   The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.

Follow me on facebook!
http://www.facebook.com/jason.hommel

JH MINT & Coin Shop, Grass Valley, CA — minimum order $5000 for free shipping, USA shipping only.
Open 10AM to 5PM Pacific Time, Monday to Friday, closed weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
www.jhmint.com
(530) 273-8175
Kerri handles internet phone orders:
kerri.jhmint@yaoo.com
(530) 273-8822

For smaller orders, or for shipping overseas, see my Mom’s Silver Shop in Sacramento, CA
www.momssilvershop.com
3510 Auburn Blvd., #12  (Auburn & Watt Ave)
Sacramento, CA
(916) 481 5656

Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

Related Articles

• JP Morgan, the Fed, and the Great Silver Manipulation (lewrockwell.com)
• Max Keiser’s Plan To Destroy JP Morgan Goes Mainstream, After The Guardian Posts His “Silver Squeeze” Thoughts (disquietreservations.blogspot.com)
• Want JP Morgan to crash? Buy silver | Max Keiser (guardian.co.uk)
• Hasan Niazi: Make sure your gold and silver are stored outside of the banking system. (kingworldnews.com)
• Silver Could Spike to $50 Based on Short Positions That Need To Be Bought Back (projectworldawareness.com)

I Told Them to Buy Silver

For more years than I wish to mention I have told people to invest with Gold and Silver. It seems I am always talking about it.

Just today a neighbor arrived home and came over to tell me about his water bill. He explained to me that the water company did a spot check on his meter because they thought he was using more water than what is expected for a family his size. The water company performed a flow test and found that the meter was operating very slow. Slow? What does that mean I wondered.

This neighbor told me that the water company charged him the same for usage for 30 days as for 15 days. I asked him what he was going to do about that. He said, Oh well it will work out in the long run.

Strange how some people think. A huge company makes a mistake and it becomes too big to mettle in so just let it be. However, if I held them up with a gun you can be sure that no matter what the amount stolen they would get the police involved.

Here Comes The Gold And Silver Talk

I asked my neighbor how he was doing with his investments in gold and silver. He was planning to invest ten thousand dollars. Seven thousand in Gold and three thousand in Silver.

Three months had gone by since we discussed his purchasing precious metals with the money he was allowing the bank to use. Gold was just under a thousand dollars an ounce and Silver was about eleven dollars an ounce. 

I did some quick math results and figured he has made upwards of six thousand dollars. Not bad for three months of doing nothing but buying gold and silver and sitting on it.

Well you might have already guessed it, this man did what most Americans do and that was nothing. Nothing but complain about the way things are and sit back and allow things to happen to them.

He could have been thousands of dollars richer today if he just bought real precious metals. Instead, the bank bought the metals and gave him 1.25% interest on his ten thousand dollars which amounts to nothing.

I told them to buy gold and silver is still what I’m saying today.

Chuck Madere

GoldSilver

Dubliology: Making Sense Out Of Non-Sense

The world we live in today is full of surprises. You pick up the     newspaper and get yesterdays news. It is not even today’s news.  Everything that is to be done is done before you even read it.

Here is some great information from the USA Gold Group

The most popular, fastest growing gold-based
news & opinion service on the internet.

9/1/2010
Summertime blues make way for a golden autumn

This past summer, on the whole, was a sideways event (as seasonally typical) for gold, whereas things were churning into considerably glummer affairs for stocks and housing. As the approaching U.S. Labor Day holiday flags the end of summer, here’s how things currently stand…

You’ll buy gold and like it
By Jeff Clark, SeekingAlpha; August 26, 2010

I get this question a lot: "Should I buy gold now, or wait for a pullback?"

It’s a valid question. For nearly two years, gold hasn’t had a serious decline. There have been pullbacks, of course, but nothing assumption-challenging. In fact, since October 2008, gold’s largest price drop is 10.6% (based on London PM fix prices), and yet the average of all declines since 2001 is 13% (of those greater than 5%). The biggest pullback we’ve seen this summer is 8.2%. Technically the summer’s not over, but I’ll admit I’m surprised we haven’t had a better buying opportunity.

So, is now the time to buy? It depends on your honest answer to another question: "Do you own enough gold?" By "enough" I mean an amount that lends meaningful protection on your assets. By "meaningful" I mean that no matter what happens next — another financial blow-up, accelerating inflation, crushing deflation, war, a plummeting dollar, more reckless government spending — you won’t worry about your investments.

Whether you should buy now is almost irrelevant if you don’t already own a meaningful amount of gold. If you earn $50,000 a year, how is one gold Eagle coin going to protect you if the dollar plummets and sends inflation soaring? If your investable assets total $100,000, is your nest egg sufficiently protected owning two gold Maple Leafs? This is all akin to buying a $50,000 insurance policy for a $500,000 home.

Today we face the prospect of prolonged economic stagnation, and most governments are administering grossly abusive monetary policy as a remedy. While some of the consequences are already being felt, the full ramifications have not hit your wallet yet. But they will….

USAGOLD Comment: Because, in the long run, says our next article…

Gold will shine no matter what the economy does
By Don Miller, MoneyMorning; August 31, 2010

In the long run, the likeliest possible outcome of the planet’s economic troubles is inflation, given the recent actions of spendthrift governments like that of the United States. And gold offers investors a tangible asset that has inherent value, compared to a fiat currency that’s only as good as the word of the government that issued it.

Even though investors have made the SPDR GLD ETF into the world’s largest holder of bullion, Peter Krauth, a well-known commodities expert who is also the editor of the Global Resource Alert thinks there’s no substitute for physical gold. "There’s nothing like holding a gold coin or gold bar in your hands. This is the oldest and most direct form of gold ownership," Krauth, recently said in an interview for Money Morning.

And Peter D. Schiff, President and chief global strategist at Euro Pacific Capital Inc., seconds that notion. "I continue to recommend that investors hold 5% to 10% of their wealth in physical precious metals," he wrote in a recent Money Morning article. "Aside from the likelihood that gold and silver will rise in price, precious metals offer timeless benefits, such as financial privacy, elimination of counter-party risk (if you store them yourself), as well as protection from government confiscation, onerous securities regulation, and punitive tax rates."

Summer’s almost over — get ready
By Brett Arends, MarketWatch; August 24, 2010

Labor Day’s around the corner. Summer recess is almost over. … After this, it’s game time. September. The fall. The fourth quarter. The economy. Gulp.

What can you do? Should you be long, or short? All-in, or on the sidelines? How can you protect yourself, but not miss out? The omens aren’t looking good. For some insight I spoke to one of the smarter guys around. Charles de Vaulx, the star money manager at International Value Advisers. He’s been knocking the cover off the ball since launching his latest fund in the midst of the crash two years ago.

… De Vaulx doesn’t think we’ll see a double-dip recession. But he thinks we’re going to have slow, grim growth for five or seven years. … Okay, you’ve heard the doom and gloom. So where should you put your money?

– Cash, plenty of it.

– Gold. Yep. "It should do well either way," says De Vaulx — meaning deflation or inflation. The only condition where gold gets killed, he says, is "disinflation," in other words when inflation falls. That’s what happened in the ’80s and ’90s. Not a worry here.

USAGOLD Comment: If, however, it’s a worry you’re looking for, then look no further than the stock market, or the housing market. For a bit more on that dismal matter…

Stock market closes out its worst August since 2001
By Stephen Bernard and Bernard Condon, AP; August 31, 2010

The S&P 500, the measure used most by stock market professionals, finished August with a loss of 4.7 percent. It was the S&P 500′s worst showing for the month since August 2001, when it lost 6.4 percent as the dot-com bubble collapsed. Year-to-date, the S&P 500 is down 5.9 percent. … Other market indicators also had dismal performances in August, having surged ahead in July on a series of strong earnings reports. The Dow lost 4.3 percent in August, while the Nasdaq lost 6.2 percent.

Joseph Battipaglia, market strategist at Stifel Nicolaus & Co., said the drop in August matters less than what caused it: signs that economic growth is slowing, or worse. "The evidence suggests we’re going into a recession," he said.

Existing home sales dive 27.2 percent to 15-year low
By Reuters; August 24, 2010

Sales of previously owned U.S. homes took a record drop in July to their lowest pace in 15 years, suggesting further loss of momentum in the economic recovery. … Existing home sales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, the lowest since May 1995. June’s sales pace was revised down to a 5.26 million-unit pace from a previously reported 5.37 million.

"This is a worrisome report and while it reflects the volatility caused by the end of the (government home-buyer) tax credits, it also indicates a deterioration in the underlying trend for housing demand," said Michelle Meyer, senior U.S. economist at Bank of America Merrill Lynch in New York. "For the overall economy, the dangerous link to housing is home prices and this report signifies that home prices should fall considerably faster, which could tip the economy back into a recession."

Have faith in gold and not in government rhetoric
By David Levenstein, Mineweb; August 23, 2010

A little over a week ago, U.S. Treasury Secretary Timothy Geithner wrote an article for the New York Times entitled Welcome To The Recovery in which he touted the great strides that the U.S. economy was making. … "The economic rescue package that President Obama put in place was essential to turning the economy around. The combined effect of government actions taken over the past two years — the stimulus package, the stress tests and recapitalization of the banks, the restructuring of the American car industry and the many steps taken by the Federal Reserve — were extremely effective in stopping the freefall and restarting the economy," Geithner stated in his article.

… However, no matter the rhetoric the facts speak for themselves and … statistic after statistic shows that the economic fundamentals continue to get progressively worse in the United States. A new analysis of the U.S. economy shows that since 2007, the private sector has lost 10.5 million jobs while the public sector has added 720,000 jobs. … The U.S. debt has grown rapidly with the economic downturn and government spending for the Wall Street bailout, the wars in Afghanistan and Iraq and the economic stimulus. The total U.S. debt includes obligations to the Social Security retirement program and other government trust funds. The amount of debt held by investors, which include China and other countries as well as individuals and pension funds, will rise to an estimated $14 trillion this year and to an estimated $19.6 trillion by 2015.

… At the moment given the fact that gold represents less than 1% of all global financial assets, as more people wake up and diversify into the yellow metal, prices will head much higher. In the long run, gold has always maintained its value unlike the value of fiat currencies that historically end in total failure.

USAGOLD Comment: Failure??? More on that from The Wall Street Journal…

Getting ready for a dollar collapse?
By Alen Mattich, Wall Street Journal; August 23, 2010

Could the Federal Reserve’s decision to restart its quantitative easing program trigger a dollar collapse?

That’s what John Hussman, a fund manager, argues in his latest weekly note to investors. And the case he makes is strong… as long as one ignores the fact that other central banks don’t want and are unlikely to accept a big dollar devaluation.

… China’s dollar peg is likely to prove a drag on a massive dollar devaluation. At the same time, countries like the U.K. are likely to respond to any sudden appreciation of their own currencies with their own programs of quantitative easing. As might the European Central Bank. Or there could be more direct currency intervention-the sort the Japanese and the Swiss have tended to resort to.

The upshot is likely to be not just a U.S.-driven inflationary push, but a global one, where all countries aim to devalue their way to economic health at the same time.

The result will benefit borrowers at the expense of savers worldwide. But, then again, maybe given the state of global imbalances — too much debt in the U.S. and other Anglo-Saxon economies; too many assets held by Chinese, Japanese and oil-producing countries — maybe a massive bout of global inflation is the only way forward.

USAGOLD Comment: As member of the minority saver class, the safest way to avoid falling victim to the majority-driven devaluation of national currencies is to convert your flimsy papery savings into something tangible — and not just any ol’ tangible thing but rather something that has timeless, universal liquidity that’s good as gold. As reported by Geoff Candy at Mineweb, Jason Toussaint, MD for investments at the World Gold Council, says, "What we’re seeing now is more of a move in understanding of gold’s role as a strategic asset class for the long term. And let’s not forget, against the backdrop of 2008, when most global equity markets return negative 50% or more — having an investor lose half of their wealth and then buy gold, is kind of too late. So, investors say we’re either really good at predicting future crises which are occurring more frequently, or should we have some gold in our portfolio up to a certain percentage, which they deem appropriate for the long run — in case there are future shocks that there will be this kind of portfolio baseline asset that will protect at least a portion of our wealth."

It’s Official: China is unloading its Treasury bonds
By OilPrice.com; August 26, 2010

It looks like the smart money these days is found in China. While American investors have been scrambling over each other to buy more Treasury bonds at historically low yields, China has begun quietly unloading some of its own enormous holdings. In June, the Middle Kingdom sold $21.2 billion of paper, reducing its net long to $839.7 billion. This is little more than 10% of the total $8.18 trillion in federal debt that Uncle Sam has outstanding.

… Officials at the People’s Bank of China say that it is all part of a broader diversification effort away from the greenback. PIMCO’s Bill Gross has apparently been taking Mandarin lessons on the sly because he has also been paring back his own massive holdings in longer dated Treasuries…

USAGOLD Comment: It is worth reemphasizing that diversification need not be a foreign concept. As reported by Alix Steel at TheStreet.com, "Intrinsically, the dollar is worth nothing. It’s a dream painted on a piece of paper," says Rick Rule founder of Global Resource Investments. Rule predicts higher gold prices in the future because the U.S. dollar will eventually depreciate in value. "There’s no particular reason why you, despite the fact that you live in the U.S., need to be a prisoner of the dollar…"

Pros love gold
By Simon Avery, Globe and Mail; August 24, 2010

Respected hedge funds appear to have acquired a substantial appetite for gold. Filings show that big funds have increased their buying of bullion in recent months. Among them, Eton Park Capital Management … George Soros … John Paulson….

"I can’t remember in 20 years so many respected investors focused on a single strategy," Bradley Alford of Alpha Capital Management, told Mr. Dutram. "Some of these people are icons of the industry with at least 15-year track records. It’s a losing proposition to bet against guys like that. They aren’t billionaires because they make bad bets."

USAGOLD Comment: Meaning, they ARE billionaires (and able to stay that way) because they tend to make WISE decisions…

Gold rallying to $1,500 as Soros’ "ultimate asset bubble" inflates
By Bloomberg; August 31, 2010

Gold may rise as high as $1,500 next year, 21% more than the $1,235 traded at 9am in London yesterday, according to the median in a Bloomberg survey of 29 analysts, traders and investors. Dan Brebner, an analyst at Deutsche Bank in London who is the most accurate forecaster so far this year, says the metal may reach $1,550. … The most widely held option on gold futures traded in New York is for $1,500 an ounce by December, or 18% more than the record $1,266.50 reached June 21.

Bullion gained 13% since January, beating an 8.4% return on Treasuries, an 8% decline in the MSCI World Index of shares and the 10% slump in the S&P GSCI Total Return Index of 24 raw materials.

… One of the biggest buyers has been Soros Fund Management, which oversees about $25bn. George Soros, who made $1bn breaking the Bank of England’s defense of the pound in 1992, described gold as "the ultimate asset bubble" at the World Economic Forum’s January meeting in Davos, Switzerland. Buying at the start of a bubble is "rational," he said.

USAGOLD Comment: For more perspective on the bubble notion, consider these opening remarks…

Gold’s billionaire evangelist
By Jason Kelly, Bloomberg BusinessWeek; August 26, 2010

"I’m not a goldbug, but there are times when I feel like an evangelist for it," says Thomas Kaplan, an Oxford-educated historian and chairman of Manhattan-based Tigris Financial Group. "To my amazement, it’s a hard sell. The conventional wisdom is that gold is for primitives. That derision shows me that, contrary to the notion we’re in a bubble, we haven’t yet begun the real bull market."

… His conviction about gold puts him in the company of such celebrated figures as George Soros and John Paulson, both of whom have been betting heavily on the yellow metal … At the moment, the wager looks inspired: The price of gold has risen for nine straight years, hitting an all-time high of $1,256.30 an ounce on June 21. While the price has fallen about 2 percent since then, Kaplan says the big rally is still to come. It’s not riots in the streets he envisions, but a more fundamental case of demand outstripping supply as gold becomes a currency in its own right.

… Meanwhile, as gold prices swing wildly and talk of a double-dip recession ripples across the markets, Kaplan retains his karmic calm. "People view gold as emotional, but when they demythologize it, when they look at it for what it is and the opportunity it represents, they’re going to say, ‘We really should own some of that.’ The question will then change to ‘Where do we get the gold?’ "

USAGOLD Comment: ‘Where?’ indeed. A good start would be to make a toll free phone call to the helpful staff at USAGOLD-Centennial Precious Metals…

As always, feel free to share this NewsGroup newsletter with your friends, and stay in touch with your broker at USAGOLD for prices, availability, and reliable delivery of gold coins and bullion right to your door!

USAGOLD-Centennial Precious Metals, Inc.
Gold coins & bullion since 1973

www.usagold.com

Trading Desk
1-800-869-5115 U.S.
00-800-8720-8720 Europe
Extension #100

Ask to speak with one of our brokers.

We educate first-time investors.

Chuck Madere

GoldSilver http://goldsilver.com/home/ref/970

Buy Silver then Gold

Use the huge profits you make on the silver to buy gold.

Chuck Madere

She is sure a beauty walking do proudly

This is what a Real Dollar looks like

It’s too bad that for many today we have not seen this coin. Most of your grandparents had these in their pockets or purses as they went about their days. This was at one time what the dollar looked like.

Unfortunately this legal tender Dollar is not used for general purchasing for now we have the Federal Reserve System of Banks in place where they provide us with a Fiat Currency called the Federal Reserve Note. By the way, fiat currency is worthless paper that most nations use as money today.

I make it a habit to buy as many of these coins as I can afford because of their value. At the time of this writing these coins have a $22.00 value. The nice thing is that with silver on the rise this year this coin could see $100.00 or better. That would mean that if you like me invested with American Eagle Silver Dollars you would more than triple your income. This of course is just what the big time promoters are saying. You use your own common sense when investing in anything.

Chuck Madere

Silver Snowball     GoldSilver

What Will You Say When Gold Hits $2000.00 an Ounce

Chuck Madere

For you continued education

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04/07/2010
You cannot hide from the National Debt…
but there is a solid way to stay out from under it.

USAGOLD Video RoundTable

Discussion Topic: Real Economic Recovery or Real Problem?
featuring Pete Grant, Jonathan Kosares and George Cooper

Gold climbs as debt fears fuel buying
By Reuters; April 7, 2010

Gold rose to a five-week high in Europe today and held near record levels in euro terms on the back of strong physical demand and as investors, worried by the outlook for the eurozone economy flocked into hard assets. The metal shrugged off hefty gains in the dollar versus the euro, which normally would weigh on gold, as dealers reported good demand for physical stocks of the metal…

"European GDP in Q4 was revised down to 0% today, and the euro’s direction looks to be downwards," said Matthew Turner, an analyst at VM Group. "We are used to American investors buying gold because they think the dollar is going to fall. I guess we may have European investors buying because they think the euro is going to go down. That may be one reason why the euro-weak, gold-strong relationship has happened."

Euro-priced gold hit a record high of €856.32 an ounce…

"Increasing concerns over fiscal deficit levels continue to draw diversification towards hard assets, particularly gold," said James Moore, an analyst at TheBullionDesk.com.

USAGOLD Comment: As of this writing, the euro price of gold has extended its record further, now topping €861/oz even as the dollar-denominated price is probing 3-month highs around $1,150 per ounce, largely, as was our focus in last week’s newsletter, on concerns over escalating sovereign debt.

Crisis could end link between gold and dollar
By Sunil Kumar Singh, EmiratesBusiness24|7; April 1, 2010

"A sovereign debt crisis like the one we have seen in Greece over the past month, kept gold stable as the safe haven buying was offset by a stronger dollar. An escalation of that theme could result in a net rise of gold despite potential dollar strength," says Ole Hansen, Senior Manager for CFD and Listed products, Saxo Bank…

Sentiment among investors remains bullish for 2010 with some asset managers suggesting gold could gain as much as 30 per cent this year, according to Rothschild Private Banking and Trust’s latest observation in its investment weekly.

So, what are the factors working behind the price of gold apart from the dollar? The last decade has shown that while gold is, in many ways, a simple asset (it has no default risk or counterparty risk and no complicated structures underpinning it) the drivers behind demand and the gold price are not that simple. Gold has shown that it can perform strongly when economic growth is buoyant, as it did during the 2003-2007 period, but it can also outperform when the global economy is in recession, the WGC report says.

Gold can outperform when inflation is benign (as it did through much of the past decade), it can outperform in a deflationary environment (as it did in 2008 and early 2009), and it can outperform during an environment of above trend inflation or expected inflation (as it has done more recently). While this doesn’t imply that gold is immune to cycles, it does show resilience across the economic cycle, WGC says…

Many investors and hedge funds are reported to be flocking into gold on fears that deteriorating public finances and ballooning national debt of major economies can undervalue the current monetary setup, said Pradeep Unni, Senior Research Analyst and Trader at Dubai-based Richcomm Global Services.

USAGOLD Comment: To elaborate more on that last point…

How to wash your hands of the national debt…

USAGOLD Comment: David Walker, former U.S. Comptroller General and head of the Government Accountability Office, worries that we are dangerously close to a "tipping point" with respect to our debt that, if exceeded, could lead to sharply higher interest rates and a plummeting dollar. Gold is the classic hedge against just about everything Walker warns about in the interview embedded here. By willfully choosing physical gold instead of conventional dollar-denominated bank deposits and bonds as your primary form of savings, you can effectively "wash your hands" of those shabby debt-ladden risks. Click the image to access the full Wit & Wisdom of Ed Stein.

Gold stands its ground
By TheGoldReport, SeekingAlpha; April 5, 2010

Gold prices continue to climb and John Licata, chief commodity strategist at Blue Phoenix Inc., says he sees reason to be optimistic about gold’s future…

The Gold Report: The price of gold is around $1,100. Last year you were saying the best buying opportunities were in the $850 range. Are you still recommending gold to investors?

John Licata: Yes I am. Wall Street has thrown the kitchen sink at gold, and for all intents and purposes gold could have fallen below $800 per troy ounce with the rally in the U.S. dollar and overall stock market. Yet gold maintained its resiliency and showed it can act independently of foreign exchange movements. That has me very constructive on the outlook for the yellow metal. We’re still holding on to $1,100 — and I continue to maintain $1,375 as my target on gold for the rest of the year. Gold can benefit from increased geopolitical risk…

Gold will rise as more inflationary pressures present themselves. Only 40% of the stimulus package has actually been allocated. There will be a lot more government money allocated to various economies in the middle, and toward the end, of the year. We can see a lot of inflation — and not only here in the United States. Globally, we’re still trying to figure out what’s happening from the sovereign debt perspective. If we keep throwing so much stimulus into reviving economies around the world, then "hyperinflation" is a term that we’ll be really comfortable using in 2011.

Because I mentioned sovereign debt, we have to talk about Greece and how that situation could spill over into Portugal, or perhaps even Italy. Yet we have our own problems here in the U.S., with California perhaps coming up with a default of $20 billion. That’s another catalyst for gold — the fact that sovereign debt issues are being magnified right before our eyes even here at home…

Greenspan defends Fed record
By Joshua Zumbrun, Bloomberg; April 7, 2010

Congress is considering the most sweeping changes to financial regulation in decades, including a proposal by the Obama administration to limit banks’ proprietary trading and provisions allowing for the orderly wind-down of failing financial firms. Former Federal Reserve Chairman Alan Greenspan suggested higher capital standards may be more effective than new rules…

Greenspan said the crisis originated from the securitization of subprime mortgages, which were fueled by low long-term interest rates that he said were outside the Fed’s control, and international demand for these securities…

"While, fortunately, much financial innovation is successful, much is not," Greenspan said. "It is not possible in advance to discern the degree of future success of each innovation."

"The next pending crisis will no doubt exhibit a plethora of new assets which have unintended toxic characteristics, which no one has heard of before, and which no one can forecast today," Greenspan said.

USAGOLD Comment: Here’s a valuable insight — in marked contrast to the ever-changing menu of exotic and potentially toxic financial instruments invented to beguile newborn investors and corporate boardrooms alike, everyone has heard of physical gold. It’s been reasonably well understood throughout all of human history, and the more you study it the more you realize, refreshingly, that there are no rude surprises in the form of deadbeat counterparties lurking in the shadows as is the case with all other financial instruments. This unique distinction will continue to give gold it’s competitive edge, propelling it well through the next several millennia as the one investment class no-one should be without.

McEwen — gold is the ultimate currency
By Geoff Candy, Mineweb; April 1, 2010

Speaking on the Mineweb Gold Weekly podcast, Rob McEwen, the CEO of US Gold and the founder and former Chairman of Goldcorp, retains his long-held views on the gold price (he has recently been quoted as suggesting gold will hit $2,000 this year on its way to $5,000). He says that gold is being driven up by the massive amount of debt that’s in place right now and the huge spending programs by the governments of the west.

These countries, he says, are debasing their currencies in an effort to kick start their respective economies and, while this may work in the short term he says, "long and intermediate term we’re going to see the ramifications of this and it will look something like the Weimar Republic of the twenties".

He adds, "First you have to appreciate that gold is [...] the ultimate currency because it can’t be manufactured the way all the paper currencies of the world are, the fiat currencies. The supply of gold can only expand at the rate of annual production and that’s about 1% a year whereas the paper supply is just a question of how many zeros you put in and you can print out as much as you want."

While McEwen admits that other factors, such as demand from Asia have a role to play in boosting the price of the yellow metal, in the end it comes down to money, how people keep it, store it and ensure its value doesn’t diminish.

"August 2007, to me that was the turning point," he says, "that was the first time in probably the last 30 or 40 years that suddenly the entire banking system of the world appeared to be in jeopardy and the question was not of ‘how much do I earn on my money’, it is ‘how do I protect my money’, and gold has served that role over the millennium and it’s about to do it again."

USAGOLD Comment: Feeling a little millennium déjà vu? Speaking of which, you’ll surely remember the "déjà vu" gold price chart that we worked up for you two weeks ago. It depicted a recurrent consolidative wedge pattern that was priming for an imminent breakout. Well, as you’ll see if you take another look, with gold currently trading at $1,150 we have indeed now broken out of that pattern to the upside — and subsequently new record highs are almost begging to follow in the not-to-distant future.

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Extension #100

Investors are so upset they are dumping stocks

Wall Street and their brokers, and are stampeding into safe United States Treasury Guaranteed Gold.

Experts on Wall Street have been lying to you for years by telling Americans their money is safe!

We now know that at any point in time our entire life savings can be in jeopardy forcing many of you out of retirement and back to work.

FDIC only guarantees deposited funds but not investments like stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investments were purchased at an insured bank.

Gold since the dawn of civilization has been a protector of wealth from political chaos, economic downturns, and financial crisis.

Protect your family now before Wall Street leaves you nothing to protect!

Back in 1950, if you wanted to purchase a house with gold,  at that time Gold was $35 per ounce,

you could have paid for the house using 500 ounces of gold or $17,500.00 dollars.

In 1950 Gold and Cash had equal value.

Today 2010 the value of the dollar has plummeted and Gold has risen.

To purchase that house now, you would need $241,500.00 dollars BUT ONLY 210 ounces of Gold.

There is no better way to increase and preserve your buying power than thru gold ownership.

Today, I am inviting you you learn how easy it is to purchase gold by visiting Bullion Investment Corporation.

Just click on the links provided and read all about it. Do it for yourself and your families future.

Chuck Madere

Bullion Investment Corporation

http://chuckmadere.com/BIC

650-366-5307