Is Gold hot or not? There are a lot of conflicting reports coming out from even credible financial firms.
Some firms like the World Gold Council are saying that the downtrend in gold has created more demand.
When you look at the reported gold holdings for the first quarter of 2013, the numbers are pretty impressive.
SilverDoctors published an article making the case that the falling price of gold has increased demand at Gold Demand Remains Strong As Buying Records Continue
Think that the value of the U.S. dollar has nothing to do with the S&P 500? Think again. In this episode I explore the concept and attempt to answer the question: Has the S&P 500 really gone up in value since the Global Financial Crisis of 2008 or is it really the U.S. dollar going down?
While the question may seem absurd at first, it’s precisely what we see happening in Iran. When the currency in Iran plunged over 50%, the stock market in Iran went up over 30%. What happens when a currency loses value is that the price of everything goes up, including stocks.
I chart the S&P 500 to the U.S. dollar and show you something so scary, you won’t soon forget.
Is it even possible for gold to go to $5,000 an ounce let alone $15,000? The answer is yes. Since 2008 we’ve seen the popularity of Gold IRAs explode upward. But it’s not just retail demand that will drive gold much higher than it is today.
Every monetary system we’ve had in the U.S. has been replaced every 30 to 40 years. Paper currencies do not last.
The reason is that governments and central bankers manipulate the currency through interest rates, money printing, and currency wars. Today, when you look at the base monetary system, it shows something so horrible that nobody even wants to talk about it.
In the 200 years leading up to the 2008 Global Financial Crisis, 800 billion dollars were in circulation. Since 2008 and the stimulus policies of the Federal Reserve along with massive bailouts of the private sector, there are 2.8 trillion dollars in circulation. That number continues to rise at an alarming rate.
We also have news recently that more and more people are unable to retire because their retirement nest-egg in stocks has been mostly flat for the last 10 years. Investors are disillusioned with the stock market, money managers, and retirement programs that only offer bonds and stocks. Over the last 10 years, gold is up over 400% while the stock market has been flat.
Click HERE to Get This Mind Blowing Gold IRA Investment Kit valued at $100 FREE!
Click HERE to Get This Mind Blowing Gold IRA Investment Kit valued at $100 FREE!
Did you know that there’s a push underway right now to remonetize gold? Is that why central banks bought more gold in 2012 than anytime since the 1960s?
The Federal Reserve continues to devalue the U.S. dollar. Just today Bloomberg ran a story that the Federal Reserve will purchase an estimated $1.14 trillion in assets by 2014.
With the ongoing currency wars and the race to the bottom by countries all over the world, it’s not really surprising that central bankers are talking about creating a SDR with gold.
When you think about it, a basket of currencies with gold in it would be pretty incredible. As the currency goes down, gold will go up. As gold goes down, the currency will go up. That’s a real nice way to have a currency hold its value.
The devaluation of the U.S. dollar can really be seen in terms of the price of oil. In 2002, oil was at $26 a barrel. Today it trades around $97 a barrel. While it might be tempting to think that the price of oil has risen, the truth is that the U.S. dollar has fallen in value. We can prove this by looking at how much oil gold buys. A gram of gold buys the same amount of oil as it did back in the 1950s! That’s an incredible statement when you think about it.
In this episode, I talk about the Federal Reserve and the talks underway by the central banks to remonetize gold.
Now is the perfect time to do a gold 401k rollover if you have a 401k from a previous employer. The reason has everything to do with the CRB Index.
You see, institutional traders don’t watch the price of gold to determine inflationary and deflationary cycles like most investors think. Institutional traders track an indicator that is far more accurate than just the price of gold. In fact, this indicator has predicted every inflationary and deflationary cycle since 1957! I’m talking about the CRB Index.
The CRB index is comprised of:
Metals: aluminum, copper, gold, nickel, silver
Energies: crude oil, heating oil, natural gas, unleaded gas
Grains: corn, soybeans, wheat
Food & Fiber: cocoa, coffee, cotton, orange juice, sugar
Livestock: lean hogs, live cattle
When the CRB index goes up, it suggests inflationary pressures are on the rise. When the CRB index goes down, it suggests deflationary pressures are rising.
In this episode, I’ll show you the signal the CRB index just gave and what it means for the future price of precious metals. I’ll show you a chart overlay of both the CRB Index and gold and how both have been in an energy field for the last year and look ready to head higher on the CRB Index strong uptrend and breakout resistance level it’s testing now.
Folks, it looks the CRB index has just gone into a strong uptrend and its testing breakout resistance right now! If it breaks through resistance, it could signal the next major move up for the precious metals. If you have a 401k from a previous employer just sitting there, now is an excellent time to consider rolling it into a precious metals IRA.
In an earlier episode, I talked about how silver supply shortages caused the U.S. Mint to run out of silver and temporarily halt their 2013 Silver Eagle coin production.
Critics wrote in to me and said that there was no shortage of silver because, since the 1960s, the U.S. Mint has minted over 350 million Silver Eagle coins. These Silver Eagle coins are in circulation and you can go anywhere and buy as many silver coins as you want thus there is no silver shortage.
It’s a good point. But it’s wrong. What my critics are talking about is circulation, not current silver supply and demand. While this is a clever argument, it’s like comparing apples to oranges.
There is a current shortage of silver which is why new 2013 coin minting had to stop. This has nothing to do with silver coins in circulation since the 1960s.
Furthermore, new information has come in on what caused the temporary supply shortage of silver.
Earlier this week, BlackRock reported that they added 571.63 tons (183,378,092 ounces) of new physical silver backing to their popular silver ETF iShares Silver Trust (SLV). That is the largest one day addition since December 31, 2007. The silver bullion is held by the trust’s custodian in London.
If the huge iShares Silver Trust (SLV) purchase was not enough, we also had news that HSBC has completed a second large purchase of silver bullion from KGHM Polska Miedź S.A., the world’s largest silver miner.
KGHM issued a press release on Wednesday which read in part,”… on 21 January 2013 a contract was entered into between KGHM Polska Miedź S.A. and HSBC Bank USA N.A., London Branch for silver sales in 2013. The estimated value of the contract is PLN 1,672,260,469.66 [$532.6 million].”
The press release continued, “As a result of entering into this contract, the total estimated value of contracts entered into between KGHM Polska Miedź S.A. and HSBC Bank USA N.A., London Branch over the last 12 months exceeded 10% of the equity of the Company and amounts to PLN 3,654,120,061.59 [$1,163.7 million].”
This explains why silver has outperformed gold over the last few weeks.
This is why diversification is a must for your Precious Metals IRA. When one precious metal is lagging, often another will be performing well. In the case of silver, silver has been doing well over the last few weeks while gold has been lagging. You are allowed to have gold, silver, platinum, and palladium in an IRA.
In the case of palladium, it’s been pushing higher since August of 2012.
The U.S. Mint reported to dealers today that it has run out of silver American Eagle coins! Demand for silver coins has sky rocketed since the Fiscal Cliff and now Debt Ceiling debates in Congress. I’m sure that the expanding recession in Europe, and the Currency Wars, are contributing to the mass buying as well.
Silver Eagle sales to January 15 exceeded 5 million ounces and were on track to surpass the all-time monthly high of 6.1 million ounces, set in January 2012.
I know that this is not the first time that the U.S. Mint has run out of silver coins but it’s still impressive nevertheless.
A great way to play the huge demand for silver is to set up a Silver IRA. You can have both gold and silver and other precious metals in your IRA.
Click Here To Grab Your FREE Gold/Silver Investment Kit Now!
Click Here To Grab Your FREE Gold/Silver Investment Kit Now!
Did you know that the current sanctions on Iran serve as a valuable lesson regarding a gold IRA? They do and it’s not really that far of a stretch.
It turns out that sanctions have caused Iran’s currency, the rial, to plunge over 50% in value. What Iran has been doing to defend it’s currency from attack by the West is to accumulate gold. Yeah, crazy right? But it’s true and it appears to be working. Iran is moving to the gold standard and is conducting trade of its oil and natural gas in gold! In other words, sanctions have forced Iran on to a semi-gold standard.
The reason that Iran is accumulating gold is the exact same reason that you or I would use to set up a gold IRA retirement account: to preserve wealth. The U.S. or Europe can’t devalue gold, at least not as easy as they can paper currencies. They can devalue paper currencies but they can’t devalue the price of gold so easily. Iran is using gold to preserve its nation’s wealth against crippling sanctions.
But it’s not just Iran who is buying gold, it’s almost every central bank around the world. For 2012, central banks bought an estimated 500 tons of gold, the highest amount on record since the 1960s!
In this episode, I talk about Iran, central banks, and gold’s emerging role in the global financial system. I also talk about how all of this applies to gold IRA investing and how anyone can set up a precious metals IRA.
Click here to get your FREE gold investment kit and to learn more about setting up a gold IRA!
Click here to get your FREE gold investment kit and to learn more about setting up a gold IRA!
If you haven’t heard about the trillion dollar coin, where have you been?
There’s a loophole in current law that prohibits the President from printing money and also minting money with gold and silver; however, no law was written about platinum.
Why would the President order the printing of a $1 trillion platinum coin? The logic goes that the Treasury can print a trillion dollar coin and exchange it for $1 trillion printed cash, or a $1 trillion credit against the debt limit, hence no triggering of the debt ceiling limit for about another year.
This is absurd. Talk about undermining the credibility of every coin you have in your pocket! What’s even crazier is that a petition is going around with over 4,000 signatures of people asking the President to mint a $1 trillion dollar coin!
In this episode, I demonstrate absurdity with absurdity.
What you are about to hear will be disturbing to most of you but I think it’s important that I warn you about some very dark storm clouds on the horizon that are headed our way. This doesn’t mean that I’m one of those wacky gold bugs that thinks you should sell everything and buy into the whole doomsday prepper movement.
The scary video you are about to see is focused more on protecting your retirement plan and the money you are putting away for the next 10, 20, or even 30 years.
Now some will dismiss this video as just another crazy “evil China” conspiracy theory. I, of course, disagree with that assessment. Everything you are about to hear is fully backed with research and news stories from all the major media sources. Nothing has been exaggerated or made up. The only thing I have done is to put these separate news stories most of you have already read over the last 10 years or so, and put them together into a comprehensive theory about what the Chinese are planning for America.
In this episode I talk about the recent forward split in TVIX and why, if you hold TVIX, your account history says “STOCK DELIVERED OUT: 100 SHARES OF TVIX” then “STOCK RECEIVED: 10 SHARES OF TVIX” then “VELOCITYSHARES 2X VIX SHORT REORG FEE”.
I also talk about how money managers view the Fiscal Cliff: value in controversy. The Fiscal Cliff and the controversy surrounding it helps push down stock prices creating some excellent bargains.
To finish things off, I talk about the stupid concept that Iran’s stock market is hot because it’s up 30% over the last 5 months. It’s amazing how most people don’t understand currency valuation and how it impacts an economy. Iran’s stock market is not going up because of buyers racing in but rather because the Iranian currency has lost some 50% of its value over the last 5 months. When the value of a currency goes down, the price of everything goes up, including stocks.
Think of it in terms of refrigerators. Prices for refrigerators practically doubled overnight as Iran’s currency plunged because it took more rials to buy the refrigerator. The price of refrigerators did not go up because everyone suddenly went out and bought a refrigerator. It would be a mistake to think that refrigerators were a hot selling item in Iran because of how much they went up in price when the rial lost over 50% of its value. So to it is a mistake to think that Iran’s stock market is hot because of how much it has gone up.
Learn why a gold IRA is the best way to preserve wealth and how anyone can set one up. Let me be clear. I’m not talking about buying GLD or SLV stocks. This episode will show you how you can buy physical precious metals for your retirement plan.
You can even roll over a 401K plan into a self directed gold IRA and purchase physical gold, silver, platinum, and palladium in your IRA!
Most people don’t know that in 1997, the Taxpayer Relief Act was passed which made it legal to add precious metals to IRAs!
My top stock picks for 2013 are all centered on the theme of China. Reuters recently reported that $4 billion has moved into China stocks over the last 8 weeks.
Institutional traders and money managers are moving big money into China after manufacturing in China has been above 50 for the last 2 months bolstering the profit thesis that China’s economy is on the rebound.
In this episode, I researched what the Chinese economy consumes the most. Surprisingly, I found nearly all the stock charts have just entered into strong uptrends!
Here are some facts to consider:
As reported by Reuters, nearly $4 billion as gone into Chinese equity funds in the past two months.
Forbes says China imports mainly commodities: iron and steel, oil and mineral fuels as well as machinery and equipment, plastics, optical and medical equipment and organic chemicals.
China imports Palladium for its automotive sector.
China is the world’s biggest buyer of coal, copper and iron ore.
As China’s No. 1 agricultural import, soybeans are a good play on the country’s growth, and one that is tied intricately to the Chinese consumer.
China’s 5th largest import is rubber. Demand for rubber is closely related to the demand for automobiles, with the commodity used primarily in making tires.
The gold market, like the S&P 500 and most other markets, has a sidelines rating. In this episode I look at key support and resistance levels on gold. I also answer a viewer’s questions about the NYSE and gold and why gold mining stocks are currently lagging behind the precious metal.
Gold and gold mining stocks take turns leading each other. At times gold leads the miners. At other times the miners lead gold.
If you are long gold then you want the Euro to go up which will make the US dollar go down, and the S&P 500 go up. Gold doesn’t always track what the S&P 500 is doing but it has for most of the last year. This means that gold bugs and stock traders are on the same side.