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Gold is the money of Monarchs…Silver is the money of gentlemen…
Barter is the money of peasants…Debt is the money of slaves…
Do the math and the IMF is selling 15% of 2800 tons. This is like investing $ 1,000 in a stock when it goes up 15% you take 15% to cut your investment costs to 85%.
It is simple math that the U.S. total personal and public debt is 350% of GDP, and there is no hope for the green U.S. dollar as it is dampening its grip on the world currency. Commodities traded in U.S. dollars will increase as the multiple of the currency is exchanged goes up.
The United States may not raise interest rates for five years at least ten fold. A total collapse of the U.S. economy would happen if interest rates were to rise. They could not raise enough to counteract the negative effects of a weak dollar. Or purchasing power of the dollar’s rise would not be sufficient to pull the economy that has been used for a high dollar for 30 years. Just look at Japan, which has and had its interest rates at or near zero for ten years. The lost decade of the U.S. dollar is near.
However, the good times ahead for countries that debt / GDP ratio is better. If they try to keep the United States to keep their money down to trade, there will be plenty of money to spend on the public. Therefore, in Canada, politicians are fighting so much. They want their name on the checks and be able to spend that money on their credit and take precedence.
Obama’s feeble dollar sparks a new goldrush
Irwin Stelzer Times Online November 22, 2009
Visitors to America might have noticed the television ads urging us to buy gold. One such “spokesman”, formerly in charge of managing the government’s hoard of the yellow stuff, including the ingots buried at Fort Knox, points out that the value of gold has never fallen to zero. Why investors are expected to find such a modest claim reassuring I can’t imagine. But something is persuading people to buy gold, driving the price to and past $1,100 per ounce, from about $270 at the beginning of this decade, and around $700 when the financial crisis first hit.
This is not mere panic buying by a herd of small investors trying to benefit from what is called a momentum play. John Paulson (no relation to Hank), the investor who made $20 billion for his hedge fund between 2007 and 2009 by betting on a collapse of the financial and housing markets, is betting on gold in a big way. Paulson & Co already holds $3 billion in gold-related investments (including AngloGold Ashanti and Kinross Gold), and Paulson has just seeded a new gold-related fund with some $250m of his own funds. His modest objective: appreciation at a rate higher than the increase in the price of gold itself.
You can read the rest of this article at Times Online
Today we’re looking at the dollar index and some important elements that analysts see building in this market and want to bring to your attention. In this short video we outline the key areas to watch for and one important component that you may not have seen. We think this factor could, in fact, be a short term game changer for this market.
The great fools’ gold rush
Tom Rawstorne, Daily Mail 22 November 2009
A suburban street in the heart of Essex and a dozen women are gearing themselves up for a night of fun. The rosé wine is flowing, the nibbles are on the table — Tesco’s Chinese chicken wings, Pringles and dips — and the air is heavy with perfume.
But not all is as might be imagined. Sure, the guests are suitably dressed up, but, given the geographical location, they’re surprisingly light on the bling.
And the reason soon becomes apparent. Instead of wearing their jewellery, the women attending this soiree are actually here to flog it. Forget Tupperware parties, this is the frontline of a very modern gold rush.
In the corner of the room sits Loellie, an attractive twentysomething woman armed with impossibly high heels and a set of minutely accurate electronic weighing scales.
A guest called Julie approaches and hands over a small bag containing a gold charm bracelet, a few rings and some odd earrings.
‘I lost most of my significant jewellery in a house burglary a few years back,’ she says. ‘These are just odd pieces I have that I no longer wear.’
Loellie examines the items with a magnifying glass, weighs them and then divides them into different piles according to purity: nine, 18 and 20-carat. She then offers to buy the lot for £221.
Julie is delighted and accepts a cheque there and then.
‘It’s fantastic,’ she says. ‘I haven’t worn any of this stuff for years, and now I’ve got a cheque for more than £200. I am going to put it towards decorating the front room in time for Christmas.’
Julie is not alone. Up and down Britain similar parties are being held every night of the week. The reason is simple. Bullion prices have risen to an all-time high just when the man and woman on the street is more desperate than ever for cash.
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