Posted by Wealth Wire
The debt-based monetary system creates an illusion of wealth. It allows for claims on real goods to significantly exceed the actual amount of real goods. You then have a number of people believing they have wealth, since they have claims (pieces of paper or tokens) showing that they have these real assets, whereas, in reality, if everyone was to claim the real goods, there would not be enough to go around.
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Interview With Ted Butler
Ted Butler is one of the better-known silver analysts (and longtime silver bulls) in the world. The founder of Butler Research, a monthly publication focused on precious metals, Butler has been pounding the table on silver since way back when it was trading for $4/ounce.
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By Marc Davis, BNWnews.ca
With potash prices spiking higher in response to surging global foods costs, the world’s most advanced “independent” potash project is in the cross-hairs of an increasing number of deep-pocketed suitors.
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Author: Brian Sylvester
Austerity programmes across Europe, continued debt problems in the US and further political uncertainty all point to a continued uptrend in gold prices, says Brien Lundin. A Gold Report Interview.
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By Michael Brush, MSN Money
Recent dips are giving us another chance to get in on the great gold rush. The factors driving the metal higher -- broken governments and fragile economies -- aren't going away.
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Author: Lawrence Williams
Speaking at GATA's sold-out Gold Rush conference in London, Eric Sprott affirmed his strong views on gold and his even more positive thoughts on silver.
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Edmund Conway
That's right: come Monday morning we will have managed to survive four decades of fiat money – though, given the chaos in markets in recent weeks, it is anyone's guess how much longer it will last.
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By Myra P. Saefong, MarketWatch
SAN FRANCISCO (MarketWatch) — Silver has always been seen as less precious than gold, but it has certainly proved itself worthy of investors’ attention — and demand for it as a hedge against the world’s financial woes is likely to grow.
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Edmond J. Bugos
After launching the Shanghai Gold Exchange in October 2002, the exchange’s principals announced a three-part plan to liberalize trading: 1) establish a deferred delivery service (as physical transactions are settled pretty much the same day); 2) create gold-related investment products in order to promote domestic investment demand and create liquidity; 3) integrate the exchange into international markets – which includes expanding import/export licenses and allowing foreign entities to become members.
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Author: Amanda Cooper (Reuters)
Analysts believe that gold stocks could well take the upper hand after a long period of underperformance in relation to physical bullion as the flow of cheap money from the U.S. slows
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By The Economist
Striking gold is generally considered a slice of good luck. Owning it, however, is a sign that you fear the worst. Some people buy the yellow stuff because they think it looks pretty, to be sure. But the quintessential gold bug is an investor who expects every form of paper wealth to collapse, along with civilisation itself.
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By Marc Davis, www.BNWnews.ca
Though Nevada’s world-famous gold fields have historically yielded over 150 million gold ounces, they are still proving to be geologically fertile hunting grounds for exploration-minded junior mining companies. Two good examples are Auex Ventures and Fronteer Gold.
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By David Galland, Casey Research
While there are many reasons that gold and silver are going to keep moving higher as the fiat currencies trend lower, at our recent Casey Research Summit in Boca Raton, faculty member Mike Maloney pointed out a fact that, while obvious in hindsight, I had never heard mentioned previously.
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Author: Fayen Wong
SHANGHAI (REUTERS) -
London specialist consultancy GFMS reckons Chinese gold imports could exceed 400 tonnes in 2011 with silver, too, expected to exceed domestic supply.
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By William Mbaho, BNWnews.ca
Heightened global demand for vanadium especially from China, is prompting the global steel industry to aggressively seek out new supplies, especially in the U.S. where this 21st century metal is becoming increasingly indispensible. Even U.S. President Obama is championing this metal’s promise for green energy applications.
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Author: Geoff Candy
The yellow metals performance in the face of silver's washout last week was rather impressive and an addition to the factors why UBS expects gold to continue going higher this year.
Gold's performance last week, in the face of a drop of around 30% in the price of silver was rather impressive and, could be an indicator of things to come.
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By Marc Davis, www.BNWnews.ca
The quest to commercialize one of Latin America’s last undeveloped major gold deposits is one major step closer to a prospectively big pay day for its unlikely owner – a small gold explorer named Exeter Resource.
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By Debbie Carlson
Of Kitco News
After a sharp drop in prices this week, the outlook is hazy for precious metals price direction, but some analysts believe the metals could see the slide ending next week, at least for gold.
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Author: Lawrence Williams
Some observers think gold is in a bubble, but silver has been rising far faster. Can this momentum be maintained or is now the time to take at least some profits as the price closes on $50.
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Author: Jan Harvey (Reuters)
Silver rose to its strongest since 1980 and Gold hit five week highs on the back of growing unrest in the Middle East
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By Marc Davis, www.BNWnews.ca
Silver promises to become the next big buzzword among investors in 2011 and beyond, according to one of the investment industry’s most prescient and successful experts on precious metals.
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There are some bizarre things going on in the silver market at the moment, reminiscent of the supply shortages and high premiums witnessed in 2008. For starters, silver is currently in both short-term and long-term backwardation, suggesting there is higher demand for silver NOW than in the future.
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The Economist
Rising commodity prices both reflect and threaten the world’s economic recovery.
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Cheap, Industrial Silver is an illusion
From the beginning of the financial crisis in 2008, contrarian investors began murmuring about getting into gold and short term Treasuries. It was almost a mantra: gold and Treasuries… gold and Treasuries. Something missing?
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The Economist
Commodity prices are surging at a very early stage of the cycle
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By Frank Holmes
Wall Street has been calling gold a bubble since 2005 when it hit $500. Some media naysayers remained negative even as they wrote the headlines proclaiming record highs and saw gold rise almost 30 percent in the past 12 months.
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By Marc Davis, www.BNWnews.ca
The ‘Holy Grail’ of renewable energy – grid scale power storage – appears to be finally within reach. So is the ability to make electric cars far more practical or user-friendly.
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by Egon von Greyerz - Matterhorn AM
We now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments. Thus most of these assets are also worth-less.
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The One-handed Economist
The establishment argument against gold comes down to the statement that it is a collectable that earns no yield. Art, rare coins, stamps and gold and silver bullion do not earn a yield. Stocks, bonds and real estate earn yields, so the prudent investor should focus on these assets rather than gold or precious metals.
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With gold well into record territory, investor enthusiasm is boiling over.
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If we continue down the same economic path that we have been following for the last four decades - and there is no indication that we won't even if we wanted to, or could, at this point - it is mathematically inevitable that gold and silver will approach infinity in U.S. dollar terms at some point in the future. Yes, approach infinity!
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Gold massively underinvested - silver data overwhelming: Eric Sprott
Speaking at GATA's sold-out Gold Rush conference in London, Eric Sprott affirmed his strong views on gold and his even more positive thoughts on silver.
Author: Lawrence Williams
Why is the Gold Anti Trust Assocation (GATA) scorned by much of the mainstream financial and gold analytical community? As has been the pattern in many sectors the existing establishment tries to dismiss GATA's ideas and data as crackpot economics and conspiracy theories and its followers as a bunch of right wing nutters. Indeed some of them may be such, but if one looks at the attendees at GATA's Gold Rush event held in London this week, the audience, as GATA secretary Chris Powell pointed out several times, came from 31 countries and included some (not a huge number) from the mainstream European financial community, but seemingly few from the establishment UK financial sector. Which is a shame as whatever one thinks of GATA and its followers many of the pro-gold and pro-silver arguments espoused by the speakers at the event - and many of these have extremely impressive cvs - do have a value and could do with being heard by those who control other people's money because, let's face it, much of what GATA has stood for has proved to be correct over the period over which it has been in existence.
While GATA itself does not necessarily directly promote gold and silver, nor predict prices, it has amongst its key followers many who do. GATA primarily was set up to fight what it saw as manipulation of the gold markets by central banks, governments and the financial establishment to the detriment of the yellow metal and its holders, and has indeed unearthed much evidence from official documents and statements which does appear to support this view - although to some it is a matter of semantics as to where government currency market controls (manipulation if you will) are part of a government's weaponry to control its own domestic economy, or whether there is some much deeper malign influence at work. If one considers gold as money, which GATA followers very definitely do - and there is evidence that the mainstream financial community is again beginning to think this way too - then it could be that such gold price control might be considered an integral weapon in government policy.
Perhaps GATA is its own worst enemy in that it has tended to itself disparage the mainstream and some of its institutions by pouring scorn on the gold and banking establishment. Not always the best way of winning friends and influencing people! The World Gold Council and GFMS (bought yesterday by Thomson Reuters) seem to come in for particular vilification. But maybe if from its outset GATA had tried to work and reason with the gold establishment (maybe it did but found it beating its head against a brick wall) rather than antagonistically against it, its findings and reams of supporting official data might have attracted greater support.
Be this as it may there are indeed some charismatic figures of adulation within GATA and its supporters. Jim Sinclair and Eric Sprott (a newly outed Canadian billionaire who has got to this level by putting his money where his mouth is) come in for particular, almost messianic, adulation from GATA followers, many of whom will have profited from following their advice.
This preamble over - which probably won't have earned the writer many new friends from within the mainstream gold sector (but one needs to keep an open mind when trying to come up with a balanced viewpoint) - it is perhaps worth commenting in particular on Eric Sprott's keynote presentation at the conference dinner on Friday night. Not that he necessarily said anything in particular which he hasn't before, but his track record in the sector has been good, indeed exceptional. The writer may argue with his expectations for the silver price for example, and its return to a 16:1 Gold:Silver ratio (a level last seen when the Hunt Brothers tried to corner the market) but his belief in gold and silver has served him, and his investor followers, well as his billionaire status would attest.
In Sprott's view gold has been very much the metal of the past decade, and he looks to silver as that for the next decade. Indeed he is probably nowadays the world's pre-eminent silver bull. He still sees gold as massively underinvested and reckons that his analysts' research into silver now show that the data on silver overwhelmingly points to a huge runup in the silver price ahead of us. He describes the April/May collapse in silver as a remarkably orchestrated manipulation of the market (the price famously fell $6 in a matter of minutes on a Sunday evening when all major markets were closed) by short sellers caught in a huge squeeze and faced with losing billions!
While this may have made silver investors more cautious for the moment, Sprott reckons the data suggests that there is a huge imbalance between demand and supply and the metal is set for a major rerating which indeed will bring the Gold:Silver ratio down to much lower levels. He points out that the major physical supply sources to the investment sector almost all report that in dollar terms investors are buying at least as much physical silver as gold - and also that it is increasingly difficult to take physical delivery of large quantities of the metal. For example in securing 15 million ounces for his company's Physical Silver Trust Sprott avers that it took a full three months before delivery of the metal was received and some of the delivery had not even been mined when the order was put in!
Sprott believes that gold will continue to rise and silver will rise far faster - he certainly does not believe the silver price can stay where it is with the banking system "an absolute disaster" and the economy "awful", with consumer confidence "sick and getting sicker".
Government will have to continue to print more and more money. Money will be needed to bail out major banks and economies as the world cannot afford to see another domino fall. As the knock-on effects of the Lehman Brothers collapse showed only too well the global financial system is so interlinked that another major failure could have cataclysmic consequences worldwide.
And printing more and more money effectively means the world's major currencies will continue being devalued against gold and silver - which represent the only constant readily available.
Sprott's message is clear, as is that indirectly of GATA and its supporters - You have to own gold and silver to maintain any form of financial stability in this time of economic turmoil.
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