Are you interested in holding precious metals? Perhaps you already hold some. I believe you are smart to do so. There are good reasons – portfolio diversification, a hedge against currency risk, a hedge against crisis are just a few. And you can hold them via stocks, coins, ETF's or in bullion form, allocated directly to yourself.

Each of the above options have their risks and rewards. However, a lot of people who purchase ETF's don't realize how much risk they take on. Many precious metals ETF's do not guarantee their holdings. Do you hold a precious metal ETF? If so, I highly recommend you read your prospectus. Once you have done so, you may want to check out the bullion option available through my dealership. Through BMG BullionBars you have access to gold, silver and platinum bullion. We deal in London Good Delivery Bars only and you can store them safely if you wish. All bars are allocated to you and you alone.

Visit my main site bullionhold now for more information on purchasing gold, silver and platinum bullion safely.

A new Bullion Buzz newsletter is out and one of the articles focuses on 'Why Gold is Going Higher. Author David Galland makes the case that not only are China's citizens buying regularly, but many others are catching on too. Here is an excerpt: "In fact, Chinese investors are snapping up gold bars and coins, buying more than ever before in the first quarter of 2011 and overtaking Indian buyers as the world's biggest purchasers of the metal. China's investment demand for gold more than doubled to 90.9 tonnes in the first three months of this year, outpacing India's modest rise to 85.6 tonnes. China now accounts for 25% of gold investment demand, compared with India's 23%."

Sadly, many people will sit on the sidelines until the market has topped out and has the highest risk. If you are still waiting to buy gold…there may not be a better time than right now. And dollar cost averaging is not a great way to go historically. Just put in your full allocation now, in one lump.

For the full article and more go to Bullion Buzz.

This from the latest BullionBuzz on the possible collapse of EFT's.

Authors Andrew Bogan, Brendan Connor, Elizabeth C. Bogan write…

Since their invention in 1993, ETFs have gone from obscurity to making up more than half of all the daily trading volume on US stock exchanges. They also made up 70% of all the canceled trades during the Flash Crash of May 6, despite representing just 11% of listed securities in the US, suggesting that ETFs are poorly understood by both investors and regulators.

They are popular with two very different groups: retail and institutional investors looking for low cost and highly liquid vehicles with which to buy whole indices in a single trade; and hedge funds and other traders looking for a simple way to mitigate broad-market risks with a single trade. Being able to short an entire market index or a whole sector with one transaction, instead of many separate stock shorts, makes ETFs widely used as hedging vehicles by short-sellers, and many new ETFs are being designed specifically for marketing to short-sellers.

These seemingly opposite interests in ETFs make for a large and lucrative market not just for ETF operators, but also for the authorized participants – institutions that can create or redeem large blocks of new shares in an ETF, and the brokers that profit by trading ETF shares. The mechanics of short selling ETFs raises some serious concerns; for a start, owners of ETF shares often far outnumber the actual ownership of the underlying index equities by the ETF operator. Read more here: Bullion Buzz

An excerpt from a report by Joel Bowman

Bowman wonders about the contrarian mindset. Is it inherent? Is it genetic? Why do some folk stray from the herd, while others follow like sheep? There is little doubt that, in the world of investing, it pays to be in the minority. Some commentators divide the crowd into unequal portions: the minority constitutes the “smart” money; the majority represents the “dumb” money, on which the minority happily feeds. As Rick Rule said, when it comes to investing, you are either a contrarian or a victim.

Necessarily, the smart money must be a minority. The moniker is afforded, at various times, to bond traders, short sellers and industry insiders. Whatever their position, they must be ahead of the curve, ready to sell at the point of maximum demand and to buy at the moment of minimum interest. Though not entirely dependent on the status quo, a contrarian’s position is almost always in opposition to it. It is helpful, therefore, to ask what the accepted norm of the day is.

Today, the financial, economic and political systems are built on lies: that people can grow rich by spending more than they earn; that companies can achieve success by producing things people don’t buy; that real estate prices always go higher; that a debt-ridden economy can recover by piling on more debt, debasing its currency and lying to the masses about what it is doing.

In contrast, gold is incorruptibly honest. Fiat money worshippers won’t touch it. Central bankers can’t compromise its virtue. It is nobody else’s liability. That is why, to the majority, it remains a barbarous relic. But for the rest of us, like honesty, it is still the best policy. Read more at Bullion Management Group.

OK…one scenario on a possible future for the US dollar. Watch this video for a frightening view on hyperinflation in the US caused by a continued mismanagement of the dollar by the US Federal Reserve — continued pumping of cheap credit (treasury bills) into the system. When 'money' becomes excessive in the system can inflation be far behind? Do you have some gold bullion to protect yourself and your family? Contact me now if not. Here is the video:

Jeremy Grantham talks about the Fed, and the economy in the US and globally. One of his 'takes'? Build cash. Who is he? He is chief investment strategist of Grantham Mayo Van Otterloo, a Boston-based asset management firm, and a respected voice in the financial world.

One of the articles in the BullionBuzz this week focuses on the global banking system. Here is an excerpt:

Global Collapse of the Fiat Money System: Too Big to Fail Global Banks Will Collapse Between Now and First Quarter 2011

Matthias Chang

Fed Chairman Ben Bernanke recently noted that the outlook for the US is uncertain and that “the economy remains vulnerable to unexpected developments.”  Chang believes he is referring, in ‘Fed speak’, to the collapse of the global banking system. There has been much misinformation about the objectives and the consequences of quantitative easing; it was supposed to enable banks to lend money to cash-starved companies and jump start the economy, while low interest rates would encourage borrowing, consumption and investment – that hasn’t happened. Some worried that unrestrained money-printing would lead to hyperinflation – that hasn’t happened, either. Chang explains exactly what did happen in step-by-step format. He believes the Fed and the other central banks are praying that asset prices will recover and achieve their pre-crisis values, but it will not happen. “The patient is in intensive care and is for all intent and purposes brain dead, although the heart is still pumping albeit faintly,” writes Chang. “The Too Big To Fail Banks cannot be rescued and must be allowed to be liquidated. It will be painful, but it is necessary before there is recovery. This is a given.” In 2011 at the earliest, he expects massive bank runs. The Fed and other central banks will try to preempt this by: limiting cash withdrawals from banks; limiting cash transactions; restricting precious metals transactions; imposing capital controls; passing legislation that requires most daily commercial transactions to be conducted through debit and/or credit cards; passing legislation that makes any contraventions of the above criminal offences. The solution?  Maintain a bank balance sufficient to enable compliance, and start diversifying away from dollar assets. Prepare for round two of the financial tsunami.

Is Matthias Chang correct? Read more here: BullionBuzz

The latest Buzz is out. One article features Tony Robbins. Tony Robbins, renowned success coach and motivational speaker, shares insights from some of the influential people he works with and discusses why he believes an economic breakdown is underway. Length: 15:00

See the video here:

More Buzz here: BullionBuzz

The latest Bullion Buzz is out. One article deals with gold: Is it a commodity? Here is an excerpt:

Rethinking Gold: What if it isn’t a Commodity After All?

"Many continue to believe that gold is a commodity whose price ebbs and flows with inflation, which historically drives commodity prices. But gold is not acting like a commodity; its price is not falling in response to weak US inflation numbers, and it has not reacted to clear signs of deflation. Neither of those scenarios should be good for gold, yet it continues to hover in the $1,220 per ounce range. In fact, recent studies reveal the gold price is not being influenced by inflation, or by swings in the US dollar; they show the yellow metal is a currency that reflects the market’s concern about the reliability of paper currencies. Thus, long-term weakening of the dollar is the real issue for the gold market, not inflation or deflation. "

Read more here: Bullion Buzz

The latest Bullion Buzz is out. One of the articles features news on China and gold by Christopher Baker. Here is an excerpt:

After watching the US Dollar Index tumble in recent weeks, China appears less willing to remain either a silent bystander or a hapless victim. As the largest foreign creditor to the US, with $868 billion in Treasury bonds, China has cause for concern. The US government has strong incentives to reduce its real burden of debt through inflation and dollar devaluation; either way, the yuan-recorded market value of Treasuries will fall, causing huge capital losses to China's central bank. If the dollar's declining purchasing power is inevitable, the saturation point of China's appetite for US debt could be near. China recently announced new policies with respect to gold; the first was a major liberalization of China's gold market by facilitating greater import and export activity in gold and opening the Shanghai Gold Exchange to additional foreign entities. The second was arguably more significant. In a landmark development, China's central bank threw a lifeline to a credit-strapped global mining industry by explicitly directing banks to extend credit both directly to producers of bullion, and to Chinese entities seeking overseas acquisitions in the sector. The bank said it will “place heavy emphasis on supporting large-scale gold producers in their development and overseas expansion plans.” If China's actions in the energy and commodity markets provide any indication, investors should consider the likelihood that China's upcoming involvement in the precious metals sector will take a variety of forms beyond mere acquisition or investment stakes in miners. Some of China's activity in precious metals may be geared toward securing a steady supply of imported bullion in exchange for up-front development capital. Whatever combination of direct investment stakes, supply agreements, or low-cost development loans result from this official policy directive, the impact will be felt throughout the global markets for gold and silver.

More articles at Bullion Buzz

The latest Bullion Buzz Ezine is out and has a number of good articles on various topics of interest on gold, money and the economy.  Here is a video of interest: Fiscal Wake-Up Tour panelist David M. Walker, President and CEO of the Peter G. Peterson Foundation, delivers his Wake-Up Tour presentation on the nation's fiscal challenges.  Length: 07:48

For more go to Bullion Buzz