Why Gold is Going Higher
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.
BullionBuzz Newsletter Sept. 15/10
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
BullionBuzz Newsletter Sept 7/10
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
Latest Bullion Buzz Newsletter
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
Latest Bullion Buzz Newsletter
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
Bullion Buzz-Fiscal Wakeup Tour
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
BullionBuzz: Yes…Bullion is Outperforming Mining Stocks
The latest BullionBuzz is in.
Nick Barisheff writes in one of the articles about bullion and the fact that it is outperforming mining stocks — and why. Here is an excerpt: "If the investment choice is between mining stocks and physical bullion, it is essential to remember that these are separate asset classes with entirely different risk/reward attributes. Mining stocks and bullion perform quite differently when the global economic environment is in turmoil, as is the case today. Banking crises, trillion-dollar deficits and the accelerating depreciation of many of the world’s major currencies do not create positive conditions for equity markets, which is why investors are fleeing to the safety of physical bullion. Barisheff discusses bullion as a safe haven during turbulent times; how bullion outperforms mining stocks during financial crises; why gold bullion is not an investment; why we should consider gold as money; why bullion should be the cash component of every portfolio; gold as the anti-currency; rising global sovereign debt; and the bigger crisis that awaits. In a world of increasing volatility and uncertainty, he writes, precious metals bullion provides tangible, predictable wealth protection for currency-denominated investment portfolios. For the past several years, as currency creation has reached unprecedented levels, gold, silver and platinum have resumed their traditional role as a store of wealth. Over time, purchasing, or adding to, a core holding of physical bullion is a prudent investment strategy. While a minimum 10% allocation is considered adequate under normal conditions, a much larger allocation of 20% or more is suggested for protection today. Investors who have not already done so should rethink their investment strategy and preserve hard-earned wealth with physical bullion."
How Much Bullion to Cover Inflation?
The latest Bullion Buzz is out. One article focus on inflation and the question 'how much bullion would be needed to cover inflation'. Here is an excerpt:
"Including gold bullion in an equities portfolio has the effect of lowering the volatility of portfolio return and raising the return-risk ratio, just as the inclusion of any other asset would. But gold has a special risk-reducing property that other assets lack. It is not only a hedge against inflation, but a market leading indicator of inflation and, better still, a direct measure of the damage done by inflation to an equities portfolio. The negative impact on stock returns from a rise in the price of gold lasts for at least five years. Ranson calculates that a US equities portfolio in which 15% of the assets are diverted to gold bullion would be effectively immune from damage due to a rising gold price. “That is equivalent, we believe, to immunity from inflation,” he writes." Read more here: BullionBuzz
Bullion Buzz Newsletter
Featured on the Bullion Buzz Newsletter this week is the following video and introduction: Republican Congressman Ron Paul and others are fighting to restore language that would make possible a full audit of the Federal Reserve. And get this, powerful Democratic Representative Barney Frank is supporting Paul! If Rep. Frank is for real on this, and not just trying to look good to his constituents to get votes in November, then hats off to him and any member of Congress who supports a full Fed audit. I can’t believe the mainstream media is completely ignoring this monumental story. There is nothing more important, financially speaking, that Congress can pass right now. Length: 4:41 Read more of the Buzz here: Bullion Buzz
BullionBuzz Newsletter
The latest BullionBuzz Newsletter is out. Catch it here:BullionBuzz
Featured is a video on money, banking and the Federal Reserve. Here is an excerpt:
Dedicated to Murray N. Rothbard, steeped in American history and Austrian economics, and featuring Ron Paul, Joseph Salerno, Hans Hoppe and Lew Rockwell, this extraordinary new film is the clearest, most compelling explanation ever offered of the Fed, and why curbing it must be a top priority. This is economics and history as they are meant to be: fascinating, informative and motivating. This movie could change America. And the video below…
Posted by Anthony Hendriks 
