Monthly Archives: January 2013

Today’s Key Gold Headlines – 1/21/13

Posted on January 21, 2013 by admin

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Schiff Defends Gold Investing on CBS

Posted on January 20, 2013 by admin

On Friday, CBS MoneyWatch published Peter Schiff’s rebuttal to prominent gold skeptic Larry Swedroe, who had challenged Peter’s precious metals forecasting. Peter writes:

“In an article entitled “Ignore the ‘buy gold now’ crowd” on CBS MoneyWatch this Monday, columnist and equities analyst Larry Swedroe criticizes forecasters who remain bullish on gold despite its monumental decade-long run.

He links to an interview in which I forecast that gold will rise above $5,000/oz before this bull market ends. Unsourced, Swedroe modifies my prediction to $2,300/oz by the end of 2013. While I typically forecast overall market direction rather than timing, I’m fairly comfortable with the words Swedroe put in my mouth. I believe gold will continue to rise and close 2013 significantly higher than present levels, and I’m invested accordingly. What I find most disconcerting in Swedroe’s piece is everything that follows. He goes on to question both a) investment forecasting as a practice and b) gold as an asset in general.”

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Silver Supply and Demand

Posted on January 18, 2013 by admin

News hit today that the US Mint is already out of stock of 2013 silver bullion coins. Due to unprecedented investor demand, they won’t have more coins for sale until the end of the month. Kind of gets you wondering just how much silver is in the world today. Check out this entertaining info-graphic from Visual Capitalist:

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Today’s Key Gold Headlines – 1/18/13

Posted on January 18, 2013 by admin

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German Gold Repatriation Raises Questions

Posted on January 17, 2013 by admin

Gold is back in the spotlight this week with the news that Germany’s central bank is going to begin repatriating its gold held in the US and France. Germany – the only nation in the EU that seems concerned about fiscal responsibility – has the second largest gold reserves in the world after the US. All of this has got some people wondering just how trustworthy central banks are nowadays, as well as what this could mean for the future of the yellow metal. Check out Adam English’s commentary on Wealth Wire:

“So far, the 1,536 tonnes of gold the Fed holds for Germany, worth over $80 billion at spot prices, has only been backed up by personal assurances. Now the Fed will have to prove its demands for blind faith were at least partially justified as 768 tonnes are removed over the next several years.

All the Germans originally wanted was basic verification and inspection of their property. Perhaps if the Fed was more accomodating, there never would have been pressure on the Bundesbank to explain why it allowed the situation to persist as Fed to keep their gold off-limits.”

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Today’s Key Gold Headlines – 1/17/13

Posted on January 17, 2013 by admin

Read today’s important precious metals news:

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USPS Hampered by False CPI (Video)

Posted on January 16, 2013 by admin

Peter Schiff appeared on CNBC yesterday to contribute his thoughts on the dire straights of the US Postal Service and the government deficit.

“I think what it shows you is it’s very good politics when our leaders talk about reducing the deficit in the abstract. But they can’t even make the small cuts. I mean, these are trivial budget cuts in the Post Office. They can’t even make them. And if they can’t do this, how are they going to agree to the more substantive cuts that we have to have.”

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The Trillion Dollar Trick

Posted on January 16, 2013 by admin

Peter Schiff’s latest commentary pulls apart the ridiculous logic of a trillion dollar platinum coin as a solution to the nation’s debt, and exposes the real reason the Fed would never permit such a scheme:

“The government, not the Fed, mints coins, so they did not have to rely on the Fed to create value out of thin air. That is why the platinum coin idea was so seductive, if ultimately unsellable.

But the Fed does the exact same thing all the time using sophisticated accounting and state of the art computing. The Fed “expands its balance sheet” by buying government bonds from private banks. In exchange for these securities, the Fed credits the banks with funds it creates out of thin air. The banks then pass the funds to the general public through loans. But it’s important to realize that the Fed does not have any money to actually buy the bonds in the first place. The funds are “created” by a Fed computer. The process is easier (and equally duplicitous) than minting a trillion dollar coin (which at least requires the production of something other than computer code). The only difference is the lack of window dressing. It’s a shame that the platinum coin episode did not result in a wider recognition of this brutal truth.”

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Today’s Key Gold Headlines – 1/16/13

Posted on January 16, 2013 by admin
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Central Banks Are Making Political Decisions

Posted on January 15, 2013 by admin

In case you haven’t been watching the news, it’s pretty clear that the Federal Reserve and central banks all over the world are in the pockets of politicians. Stephen King, an economist with HSBC, published a recent commentary examining this problem:

“There are less obvious effects that also warrant greater scrutiny. Quantitative easing may make it easier for governments to raise funds cheaply; but, by increasing the net present value of pension funds’ future liabilities, it creates problems for those funds already running deficits. That, in turn, means either bigger pension contributions for workers; lower prospective pension benefits; or, in the case of some public sector pensions, tax increases or spending cuts to make the numbers add up. Meanwhile, some of the biggest beneficiaries of QE are those already asset-rich and relatively old who prefer to sit on their windfall gains rather than spend them.

Put another way, monetary policy is doing more to redistribute income and wealth than to trigger a rebound in economic activity. Central bankers are making decisions that are more political than economic.”

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