Monthly Archives: October 2013

Today’s Key Gold Headlines – 10/7/13

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The Fed Is Lying – Inflation Is Getting Worse (Video)

In an interview on The Street, Peter Schiff explained the relationship between physical gold and the debt limit of the United States. Peter argued that the Fed is lying about inflation because it doesn’t want to admit that there is no real economic recovery.

“What’s good for gold is when they raise the debt ceiling, because it confirms that we’re going to have a lot more debt and a lot more money printing… If you’ve looked at how far gold prices have increased over the last decade or so, a lot of that is a function of the debt and the inflation that has accompanied all that debt… [The Fed is] probably going to increase the amount of QE… Inflation is a problem and it’s going to get worse. So they’ve got it all wrong, and so they’re mis-pricing gold.”

Watch the Interview Here

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Uncle Sam: Big Believer in Gold

Brett Arends published an excellent article on MarketWatch today, revealing that US Treasury officials have no intention of selling gold reserves. As one Treasury spokeswoman told him: “Selling gold would undercut confidence in the US both here and abroad, and would be destabilizing to the world financial system.”

“Grab any Wall Street trader in a bar, or any portfolio manager in his office, and he’s likely to tell you gold is finished.

It’s silly, nothing more than a shiny metal, a substance with little use and little real value, a ‘barbarous relic,’ and the stuff of nothing more than superstition. Only a fool would own any gold in his portfolio. Right?

After all, its value has plunged by $500 an ounce in the past year, and $100 just in the past month. Gold hasn’t even rallied during the budget crisis: So much for its ‘Safe Haven’ status.

There is just one nagging problem with this story line. One group of people disagrees. And I am not talking about wacko gold bugs in Arizona (‘the ex-husband state’) with tinfoil on their heads.

I am talking about the people running the United States Treasury. They remain firm believers in gold. Big-time.”

Read the Full Article Here

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Posted in Outside Commentaries | 1 Comment

Today’s Key Gold Headlines – 10/4/13

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The Taper Fakeout

Peter Schiff's Gold Letter

Peter Schiff’s October Gold Letter is out today. In his monthly commentary, Peter picks apart the Fed’s rhetoric to explain why the stimulus will never be tapered. Jeff Clark of Casey Research ponders whether Chinese housewives or Western bankers understand gold better. And the latest Lampoon the System comic takes a poke at Bernanke’s “Exit Strategy.” Enjoy!

“Anyone who bought the media buzz about a September reduction of QE – called the ‘taper’ – was very surprised when the Federal Reserve announced that stimulus would continue unabated. According the the official narrative, inflation is under control and the labor market is steadily improving. Why wouldn’t a modest taper be announced?

The reality is that the economic indicators the Fed claims to rely on to decide when to taper are all dependent on stimulus money. This is not a mystery to Ben Bernanke. Instead, this entire saga amounted to little more than a ‘taper fakeout’ which sent hard asset investors for a loop.”

Continue Reading Peter Schiff’s Gold Letter

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Today’s Key Gold Headlines – 10/3/2013

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Dollar Is Being Dethroned as World Reserve Currency (Video)

Ned Goodman, a Canadian billionaire businessman, addressed Cambridge House’s Toronto Resource Investment Conference a few weeks ago. While Goodman’s delivery is subdued, his message could not be more important. Goodman believes the US is already in a recession and reviews the reasons why the international community is beginning to turn its back on the US dollar.

“The Chinese have 3 1/2 trillion US dollars and they’re spending these dollars as quickly as they can. And it will not be long before the rest of us in the world and the US will be thinking likewise… In the ’30s everyone wanted US dollars. Today, everyone wants to get rid of them. Buying hard assets is what you’ll hear from many people…”

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Today’s Key Gold Headlines – 10/2/13

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Why Is China Buying So Much Gold?

Cameron Alexander wrote an interesting article on Chinese gold demand in CME Group’s publication Open Markets. The Chinese have rushed to take advantage of low gold prices this year, and China’s central bank is talking about easing restrictions on gold imports going forward. China is on track to surpass India in global gold demand this year. Alexander explains the gold mania inherent in Chinese culture and what a vital role the yellow metal will play in the Chinese economy going forward.

“As the gold price fell almost 30 percent between January and June this year, the largest decline since 1983, some 585 tonnes of gold ETF holdings were liquidated as momentum driven investors exited the market. The price fall prompted physical demand in China to reach astonishing levels, however, as mainland consumers rushed to purchase the yellow metal.

The price collapse was seen as an unprecedented opportunity by many to restock gold assets, with Chinese “aunties”, a term of respect for older women who are generally in charge of household budgets, seizing the opportunity to stock up on gold items and seasonal gifts, purchases of which were normally scheduled for the later part of the year. This led to the frenzy in retail activity that was witnessed across the country in the second quarter. The groundswell in demand saw these aunties willing to line up outside retail stores literally for hours in a bid to get their hands on some form of gold product, be it plain jewelry (primarily 24-carat) or investment bars, and in many cases, led to outlets being completely wiped out of all inventory.”

Read the Full Article Here

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Posted in Outside Commentaries | 6 Comments

Today’s Key Gold Headlines – 10/1/13

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