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Gold Prices Control
and Suppression News
8/4/2011 Gold has now increased for 124 months straight, says Deutsche Bank. The
rally is in its 11th year, lasting nearly three times as long as other
historical rallies going back to 1971. If the metal rose to $2,100 an ounce, it
would represent the most powerful percentage increase in history, according to
Deutsche Bank.
Marcus Grubb, managing director of investment at the World Gold Council refers
to the “transfer of wealth from west to east” and the accumulation of wealth,
particularly in China and India. This is what is driving the longer term
strength in the gold price. He states that the demand for gold is particularly
strong in China: The country has a $3 trillion surplus, with some of it in gold,
and he estimates that household wealth will most likely rise by five times.
China and India also share a strong cultural affinity for gold as an investment
and jewelry.
6-12-2011 - What if I told you that a gallon of gas actually only costs about a dime?
It does....a silver dime.
At $35 for an ounce for silver, 1/10th of
that, or one thin 90% silver dime is worth $3.50 or about what the national average
price of gas is. In actuality we are prevented by law from using "real"
money. We're forced to use "government" money. Even if you're prohibited
from using it by law, you can always convert your coins into paper to pay
for what you need.
Silver is Real
Money |
DOW Jones Industrial Average
- Current Market Quotes
|
Ratio of gold to
silver prices approximately 55 to 1. The historical average ratio is
about 15-to-1 |
11/23/2011 Forbes says under $7 per share SVM is Oversold
under $7 per share
Non U.S. precious metals miners
- such as Canadian producers benefit from not having to deal with oppressive
environmental (EPA) restrictions, politics and fines as in the U.S.
Silvercorp (SVM) fought fraud allegations
by anonymous bloggers
Short Sellers Profit from Fraud?
Yamana Gold AUY -
has one of the industry’s lowest production cost per ounce
$250. Along with Yamana, (ABX
-Barrick $326) and (GG
-Goldcorp
$164) have two of the lowest cost operations in the business. On
Aug. 1, 2011 with a stock price of $47.92 Barrick Gold (ABX)
was been picked by Standard & Poor's Equity
Research as Focus Stock with it's highest investment
recommendation of 5-STARS, or Strong Buy.
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Best Performing Mutual Funds
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3 Ways to Slash Your Risk Despite the Negative Investing Outlook
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Prudent Bear Fund
Click Here Rydex Inverse S&P
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A new drilling technique is opening up vast
fields of previously out-of-reach oil in the
western U.S.
Chesapeake
Energy CHK
EOG Resources EOG
ASSORTED STOCKS AND
FUNDS BELOW - FOR RESEARCH
Note the 52 week high and low - PE Ratio (price to earnings) and
Dividend Yield
Pipelines TransCanada
TRP Kinder Morgan
KMP
Teppco TPP
Williams WMB Dynergy DYN
Pengrowth Energy Trust Canada
PGH
Harvest Energy
HTE Penn West
PWE
Florida Power FPL
Canada Energy Trust
ERF (Note the
dividend Yield)
Brazil Petroleum
PBR
Natural Resources and Uranium
Billiton Limited Australia
BHP
Food Resources
Archer Daniels Midland
ADM
Bunge BG
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China Funds and Stock
Templeton Dragon Fund
TDF
China Tech CNTF
Latin America Telecom
AMX
Mutual Fund
PRLAX
Wireless, Computers
and Technology Broadcom
BRCM Intel
INTC
Cisco Systems
CSCO
Research in Motion RIMM
Qualcomm
QCOM
Computer Speech NUAN
Apple AAPL
Intl Bus Machines
IBM Google
GOOG
Yahoo YHOO
Microsoft
MSFT
Semiconductor Fund
SMH NASDAQ 100 Index Large Cap Fund
QQQ
General Electric
GE WalMart
WMT WalMart In Mexico
WMMVF
Financial Crisis from Credit Default Swaps - American International Group
AIG
Financial Select Sector index fund
XLF
Bank Stocks -Bank of America
BAC
CitiGroup C
JP Morgan Chase
JPM
Wells Fargo WFC
Auto Stocks General Motors
GM
Liquidated
Ford F
Toyota TM
Nissan NSANY
Oil Stocks
(XOM) Exxon Mobil
(BP) British Petroleum
(CVX) Chevron
(COP) Conoco
Phillips
Ethanol Stocks VeraSun Energy
VSE is the largest ethanol
stock. The stock price is down 40%.
Pacific Ethanol
PEIX a large ethanol stock is down from
a high of $42 a
share in 2006 to under $1 now
Since January 2008, a popular exchange-traded fund (ticker:
GLD) that
tracks the price of gold bullion is up 9% - versus a 32% loss for an ETF
that tracks gold miners (GDX).
The breakdown comes thanks to the credit crisis and a surge in input costs
that have sapped profits of companies that mine gold.
In 2011 Gold more than doubled and may yet triple from the average gold
price in May 2005 of $640 per ounce. The Federal Reserve
continues to print paper money. Many Investors believe the stimulus
packages devalued the U.S. dollar.
The total value of derivatives in the world exceeds total global gross
domestic product by a factor of 10. Beijing urged Washington
to put its fiscal house in order. China has dropped 97 percent of
its holdings in U.S. Treasury bills, decreasing ownership from $210 billion in May 2009 to $5.6 billion in March 2011. Treasury bills
are sold by the U.S. to fund the nation’s debt. Credit standards tighten - more than 4 in every 5 real estate mortgages
now require a down payment of 20%. At the same time, foreclosures continue
at a brisk pace
June 2, 2011
(Kitco News) - There seems to be an ongoing shift among coin buyers from gold to
less expensive silver coins, says HSBC. The U.S. Mint reported sales totaling
3.65 million ounces of American Eagle silver coins in May that was an increase
of 30% from April, and the Mint also has the best year-to-date sales so far
since 1986. Meanwhile, May American Eagle gold coin sales fell 0.9% to 107,000
ounces, compared to the last month. The U.S. Mint also is bringing on production
at its San Francisco facility to meet high demand for silver coins, HSBC notes.
The bank points out, however, that the retail demand is being offset by
increased mine output, as the Mexican National Statistics Institute reported an
increase of 39% in March silver production from March 2010, mostly to increased
output at Buenavista. Other major producers in Latin America are also increasing
silver output by a significant amount.
4/18.2011 - S&P downgraded the
outlook on U.S. debt to negative from stable. The ratings agency cited large
deficits the lack of any “clear” path to address these but did not lower the
U.S. debt rating itself
4/19/2011 - New Highs - intraday gold hit $1500 per ounce and silver $44
Yamana Gold (AUY)- in the 4th
quarter of 2010 production costs were $465 to produce an ounce of gold, but
counting its by-product credits silver, copper etc...that number was
negative $34, which is expected to rise to $250 in 2011 as rising input
costs catch up to the company. Along with Yamana, (ABX-Barrick $326) and (GG-Goldcorp
$164) have two of the lowest cost operations in the business
2/21/2011 - Gold prices rose
above $1,400 an ounce for the first time in nearly seven weeks as violence
flared in north Africa and the Middle East, boosting interest in the
precious metal as a haven from risk. Gold Silver Ratio slips to lowest since
1998
Gold hit a record
$1,424 an ounce on 11/9/2010 before retrenching.
Market sentiment remains positive for gold over a two-year horizon,” BNP
said. “A number of factors are supportive of an upward trend in price,
including increasing uncertainty regarding the role of the USD (U.S. dollar)
within the international monetary system, concerns related to the stability
of peripheral euro-zone countries and growing inflationary pressures in
Asian emerging markets, particularly China.”
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Pay attention to gold and silver
reserve/resource ratios, or how much they’re producing relative to how much
they still have in the ground. Also gross profit margins etc - (2010 Example
Yamana Gold (AUY) Market cap $8.84Billion. 5-year average gross
margin at 41.03% vs. industry average at 40.68%. 5-year average net profit
margin at 23.14% vs. industry average at -0.72%.
The Earth's crust contains
about 15 ounces of silver for every one ounce of gold.
That long-term relationship (15 to 1 ratio) between gold
and silver was true for centuries. With Gold at $1350 per ounce you can obtain
45
ounces of $30 silver for the price of an ounce of gold. (50 to 1 ratio).
The big disconnect from the historical ratio forms an important contention
that silver could deliver
greater upside than gold as the mother of all
currency, as the financial crisis plays out across the globe. Historically,
during periods of high inflation volatility, gold-to-silver ratios typically
ranged from 30-40.
For most of recorded history, the price of gold has been around 16 times the
price of silver. This ratio – the so-called "silver ratio" – has fluctuated from
time to time based on silver discoveries and attempts by governments to regulate
the silver-to-gold ratio. But... in a free market, where demand for silver as
money exists, I'd expect the natural supply and demand balance to lead to a
silver price around 1/16 times the price of gold.
The Fifth Amendment states, "No person shall be deprived of life,
liberty or property, without due process of law; nor shall private property
be taken for public use, without just compensation."
Critics of the current financial system argue that using Federal Reserve
notes as legal tender, rather than gold or silver-backed currency, means the
value of Americans' money and thus their "property" is siphoned away by
inflation, a process perpetuated by the government's reliance on legal
tender.
U.S. Rep. Ron Paul, R-Texas, favors abolishing the Fed's system of fiat
currency to return to dollars backed by gold. "Throughout its nearly
100-year history, the Federal Reserve has presided over the near-complete
destruction of the United States dollar," Paul said. "Since
1913 the dollar has lost over 95 percent of its purchasing power, aided and
abetted by the Federal Reserve's loose monetary policy.
Nov 16, 2010 - The combination
of dollar strength and worries over Chinese tightening suggest that
commodities have become less desirable. Gold and silver continue to drift
lower.
On Nov 8, 2010 Gold breaks $1410
per ounce and Silver soars past $27.75 On the same day World Bank President
Robert Zoellick wrote
in an opinion article printed in the Financial Times that Gold should be
used as an “international reference point”
as the Group of 20 nations strive to revive global economic growth.
Full News Here
August 2010 -
Gold advanced on signs that the global economic recovery is sputtering,
helping to revive demand for the metal as a store of value. Gold is up 9.3
percent this year and set for its 10th straight annual advance, the longest
winning streak since at least 1920, as investors shield their wealth against
economic turmoil and the prospect of currency debasement.
July 2010 China has moved to liberalize its gold market further,
increasing the number of banks allowed to trade bullion internationally and
announcing measures that will encourage development of gold-linked
investment products. The move by Beijing’s central bank comes as the
country’s investors pour record amounts of money into gold, in a trend that
is becoming a significant factor on global prices. Last year,
Chinese
investors bought 73 tones of bullion, up from 18 tones in 2007. The new
policies were likely to increase liquidity in the domestic gold market and
spur the development of gold financial products, analysts said. China is the
world’s largest gold producer and the second-largest consumer, after India,
but its domestic market remains constrained by limited investment products.
In terms of Gold the Dow lost 77% purchasing power
from 2000 to 2008.
Jan 2000. The Dow at 11,750. If you
invested $11,750 in the Dow, you could have bought
41 ounces of gold ..462 barrels of oil ..134 pounds of copper.
May 2008. The Dow at 13,000. If you invested $13,000 in the Dow it
would only purchase
14.38 ounces of gold or 65% less than it did in 2000. 105 barrels of oil or
77% less, 74% less copper
Since March 2009 the Securities and Exchange Commission is still soliciting
comments and proposals concerning restoring "The uptick rule"
Sec.Gov
The uptick rule was instituted by the SEC following the Great Depression,
said that the short selling of stocks could be done only after the share
price ticked higher above the prior sale. The rule was designed as a
guardrail to prevent short sellers from driving the price of a stock lower
at a faster clip.
In a short sale, an investor borrows a stock from a broker, sells it to
other investors, and tries to buy it back at a lower price before returning
it to the original lender. The difference in the transactions is kept as a
profit.
The SEC made the controversial decision to eliminate the uptick rule in June
2007 after its analysis showed it did little to prevent the manipulation of
share prices. Of course, many market participants point to the SEC's
decision as the catalyst that helped short sellers thrive in 2008.
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