Purchasing or Investing in Precious Metals like Gold and Silver: How and Why

Precious metals have been used as a store of value and as a monetary instrument for over 5,000 years. It does not rust or decay. Its life is infinite and supply finite. It is universally recognized in every corner of the world and can be converted to any currency or traded for anything of equivalent intrinsic value.
 

Silver at 30+ year Highs - @ $36/toz, Poised for a pull back?

It's been a wild ride, that's been a long time a coming. We were expecting a crack up boom in Silver Futures as the threat of silver vigilanties were 'standing for delivery' of the March '11 futures. In late February with over 60k in open interest in the big contract and new highs, we thought the dead knell was ringing for the Comex and those thought to be supressing precious metals prices. It's evident that they will atleast live to another the next front month. At prices above $36/toz we expect a little resistance at this level. Very interesting times we live in.


GLD ETF AUM May Grow by 239 Million Shares According to Shelf Registration

Hot on the heels of Sprott Physical Gold Trust ETV (PHYS) offering 18 Million new shares, The SPDR Gold Shares ETF (GLD) announces a shelf registration of 239 Million shares. Currently, GLD has 390 Million shares outstanding for a total market cap of over $40 Billion. At todays close of $118.47, it represents a potential increase of $28 Billion or 61% increase in AUM.

The commencement date of the proposed sale to the public is listed as "from time to time after the effective date of the registration".


The Cost of Playing with Paper Precious Metals Goes Up

On Feb. 11, 2010, the CME group announced the increase of initial and maintenance margins for Gold, Silver and Palladium futures traded on the COMEX. Table effective Feb. 12, 2010

  Initial Margin Maint Margin
Margin Requirements Effective 02/12/10
  Before After Before After
Gold $5,403 $6,747 $4,002 $4,998
Silver $6,075 $6,750 $4,500 $5,000
Palladium $2,363 $3,713 $1,750 $2,750

 


Check Change... Buying Groceries with Junk Silver

George4Title from Inflation.us demonstrates buying groceries from a convenience store in Los Angeles, California with 90% junk silver. George believes that transactions like the one he demonstrates will become more commonplace as the global economic rout continues to get worse.

See attached video...


101 Fun Facts on Gold

Happy New Year. The precious metals have had a screaming start inthe first week of Jan.

http://israelfinancialexpert.blogspot.com/2010/01/101-facts-about-gold.html


Roubini Reiterates Keynes, Brands Gold a Bubblicious Flintstones Prop

Nouriel Roubini, professor of economics at the Stern School of Business, New York University recently published a scathing article 'The New Bubble in the Barbarous Relic that Is Gold'. Roubini believes gold bugs are dreaming if they think gold can reach $2000 per troy oz within the next couple years. Given no near-term risk of inflation and the slack in goods and labor markets persist at high levels, there is a lack of plausible factors that can argue in favor of $2000.


Barrick Gold Announces Completion of 9.5 Million Ounce Hedge Unwind

In September of this year, Barrick Gold announced a secondary offering of common stock. The worlds largest gold producer stated that it would use the proceeds to eliminate some of the 9.5 million ounces of gold hedges on it's books. Their gold hedges were considerably under market value and had been in place for nearly a decade. Todays announcement revealed that they had entirely eliminated all hedges well ahead of their original 12 month target. The news followed on the heels of Feb '09 gold futures breaking $1,200 per ounce for the first time in this mornings session. Barrick will now fully benefit from prevailing market prices as the yellow metal makes new all-time nominal highs.


Black Swans and Crowded Trades

An adynaton is a figure of speech to emphasize an impossible event. Adynata such as “when hell freezes over” and “when pigs fly” stress that the event in question will never happen. Nearly two millennia ago, the Roman satirist Juvenal wrote ‘rara avis in terris nigroque simillima cygno” which translates to 'a rare bird in the lands, and very like a black swan'. Whereas an adynaton signifies the impossible, a metaphor such as ‘black swan’ suggest near impossible. That was until the discovery of the prevalence of black swans in Botany Bay, Australia in the 18th Century.


Lyndon LaRouche on Weimar Republic Deja Vu and The Triple Curve Forecast

Lyndon LaRouche, a self-styled economist and eight time candidate for the office of the President of the United States draws interesting parallels between the current global economic crisis with that of the hyperinflationary demise of the Weimar Republic in Germany in the 1920's.

The Triple Curve Forecast, expressed by three separate but dynamically interrelated processes demonstrates a typical collapse function through the decline of the planets physical economic capital and output per capita and per square kilometer. The rise of financial aggregates and the rise of monetary aggregates. This reaches a point where the monetary factor overtakes the financial and you begin to experience acute successive phases of collapse. These three separate curves express a single unified process governing the whole. That process is Monetarism or simply, Imperialism.


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