Posts tagged silver
My interview of David Morgan Silver-Investor – Confirmed U.S. banks will go Cyprus. Paper prices separating from physical. Get metals while you can!
The blue print has been established.
Great last minute interview with David and he provides Very Important information. He points out Everyone needs to protect themselves, immediately. The Physical market is tight now and getting tighter even in the U.S., get gold and silver right now while you can.
He says the U.S. citizens need to Wake Up and get smart and informed NOW!
I’ve posted before on the purchasing power of the silver quarter from 1964. Here’s an interesting item The Internet cooked up recently:
Here’s the breakdown:
The minimum wage in 1964 was raised to $1.15 in September; pretty close to the five quarters. The exact exchange would be four quarters and one and a half dimes, which today (March 4, 2013) equals $23.81, or more than three times the current federal minimum wage of $7.25.
Interestingly enough, those coins contain 0.83 oz. of silver (along with some copper), which is equal to $23.78; pretty close to the $23.81 above.
The same $1.15 of goods in 1964 would cost a consumer $8.54 today, an increase of more than 700 percent. So in order to provide the same purchasing power the minimum wage would have to be closer to fifty bucks an hour.
Something else to consider is that roughly 1/4 of the minimum wage at the time would buy a gallon of gas ($0.30/ gallon). Today it takes closer to 1/2 of the minimum wage to buy a gallon ($3.74/ gallon).
Of course the answer is not to raise the minimum wage, but instead to put an end to central bank money creation and allow competition in currency.
China has a ferocious appetite for Gold now. In 2012, Hong Kong shipped 94% more gold to the mainland than they did in 2011.
They are buying all the gold they can get and China’s gold councils have projected by 2015, China’s demand will outstrip their supply by 550 metric tons.
There are approximately 2471 tons of gold mined annually around the world. China mines approximately 403 tons of that. That means within 2 years time China will be buying almost half the gold mined.
It is estimated they bought 832 tons of gold in 2012. Here is an article from China on that subject alone.
China’s gold consumption amounted to 832.18 tonnes in 2012, an increase of 9.35 percent from a year earlier, data from China Gold Association showed Saturday.
Consumption of gold jewelry rose 10.09 percent year on year to 502.75 tonnes, while those of gold bars and gold coins gained 12.22 percent and 21.63 percent, respectively, to 239.98 tonnes and 25.3 tonnes.
But consumption for industrial and other uses saw a drop last year, the association said.Demand for gold has grown steadily over the years as more Chinese see it as a hedge to diversify investment risks and battle against inflation. China is currently the world’s second-largest gold consumer after India.
China produced 403.05 tonnes of gold in 2012, making it the world’s largest producer for the sixth straight year, according to previous data from the association.
Portions from article about demand:
The country’s demand for the precious metal is expected to outstrip supply by at least 550 metric tons by 2015, statistics released by several gold councils showed.
China has been the world’s biggest producer of gold for six years since 2007, with an annul output of 403 tons in 2012, a year-on-year growth of 11.7 percent.
A quarter-to-quarter comparison shows China’s demand for gold investment saw a 24 percent increase in the fourth quarter of 2012, said Marcus Grubb, the council’s managing director for investment.
To meet demands for physical gold, Hong Kong shipped 114 tons of gold to the mainland in December, a record high for monthly exports. Hong Kong’s net gold flow to the mainland jumped 47 percent in 2012, totaling of 557 tons.
Data from the Hong Kong Census and Statistics Department show Hong Kong’s total gold shipments to the mainland in 2012 jumped 94 percent from 2011 to more than 832 tons, while imports were six times higher at 275 tons.
You really have to wonder with China’s purchases of gold and the demand so high, how is it that gold keeps getting hit and the price falls drastically as it did this last Friday.
I spoke to David Morgan from Silver-Investor.com on Friday when Gold and Silver were getting smashed about what is going on. He said that he believes they are in such a bad position of shorts that they had to smash it to get people to give up their long positions and to sell their gold and silver. We spoke about the psychology of it and getting into people’s mind in giving up their gold and silver. Last year I interviewed David about that subject and the psychology of smashing metals.
I have no doubt that China loves the manipulation of Gold by the Western bankers so they can purchase at lower prices. It is said they participate in the manipulation, which would make sense, so they can keep purchasing all they can get their hands on.
The question is…. are we now getting to the point that full demand has outstripped the physical and they are playing the paper to get people to give up their physical? Is there such a shortage with countries now wanting to repatriate their gold, they are desperately smashing it for the last few times until it breaks away?
In regards to silver, there was an article two days ago on Silver Doctor about a German car manufacturer hoarding silver due to the shortages of it and the need for them to have it in manufacturing their vehicles.
New signs of an extremely tight wholesale physical silver market have now emerged, as a first-hand account has revealed that one of the largest and most famous German automakers is hoarding massive amounts of physical silver inside one of the most secure vaults in Zurich, Switzerland.
Everyone needs to ask themselves…. “Am I going to take advantage of these prices right now or am I going to give up on metals?”
I really hope that everyone makes the right decision and understands what is happening with the prices are all based on paper trades and not real physical gold and silver.
With the demand coming out of China for physical gold, (which does not include India’s or Russia’s appetites for Gold right now) prices will have to break out in a violent fashion one day (in the near future?). At some point the truth will have to be revealed.
Think about how in less than 2 years by2015) the demand in China is going to outstrip supply. This does not include any other country’s demand or countries demanding their gold back.
On January 3, 2013 Congressman Paul Broun, Jr. (R-GA) introduced HR 73, The Federal Reserve Board Abolition Act. The thrust of the legislation is to “abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.” It looks like Ron Paul’s consistent cries for dealing with the Federal Reserve have not fallen on deaf ears, nor has the idea dissipated from elected representatives since he left office.
This piece of legislation was not the only one to be introduced. House Resolution 77, the Free Competition in Currency Act of 2013, was also introduced by Rep. Broun. This legislation seeks “to repeal the legal tender laws, to prohibit taxation on certain coins and bullion, and to repeal superfluous sections related to coinage.”
But Broun wasn’t about to stop there. He also introduced two other pieces of legislation: HR 24, the Federal Reserve Transparency Act of 2013, which is put forth “To require a full audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks by the Comptroller General of the United States,” and HR 33, the Audit the Fed Act of 2013, which purpose is “To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported.”
All of these pieces of legislation are very similar to those proposed by former Congressman Ron Paul.
The Federal Reserve is a huge problem from America and this is not some recent news. It has been going on since the early 20th century.
Felix Bronstein wrote a piece in which he cited a piece on proposals to help cut the Federal budget written for The Heritage Foundation in 1986 by Warren T. Brooks. Bronstein writes,
Brookes began by stating that “conservatives need to understand that without basic monetary reform there is no way to balance the U.S. budget, with or without tax increases and budget cuts, and even with the most optimistic GNP growth projections.” He then offered a 3 part solution:
(1) “the nation must return as quickly as possible to gold-based money and debt” (Heritage’s Policy Review published another piece endorsing a return to the gold standard as a key component of balancing the budget, in the next issue, by the late Congressman, HUD Secretary and Vice Presidential candidate — Jack Kemp, My Plan To Balance The Budget, Spring 1986)
(2) we should allow “free exchange of gold and silver, both public and private, setting up a parallel monetary system on a free market basis, allowing the public to choose,” (Heritage’s Policy Review published another piece endorsing the idea of Hayekian currency competition or privatization, also in the next issue — Richard W. Rahn, Time To Privatize Money?, Spring 1986) and
(3) “the Federal Reserve would be phased back to its original role as a bank-owned clearing house, thus eliminating its huge and costly presence in the money markets where its open market operations now run as high as $1 trillion a year.”
With all of the talk about the “fiscal cliff” and raising the debt ceiling yet again, it is clear that the problems of the Federal budget and debt, and especially the cost of servicing the Federal debt, have certainly not gotten any better since Warren Brookes’s [sic] solutions were published (and ignored) in 1986.
So far we have seen that Washington is not serious about the fiscal cliff or the debt ceiling. So now, we’ll see how serious they are about dealing with the Federal Reserve. So far, each of the bills have been referred to committee. It would behoove us to inform our representatives about these pieces of legislation and to push them through committee for a vote on the House floor.
Hat tip: American Vision News
By Tyler Durden
In just under 30 minutes, Peter Schiff and Doug Casey muse on many facets of the crumbling edifice of the status quo that is our current world.
From Gold’s relatively imminent rise to $5,000 and beyond, to investor ignorance of reality, Casey & Schiff swing from discussions of the US as political entity going forward to ‘escape from America’ plans for personal and wealth assets, and the realization that the biggest casualty (of US indebtedness), aside from individual liberty, is the value of the dollar – as taxing the middle class is unpopular with both parties – leaving only one route for the government – the inflation tax. Owning gold, silver, and foreign assets is preferred and while the rest of the world is also printing, the US is likely to beat them all.
People “are clueless with respect to the true state of the global economy,” with regard to inflation, fiat currencies, and specifically what will happen to the dollar. The conversation is wide-ranging and absolutely must-see as they remind market-watchers that “the whole thing is artificial,” as you can’t just keep printing money and monetizing debt without the dollar imploding with monetary policy descending (along with its trillion dollar coin) into ‘Three Stooges’ comedy.
The conversation weaves to some endgame discussions which bring Peter to discuss his father, who he sees as a political prisoner, and his views on the future…
“the biggest change that is coming to the global economy is a realignment of global living standards.”
There is something here for everyone…
The IMF has confirmed the Yuan/Renminbi is set to become a Global Reserve Currency at an Economic Forum in Hong Kong.
With China’s economy gaining global strength, the renminbi is set to become a global reserve currency, Zhu Min, deputy managing director of the International Monetary Fund, said Tuesday at an economic forum in Hong Kong.
Yesterday I wrote about the crossborder loans China was doing, before the Yuan becomes a Reserve Currency, their saying the “unloved dollar’ and the amount of gold they are importing. Besides the rumors of them backing their currency by gold.
David mentioned that things take time to happen and as I add on the third part of the interview is that it already has been years and maybe the situation will start going faster.
It seems to me with the Yuan being called a Global Reserve currency now even by China itself, they have laid out the ground work for changes to be made in a short amount of time. China does not reveal their hand until everything is already said and done. Considering the dollar has been the only “Global Reserve” currency for decades but this month the Yuan is becoming attached with that name.
The dollar demise has been talked about for years now. Many had been saying “anytime” but it has been long and drawn out. China is very smart as they take their time and put everything in place before they reveal or make their big moves. Has the time now come?
The Premier of China had gone to Saudi Arabi and Dubai a year ago. He stayed a week there having meetings and making agreements.SHARJAH, UAE -
China signed economic and trade agreements worth 100 billion yuan ($16billion) with Saudi Arabia
and the United Arab Emirates (UAE) as Premier Wen Jiabao wrapped up a six-day visit to the Middle East on Thursday.
The first currency swap agreement with Arab nations, worth 35 billion yuan, was also signed inAbu Dhabi, Wen told the Fourth
Arab-China Business Conference in Sharjah on Wednesday.
Are those agreements now coming into fruition? Is Saudi Arabi ready to be one of the last Middle Eastern countries to trade in something other than the “Petrol Dollar?” If Saudi Arabia begins oil trade in something other than the dollar, then it really is game over for the dollar as the Global Reserve Currency and any strength it now has. It only has strength because all of the other countries are devaluing their currencies against the dollar for trade. With the Fed printing the dollar non-stop, currency wars are raging, no one wants to have the strong currency due to trade and their products being un-affordable to other countries.
But once the dollar is no longer a worry or concern for trade then all the other countries will be able to stop their currency devaluations against the dollar because a new Global Currency backed by Gold will be the hero of the world. The only country that will be left all to itself with their inflating currency will be the United States.
It seems the proximity of this occurrence is now much closer with both the IMF and China itself using the words “Global Reserve Currency” for the Yuan.
It is the first time I am seeing the words from China that comes right out and says what the plans for the Yuan is.
The first batch of cross-border yuan loans agreements were signed on Monday after the central government approved the Qianhai area in Shenzhen to test a freer yuan before it becomes a global reserve currency.
As the loans come from Hong Kong, the move is a test offurther capital accounts opening by allowing offshore funds tobe transferred to the mainland.
Previously, offshore yuan could flow back to the mainland only through yuan-denominated trade and renminbi qualified foreign institutional investors.He added that the yuan is marching gradually and steadily toward becoming a global currency,and he expects more breakthroughs on that front this year.
They have never said “Global Reserve Currency” before. They have said “Convertible currency” and other words.
China has actually imported more gold and silver than they admit to. They imported an estimated 1000 tons of gold over the last few years but experts believe it was much more than that. They have also been importing silver in major quantities that are not being revealed. I read a story the other day about someone in China trying to buy silver and gold bullion but the place was nuts with crowds all trying to buy the gold and silver the dealer had just gotten.
Jim Willie did an interview last week and he mentioned that China was going to take it slow and not be totally overt in becoming the Global currency because they don’t want the U.S. to start a war for some made up reason against china.
unconfirmed speculation” that China – the world’s number one producer and second-placed consumer (at the moment) – is gearing up to buy up to at least 5,000 to 6,000 tonnes starting before the end of the year.
Silver is huge in China too. There has been a lot of talk in the “silver world” saying there is a major shortage. Besides the fact that the 2013 Eagles sales have been suspended due to over 5 million orders in the first few days of 2013. The majority of silver mined is used for industrial purposes and it seems there is a shortage happening.
The writing is on the wall. China plans on having a Gold backed Global Reserve Currency. I have written about the agreements China has with other countries and has already began trading in Yuan instead of dollars. The BRICS began those trades last year. The only thing that is keeping the dollar as the “reserve currency” right now is because it is the “Petrol Dollar.” Saudi Arabia is the reason the dollar is still the oil trading currency. Is it any wonder that Obama bows to the King of Saudi Arabia as the U.S. is obviously beholden to them otherwise it would not still be the official reserve currency of the world.
Once Saudi Arabia decides to go with the rest of the world and begins using other currencies for oil as India, Iran, Russia and China already do…. it will be game over for the dollar.
Obviously the day is getting closer since the article says “Global Reserve Currency” from China Daily. Again they have never used those words before from what I have seen. They have used “Global convertible currency.” Remember China purchased the London Metals exchange last year, which began using the Yuan and the CME began added the Yuan as a trading currency last year too
China holds things very close to their chest in information and they don’t put information out normally until deals are done. So with them allowing “Global Reserve Currency” words out, what deals have been done already and how fast will it all go down and the dollar with it?
Some of my favorite metals sites are: David Morgan of Silver-Investor always has great information about Silver and what is really going on. I go to Gata, Got Gold Report , and 24 hour Gold for the latest in gold information.
Few probably are aware of this, but long time subscribers to The Morgan Report (TMR) were notified that a meeting had taken place in South East Asia roughly a decade ago discussing — you guessed it –A GOLD BACKED YUAN.
Edit to add: I found another article today on the same Chinese News site – Their frustration with the dollar titled “The Unloved Dollar”
But the dollar’s role as international anchor is beginning to falter, as emerging markets everywhere grow increasingly frustrated by the Fed’s near-zero interest-rate policy, which has caused a flood of “hot” capital inflows from the United States. That, in turn, has fueled sharp exchange-rate appreciation and a loss of international competitiveness – unless the affected central banks intervene to buy dollars.
Wow – they have really put out information now as I have never seen before and the two articles being out on the same day…… says something is already happening, we just don’t know the full extent yet. But I have a feeling since they have come right out and said “Reserve Currency” and “Unloved Dollar” whatever the changes of Currency will happen this year.
America Sets Its Sights On Controlling African Resources … And Reducing Chinese Influence
The U.S. is sending troops to 35 African nations under the guise of fighting Al Qaeda and related terrorists.
Democracy Now notes:
U.S. Army teams will be deploying to as many as 35 African countries early next year for training programs and other operations as part of an increased Pentagon role in Africa. The move would see small teams of U.S. troops dispatched to countries with groups allegedly linked to al-Qaeda, such as Libya, Sudan, Algeria and Niger. The teams are from a U.S. brigade that has the capability to use drones for military operations in Africa if granted permission. The deployment could also potentially lay the groundwork for future U.S. military intervention in Africa.
[A special American brigade] will be able to take part in nearly 100 separate training and military exercises next year, in nearly three dozen African countries
Glenn Ford writes:
The 2nd Brigade is scheduled to hold more than 100 military exercises in 35 countries, most of which have no al-Qaida presence. So, although there is no doubt that the U.S. will be deeply involved in the impending military operation in Mali, the 2nd Brigade’s deployment is a much larger assignment, aimed at making all of Africa a theater of U.S. military operations. The situation in Mali is simply a convenient, after-the-fact rationale for a long-planned expansion of the U.S. military footprint in Africa.
Timothy Alexander Guzman argues:
AFRICOM’s [the U.S. military's Africa command] goal is to eliminate China and other countries influence in the region. Africa’s natural resources is another important element to consider because it includes oil, diamonds, copper, gold, iron, cobalt, uranium, bauxite, silver, petroleum, certain woods and tropical fruits.
In a must-watch interview, Dan Collins of the China Money Report agrees that the purpose of the deployment is to challenge China’s rising prominence in Africa:
And the U.S. is not shy about backing our “mortal enemies” to topple those standing between us and resources we pine for.
Rep. Paul Broun Jr. of Georgia has introduced the “Free Competition in Currency Act of 2013″ in the 113th Congress. This bill contains the same provisions as bills previously introduced by former Congressman Ron Paul, which seek to repeal legal tender laws and prohibit taxation on certain coins and bullion.
The newly introduced bill H.R. 77 seeks to repeal Section 5103 or title 31, which states “United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.” This would be replaced by “5103. [Repealed].”
The bill also provides that no tax may be imposed with the respect to the sale, exchange, or other disposition of any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion, whether issued by a State, the United States, a foreign government, or any other person. Further, no state may asses any tax or fee any any currency or monetary instrument used in the transaction of interstate or foreign commerce which is subject to the enjoyment of legal tender status under article I, section 10 of the United States Constitution.
Finally, the bill would repeal superfluous related sections of the United States Code by striking Title 18, sections 486 and 489, which relate to uttering coins of gold, silver, or other metal and possessing likenesses of coins. These are treated as anti-counterfeiting statutes. It is provided that any prosecution under these sections shall abate, and any previous conviction under the sections shall be null and void.
After its introduction on January 3, 2013, H.R. 77 was referred to the Committee on Financial Services, in addition to the Committees on Ways and Means, and the Judiciary. The bill currently has no co-sponsors.
When introduced by Ron Paul in the 112th Congress, the Free Competition in Currency Act of 2011 garnered one co-sponsor and had hearings held by the Subcommittee on Domestic Monetary Policy and Technology. The bill was not voted on by the House.
Rep. Paul Broun Jr. has also reintroduced Ron Pauls’ legislation calling for an audit of the Federal Reserve. The bill H.R. 24 currently has five co-sponsors and has been referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Financial Services.
Ron Paul’s “Audit the Fed” bill had passed the House in the last session of Congress 327-98 with 274 cosponsors. The Senate failed to act on the bill before the end of the 112th Congress.
In a statement included in a press release, Rep. Broun indicated his desire “to pick up right where Congressman Paul left off.”
For those wanting to see the rally in it’s entirety follow the C-Span links below.
- Ron Paul Rally in Tampa, FL – Part 1
- Ron Paul Rally – Part 2
- Campaign Rally with Ron Paul & Sen. Rand Paul – Part 3