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Gold & Precious Metals

BIG OPPORTUNITY: THE LOWEST XAU OVER GOLD RATIO WE HAVE EVER HAD

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Posted by Bob Moriarty via Michael Campbell

on Thursday, 15 March 2012 12:21

A Juxtaposition:

Jan 2008:  Gold at $846 - Kinross Gold Corp  $23.21 - Newmont Gold $58.40
 
Mar 2012: Gold at $1694 Kinross Gold Corp @ $9.90 Newmont Gold @ $54.20
 
Bob Moriarty is a fascinating, and very wise man. The youngest naval aviator in the Vietnam war who survived  824 fighter aircraft missions, Bob had a weight problem when he was  22.........given he was draped with 42 Air Medals and three Distinguished Flying Crosses when promoted to an Air Force Captain. Moriarty also holds 14 International Aviation records and simply stunned the French when he flew a Beech Bonanza through the Eiffel Tower arches. 
 
But that's not why Michael Campbell of Money Talks wanted to talk to Bob. No, Mike wanted to talk to Bob because his entrepreneurial mindset and wisdom motivates a 100,000 people a day to visit his 321Gold.com. Why? Because Moriarty has simply made those daily visitors money. Bob was so convinced gold/silver were at a bottom in 2001, he started one of the first websites devoted to teaching readers what they need to know about investing in resource stocks, and what a success that has been.  
 
Ever looking for opportunity, Bob travels to dozens of mining projects a year and then writes about them. That's why Michael thought there was no-one better to ask whether mid-tier and major Gold producing Gold companies are currently cheap and a bargain or in BIG trouble. Given Gold producer's shares are trading at 2008 prices or lower despite Gold having exploded upwards close to 250% from its 2008 low to March 9th's close of $1711!
 
Screen shot 2012-03-15 at 5.57.44 AM
 
When asked the whether the "Flash Crash" was important and whether Gold shares are a bargain here, Bob explained it like this: "If you were going to buy a new Cadillac, and the car was a $1000 cheaper than the price you thought you were going to have to pay, you'd think that was a good thing. But we have a whole group of Gold Bugs who when Gold gets cheaper to buy literally get into a panic, whereas I think it is an opportunity". Well that's pretty clear. By that measure Gold producer's shares are remarkable opportunity here. 
 
As for the significance of the "Flash Crash", Bob thinks that ultimately we will find out that rather than Central Bank manipulation "we will find out that somebody big had to meet a margin call, even then after the Flash Crash Gold immediately turned around and went higher and I think that is a good thing". When asked why there appeared to be little concern about the prices the liquidator got on the day of the Flash Crash, Bob said "you've got to understand that the World's Financial System is right on the lip of a major crash" that there will be things that are happening all the time, with time bombs going off everywhere, but its as simple as "if you like Gold at $1700. you have to love it at $1600". 

How to make sense of Gold Producer's shares trading at equal to or less than prices they were trading at in 2008 when Gold was in the $600's.? "If you are going to make money in investing, what you always want to do is buy irrational behavior. If you see something deviate from the mean, you know that sooner or later it is going to regress to the mean. With $600 Gold in 2008, in relative terms Gold Shares are cheaper today at $1700 Gold than they were back then. Now rather than that be a cause for panic, its an opportunity because when something deviates from the mean its going to come back. So there is an incredible opportunity right now because anyone who is in production is going to be making money hand over fist. We have $33.Silver and that too is an incredible opportunity. So instead of whining, people should be getting there checkbooks out and saying I want to buy".
 
One of the factors that is affecting Gold Share prices comes in the form of  Gold Bullion ETF's, where people can invest giving them complete exposure to the price of Gold Bullion, but at the same time that diverts money away from Gold Shares. "Face it, people are goofy, they do irrational things all the time. So if you are going to make money you have to look at something that is irrational. Like the price of Kinross Gold, Botero or Agnico Eagle, say wait a minute, they are really good companies doing really good things, I want to invest because the price is cheap. What the average investor wants to do when you have $4 Silver they say Gawd, I don't want to buy that, nobody wants it. But when you have Silver at $50 they say its gone up for 3 months in a row, I want to buy because its safe here!. What you have to do is break yourself from that habit. When you see Silver at $50 there are hundreds of guru's saying buy, but why didn't they say buy when Silver was $4"?

Its totally irrational, we have the lowest XAU over Gold Ratio we have ever had. Gold could go to $600 and the shares would still be cheap. As for the tension between Israel and Iran, Bob thinks we are literally talking about World War III. "Russia and China have literally said is that if there is an attack on Iran, they will defend Iran, and one of the alternatives is that they mean that. We probably have right now a 1000 valid reasons to own Gold and Silver. Its like driving home and finding your house on fire and someone drives up and says Hey, do you want to buy insurance on your home? Gold is an insurance policy, I own Gold that I have had for 10 or 12 years, I was a big buyer at $252, I don't care what the price of Gold does, it doesn't make any difference to me, but we've got Greece defaulting, you've got the credit default swaps, a credit event has been declared, the entire financial system in the World is about to explode, we have enormous tension in Syria and Iran that could literally go to World War III, there are all kinds of valid reasons to own Gold and Silver."

You can visit Bob's Resource investment sites at 321Gold.com and 321Energy.com

About Bob Moriarty:
Bob Moriarty was a Marine F-4B pilot at the age of twenty and a veteran of over 820 missions in Viet Nam. Becoming a Captain in the Marines at 22, he was one of the most highly decorated pilots in the war. He went on to ferry General Aviation aircraft all over the world for 15 years with over 240 over the water deliveries. He holds 14 International Aviation records including Lindbergh's record for time between New York to Paris in two different categories. In 1996 he began an online computer business on the internet with his wife Barbara becoming one of the early adopters of the internet.  Bob and Barbara started one of the first websites devoted to teaching readers what they need to know about investing in resource stocks. Bob and Barb now operate two resource sites, 321Gold.com and 321Energy.com where up to 100,000 people a day visit. Bob travels to dozens of mining projects a year and then writes about them. He was one of the first analysts to write about NovaGold, Northern Dynasty, Silver Standard, Running Fox and YGC Resources among many, many others. He claims with some justification that all of his readers are financially better off since they have been coming to his site.


Gold & Precious Metals

Big Opportunity: The Lowest XAU Over Gold Ratio We Have Ever Had

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Posted by Bob Moriarty - 321Gold.com

on Thursday, 15 March 2012 05:51

Now is the time when we Juxtapose:

Jan 2008:  Gold at $846 - Kinross Gold Corp  $23.21 - Newmont Gold $58.40
 
Mar 2012: Gold at $1694 Kinross Gold Corp @ $9.90 Newmont Gold @ $54.20
 
Bob Moriarty is a fascinating, and very wise man. The youngest naval aviator in the Vietnam war who survived  824 fighter aircraft missions, Bob had a weight problem when he was  22.........given he was draped with 42 Air Medals and three Distinguished Flying Crosses when promoted to an Air Force Captain. Moriarty also holds 14 International Aviation records and simply stunned the French when he flew a Beech Bonanza through the Eiffel Tower arches. 
 
But that's not why Michael Campbell of Money Talks wanted to talk to Bob. No, Mike wanted to talk to Bob because his entrepreneurial mindset and wisdom motivates a 100,000 people a day to visit his 321Gold.com. Why? Because Moriarty has simply made those daily visitors money. Bob was so convinced gold/silver were at a bottom in 2001, he started one of the first websites devoted to teaching readers what they need to know about investing in resource stock, and what a success that has been.  
 
Ever looking for opportunity, Bob travels to dozens of mining projects a year and then writes about them. That's why Michael thought there was no-one better to ask whether mid-tier and major Gold producing Gold companies are currently cheap and a bargain or in BIG trouble. Given Gold producer's shares are trading at 2008 prices or lower despite Gold having exploded upwards close to 250% from its 2008 low to March 9th's close of $1711!
 
Screen shot 2012-03-15 at 5.57.44 AM
 
When asked the whether the "Flash Crash" was important and whether Gold shares are a bargain here, Bob explained it like this: "If you were going to buy a new Cadillac, and the car was a $1000 cheaper than the price you thought you were going to have to pay, you'd think that was a good thing. But we have a whole group of Gold Bugs who when Gold gets cheaper to buy literally get into a panic, whereas I think it is an opportunity". Well that's pretty clear. By that measure Gold producer's shares are remarkable opportunity here. 
 
As for the significance of the "Flash Crash", Bob thinks that ultimately we will find out that rather than Central Bank manipulation "we will find out that somebody big had to meet a margin call, even then after the Flash Crash Gold immediately turned around and went higher and I think that is a good thing". When asked why there appeared to be little concern about the prices the liquidator got on the day of the Flash Crash, Bob said "you've got to understand that the World's Financial System is right on the lip of a major crash" that there will be things that are happening all the time, with time bombs going off everywhere, but its as simple as "if you like Gold at $1700. you have to love it at $1600". 

How to make sense of Gold Producer's shares trading at equal to or less than prices they were trading at in 2008 when Gold was in the $600's.? "If you are going to make money in investing, what you always want to do is buy irrational behavior. If you see something deviate from the mean, you know that sooner or later it is going to regress to the mean. With $600 Gold in 2008, in relative terms Gold Shares are cheaper today at $1700 Gold than they were back then. Now rather than that be a cause for panic, its an opportunity because when something deviates from the mean its going to come back. So there is an incredible opportunity right now because anyone who is in production is going to be making money hand over fist. We have $33.Silver and that too is an incredible opportunity. So instead of whining, people should be getting there checkbooks out and saying I want to buy".
 
One of the factors that is affecting Gold Share prices comes in the form of  Gold Bullion ETF's, where people can invest giving them complete exposure to the price of Gold Bullion, but at the same time that diverts money away from Gold Shares. "Face it, people are goofy, they do irrational things all the time. So if you are going to make money you have to look at something that is irrational. Like the price of Kinross Gold, Botero or Agnico Eagle, say wait a minute, they are really good companies doing really good things, I want to invest because the price is cheap. What the average investor wants to do when you have $4 Silver they say Gawd, I don't want to buy that, nobody wants it. But when you have Silver at $50 they say its gone up for 3 months in a row, I want to buy because its safe here!. What you have to do is break yourself from that habit. When you see Silver at $50 there are hundreds of guru's saying buy, but why didn't they say buy when Silver was $4"?

Its totally irrational, we have the lowest XAU over Gold Ratio we have ever had. Gold could go to $600 and the shares would still be cheap. As for the tension between Israel and Iran, Bob thinks we are literally talking about World War III. "Russia and China have literally
said is that if there is an attack on Iran, they will defend Iran, and one of the alternatives is that they mean that. We probably have right now a 1000 valid reasons to own Gold and Silver. Its like driving home and finding your house on fire and someone drives up and says Hey, do you want to buy insurance on your home? Gold is an insurance policy, I own Gold that I have had for 10 or 12 years, I was a big buyer at $252, I don't care what the price of Gold does, it doesn't make any difference to me, but we've got Greece defaulting, you've got the credit default swaps, a credit event has been declared, the entire financial system in the World is about to explode, we have enormous tension in Syria and Iran that could literally go to World War III, there are all kinds of valid reasons to own Gold and Silver."

You can visit Bob's Resource investment sites at 321Gold.com and 321Energy.com. Click on Twitter Logo to Follow 321Gold.com
twitter logo_12

About Bob Moriarty:
Bob Moriarty was a Marine F-4B pilot at the age of twenty and a veteran of over 820 missions in Viet Nam. Becoming a Captain in the Marines at 22, he was one of the most highly decorated pilots in the war. He went on to ferry General Aviation aircraft all over the world for 15 years with over 240 over the water deliveries. He holds 14 International Aviation records including Lindbergh's record for time between New York to Paris in two different categories. In 1996 he began an online computer business on the internet with his wife Barbara becoming one of the early adopters of the internet.  Bob and Barbara started one of the first websites devoted to teaching readers what they need to know about investing in resource stocks. Bob and Barb now operate two resource sites, 321Gold.com and 321Energy.com where up to 100,000 people a day visit. Bob travels to dozens of mining projects a year and then writes about them. He was one of the first analysts to write about NovaGold, Northern Dynasty, Silver Standard, Running Fox and YGC Resources among many, many others. He claims with some justification that all of his readers are financially better off since they have been coming to his site.


Gold & Precious Metals

Special Report: Take Advantage of What's Driving Gold & Silver Prices

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Posted by Julian D. W. Phillips, GoldForecaster.com

on Wednesday, 14 March 2012 00:00

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The last few weeks have seen a larger consolidation pattern forming, pointing to a much bigger consolidating pattern that implies far more than just a short-term trading move just ahead of us. The forces that drive both supply and demand in the very short-term are just about in balance, so it is appropriate that we look at these forces to see how they influence gold prices in the short, medium, and long term.

The forces that influence the gold and silver markets are very different from those that affect industrial and base metals. They go far beyond simple prices and the technical picture of demand and supply. They encompass trust, confidence, dependability, and protection that have little or nothing to do with gold's uses. Warren Buffett is quite right about the "uselessness” of gold. But he has missed the point as to its value. Such a master of management and investment must find such an unmanageable metal virtually useless to him. But therein lays its value as an investment.

Over the long term gold cannot be managed or controlled. It's the last investment standing when push comes to shove and silver is its lesser sidekick. We mentioned the saying in an earlier article that people don't buy gold to make money but because they have money. That's why central banks hold gold. They wish they didn't have to but they know that their currencies are vulnerable to mismanagement and that over time are almost inevitably mismanaged. Gold is bought to get away from people and their games in the knowledge that when those games are played gold stands at much higher levels than before the games started. During the time that these events are played out, the gold and silver prices reflect each step made.

At Gold Forecaster and Silver Forecaster, we track these influences as much as we track the fundamental and technical pictures. Failure to do this would make our work directionless as well as inadequate. After all, one cannot exclude any facet of the influences on gold or silver if you want a professional understanding of these markets.

Gold Supply

The supply of both gold and silver is rising but not in nearly sufficient amounts to satisfy the growing demand coming from all sides of the world. The production of gold is more difficult than that of gold because miners have to go to more and more different countries to extract gold. The governments of those areas may be friendly at the start of the operations, but if they feel that profits being made by miners are too large, then they move in with higher taxes and in some cases, nationalize the mines. With all the easily reached and exploited gold deposits having been mined out in the last century, miners are seeing costs jump inordinately; however, with the prospect of higher gold prices, even the far flung deposits are becoming profitable.

Bear in mind that miners first have to replace the deposits that they've mined out. After that their reserves can grow, but most miners are pleased simply to be able to replace mined-out ounces.

What is clear is that newly-mined ounces will prove insufficient to supply demand in the future. The only other source of supply has to come from what is badly termed, "scrap” gold. When this term is used it does not always mean gold that has to be re-refined like steel from a scrap car. It usually means that this is gold sold by current owners, who for some reason feel it necessary to sell it. This can be for reasons as simple as they need the cash with which to buy something else, pay something off, or because the owners feels the price is too high, wants to profit and buy it back after the price has fallen back to a level where it forms a base from which to rise again. Such sellers are confined to the retail side of gold and not to central bankers any more. That makes gold very different from silver.

This leaves the supply of gold relatively inelastic.

Only when prices 'spike' do we see dishoarding or scrap sales in volume. Such a 'spike' has to be significant because gold now has a habit of falling less than expected before consolidating ahead of the next rise. Many times traders are caught wrong-footed and pay a similar price to the one they exited at.

Gold Demand

The emerging world investors in a debt-distressed Eurozone and central bankers comprise the backbone of the demand for gold and will do so for many years to come. All three of these types of investors are driven by factors pertaining to the retention of value. Their buying reflects a need to counter the falling values of paper money not because they use gold or consume gold. This makes gold an entirely different metal from all others.

For gold to keep this quality it must not be consumed in significant quantities; it must persuade its owners to keep it out of reach of others in vaults or personal safes and the like. It is money when all else fails.

It is this facet that keeps its price rising and always will so long as paper money, over time, continues to cheapen.

Silver Supply

The supply of silver is mainly confined to the Americas, particularly Central and South America and Mexico. Apart from pure silver mines, silver is mined as a by-product of other metals. Where it is a by-product, its supply is reliant on the demand for the metal of the mine that the owners are targeting (i.e. nickel etc.). But there is a rapidly rising group of mines that are targeting silver alone. The supply from these mines again is insufficient to supply the rising demand from investment demand. It is growing and will continue to do so, but so is the demand, not just from the investment side of the market, but from industrial demand.

Silver Demand

From supplying photography and jewelry demand for decades, the changing face of silver demand is remarkable. Today, its qualities in the electronic and medical field have burgeoned. Solar Panels, price tags, silver in clothes, in medicine, in computers and similar uses have moved silver from a metal related to discretionary wants to important needs. The demand for silver has moved to a much less price and economic conditions, sensitive metal, to one where demand remains strong when economic conditions weaken.

In these uses, unlike photography and jewelry, silver is consumed once and for all and does not come back to the market re-cycled nearly so much as it used to.  This is ensuring that industrial demand is now rising, taking from the market significant amounts of newly-mined silver, which never returns.

Silver has set a pattern of moving alongside gold as monetary metal too. Do not expect silver to be accepted as a monetary metal by monetary authorities for the foreseeable future, but this has not stopped retail demand from treating it as such. As the price of gold has moved up and away from the poorer investor, so they turned to silver to fulfill the same requirements of retaining value. Silver's track record is as remarkable as that of gold having moved up from $6 to the current level of $33. This has assured the place it found in the past, in the future. Silver too, is money in the hands of poorer investors. You will not see a central banker anywhere near silver, but you will see huge numbers of emerging world investors newly rescued from poverty. With the emerging world numbering above 4 billion people, this demand has not even been dented, let alone satisfied.

Relationship between Gold, Silver

The relationship we are talking about here is not the gold silver ratio; it is simpler than that. The price performance of the two metals since 2005, in particular, is roughly the same as 'both have risen over five fold since then'. The question that investors should ask is, "Will this change?” We believe not! There is a likelihood that silver will outperform gold in the future, but remember why the two are rising in the first place.

 

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Gold & Precious Metals

9 Key Points for the Gold & Silver Markets

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Posted by John Hathaway via King World New

on Tuesday, 13 March 2012 06:48

With continued volatility in the gold and silver markets, today King World News reached out to 40 year veteran John Hathaway.  Hathaway is the prolific manager of the Tocqueville Gold Fund and he has achieved a 5-star rating from Morningstar.  Hathaway sent KWN, exclusively, an outline of 9 key points in the gold and silver markets.  Here is a portion of one of the 9 key points (all 9 points below):  “The fact that gold has survived the negative news flow from the monetary and economic front is encouraging.  If gold can withstand the apparently changing narrative that had underpinned a bullish stance on gold, it will be a sign of enormous strength.”

shapeimage 24



Gold & Precious Metals

WHAT YOU DON'T SEE BEHIND THE SCENES

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Posted by Equedia

on Monday, 12 March 2012 06:13

Most people have no idea what is taking place behind the scenes of the precious metals market - in particular, the silver market.

For many of you, much of what I am about to say may seem like Déjà vu. But because of the timing and the way I see the charts moving, I find it to be my duty to go over this once again.

Most of what is determining gold's price is paper trading - which is fundamentally flawed. The amount of paper gold and silver contracts that trade on the futures and equities exchanges easily outweigh the amount of actual physical trading that takes place.

That means it's the paper markets setting the price discovery for gold. It means that short term sentiment - and manipulation - are the causes of both gold and silver's volatility and not the actual fundamentals of gold and silver themselves.  

For example, in a report published last year (see Before it's Too Late), Eric Sprott and Andrew Morris pointed out the significant discord between paper and physical supply on the Comex relating to silver:

"...Over 800 million ounces traded each day in April on (the Comex). Further, consider that as at the end of April there were only 33 million ounces of registered inventories to back up all of that paper trading. Just imagine if a mere 5% of all of that buying actually stood for delivery; the entire inventories would be more than wiped out."

Over a year ago, I published a letter that revealed how most of the gold that is traded in the markets are not actually fully backed by the actual metal itself, as many believe (see The Silver Conspiracy):

For years, most people have assumed that the London Bullion Market Association (LBMA), the world's largest gold market, had actual gold to back up the massive "gold deposits" at the major LBMA banks. But it doesn't.

This was confirmed during the CFTC hearings when Jeffrey Christian of the CPM Group said that the LBMA banks have approximately 100 times more gold deposits than actual gold bullion. This means that for every ounce of gold traded in these markets, 99 of them appear from thin air. Has gold and silver been converted into a fiat currency in these markets?

In the LBMA market, for example, an average of 19.6 million ounces of gold was traded per day in July. The world has produced on average approximately 2,497 tonnes per year over the last several years - which is just over 80 million troy ounces.

That means the LMBA, trades nearly a year's worth of worldwide gold production in less than a week.

In October 2010, we published another letter proving our theory and why silver will climb to new highs (see Enron Lives On?). Silver more than doubled in value since that time, as it nearly reached an all-time high of $50.

In both letters, I mentioned how the trading of both silver and gold is not only highly leveraged, but easily manipulated - especially on the silver side. Many of the shorts used to manipulate the price are both naked and heavily leveraged.

But what happens when these shorts need to cover? What happens when the actual fundamentals of driving gold and silver up reveals its true colours?

Back on July 2011, I wrote a piece on the South Rare Precious Metals Spot Exchange in China, as well as The Gold Exchange.

Here is the excerpt:

In brief, the Pan Asia Gold Exchange features a market-driven mechanism and provides two basic services: a physical gold purchase and distribution network and innovative products based upon physical gold - for anyone. 

In short, that means simpler, quicker, and more cost-effective transactions between all parties for gold-related transactions. But more importantly, it means a new wave of capital injection for the gold market. 

Here's a video about the Pan Asian Gold Exchange (Make sure you watch it): 

Even whistleblower Andrew Maquire (see The Silver Conspiracy), who is no stranger to shorts and leverage employed by the banks against precious metals, was seen featured in the video. He says the exchange promises better price discovery, less leverage, and should in-time dilute the effects of short-side concentration in both gold and silver.  

We all know what happens when shorts have to cover...

The Pan Asian Gold Exchange could very well help send the price of gold into new territories.  

A New Wave of Capital

The Pan Asian Exchange has signed an agreement with The Agricultural Bank of China (ABC), integrating its customer account information system with their platform.  

That means the exchange will have direct access to the accounts of 320 million retail customers, 2.7 million corporate clients, and nearly 24,000 branches. ABC is China's third largest lender by assets. When it went public last year, it became the world's biggest ever initial public offering. It currently ranks No.8th among the Top 1000 World Banks and Forbes Global 2000 named it the 25th-largest public company in the world.

This is where it gets big. Real Big.

Imagine buying gold through your bank with the click of a mouse. The Pan Asia Exchange has now created the first ever rolling spot contract that will allow Chinese banking clients to buy 10 ounces (the minimum transaction) of gold contracts in RMB, through their account, and directly linked to the exchange. If you have an account with ABC, you can instantly buy gold, or gold contracts.  

Think about it: 320 million retail customers and 2.7 million corporate clients, all with the same Chinese appetite for precious metals (see Age of America Over?); all now able to buy gold in 10 ounce increments with the click of a button.   

Once more of these international contracts go live, we're going to see a strong demand for physical gold as the drawdown of physical gold begins to meet the obligations of the contracts. Buying gold directly from your bank account - that's real demand. It's essentially like the SPDR Gold Trust, or GLD, with much stricter leverage guidelines and 100% backed by gold.  

Because of the massive short positions against silver, and gold, every physical ounce of the precious metals taken out of the physical market and into the new Chinese exchange will force a massive short squeeze as leveraged short sellers have to cover their positions in the paper market.

There's no doubt these highly leveraged shorts are extremely vulnerable and can easily be taken out by physical demand. When you go from trading paper to actual physical metals, that's when the prices of these metals will skyrocket as the supply can't keep up with demand.

This new exchange has just slowly begun to trade in local Chinese communities. But they're going to be fully operational within 6 months. That means in less than 6 months, more than 320 million retail Chinese customers and 2.7 million corporate clients can buy gold online that is 100% backed by bullion - not leveraged pieces of paper.  

Eventually, the exchange will be opening its doors to foreigners.   

The US did it...why not Europe?  

The world's central banks have been printing a tidal wave of newly created paper money right under our noses over the past few years. And as I have stressed over the past couple of months, they won't stop.

Since December, the ECB has provided more than €1 trillion of new loans in two separate tranches. In the latest tranche, 800 banks grabbed €529.5 billion of new loans at 1% for three years using almost any form of collateral.   

While it may not directly be Quantitative Easing, the outcome is the same. Just like the US, this type of negative real interest rate loan is just another form of QE. It's another way of injecting money without spooking the world, and without violating any charters.   

This, in effect, means the banks effectively decide how much money is created. Because the ECB
does not directly monetize the debt of the weak sovereigns, which it is prohibited from doing by charter, it instead gives the commercial banks the ability to take their newly borrowed money and use it to buy sovereign debt.  

In other words, it's as if the ECB purchased sovereign debt through the commercial banks and is effectively "printing" new money without "technically" violating its charter.

We know currency is being devalued as a result. The amount of money being created is more than we've ever experienced - and the record breaking amounts won't stop.   

Gold WILL be above $2000 before the year is over and silver easily topping $50.  

The opportunities to participate are mounting.

Until next week,

 

Ivan Lo

Equedia Weekly  



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