Storing Gold

by Silver Advocate

Central Banks are storing gold (record amounts) which should be telling us something? James Turk of GoldMoney.com talks with Lauren Lyster on RT about why he thinks Central Banks storing gold and are not waiting to find out if paper currencies are headed for a collapse

In the video featured James talks about how Governments have run out of money. And thus borrowing capacity meaning they cannot take on any more debt yet they continnue to that. History has taught us that this kind of action does not end well for paper money.

Storing Gold vs. Counter-party Risk

When it comes to precious metals James suggest (logically I might add) that people like you and I individuals would do well to take their queue from Central Banks. If the Banks are accumulating and storing Gold because it’s a safe haven, then doesn’t it make sense that we do the same ?

Storing gold and silver and other precious metals make sense as unlike stocks or currency are tangible asset without counter-party risk – meaning it is not reliant on a government’s promise but rather the value placed in it by the market. As always Mr Turk reminds us that Gold has been money for 5 thousand years and as such storing gold is a means to protect wealth.

Storing Gold – Central Banks

Storing Gold

Storing Gold

As people watch the price of silver and gold it’s easy to be disillusioned when storing gold. Simply because the price in dollars or sterling or whatever currency seems to be going nowhere.

Don’t be fooled ! James suggests we  don’t look at the price  but rather look at the value. If you compare an ounce of gold or silver today against a barrel of oil or wheat or land you will find precious metals remain under-valued today.

And this is the reason we should continue to be buying and storing gold

Lauren also quotes IMF data showing that Central Banks in Mexico, Russia, Turkey, Kazakstan are stocking up and storing gold.

To which James replies that “Every individual needs to act like its own Central Bank. And what that means is that you have to have your own Gold or Silver reserves. Own physical metal, and when you own that physical metal you know you are protected against all of the monetary chaos that we have already seen and the monetary chaos that is yet to come.”

You can read more about the Central Banks storing gold at the excellent Zero Hedge here

What do you think ? Some people are still on the fence about storing gold to protect their wealth.

We welcome comments below

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There has been alot of speculation about the prospect of gold oil trades and now it appears to be happening. The big thing is it may not be just one country either?

Gold Oil

Gold Oil

With sanctions and all sorts of trade threats against Iran gold oil has been thrust centre-stage. Gold oil trades between India and China could change the way we think of gold for good.

Gold Oil Story

If you’ve been following the Iranian story you know that news of gold oil purchases must be a shot in the arm for this oil rich yet highly sanctioned country. So is the gold oil connection deepening?

It seems not everyone is willing to ignore possible profits from gold oil exchanges set by the US. And if the rumours are to believed in the unfolding gold oil tale countries willing to continue trade with Iran are lined up.

It seems willing gold oil partners in tandem with those wishing to trade in alternative financial vehicles other than the US dollar will no doubt create even more pressure on ailing Fiat currencies.

Gold Oil And The Dollar

“Meanwhile, the US dollar’s reserve currency status continues to die a slow death. Last week saw the news that China has entered into a new currency swap deal with the United Arab Emirates, worth 35 billion yuan (US$5.6bn), a deal that will last for three years (though it’s extendable) and that is designed to enhance bilateral trade, investment and financial cooperation. All of this is part of Beijing’s slow move towards introducing the renminbi as a unit of account in international trade, and away from the US dollar.

Yesterday also brought forth the highly interesting news that India will use gold to pay for Iranian crude oil, while China is expected to follow suit. China and India combined buy around 40% of the 2.5 million barrels of oil Iran produces each day. Looks like the Chinese, the Indians and the Iranians didn’t get Ben Bernanke’s memo.”

Wonder how this will affect the Price of Gold And Oil?

Is the introduction of gold oil trades another nail in Fiat money’s coffin? And is the gold oil trade the start of renewed interest in gold as money. We’ll be keeping an eye on the gold oil ratio over the coming weeks!

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Silver Miners

Silver Miners

Silver had a rough ride last year so why do investors even consider buying silver miners?

Perhaps these insights into what makes a silver mining company sound will help.

The issue is that if silver prices remain artificially low then it places a lot of pressure on the silver producers. However as we know the fundamentals for silver remain convincing.

Things like investment grade silver availability, currency debasement, industrial demand continue to play a role. I don’t own any silver miners but the more I invest time in the world of precious metals it’s hard to ignore. Which is why it is worth reviewing how the experts evaluate silver miners.

The article from SeekingAlpha discusses 3 silver miners with encouraging data and one that appears to have fallen from grace?

“There are not many pure silver stocks out there. Silver is often mined only as a by-product of gold, platinum, or similar more valuable metals or minerals. Silver had a rough ride. After trading at about $50 per ounce early in the year, it trended lower throughout the last eight months of the year, closing at about $30 per ounce toward the close of the year. The reason for this is an obvious imbalance between production and demand for the metal. Being a commodity, stocks specializing in silver also had a rough ride. I am going to analyze a few silver dominant stocks. Fluctuating prices are the banes of all these companies, but one of them at least has fixed low costs, and gives me comfort in recommending it.

Silver Wheaton Corp. (SLW)

SLW is among the largest silver companies in the world, but it is not a mining company. It is the world’s leading silver broker, for lack of a better term. It engages in contracts with mining companies to buy all or a certain percentage of their silver production as “streaming rights.” Many of those contracts are with leading gold mining companies like Barrick Gold Corporation (ABX) and Goldcorp, Inc. (GG). This means, other than upfront payments pursuant to the contracts, SLW has no real capital costs. SLW’s stock was trading recently at about $31 per share. Its 52 week range is from $47.60 to $25.84, and it is trading at a P/E of about 18.3. It has a market capitalization of about $11 billion, and pays a quarterly dividend of $0.09, for an annual yield of 1.2%. The dividend payment effective with the third quarter payment floats, and is determined by calculating…”

Having taken the time to read the entire article there are some compelling reasons to consider talking to a professional advisor about silver miners. And it is clear while silver stocks are down the few pure silver mines that are around have got some tough times ahead.

What do you think? Will 2012 be good to Silver Miners?

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Who Buys Gold And When?

by Silver Advocate

Who Buys Gold

Who Buys Gold

As you know we believe in the fundamentals of precious metals so it good to know who buys gold and when.

However it’s essential to keep in mind whilst these stats may put a smile on your face there are forces at work to keep gold and silver prices low which means there are no guarantees. I have seen an important question asked more than once.

The question that is often asked is if the charts we see in precious metals market cannot be completely believed why would we look at them at all. The simple answer is that is what we have and if that’s what we have then it’s what the market has.

Essentially the data can tell us some pretty interesting stuff and what you will see below is just that. There is no such thing as a sure thing however technically speaking this is info certainly tells a story.

Gold has been especially strong from January to May over the past decade — a stat that Steve can readily show you in a set of 10 yearly charts. I’ll save your eyes the trouble, but rest assure that every year bears witness to a solid 1st-2nd quarter opportunity in gold (with the metal moving at least 6% higher but in some instances as high as 33%, like early 2006.)

The past three years in particular have been impressive for gold. Take a look:

“Gold has had a very nice up trend-line since late 2008” Steve notes. “Since then that trend has held several times making strong bounces off of that trend-line.”…

Click Here To Check Out Original Source At Daily Resource Hunter

For more on the who buys gold scenario there is further spot light on China and one wonders exactly how much the country really holds when you consider the serious appetite it’s citizens seem to have.

“China’s gold imports from Hong Kong” Bloomberg reports, “surged to a record as consumers bought the metal before the Lunar New Year this month and investors sought to hedge against financial turmoil.”

Those, of course, are the numbers coming out of Hong Kong into the Chinese private sector. The official People’s Republic of China gold holdings are a lot less easy to come by (since China doesn’t frequently publish updates to its gold holdings.) For example the last official count was in 2009 with 1,054 tons.

But be warned, the next time we see an update to China’s gold holdings we could be in store for a game-changer. I have the feeling that China is in the midst of a huge stealth gold buy (something I wrote about back in September.) In doing so I believe China will shock the market with a huge announcement that they’ve been stock-piling bullion — it could come tomorrow or it could come in the next few years…but either way it’s coming….”

If you’re wondering who buys gold then I hope these insights were helpful to you. The fact is gold has silently been on an upward tend for years now. The Chinese know it and someday soon we are likely to realise these gold charts and stats indicating who buys gold provided very telling signs in relation to the currency crisis today.

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Price of Gold and Oil

Price of Gold and Oil

There’s nothing like a good conspiracy story to influence the price of gold and oil. Sadly this is no conspiracy, if this story is to be believed then the currency war is already in full effect.

As this plays out we could well see the price of gold and oil move to the upside in short order. How much, well Jim Rickards when interviewed by King World News seems to think $2000.00 is an easy target for Gold because a war in Iran will impact key players and markets around the globe. That’s around 25% which would be a shock to anyone not in precious metals.

Naturally any pressure could affect the flow of oil pushing oil prices up and causing price to change quite rapidly…that said there’s nothing like a bit of fear mongering to cause the market to get all emotional but when you look at the big picture it’s clear this is not a game. Here’s what Jim had to say about the price of gold and oil.

“With oil near $100, gold and silver on the move and many people worried about what is going to happen with Iran and the Straits of Hormuz, today King World News interviewed resident expert Jim Rickards. Rickards negotiated the release of US hostages from Iran in 1981. His advisory clients include government directorates around the world and he is heavily involved in US national security issues and the Department of Defense.

Rickards has also gained international recognition for his deadly accurate predictions regarding moves by central planners. This is what Rickards had to say about the situation in Iran: “Eric, this really could not be more serious. The fact that we, meaning the United States, are on a path to a war with Iran is very clear at this point. It does seem the countdown has begun and it’s coming to a head sooner rather than later.”

Jim Rickards continues:…”

I hope this is just sabre rattling as the last thing the world needs is another war but it may be it’s already started? No doubt the price of gold and oil could rise significantly but what is the real cost?

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Chinese Gold Chart

Chinese Gold Chart

Recently we highlighted some of the reasons to be cautious however this gold chart and import numbers may bring a smile. It also serves as a reminder that “they” seem to know something we don’t?

It may sound a bit criptic but the fact remains that when one looks at the gold chart it should be plain to see that gold is highly sought after in China.

They’ve even gone so far as to ban exports of the yellow precious metals. Without doubt the Chinese are buying gold as protection against inflation. And also buying gold as an investment or long term investment hedge against the global currency debasement. The stuff the people at GoldMoney have long been talking about…

“The gold price enjoyed another up day yesterday – spurred on in part by news of record high imports of gold from Hong Kong to mainland China. Comex gold for delivery in February rose 0.5% ($8.10) to settle at $1,639.60 per ounce. Silver for March delivery settled up 0.3% (7.5 cents) to $29.89 per ounce. Platinum was the standout performer in the precious metals sector, with the April platinum contract up 2.3% ($33.10), settling at $1,497.70 per ounce on concerns about power supply problems at South African mines.

As GoldCore analysts note, the Hong Kong-China gold news is particularly bullish, as there is a ban on exporting gold from China, meaning a smaller amount of tradable gold elsewhere in the world. November’s imports were a 20% increase from October’s already high number, and marks a 483% year-on-year increase, as can be seen from the chart below, courtesy of Reuters….

I pretty sure copying the link to the chart here doesn’t fall under the “fair use” clause so if you want to see the gold chart you can by clicking the original source link at the bottom of the page!

The first set are numbers are great if you’re feeling a little down about precious metals but the last comment about the gold chart really hits home…. 483%. I don’t know about you but if that was an investment and I’d just seen a 483% year-on-year surge I’d be close to delerious. Suffice to say when things start to get tight in the precious metals market people may look back at the gold chart for November 2011 and point out the significance.

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Too Late To Buy Silver

Too Late To Buy Silver

Many thought by the start of 2012 it would be too late to buy silver with predictions that silver prices might rocket. However after reading this it looks like we’re still in for more surprises.

This time last year Silver was pretty much trading around the same price as nowadays. We’ve heard from all the experts that silver is the one to watch and yet I’m having conversatoins with family members and friends alike who are poking fun at what we are seeing. That said I’m still thinking them it’s not too late to buy silver and what we are experiencing right now might be a dream when precious metals are allowed to move as hoped.

Taking the rose-tinted glasses off and looking at some technical analysis there may be some more downside. And if this turns out to be true then it’s definitely not too late to buy silver.

“Silver: Still Unwinding.

Silver spot price (SILV-27.84, see Figure 22), which carries an industrial component and is a smaller market than Gold, suffered a more severe 46% decline in 2011, than that of Gold to date. Silver carries a similar pattern of reversing a portion of a very large advance of 170%, which had gotten way ahead of itself. The weekly momentum model continues to decline (see red arrow), suggesting that the repair, and possibly the decline, have not yet run their course.

We continue to cite support at 25, at the intersect of the 2008 uptrend line. But with the weekly momentum still declining, there is the possibility that Silver could even retrace toward its decades-long breakout at 20 before restoring an advancing trend…”

There’s a American saying something about not drinking the “Kool-Aid” which I interpret to mean don’t buy go around confirming your own bias. I think you will agree after reading the entire article penned by expert Louise Yamada that these are some sobering words.

As always we look out for positive and meaningful commentary but it’s important to stay grounded. That way we are less likely to get panicked by the downtrodden silver prices. The fundamentals still remain strong (see Why Buy Silver – Buying Silver In Times of Crisis)but it’s certainly no walk in the park.

With strong long projections and short term bearish analysis there seems no doubt it’s not too late to buy silver!

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Silverprices lacklustre start

by Silver Advocate

Silver Prices Silver Prices

Gold and silverprices are less than encouraging so early in 2012. But are the signals we’re seeing in Europe something worth shouting about?

It’s been about a year since I started commenting on the price of silver and precious metals in general.

And one thing is for certain it has been a terrifying ride.

With highs of $48.00 back in April to the low of around $26.00 we experienced in December. I mean when we look at the fundamentals there’s every reason to believe silver is the wonder investment metal and yet many have been shocked by the experience.

The problem is some expected an instant gratification with a short-term trader mentality. Shockingly I think you’ll agree with me clearly this was not the case with the silverprices.

The good people over at GoldMoney Research show how the metals have faired in 2012…

“Though the gold price is still up by 10.22% this year, the silver price is currently down 8.21% for the year. Platinum and palladium have faired worse, with palladium down 14.98% over the last 12 months, while platinum has lost 20.35%. Simply put: gold is a safe-haven metal in a way that the other precious metals are not. All are safe havens to the extent that they represent tangible assets with unique properties and industrial utility – in contrast to currency or bonds – but as economic fears have grown over the course of the second half of the year, industrial utility has been the last thing on investors’ minds.”

Personally I think silverprices could surprise even the staunchest bull this year. But then again I am not sure this year has started quite where the average bull would have hoped.

What’s your take on precious metais in 2012….let me know when you think silverprices will recover?

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Gold Trading Price 2012

by Silver Advocate

With precious metals taking a bashing many are wondering about the gold trading price 2012. However I believe the actions of one nation in particular are very telling!

Gold Trading Price 2012

Gold Trading Price 2012

A director affiliated with the People’s Bank of China recently said “No asset is safe now. The only choice to hedge risks is to hold hard currency – gold.”

No doubt one reason may be the intention of the Obama administration’s to double US exports between 2010 & 2015. And as the currency war continues this can only happen through continued dollar devaluation (Quantative Easing – money printing)

The problem for the man on the street is gold and silver are recording new lows. Mistakenly causing many to believe them to be a poor “bet”. As so in the West the illusion of paper money and currency remains intact! However as we continue to feel the effects of this debasement the gold trading price 2012 is likely to see new highs as people flock to gold in the coming year.

The GoldMoney News Desk discuss why the Gold Rush is still on in China

“Gold and silver prices have fallen slightly on news of a clampdown on gold trading in China.

According to Reuters, Chinese regulators have stated that the Shanghai Gold Exchange and the Shanghai Futures Exchange are enough to meet investor demand for spot gold and futures trading. In the words of the People’s Bank of China, the Ministry of Public Security and other regulators: “No local authority, institution or individual is allowed to set up gold exchanges.” They cite lax management and evidence of illegality as reasons for the crackdown.

However, other news from China is more bullish for the yellow metal. In particular, comments reported in China Daily from a senior official at the People’s Bank of China (PBC) – the country’s central bank – indicating that the Chinese government should continue acquiring gold as a means of diversifying its foreign exchange reserves, as a means of moving away from US dollar and euro denominated assets. US Treasuries currently make up one third of the PBC’s assets, with euro assets around 20% of its assets. The Bank also holds 1,054 tonnes of gold, according to the latest data from the World Gold Council…”

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No doubt how China handles their Gold acquisition will effect the gold trading price 2012

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Savvy investors are already contemplating where silver price predictions 2012 could be headed. With gold set to close higher 11 years in a row we look at the big stories that will affect gold and silver predictions?

Silver Price Predictions 2012

Silver Price Predictions 2012

With some suggesting a precious metals panic the fundamentals remain solid for silver and gold. And yet we’ve seen some worrying take-downs in 2011?

Which is why today we look at an interview with one of the world’s most respected investors James Turk and King World News.

Renowned for his straight talking ways he reminds us why Gold is still a winner.

And how people are waking up to countries losing financial control all over. And why you absolutely positively must stay away from counter-party risk.

“With 2011 coming to a close and investors concerned about the recent plunge in both gold and silver, King World News interviewed James Turk out of Spain to get his take on what to look for in 2012. When asked what investors in gold and silver should expect in 2012, Turk stated, “Yeah, I think the big theme in 2012, Eric, is going to be the continuing problems here in Europe. Not only with the sovereign debts, but I think you are going to see increasing focus on the insolvency in the banks themselves. That’s going to be the big story in 2012.”

James Turk continues:

“The major drivers for the metals have been banking and financial problems worldwide. So, I see no reason to suspect that the metals are going to do anything except go higher next year. As we speak, gold is up 17% (for this year), so if we finish around here that will be the…”

When pressed about silver price predictions 2012 James even makes hints that we could see $70.00 early in 2012.

The one thing that stands out for me is that we should recognise today’s prices as a buying opportunity. The key reason being the tightness in the market and the huge physical demand.

What are your thoughts on silver price predictions 2012?

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