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Archive for March, 2013

Get off the fence and buy gold now

Thursday, March 28th, 2013

As previously stated and warned of here on Goldcoin.org here is a taste of what the EU and its bureaucrats have in store for you.

Remember, your money belongs to you even when you pay it into the bank. Right?

Amidst the panic and confusion surrounding recent events in Cyprus it is worth noting the possible implications for the rest of us.

Jeroen Dijsselbloem is the new President of Eurogroupe which has the responsibility for overseeing the EU bailouts and defining the terms and conditions applied to each country. He is a Dutch national and little known to almost everyone.

However, in a recent interview with Reuters and the Financial Times he raised eyebrows by declaring that the Cyprus solution represented a new model for the resolution of banking crises in the EU.

He stated that “If a bank is not capable of recapitalising itself we will ask shareholders and bondholders to contribute to the recapitalisation but if necessary we will ask depositors of non-guaranteed funds too.”

What should worry us all is the lengths to which Governments will be pushed to go in order to avoid bankruptcy and this will not be the last we hear of this type of pillaging of bank accounts.

It is also the speed at which events happen as some contacts in Cyprus have told me. One minute life is normal and the next you can’t even get food or petrol as no-one accepts cards and you’ve run out of cash. Life is no longer normal very quickly and in the space of one week life was turned upside down for most of the people. Limiting cash withdrawals restricts everything you do and survival is the essential task. Despair sets in quickly but what bewilders people is the inane sense of powerlessness to do anything about such a dire situation.

We hear that the markets are calmed and reassured by the bailout plan and so life for them has returned to normal. Gold has slipped below $1600 on the strength of this miracle in Cyprus such is the level of complete normality that has been restored. How is our world dependent on such idiots with such delusion?

However, Cypriots are left in misery and guaranteed a bleak unprosperous, future governed by debt repayment and economic collapse. The levy on large investors will drive their best investors away and so collapse the structures put in place to support their “off-shore” haven financial services sector. This means job losses, office closures, office cleaners gone, lunchtime cafés closing etc etc. Ironic that income from these departing investors was the main stay of Cyprus’s economy meaning it is now even weaker than before it was doing so badly it needed a bailout. So how is crippling it further supposed to make it better. If you believe the “markets” Cyprus is back to where it was when life was fine. It’s a joke this fickle nature of markets toing and froing to keep the newspapers and news channels full of experts talking rubbish because the truth is being conveniently hidden and never sees the light of day on a TV programme because it would scare the population and they would react making posh buys and girls nervous for their cushy politocrat lifestyle and club. Priority number one for a politician is to keep their seat and the lifestyle they have become accustomed to – I just resent the way they appear to believe it is their right and that they are somehow better than me or you because they understand all our problems and have all the solutions we need – impossible anywhere, anytime for such arrogant presumptions. We elect them and they stop listening – maybe we can help or have a collective idea – they never ask so how would they know.

One dimensional democracy rules our world and it is an outdated useless model.

I despair at the intellectual incompetence of bureaucrats, politicians and the financial sector – for supposedly clever upstanding people they behave like a bunch of reckless schoolboys who know that Daddy will pick up their bill forever and so they’ll always be alright.

UK political rhetoric insults the intelligence of the nation and the prefabricated personas of party leaders more useful as comedy material than at running the country. Watch them on Question Time, performing as prepared like party puppets made of wood and full of arrogance.

What do any of them know about hardship, unemployment, rent, unpaid bills, poor accommodation, lack of heating and social terror. Absolutely nothing they haven’t read in a book or on an iPad!

Trust them at your peril and remember what they promise – and then what they do – and then what they do or don’t achieve. Every budget forecast has been over optimistic and is always revised down – this is incompetence for economic experts and gurus surely? Why should we ever believe what they say when they never get anything right – predictions or results.

And to top it all they’re untouchable for their errors and will blame their own mother first.

My worry is that these British politicians wouldn’t think twice either if they had to rob us to save their own bacon and of course their banker friends again. It’s the same in Spain, Italy and France.

Be aware- Politicians are bereft of ideas and economies and banks still hide huge debt clouds that remain under the carpet and off the radar for now.

This situation is unsustainable and when the real facts emerge we will see runs on the banks, empty supermarket shelves, Government interference in ways we cannot imagine right now and all in all a restriction of freedom we have not known before.

A week can be a long time – for an economy, in politics or to be hungry.

Move your wealth to a safer place before it’s too late and choose a safe country and a safe non-bank storage system. Banks always collude with governments because they are so tightly related. Keeping your savings elsewhere avoids this style of confiscation.

Preserving wealth in gold coins gives protection, liquidity, dual leverage and peace fo mind – and it’s always performs better than bullion bars:-)

Gold at £1600 an ounce?

Thursday, March 21st, 2013

Here at Goldcoin.org we try to provide a cross section of views from different sources to keep track of unfolding events and clues as to what might happen next.

The articles may help give an insight as to how gold fits into to the current picture and as the first one illustrates so well, countries hit by economic crisis and its effects often have internal sanctions imposed by the Government to restrict monetary flow and also show how ordinary people turn to gold as a protection of their wealth.

Many thanks to each of the authors for their insight and please do let us know if you have any suggestions of interesting articles.

Argentina Turns To Gold As Inflation Tops 26%

Argentines are buying more gold than ever to protect their savings from the Western Hemisphere’s fastest inflation reported Bloomberg.”

“Argentines are utilizing gold to hedge their savings as economists forecast the peso will lose more value than any currency in the world, and President Cristina Fernandez de Kirchner forbids dollar purchases.

The nation’s inflation rate of 26% is also eroding Argentina’s peso- denominated bonds to fall 5.5% ytd.

“I’m buying gold every chance I get,” Guillermo Acosta, a 27-year-old security guard, said inside a branch of Banco Ciudad in downtown Buenos Aires. “With this inflation, I feel like my savings will evaporate if I keep them in pesos.”

Gold Holds Above $1,600 as Fed Keeps Printing $85 Billion Monthly

By Eric McWhinnie

“Both precious metals held steady as the Federal Open Market Committee decided to keep its current quantitative easing programs in place. The central bank will continue to purchase $40 billion in agency mortgage-backed securities and $45 billion in longer-term Treasury securities each month.

With high unemployment levels, and low inflation according to the Federal Reserve, the central bank believes the benefits of QE still outweigh the risks.”

I’m betting that gold will hit £1,600 an ounce by the end of next year

Says Dominic Frisby

“I’m saying all this for a reason. I am getting increasingly excited about gold’s prospects against the pound.

‘The bigger the base, the higher in space’, runs an old stock market saying. Another version is, ‘the longer the wait, the bigger the break’.

As we know, gold has been trading in a range for some 18 months now since its high in September 2011 at $1,920 – or £1,206 – an ounce.

The wait is getting longer and longer – and the base is getting bigger and bigger. $1,520 to $1,550 – or £960 to £990 – marks the bottom of the range; $1,800, or just below £1,140, the top.

When a market is making a sustained move in a certain direction, you tend to see the moving averages – the average price over a previous period – aligned in a certain way. If a market is trending up, you will see the price sitting above the 20-day moving average (the average price of the previous 20 days). This in turn is above the 50-day, which is above the 200-day.”

We speak often about the continuing crisis and that contrary to the general media and politicians we believe that we have never left a state of global crisis. Governments try to push issues under the carpet but eventually it becomes too big and they lose control.

A snippet from the news in France today reveals that 3 million less people will take a holiday this year and medical supplies are out of stock in certain areas. These are symptoms of a deepening crisis as the squeeze bites hard across households. Also it shows business is running on lower and lower stock because of cash flow issues and this in turn can lead to shortages of necessities.

We do not try to be alarmist here – we are interested in the reality which so often escapes comment or reporting.

The crisis is long from over and the  year ahead will be difficult for increasing numbers of people. When the reality of Greece, Cyprus, Spain etc arrives in the UK, France, Germany maybe more people will take notice and believe that reality is not rose tinted.

Prepare to protect your savings and preserve your wealth by buying gold as this will hold value while currencies and economies collapse.

Collusion, Corruption, Governments and Banks

Wednesday, March 20th, 2013

Hardly a surprise to find these four words together in the same phrase and the evidence to support this keeps arriving.
They seem indelibly linked together but then again they are as the politicians need the financial giants to get into power in the first place. No surprise that the politicians will repay the favour whenever they can.
Gordon Brown rescued the banks RBS, Northern Rock and Lloyds TSB by using taxpayers money that they had no opportunity to agree or disagree to.

What’s different to that and the current crisis in Cyprus?

Stealing honest citizens money by stealth or plain in your face – it’s still stealing our money to pay for the mistakes of casino bankers, traders, hedgers and of course the completely incompetent politicians.

Take George Osbourne (preferably far away) who by his own Bertie Wooster proclamations has been a complete and utter failure? He hasn’t managed the economy. He is doubling the UK debt. He is talking austerity but spending more than the previous Government. He will try to hoodwink us all again today with his carefully choreographed Budget speech.
Before announcing any new words of wisdom he may well explain how it is that all his GDP forecasts were wrong (artificially high to fit his story but in reality all rounded down) –his forecast for this year has just been revised down by 50%.
In fact none of the previous Budget forecasts have ever been correct or even near. They are always rounded down. This begs the question what is the point of guessing the initial figure anyway.
It also proves how incompetent the Minister and his department of “experts” are at running our economy.
However, like all his predecessors he doesn’t have to worry as none of this affects him personally and often by the time we have assessed the real damage at some point in the future he will be long gone and still living like a millionaire without a care in the world. No accountability for total incompetence – just a seat in the House of Lords for another twerp posh boy who has the audacity to lecture us when he has no idea about real life, real hardship, real people and quite obviously real economics.

Wake up before it’s too late!

When will we wake up to career politicians hijacking our country, our prosperity, our children’s education, our relatives’ health, our future and our hope for a brighter future? We pay for their mistakes and often through generations.
If our politicians are so worthy why will they never answer a direct question from a member of the public such as on Question Time? After all us members of the public are the electorate, we are taxpayers & voters, we keep them in a cushy job and they treat us like economic morons – constantly talking down and lying to us.
Enough of this insulting behavior.
Just look at politicians recent record and we’ll see there aren’t so many upstanding members of society. A former Minister Chris Hulme blatantly lied consistently on TV to protect himself. He is not alone as we have seen over recent years when scandal after scandal surrounding MPs emerges.

It’s about time the public took the power back from a jumped up Illuminati who think that they are beyond the law and beyond reproach for failure.

How about performance related pay for politicians?

Penalties for ruining our economy, education, energy revenues etc etc?
Politicians act with impunity and that in other countries is labeled corruption.
Remember when Gordon Brown deliberately sold off UK gold at a loss and weakened price losing millions of value for taxpayers? Well not to worry we still won’t get it back but he did it as a favour for the ECB in order to support banks that had overplayed the derivatives market and were hedging too far. The gold price needed to drop in order to arrange these banks’ balance sheets and so Uncle Gordon duly obliged. The banks got off once again from casino activities and the taxpayers paid with the countries gold.

When we realise that this happened before any of the bailouts for RBS, Lloyds etc we can see there is a cosy pattern of politicians looking out for the bankers. This ensures a cosy retirement of bank directorships for politicians all paid for by us.
It is also worth noting that in the current context of the Cyprus crisis, Governments will stop at nothing and are capable of anything just to save their own face and certainly to save their buddies in the banks.
Gordon Brown should stand trial for his mismanagement of our economy and for bankrupting the country.
He never will as he is too protected but one day we may revert to the good old days of putting incompetent politicians heads on stakes across the bridges of the Thames – then at least we would need a bridge building programme to restart the economy as we’d need more to create enough space for all the crooked politicrats.

Pound weakens further

Tuesday, March 12th, 2013

The UK faces mounting problems as data and analysts agree that the pound will remain under pressure due to poor economic data and forecasts look bleak for the UK economy.
The pound has already lost 6.7% of value since New Year’s day 2013.

According to Bloomberg sorces Derek Halpenny, European head of global-markets research at Bank of Tokyo-Mitsubishi UFJ in London, said :

“Momentum is clearly against the pound and, if anything, that serves as an excuse to carry on the market takes it.” He continued, “The weak data backup renewed quantitative easing and it’s a clear recipe for further pound weakness.”

Further eveidence from Bloomberg shows that
“The pound has depreciated 6.7 percent this year, the second-worst performer after the yen among 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The euro rose 1.6 percent and the dollar gained 3.2 percent.

U.K. government bonds lost 1.3 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bunds dropped 0.9 percent and Treasuries fell 1.1 percent.”

Investors are increasingly weary of attaching their portfolios to anything currency related as well as risky “bets” on a volatile stock market. Similarly, the decline in the house market and falling prices means that property is not an attractive option either because the costs associated with starting and maintaining this investment are also growing with inflation. Taxation of second homes may also be an issue and as times get harder for Governments they are likely to change rules in order to claw in any tax.

A recent interview with our friends at LinGOLD.com also backed up this theory as Directeur Général Paul McGowan stated:
“UK investors are growing frustrated with the traditional investment vehicles as they are at a greater risk of failing or at best performing badly. Investments held in currency, especially Sterling are losing money because of the devaluing pound and real inflation being greater than interest rates. We have seen a growing number of investors turning to gold as a safe haven for storing their value. Feedback from new Members suggests they have had enough propaganda and spin from politicians and now they are taking matters into their own hands by investing in something that is real, that they own, that cannot fall to zero, that cannot be used as collateral for third party investments, that will be there at term and that will store value for the future – physical Gold”.

As we here at Goldcoin.org have often echoed, gold cannot be printed or made out of nothing like paper fiat currencies that are so easily produced yet backed by no real value. Gold has an intrinsic value which it has stored through the ages and in the 21st Century represents the path back to real money that is worth more than the paper it is printed on.

Rule of law or rule of Banks?

Friday, March 8th, 2013

The gold investor should always seek opinion from a broad spectrum of sources in order to get the whole 360° picture of current markets, tendencies, geopolitical influences, economic news and sales.
To this end we offer a compilation of pertinent information for you to peruse and digest at your leisure.

Here at Goldcoin.org we take a dim view of the perpetual impunity afforded to private companies that feel they are so big they are above the law which is the case for so many of the banking giants. Here are some tasters to articles revealing just how the US Attorney General has admitted that it is too difficult to prosecute large groups that could have a direct and detrimental effect on National and even International economies.
Needless to say the usual suspects are amongst the perpetrators/

Banks above the law

“At the same Wednesday judiciary committee meeting where Attorney General Eric Holder hemmed and hawed before acknowledging that the president cannot authorize a drone strike on American soil, against an American terrorist suspect posing no imminent threat, he explained why the Justice Department has failed to bring criminal charges against a single Wall Street bank. Mr. Holder suggested, as a Financial Times headline put it this morning, that some banks are “too big to jail.”Here’s what happened. Senator Chuck Grassley, a Republican, asked for more information on why federal and state authorities chose not to indict HSBC after it acknowledged laundering money for Mexican drug cartels, helping rogue states avoid international sanctions and working closely with Saudi Arabian banks linked to terrorist organizations.
Mr. Holder said: “I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy.”
It’s nice and all that Mr. Holder cares about the stability of the global financial system, but that is not Mr. Holder’s job. As attorney general he is the country’s top law enforcement officer, and in that capacity he should prosecute criminals and criminal institutions.”

How Many Billions Of Drug-Laundered Money Does It Take To Shut Down A Bank?

Here is the transcript from testimony regarding the Banks secrecy Act involving the US Treasury, Department of Justice and Financial Industry.
Merely confirms the worst – the banks have impunity………. and can continue to mis-sell products, ignore international sanctions, deal with rogue states and drug cartels …. because making money has no conscience, no boundaries, no morals, no ethics, no remorse ….. and therefore has no place in a world where us mere humans actually matter.

“Now in December, HSBC admitted to money laundering. To laundering $881 million that we know of for Mexican and Colombian drug cartels. And also admitted to violating our sanctions for Iran, Libya, Cuba, Burma, the Sudan. And they didn’t do it just one time. It wasn’t like a mistake. They did it over and over and over again across a period of years. And they were caught doing it. Warned not to do it. And kept right on doing it. And evidently making profits doing it.

Now HSBC paid a fine, but no one individual went to trial. No individual was banned from banking. And there was no hearing to consider shutting down HSBC’s activities here in the United States. So what I’d like is, you’re the experts on money laundering. I’d like your opinion. What does it take? How many billions of dollars do you have to launder for drug lords and how many economic sanctions do you have to violate before someone will consider shutting down a financial institution like this?”

Goldman Sachs and Morgan Stanley Near Bottom of Stress Tests

Interesting that 2 of the most powerful banks on the planet are dangerously low to the bottom limits required to pass the tests. Chances are that even these tests are skewed and really exist to pay lip service to the demands of politicians. In reality, both Banks would be in danger during another crisis. Their skullduggery innovations department must be on overtime working on their next get-rich quick scheme to reward themselves by robbing the “sheep” consumers who never seem to learn. They were of course big actors in the Facebook saga that saw someone make over $4 Billion in a few days due to the manipulated launch price.

Gold bar sales in China jump twofold during Spring Festival

Sunshine, Valentine and a Lunar New Year have helped boost sales of gold in China this year. Figures released by the Ministry of Commerce have shown a doubling in sales of gold bars.
We have long supported a theory that lots of individual investors buying gold is less suspicious than a huge purchase made by the central bank but at a point in the future if all gold was deposited in National banks it could prove the backing for the Yuan – directly valued against gold by a new gold standard – that allows it to pose as a reserve currency with meaning and true value.

Leonard Melman: Are You Prepared for Hyperinflation?

During an interview with the Gold Report with 24H Gold, Leonard discusses his analyses of the precious metals outlook for 2013 which includes references to the many areas of growing concerns regarding currency debasement and inflationary pressures often and previously discussed here. His conclusions like our own is that gold is not bursting its bubble but readying itself as the perfect store of value when the effects of a deepening crisis set in further during 2013.

Morgan Stanley favour Gold

Wednesday, March 6th, 2013

We here at Goldcoin.org always advise investors to inform themselves as much as possible before making important choices that could be very positive for the future or a gamble too far.

To that end a wide perspective of opinion should be sought amongst other professionals such as those at Business Insider who have an insight into the current mindset of Morgan Stanley and their positive endorsement of gold as an investment and store of value  to preserve wealth.

MORGAN STANLEY: The Gold Bull Market Isn’t Over, And The Reasons To Own It Are ‘Evolving’

A notable feature of the investment landscape over the past few months has been the 12 percent drop in the price of gold since September.During that time, we’ve heard some incredibly bearish calls on gold from strategists at Goldman Sachs and Credit Suisse, among other shops. Rising real interest rates are said to be the death knell for gold.

Morgan Stanley, which for a while has touted gold as its number-one investment idea in the commodity space, isn’t ready to throw in the towel just yet.

In fact, according to the bank’s Chief Metals Economist, Peter Richardson, “The reasons for owning gold may be evolving.”

What does that mean, exactly? Richardson argues that over the past 10 years, gold has actually undergone numerous evolutions in this manner.

From 2001 to 2008, Richardson writes, gold went up because of “1) a persistent increase in investment demand, 2) acceleration in producer de-hedging, 3) a decline in net official sector sales, and 4) a persistent failure on the part of the mining companies to respond to the incentive of a steadily rising price and materially lift production.”

Then, from 2008 to 2012, gold was driven higher by “investors’ waning confidence in the stability of the global financial system and an unprecedented monetary easing by central banks.”

Buy Gold Now says MoneyWeek

Tuesday, March 5th, 2013

Wealth Preservation is what it is all about. Right now there is too much uncertainty and volatility in currencies and markets to find investments that will still be worth something come the next storm.

And according to MoneyWeek there is quite a storm brewing.

They take an indepth look at the effects of the Welfare State and the ever-increasing burden it places on the economy and Government. It is true to say that the British government does not collect enough tax to pay its own bills.

Therefore every year there is a whole in their budget to pay for schools, the police , army etc.

However, this just adds to their debt.

Given there is zero or neagtive growth in the economy, the working population is decreasing with lay-offs and therefore the net increase in taxation revenues is also negative.

This cannot continue forever and the system is at breaking point.

Britain is now the 3rd largest debt in the world after Ireland and Japan.

The collective debt of the UK including private, corporate and government is close to 900% GDP.

The past provides a stark reminder often cited here and elsewhere.

The Weimar republic of pre-Nazi Germany had debts of 913% when it imploded.

If you want to read some more I would like to suggest the following :

The MoneyWeek Wealth Preservation Report written by their editor John Stepek

MoneyWeek’s  End of Britain essay.

Interesting for readers is John Stepek’s quote on what to do in order to preserve your wealth at this time:

“Step one: Protect yourself from collapsing currencies with
precious metals”

“Given that every major central bank is printing money, fiat currency in general can only lose
value compared to gold. Daniel Brebner and Xiao Fu at Deutsche Bank note this is likely to
continue.”

“The Deutsche analysts value gold according to Gresham’s Law, by which “bad money drives
out good”. “Gold’s value depends in large part on the degree of ‘badness’ of bad money.”
When “bad money” or paper money is being devalued, as it is now, you would expect people’s
inclination to hoard gold to rise, along with the price of the yellow metal. “This is why the
gold price has been appreciating over the past 10 years.”

Should you buy coins or bars?
You can buy bullion in two main forms: coins or ingots (bars). The advantage of gold coins
over gold bars is that they allow you to be more flexible. After all, it’s easier to sell 20% of
your gold if you own 10 gold coins rather than if your whole investment is in one gold bar. By
the same token, given this flexibility, you’ll probably find that coins are that bit more liquid
(easy to sell) than big bars.”

It is clear for those wishing to see that the best researched advice echoes the same message as that championed on Goldcoin.org

Gold coins are an excellent investment if you take a moment to examine what’s on offer these days.

Vault stored investment quality coins are the best method especially if you can trade them online without having to take possession and run the risks of losing them or of theft.

Peace of mind is a prequisite of a sound investment and if your physical gold is safely tucked up behind thick armour-proof walls of concrete and steel, with electronic high secirity devices and outside of the banking system then you’ll sleep easy tonight.

Inform yourself about gold before it is too late.

FRANCAIS ESPANOL ITALIANO CHINESE

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Thoughts
"For a mountaineer, the important things are the effort, the posture and the muscles. The rope that holds him serves no purpose when everything works but it gives him a sense of security. In the same way, all gold does is ensure confidence; it's a safe haven."