Gold American Eagle Set

It's been brewing for some time.  About a dozens states are at some point in the process of adopting gold and silver coin as money.  South Carolina has made headlines and now Utah has added a positive wrinkle to the proposal.  Utah is proposing to forego states taxes on any capital gains realized from the sale of gold and silver coin.

In effect, you can pay certain state taxes with gold or silver coin.  With appropriate credit based on current spot prices or some formula that reflects fair market value, the state would convert your payment to dollars.  Presumably then, it would not tax the gain realized on paper when the transaction is made.

For those sitting on long-time stashes of gold and silver coins, this presents a real opportunity to cash in, at least partially, tax free.  Yes, there would still be the requirement to pay federal taxes on any gain realized.  But it's a start.

The popularity of the idea among states appears to be growing.  Some believe, once the states pass similar bills, Washington will have to take note.  Fed Chairman Ben Bernanke has commented that there is not enough gold to allow a return to the gold standard.  At current prices he is right.  But, if gold rises to some of the stratospheric levels some speak of, the possibility is there.  Certainly, if states pass such bills, this could be considered a partial return to a gold standard.  This alone could drive prices considerably higher.

Consider this!  The Federal Government allows citizens to pay taxes with gold and silver coin like the American Silver Eagle Coins or Gold Eagles.  In so doing, they forego federal income taxes on any gain realized.  I think a chain reaction could occur.

First, given the ability to pay taxes with gold or silver, while not paying state or federal income taxes on any gain realized, could result in a flood of gold and silver into the treasury.  That would leave citizens feeling somewhat flush with extra cash that they may decide to spend, giving the economy a little boost.

With taxes avoided - Legally! - citizens may also decide to pay down debt with the cash that was once set aside for taxes.  That never hurt an economy either.  

On the other side of the trade, Government could add to its gold holdings.  That would take some supply off the market and drive prices higher.  At some point, you have to figure the largest gold reserves in the world is going to play a role in settling some of our debts.  Higher gold prices can only make that more feasible.

Then, how popular do you think gold would become with investors, who can look forward and see a day when they can potentially take gold and silver coins to pay taxes.  Take for example, lump sums paid at retirement or severance payments made to entice early retirement.  If the tax liabilities due as a result, could be paid in gold or silver, where no state or federal tax is paid on the gain, that could effectively leave lump sum payments intact or at least partially so.  (Note:  This is not tax advice.  Only theory.  Please consult with a tax professional if and when the time comes) 

Now, let's use our imagination to carry this all one step further.  If tax is legally avoided on the gain from sale, what happens to metals in a precious metals IRA?  Could they be used to pay tax debt and given the same tax free consideration?

Frankly, I'm having a hard time finding a flaw in the whole idea.  How about you?

Meanwhile, let's not forget the relationship between inflation and gold, our enormous debt and the potential for the dollar to lose its reserve status.  All of this will contribute to gold supply and demand and the the gold price.

This will be an interesting development to keep tabs on.  To do so, visit LearCapital.com on a regular basis for breaking news, FREE Special Economic Reports and a variety of free services.  It's a good time to own gold and silver.

 

It seems World War III has begun.  It just has nothing to do with bullets or bombs.  It's all about who can make their currency the weakest as a weak currency appears now to be the weapon of choice in the battle to recover from a global debt crisis.  And, in case you haven't noticed, fallout from this battle is rising gold prices - silver too.

This raises a myriad of questions as many now speculate on limits to the dollar's decline, believing that is the key to determining the outer limits of gold's potential to rise.    

Over the last ten years, the dollar was at its weakest in July 2008 when the Euro reached an all-time high vs. the dollar at $1.59.  On the same day gold traded at $976 an ounce.  By June 8, 2010, the euro zig zagged its way down to just $1.19.  In dollar terms, the dollar rose from just 62 cents per euro to 84 cents for a 35% gain. 

To that point in July 2008, increasing dollar weakness seemed to explain gold's rise from just $250 an ounce in 2001 to $976 an ounce.  However, that was then, this is now.  Something happened to reveal gold's strength is not just a dollar weakness issue.  If the theory held, the gold price should have declined significantly off the $976 price as the dollar gained 35% against the Euro by June 2010.  Instead gold rose 27% to $1242 an ounce. 

Since June, this year, the dollar has again reversed course, growing weaker almost by the day.  At the time of this writing, the Euro sits at $1.38 and gold at $1347 an ounce.  Once again the experts attribute rising gold to a falling dollar, but, as we now know there is much more to the story. 

With all central banks printing more money and battling to make their currency weaker, gold is far from just a weak dollar play.  Indeed, if the euro were to rise 15%, to meet its decade high against the dollar, gold could see a similar gain in dollar terms.  That could put gold at or above the highly anticipated $1500 an ounce level. 

But, again, if the last two years have taught us anything it is that there are many reasons gold could rise to levels well beyond what we can currently anticipate or calculate. 

Yes, it's war out there and gold is winning.  As banks print more money they buy more gold as a hedge against currency debasement.  With central banks now driving gold demand, look for other investors large and small, to begin accumulating gold to hedge against the same currency debasement. 

Frankly, they don't have a choice.  If I was a bank making loans, and I knew just a few years from now the dollars I will be paid back will be worth a fraction of the value of the dollar I loaned, I would want a hedge against that loss.     

I strongly believe that by the time gold has run its course, it will be at levels that far exceed any expectations today's anlaysts and experts can anticipate. 

Diversification is still the key.  A gold coin here or there, a few American Silver Eagle Coins to mix it up a bit and you're set.  And by all means stay informed.  Visit LearCapital.com for real time gold and silver prices and breaking gold news.  Your savings and retirment accounts may depend on it.

"When I was born, I was so ugly the doctor slapped my Mother."  That's just one Rodney Dangerfield line that will live on as part of Rodney's "I get no respect" legacy.  And, right now that's exactly what silver is getting - no respect! - in spite of turning in stellar returns over the last month. 

As recently as August 11, the silver price rested below $18 an ounce.  Today it touched $20.50 an ounce and appears to be on a mission to draw investor attention.  It seems though, you have to do better than a 13.8% one month rise to accomplish that.

So, why is silver moving so strongly now?  From an historical perspective, the value of silver to gold was originally set by passage of the coinage act of 1792, the Bland Allison Act.  Influenced by recommendations from then Secretary of the Treasury Alexander Hamilton, the value of silver to gold was set at 15 ounces silver equal to 1 ounce gold. 

For years that was the standard until Nixon removed us from the gold standard in 1971.  The last time gold and silver actually traded near that level was January 21, 1980 when gold hit $850 an ounce and silver hit $54 an ounce.  Today the ratio lies near 63:1.

Some investors believe we will again see the day when gold and silver prices converge at this level.  That is said to mark the time when both metals peak in value as they did in 1980.  Other investors focus more on silver's growing industrial demand, as the development of solar power, for example, could drive silver demand much higher.

Still, others find themselves concerned over recent reports that silver supply is being grossly overstated and that we in fact are in the midst of a silver shortage.  So, take your pick.  Whatever is driving silver prices higher, it hardly gets a mention. 

You would think anything that has risen 25% in just the last year would be heralded as the investment of the year - maybe even the decade.  But no, silver just quietly goes about its business of steadily rising in price. 

If you are looking for ways to further diversify your savings and retirement accounts, a few American Silver Eagle Coins may be the answer.  Consider this.  If silver did move toward the historical ratio of 15 ounces per ounce of gold, silver today would have to be $84 an ounce. 

If there is indeed a silver shortage, when word finally does get out, silver is set to make a powerful move toward that level.  And, if industrial demand really does put an added strain on supply, a potential price explosion is in the making.

So the next time you look at buying a gold coin, you might want to consider an occasional substitute of 50 or 60 silver coins instead. 

For breaking gold and silver news visit learcpaital.com for real time prices and low online pricing. 







 

It looks like the sun is about to shine on silver.  Chatter about the yellow metal's silver sister has definitely stepped over the last few weeks as many believe spot silver is about to skyrocket.   One prediction is for $25 an ounce by the end of 2010.  That prediction is made by David Levenstein, someone I have come to respect as having deep insight into the precious metals markets.

The reasons for such optimism are many.  As I have thrown my opinion into the pool, I believe silver has simply become the easiest of most metals to add to diversified savings and retirement accounts.  With Gold over $1250 an ounce, it's just simply easier to add a few silver coins to the balance.

Some point to the historic gold silver ratio of 15 ounces silver per ounce of gold and say that at the current rate of 65:1, gold either has to fall dramatically or silver has to rise dramatically to reach the 15:1 mark.

Today Levenstein reports that Hong Kong based trader Dick Poon, says the growing solar industry will consume 1500 tonnes of silver each year. 

So, while gold demand is rising as gold takes on more of a currency role, silver may be playing catch-up as both an investment safe-haven play and as industrial metal whose demand is about to skyrocket.  If there is any truth to rumors that silver supplies on the Comex are dangeraously low, look for this growing demand to drive the silver price skyward.

Maybe that's why American Silver Eagle Coins are in such short supply. 

As always, to learn more visit LearCapital.com for all your precious metals needs.

Curing the Debt Crisis With More Debt

 

They always say, be careful what you wish for.  For months, inflation fears heightened as bailouts and stimulus became the order of the day.  Borrow and spend,  print to pay, that was the plan.  A plan that was to . . .

 

·         rescue a failing housing industry;

·         bring unemployment down to 8%; and

·         save a stock market whose bubble burst for the second time in less than a decade. 

 

It worked for awhile, as free money was injected into nearly every arm of the economy. 

 

Car sales peaked . . . Home sales spiked . . . Appliance sales got a boost . . . Even Window sales opened wider as cash flowed freely from government printing presses.

 

With the belief that more debt could cure the debt crisis, government asked for inflation and got it.  Demand for gold grew so fast,  reports of shortages began to surface as the gold price continued its sturdy rise to new highs.

BIG REASON #1 - Inflation Steals From Your Savings and Retirement Accounts     

 

If anything is inflationary it is the printing of FREE Money.  Like a thief in the night, inflation robs your savings and retirement accounts.  Learn how gold may provide you the best strategy to protect purchasing power, provide profit and become a powerful retirement building tool! 

 

Click here for your FREE Gold Guide and special reports  

At The Crossroads of Inflation and Deflation

 

Just as an addict endures withdrawal so is our economy withdrawing from the high of free money.  Personal bankruptcies are on the rise, housing starts on the decline and unemployment hovers near the 10% level -- maybe higher as the "still jobless" fall from unemployment rolls.

 

Oh yeah!  Then there's the stock markets.  They run up . . . they fall down . . . volatility may never have been higher than it is today. Uncertainty is winning the emotional battle.

 

Where once we feared inflation we now face the threat of deflation.

 

In a recent Wall Street Journal Report, Fed Minutes from the June FOMC meeting make known these early warning signs of deflation and cite the fading effects of stimulus.  A mid-year check on the performance of gold vs. the markets shows gold up a strong 9% unfazed at the prospect of either inflation or deflation.  The markets?  Dow - down!   NASDAQ - down!   S&P 500 - down!    

 

A choice must soon be made.  Choose your poison.  Inflation or deflation?   
 

BIG REASON #2 - Fed Fear of Deflation Could Trigger Pro-Gold Strategy     

 

The WSJ article says, "Fed May Consider Further Stimulus if outlook Worsens." We always say, inflation slowly steals your savings and retirement but deflation can steal it overnight.  Evidence shows  Fed is standing ready to fight deflation with more printed money.  Learn why gold may be best defense against both inflation and deflation.      

 

Click here for your FREE Gold Guide and special reports

The Debt Threat

 

Now, this administration is at a crossroads.  To continue down the free money path, in attempt to re-inflate the markets and our economy, could send America to its debt bed.  We fast approach a time when all the taxes collected still won't be enough to pay even the interest on our debt.

 

And the other path?  Deflation!  Spending cuts, higher taxes, and a stimulus-free economy are the bullets this administration is ready to fire in the fight against inflation and exploding debt.

    

First signs of this effort appeared when Congress denied the extension of unemployment benefits to millions of unemployed.  That policy may shift but the consensus is in - deflation is today's dominant trend.

 

In response, market volatility heightened and gold prices firmed as worldwide gold demand continued to rise.  The world awaits direction.  Will we deflate or will Fed fears override these efforts and return us to a print to pay policy of re-inflating our economy? 
 

BIG REASON #3 - Deflation Could Trigger Debt Bomb Explosion and Higher Gold  

 

Debt combined with deflation are more volatile than nitro-glycerin.  Why?  Because things you buy with borrowed money today will be worth less tomorrow.  With debt projected at $16.3 trillion by 2012,  is it any wonder the Fed is prepared to fight deflation with more stimulus?  Learn why cash is king during deflation and gold is cash.        

 

Click here for your FREE Gold Guide and special reports

Inflation and a Weak Dollar - Greatest Hope for Recovery

As ironic as it may seem, our once greatest fear of inflation may ultimately prove to be our only means to economic recovery. 

If it is believed deflation can trigger a debt bomb and bring a quick end to any hopes of preserving our savings and retirement accounts, we, indeed the world, may have no choice but to try to inflate our way out of this mess. 

You see, during inflationary periods, the dollar weakens.  A condition the markets love as both foreign and domestic profits begin to rise.  And because inflation leads to a weaker dollar, debts actually shrink as money you borrow today gets paid back with cheaper dollars tomorrow.     

Here's the secret:  Don't borrow to own or buy anything but tangible assets.  Real estate, precious metals and a host of other commodities, are appreciating assets, the debt for which can be repaid with a dollar worth less than when it was borrowed.

BIG REASON #4 - A Weaker Dollar Could See Gold Double or Triple Again  

 

Over the last decade, we've seen housing inflation rise to bubble proportions . . . stocks too.  Then crisis, as both bubbles burst.  And gold?  In less than a decade gold rose 400%.  Learn why experts say the real gold bull market is yet to begin and gold could double even triple from today's levels.         

 

Click here for your FREE Gold Guide and special reports

 

More Stimulus Sets Stage for Higher Interest Rates

 

If a Fed policy to inflate wins out over this administration's apparent efforts to deflate, this policy is not a risk free solution to our economic woes.  As more stimulus gets pumped into the economy,  inflation will surely rise.

 

With interest rates currently near zero, there is ultimately only direction rates can move . . . higher!  Especially, when stimulus dollars, once again begin to flow into a slowing economy.

 

Hyperinflation will become a threat and efforts to control the rate at which inflation rises will come in the form of rising interest rates.  Some say this will be a sign the real gold bull market has begun.

 

BIG REASON #5 - Rising Rates Signal $2400/oz. Gold  

 

To match its 1980 inflation adjusted high,  gold prices would have to double.  It was then that interest rates peaked after rising from inflation-inducing lows.  Will a stimulus-laden recovery drive inflation, weaken our dollar and cause history to repeat?  Learn why experts say Gold diversification may be your best strategy to protect and grow your wealth.           

 

Click here for your FREE Gold Guide and special reports

This could be your very best opportunity to take advantage of a gold bull market that may only be in its infant stages!!

According to a recent report from the Cheshire Republican Women,  outgoing Republican Senator Judd Gregg believes, within five to seven years, the US is heading for a debt-driven “financial meltdown!"

Lear Capital has been sounding this same warning for some time . . .

Globally, more and more people are turning to gold to protect and grow their savings and retirement accounts.  Central banks like China, Russia, Brazil and India are all buying gold.  And, as evidenced by reports over the last two years from the U.S. Mint, gold supplies are limited.

 

Even today, we find from the www.usmint.gov web site . . .  

"Due to the continued, sustained demand for American Eagle Gold Bullion Coins, 2009-dated American Eagle Gold Uncirculated Coins were not produced.

The United States Mint will resume the American Eagle Gold Proof and Uncirculated Coin Programs once sufficient inventories of gold bullion blanks can be acquired to meet market demand for all three American Eagle Gold Coin products."

Don't be caught short . . . timing is critical.

 

The U.S. is heading for a debt explosion and nothing seems able to stop it.  Over the last ten years, gold has been the beneficiary of volatile markets, bursting bubbles and a weakened dollar brought on by massive stimulus. 

 

Learn why more of the same is expected in the months and years ahead.

 

Click here to receive your FREE Survive-the-Meltdown Edition of Lear's Gold Advantage Investor Guide.  Do it now and while supplies are available to receive our latest special reports on Inflation, Deflation and How to Own Gold In Your IRA Accounts.


 

 

One day, as if its arrival is totally unexpected, the talking heads are going to be screaming, "Inflation Explodes - Your Savings and Retirement Accounts have just been hit!" 

Some may even say things like "Without warning the CPI jumped to 9%!"  Or, "Worldwide Gold Demand just reached record highs as inflation data shocks the world!"  Then follow-up reports will read something like this.  "Sales of the world famous American Eagle Gold Coin skyrocket as the entire world scrambles to buy gold!" 

So, just to set the record straight, you heard it here first and you heard it a long time ago.  Inflation isn't "coming" it's here!  And so far this month sales of American Eagle Gold Coins have already nearly matched the entire month's sales volume of April.  It should come as no surprise to you when news finally leaks out through the mainstream media.

And you know what?  Anyone who shops for groceries, drives a car or heats and cools their home, knows that inflation has arrived and its vicious.  Here's some data from the National Inflation Association.

* Fresh and dry vegetables up 56.1%
* Fresh fruits and melons up 28.8%
* Eggs for fresh use up 33.6%
* Beef and veal up 10.7%
* Dairy products up 9.7%

Throw in gas for your car at $3.00 per gallon or more and its pretty hard not to notice.  But, what may go unnoticed, for a time, is the effect inflation has on your retirement account.  If this data is correct, your savings and retirement accounts, earning even 8%, are shrinking in value.  

What's the solution?  Need you ask?  Diversify!  Diversify!  Diversify!  A gold coin can go a long way toward preserving the value of a savings and retirement account.   

  drain inventories   as investors scramble to protect their savings and retirement accounts fromIf only we had 

It's often said, there's three secrets to running a successful small business. LOCATION!. . . LOCATION! . . . LOCATION!  And when it comes to investing, we, at Lear Capital believe there's three secrets as well.  DIVERSIFICATION! . . . DIVERSIFICATION! . . . DIVERSIFICATION!

It's a simple concept to understand that you should never put all your eggs in one basket.  Don't invest all your money in stocks or bonds or real estate or precious metals for that matter.  And of all the investors out there, I think those who invest in precious metals understand this premise the best.  Spreading the wealth is spreading the risk.  If you fail to do so, you aren't really an investor.  I would call you a gambler. 

Now, let's define diversification a little further.  When you do invest in stocks don't invest in just one stock or one sector or one index or one of anything.  Spread the wealth and you spread the risk.  Same with Real Estate.  If you are going to invest in real estate besides your own home, consider land, commercial property, apartments etc.  Spread the wealth and you spread the risk.  In the case of precious metals the rules are no different.  Spread the wealth blah blah blah . . . you get it!

All that said, I just wanted to pay a little homage to silver and explain just a bit about why I think it should be part of a well diversified metals portfolio.  First, just as gold, silver has had a long history of being money.  It has intrinsic value, in fact, it was used in commerce in the U.S. some 30 years longer than was gold.  Originally, its value was set as 1/16th the value of gold because there was approximately 16 times as much silver supply in the world as there was gold. 

With silver prices now sitting near 1/60th that of an equal amount of gold, some say silver is way undervalued.  But let's forget that argument for the moment and just look at one supply dynamic and that is, tens of millions of ounces of silver is consumed by industry every year.  In fact, according to one source, 90% of all the silver mined has been consumed by industry.  Today, demand is still rising and supplies are dwindling.  You know what that means.

I think many people would be surprised at just how many industrial uses there are for silver.  It is these uses that some say will double the annual demand for industrial silver by the year 2020.

• RFID tags for stock control and ID cards are "taking over from bar codes";
• Solar panels - forecast to grow by 20-40 times in 10 years;
• Wood preservatives to replace arsenic;
• Wound care & other medical use, food hygiene, and anti-odor textiles - because silver, a biocide, inhibits bacteria.

And let's not forget investment demand.  Did you know that for silver to reach its inflation adjusted high it would have to be $130 an ounce?  As gold demand soars to hedge against inflation, so will silver.  As an American Eagle Gold Coin protects your savings and retirement accounts so should the American Eagle Silver Coin.  As gold supply and demand fundamentals drive gold prices higher silver prices could be driven higher yet.  DIVERSIFY! . . . DIVERSIFY! . . . DIVERSIFY! 





 

There is no warning, then it happens, then comes the inferred denials and finally the truth.  Investors are bailing out of U.S. Treasuries!  In December of 2009, as was confirmed several weeks after the fact, China sold off a record amount of debt. 

At the same time, 4th quarter 2009, Bill Gross' Pacific Investment Management Company, (PIMCO) increased its holding of Non-US Developed Debt from 3% to 16%.  And, as just reported, has increased those same holdings again from 16% to now 19%.  How many others are fleeing U.S Bonds and to whence do they flee?

PIMCO, being a bond fund, has replaced domestic bonds with foreign bonds.  China, in the last year or so, has secretly doubled its gold holdings.  Then, amidst comments suggesting their gold purchases going forward would be limited, they started to buy gold mines.  I guess if you buy the mine you don't need to buy the gold.   

Bottom line is, investors, (especially very large ones) are fleeing U.S. Debt related investments.  One can only speculate the consequences if this trend continues and grows.  When buyers go, you simply print more money to buy your own debt.  Print enough and you have hyperinflation.  Print too much and you have a good old fashioned gold rush.

Your coins dealer will scramble again to find Gold American Eagles.  American Eagle Silver Coins, also recently reported to be in short supply, will be sought after like jewelry at a flee market.  And, the question remains, who is going to be left behind?  

Folks, today is my first blog. For over six years, I have daily read the writings of Chuck Butler of Everbank World Markets. His writings have been formative in my understanding of our US dollar (it's strength - or lack thereof). I found his posting today at The Daily Pfennig very helpful for what just happened yesterday. Particularly for those who rely on gold as an investment. Here's what he said:

"The President announced his "new plan" to impose limits on banks and restrict the size and activities of the U.S.'s largest biggest banks. The White House wants commercial banks that take deposits from customers to be barred from investing on behalf of the bank itself--what's known as proprietary trading...

 

Now let me get this straight for you... This doesn't affect my bank, EverBank... This is for the HUGE Banks like JP Morgan Chase, and Goldman, (even though Goldman isn't really a bank, remember they formed a bank holding company in 2008, so they could get TARP)... But, this affects everybody, folks... If these guys aren't doing their Mega-deals, then there's no trickle down for the rest of us... This program will hurt, and let me repeat this for you... This program will hurt U.S. assets, keeping foreign investors from buying U.S. assets!

 

This is what the President is doing folks... On one side, he sees the Republican victory in Mass. And his ObamaCare going down in flames... So, to deflect the bad stuff that would go along with a President that hung his hat on this health care... He says... "Hey, all you voters, I know what's making you mad, it's those fat cat bankers... So let me tell you what I'm going to do to them"...

 

HEY! I learned how to do that in media training! Somebody asks you something that you don't want to answer, you "deflect" it to talk about what you want to talk about!

 

So... In one week, the President has come up with an idea to "tax the banks" that took TARP, not everyone that took it, just the banks, and now this plan... He's playing with fire, folks... And I'm just talking about the damage the financial markets will see, I haven't and won't, talk about the damage to his political capital...

 

I loved this the other day... Warren Buffett, is not too pleased with the President these days, for he sees the same things I'm seeing... But Mr. Buffett had this to say about the President's tax on the banks...

 

"I don't see any reason why they should be paying a special tax," said Buffett, the chairman and chief executive officer of Berkshire Hathaway Inc., in an interview on Bloomberg. Supporters of the plan to tax the banks "are trying to punish people," he said. "I don't see the rationale for it. Look at the damage Fannie and Freddie caused, and they were run by the Congress," said Buffett. "Should they have a special tax on congressmen because they let this thing happen to Freddie and Fannie? I don't think so."

 

In a recent survey by Bloomberg, the President is see as "Anti-Business" by 77% of U.S. Investors, and 4 out of 5 question his ability to manage a financial crisis... Hey! That's not me making that stuff up, folks... This is getting ugly, and the problem as I see it resides in our/ us / the country's ability to attract foreign investment...

 

So... The President deep sixed the Risk Aversion campers, and risk takers came back out to play, driving the euro back above the 1.41 handle... And Japanese yen dipped below 90 again, only to come back above it this morning in Europe.

 

The dollar index moved above its 200-day moving average yesterday... So, in reality, the dollar should be on the move... That just shows you how powerful the markets can be when they smell blood...

 

And here's a look at what one foreign entity thinks about all this damage to the U.S. assets... Kokusai Global Sovereign Open, the world's 2nd largest actively run bond fund, is going to shun U.S. Treasuries, and is betting against the dollar in 2010... You may recall a week or two ago, I told you how PIMCO, the world's largest bond dealer, announced that they were going to avoid U.S. Treasuries in 2010... Opting for German bonds instead!

 

In the Eurozone this morning, we saw Eurozone Industrial Orders for November, rise more than economists forecast, on demand for goods such as steel and car parts. Orders increased 1.6% in November... So... Things aren't "that" bad in the Eurozone, despite what some writers would have you believe!

 

Well... I heard yesterday, that Big Ben Bernanke's re-confirmation to Fed Chairman isn't a slam dunk as it was once thought to be... I belong to the "Audit the Fed Coalition" and they sent me a note yesterday, asking me to question by Senators and tell them to tell Harry Reid that they would not vote on re-confirmation until Bernanke allows the Fed to be audited... Well, I think my senators are probably tired of hearing from me on all sorts of things, so add this one to the list!

 

I'm not a Bernanke fan... I wasn't a Greenspan fan... I was a Volcker fan... But that takes us all the way back to the 80's! you know, the music that had electric drums! Not dissing on 80's music, Rick, just pointing out the time period... HA! My good friend Rick, spent his young adult life in the 80's, like our Chris Gaffney, and that time period is the music they know / like best... Me? I'll stick to the 60's and 70's... Because everything that came after those two decades of rock, was just variations of the originals...

 

But I digress... And apologize for that!

 

So... Yesterday, as I said above, the Weekly Jobless Claims jumped to 482,000, from 444,000 the previous week... This marks the 3rd straight increase in the Weekly Claims figures, and the 5th increase in the last 6 weeks... Do you see a trend here?

 

Here are some ugly figures... 40,000 people had their unemployment benefits drop last week, while more than 650,000 received emergency compensation... UGH!

 

So... I was giving an economic talk to a group yesterday, and I said that I truly see the U.S. economy slog along with bumps up in GDP, and then drops back down... Unemployment will remain very high (right now 17%), and we could very well see another drop of 10% in home prices... Now, that's downright cheery isn't it? NOT!

 

Then there was this... Did you happen to catch the news last Thursday regarding the CFTC's commission that was researching position limits in energy? Well, they went one step further, and also talked about how they will look into the precious metals, gold and silver in addition to energy...

 

This is HUGE folks! And the media just swept it under a rug! Shame on them! Could this be the end of the price manipulations of Gold and Silver? I truly believe that it very well could... And that would be HUGE for precious metals holders... For, the "true" market value of the precious metals could be sought, without manipulation to keep it weak..

 

If you are interested in the commission's statements check them out here...

 

http://www.cftc.gov/newsroom/cftcevents/2010/oeaevent011410.html 

Well said Chuck - well said! Yes, the Path Past Hyperinflation has begun.  Now may be a good time to buy gold.  If you are a first time gold buyer consider Gold American Eagles.