Gold is Reserve Currency of Banks

For the last nine years, sovereign nations and central banks have been vacuuming up the supply of “good delivery” gold (400 oz gold bars). Central banks have purchased record amounts of physical gold — at even a faster pace than just before the U.S. dollar was disconnected from gold (Nixon severed the gold-dollar tie in 1971).  

ARE BANKS PREPARING FOR A GLOBAL RE-SET?

The gold-buying frenzy is related to the changing status of the dollar. Central bank gold demand is the highest since 1964 and the period of time leading up to the collapse of the London Gold Pool in 1968. The banks are systematically adding to their gold reserves in exchange for their dollar reserves.

As supplies of physical gold become available, countries such as Turkey, the Philippines, Ukraine, India, VietNam, Russia, South Korea, Sri Lanka, Kazakhstan, Argentina, Mexico, and China line up to take delivery. Continue Reading →

Gold Market Crashed to Defend the Dollar

Shock & Awe in London and New York: In one day (April 12), more than 400 tons of PAPER gold were dumped on the market —to crash gold and to defend the dollar.

Something desperate is going on in the financial markets for
the Federal Reserve to coordinate this extraordinary “event.”

Former Treasury official Dr. Paul Craig Roberts called today’s gold smash an act of desperation orchestrated by the Federal Reserve to  protect the exchange value of the dollar:

“It’s just paper.  It’s naked shorts… I have assumed from the beginning that it is the Fed’s concern with the dollar because the dollar is being printed in huge quantities at the same time that other countries are abandoning the use of the dollar as international payment.

“The exchange value of the dollar is threatened; and if that collapses, the Fed loses control over interest rates.  Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail.” Continue Reading →

Bonds Are In the Bubble of Your Lifetime.

The Federal Reserve has been inflating the U.S. Treasury Bond Bubble for more than thirty years. Managers of some of the world’s largest bond funds are warning investors to act now. The bond market bubble is just about to  pop.

Martin Kozlowski, Wall Street Journal

Chances are, you are far more exposed to risk than you realize. It is likely half of your ETF [Exchange Traded Funds] portfolio is invested in U.S. Treasuries (read the fine print). And probably 40% of your retirement funds are allocated to bonds. Your nest-egg is not safe in a bond fund.

When the bond bubble pops, PHYSICAL gold and silver coins will become scarce

By Denise Rhyne

Model  Precious  Metals  Portfolios
$5,000   $10,000   $25,000   $50,000   $100,000   $250,000

Questions?  Quotes? ($3,000 min)
Customized Model Portfolios?
Call Craig Rhyne (206) 719-6368

GOLD IS A PRUDENT INVESTMENT.

The world is “de-dollarizing;”
Gold, the Petro-Dollar & U.S. Foreign Policy

Shortages moved silver up 4% yesterday.

Silver is in the early stages
of a fourth bull market.

Do you remember what happened to silver in 1979-80? I do. In 1979 – after years of sideways metals markets – the silver price started moving like a freight train. The average price of silver in 1978 was $5.93 per ounce. Silver moved up from $6 January 1979 to $48 January 1980.

The price of silver increased 800% in 13 months because of a shortage in the supply of physical silver. In the beginning, the big boys were the only buyers – taking delivery of silver by the actual ton. The general public did not get the fever till the very tail-end of the bull market.

It is happening all over again. Silver is acting just like it did in 1979. For the same reason. Supply. We are getting very close to the biggest silver short squeeze in history.  This time, instead of starting at $6, silver has established a new base line. If silver repeats its 1979-1980 performance, we will easily see $50; then it will head for $100 or $200 per ounce.

Supplies of physical silver (and gold) have
been going to Asia, into central bank vaults, and into
private hoards. What about buying some for your family?

Suggestions:

The old pre-1965 U.S. silver dimes, quarters and half-dollars
are 90% pure silver.

Another excellent option is the 1 oz. Silver American Eagle coin.
They are the size of a silver dollar, and are exactly one Troy ounce
of pure silver. They come in plastic tubes of 20.

What better inheritance for your children and
grandchildren than United States silver coins?

Questions?  Craig Rhyne (206) 719-6368.

I offer personalized service with privacy & competitive prices.
Call to discuss Model Precious Metals Portfolios 
$5,000, $10,000, $25,000, $50,000, $100,000, and $250,000.

Note:   Prices change from day to day and minute to minute.  Actual prices will be confirmed at the time of an order, based on the markets at that time.

Storing Your Precious Metals

When you own gold, silver, platinum or palladium coins or bars, you want easy access to all or most of them.  You don’t want to rely solely on an organization that may be located across the country and at their mercy.  Having coins and bars in your “hot little hands” means that you could readily access them to trade in a barter situation.  (This is usually not possible with physical metals held in IRA accounts; however, while not optimal, it is better to have gold, silver and platinum coins or bars in an IRA than “paper assets.”)

Pick out some handy, yet hidden locations in your home for some of your coins, such as a bag of pre-1965 U.S. silver dimes, quarters or half-dollars, which are 90% pure silver.  Some possible locations are:  1) Under dirty laundry; 2) With tire chains in the garage; 3) Sealed in Tupperware-like plastic container, then – possibly – in a 5-gallon paint can (or similar metal container) and buried under the foundation of your house, outbuilding or barn; 4) Under the baseboard in a room in a secret area; and/or 5) In a secret room created in your home, along with emergency food and water storage.  Note that the Container Store has 30 locations all over the U.S., and it carries many plastic container that are water-tight and in various sizes for storing valuables, including gold, silver, platinum and food.  Their website:  www.containerstore.com For example, pictured above is a large, heavy-duty, screw-top seal storage unit (14” X 14” at base, 19” high):

After you have some coins / bars stored VERY close to you (at home), consider Continue Reading →

Buy Silver Now Before It All Goes to Asia.

Silver is scarce.  And right now, silver is still cheap. Short-sellers have provided the opportunity to buy silver at an artificially low price.

(1) NUMBER ONE REASON TO BUY SILVER NOW: Further controls on your money are coming. I believe capital controls will be imposed within the next 24 months.  

What are capital controls?  Capital controls regulate the flow of money. They are measures to restrict the flow of capital. These protectionist restrictions can include taxes on financial transactions -and- regulations on the sale or purchase of equities and bonds. Capital controls can require mandatory approval from authorities before money is spent on competing currencies such as gold and silver.

(2)  EXPECT MORE QUANTITATIVE EASING.
The Federal Reserve is directly monetizing the United States deficit by printing $trillions every year. Read up on Germany: WEIMAR: First DEFLATION Then INFLATION.

Since 2008, the Fed has purchased extraordinary amounts of long-term U.S. Treasury Bonds. With purchases known as Quantitative Easing I, II, and III, the central bank injected $trillions into the financial system after the collapse of Lehman Brothers and Bear Stearns.

When a country monetizes its own debt, it eventually produces economic chaos by destroying the value of its currency. There is no mystery here. Creation of money out of thin air leads to price inflation of goods, services and commodities.  

The FED will continue to create mind-boggling amounts of money and credit to stave off a market collapse. The U. S. is no longer able to finance its debt by selling Treasuries to foreigners; countries such as China and Russia are transitioning out of dollars. Asia is purchasing fewer long-term U.S. Treasury Bonds and quadrupling gold and silver purchases.

Continue Reading →

Charles Dupont: A True Story about Gold

This true story was told by Robert Strebel at a Financial Times World Gold Conference in Vienna, Austria in 1988. Strebel was a Member of the Executive Committee of the bank J. Vontobel & Co. Ltd. of Zurich, Switzerland. He ended his talk by telling “the story of a friend of mine, Charles Dupont.”

“At the age of 20, Charles inherited the handsome amount of 1 million French francs (about $193,000). On the advice of a very wise man, he exchanged his inheritance immediately for 50,000 gold Napoleons (coins), which were official legal tender at the time, gold content .1867 Troy oz., worth 20 French francs each at that time. In other words, Charles Dupont was the owner of 50,000 French gold pieces (9,335 oz. gold). Continue Reading →