Thursday, December 29, 2011

The Future Tense: David Morgan: Gold Opportunity

The Future Tense: David Morgan: Gold Opportunity: David Morgan, probably the best analyst in the world on silver mining stocks, discusses the current gold "massacre" with Fox Business News. ...

Gold in New Zealand dollars: $2024.32 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $35.31 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)

_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Friday, December 23, 2011

Holiday Viewing - The Crash Course

If you are wanting a relaxed educational session during the holidays, then have a look at "The Crash Course' here.
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Monday, December 19, 2011

The Next Three Weeks

It has been a more than eventful year. I have enjoyed bringing you my take on the issues at hand as they relate to the precious metals sector and also financial issues in general.

I will be intermittently contributing to the blog over the next three weeks as this is Christmas holiday time here in New Zealand. Thank you for your support this year.

Merry Christmas!
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Friday, December 16, 2011

The Family of Debt versus The Family of Gold

With how many members of your family would you sign a financial agreement that says; spend as much of our money you like (a blank checkbook), even borrow more if required, and if you get over your heads we'll pay out the lot.

Not this parent. How about you?

But this is kinda like Europe's problem. The kids were given free reign with cheap euros, now the parents have to step in. But the parents are balking at the consequences. The Eurobond (agreement to bail out the family) is simply not going to happen. Daddy Germany and Mummy France will not cover the kids bad debt behaviour (even if they did provide them with the checkbook).

The only way out for this family is to restructure its debt by ending the European Monetary Union, creating separate currencies again and devaluing them where necessary. Over €2 trillion euros is coming up to be refinanced in Europe next year. Are there any buyers of this debt? Remember they had problems raising a meagre €3 billion for the EFSF last month.

And the US debt situation is continuing to deteriorate. $1 - $2 trillion deficits cannot last forever. Spending $1.60 for every $1 they receive. The Europeans are in the same debt laden boat. The Planners keep coming up with plans, but the plans turn into dust and more plans are required. All a part of what should happen in a system that is broken. Can't be fixed.

Like your children and their bad spending behaviours, it is the behaviour that needs to change. Perhaps they have to sell something on Ebay or get more work to cover the bills. Perhaps countries need to sell something and produce more wealth creating jobs. I'm a parent, and, through experience, the cure for bad behaviour is not acquiessence. It is setting strict boundaries and keeping them. The Europeans had strict boundaries on debt (a limit of 3% deficits for each member country) but let the kids put their feet over the line. There are always consequences for breaking smart rules.

The fiat currency system is breaking down. The family finances are in a complete shambles. The parents and kids have run amock. If you own and have physical gold, be glad of a 5% correction. Buy more if you can. Don't be concerned that a 200 day moving average has been breached. When paper wealth is finally destroyed, what would you and your family rather own?


Gold in New Zealand dollars: $2082.020 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.55 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Thursday, December 15, 2011

Gold and Silver: The Wobbles before the Crash?


Gold and silver have had a marked sell-off this week. Various mainstream news commentators call this the blow-off of a precious metals market too far extended. Gold commentators are saying this is a sell-off of Lehman's proportions in the markets. Investors rushing to liquefy their assets and park it in USD cash. Just like after the Lehman's event in 2008.

Markets are deeply troubled with debt. No one knows value anymore. Trust is disappearing and counter-party risk is just too great to trade. You can smell the fear.

Here is an excerpt from Franklin Sanders:

We are seeing come to pass what I have long anticipated. Paper markets are unraveling. Now the very structure of the market itself must be questioned. In the bull market that peaked in 1980, paper (futures) prices drove silver and gold market. This time around, I think it will be more important to have actual physical possession, and that will means the physical price would be driving the market as the "real price", not the futures. We already saw that happen in the 2008 panic, when paper silver prices were 33% or more below physicals prices (physical silver carried a 50% premium over the paper price). Now, if some big entity that claims to have beaucoup silver stored suddenly goes belly up like John Corzine sent MFG belly up, well, who'll want "stored" silver then?

Here's an excerpt from James Turk over at King World News. His view is that what is happening now is a Lehman's in slow motion:

"Notwithstanding the enormous fallout from Lehman’s collapse and the disruption and distortions occurring in markets from all of the government interventions with their so-called ‘bazookas,’ the market structure itself was not questioned.  Today is very different...The aftermath of the Lehman collapse was a liquidity scramble.  So precious metals prices were hit back then as people needing liquidity threw out the baby with the bath water.  They sold what they could sell, not necessarily what they wanted to sell.  It was a great buying opportunity, and largely irrelevant to all long-term holders and accumulators of the precious metals.

This time I have been expecting a ‘fear event,’ with money rushing into the precious metals for safety, to avoid counterparty risk.  Therefore, higher metal prices will be the result. [The Precious metals] price may go down, but the price of everything else would go down even more, so you would still be better off owning the precious metals.  And even more importantly, physical gold and silver do not have a counterparty risk, so you never need to worry about the precious metals defaulting on some promise."

No matter what the price fluctuations, precious metals are the ultimate monetary asset and it looks like higher prices are coming. After all, can you imagine Ben Bernanke letting these defalting prices last too long before he calls in the QE?


Gold in New Zealand dollars: $2098.37 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.55 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Wednesday, December 14, 2011

Debt is the Money of Slaves


Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants - but debt is the money of slaves -Norm Franz, "Money and Wealth in the New Millenium"

So, then, who doesn't have any debt? Not many, if any. The generation born in 1970s and who began work in the 1990s have always had credit readily available. Debt wasn't seen as an issue for most back then, just put it on the credit card and pay it back later. Even houses were 'affordable' with long-term debt. Debt was your friend and always repayable in the future.

But sometimes friends turn nasty and sometimes those you love can hurt you the most.

Norm Franz is correct. Debt is the money of slaves. Take the position of most middle-income earners. Prices are moving upwards, the result of large macro-economic debt forces. Too much money printed with not enough production to support it. Money printed in order to pay back debt used by politicians to keep their social games going and their power intact. Plus these earners are caught in their own debt traps. Too much on the credit card and continual use of the house as an ATM. OK, there is some responsibility for those caught here, they can step out of the norm and do something crazy, like, sell their house, pay off all debt and rent for a while. Put the balance in hard asset investments perhaps.

But this is as difficult to do for most people as it is to wear pink at an All Blacks rugby game. You stand out, you may get ridiculed.

But back to debt. Here's a statemnet by Frank Guistra, founder of Silver Wheaton:

"The bottom line is that the money needed to bail out Europe and to fund America’s spiraling debt and future unfunded obligations is in the ten of trillions. IT DOES NOT EXIST. It has to be created by printing money in massive quantities, and despite all the rhetoric you will hear against such policies, in the end it’s the path of least resistance. Printing money is an invisible tax on savings, much easier to initiate, than, say, raising taxes or cutting back on services and entitlements."

Those who think for a minute that the problems in Europe have been solved will need to think again in my view. What is being communicated is a restatement of the same confidence trick that has been desperately peddled to the masses for the last 40 years. The bottom line is, the mountain of debt will not be paid unless money is conjured out of thin air or it is repudiated (but don't hang out for that one).

To back this up, look at the update from Ben Bernanke over at the Federal Reserve this morning. This from Yahoo Finance; "Many observers believe the Fed will step in to take steps to stimulate growth in 2012, first through communications measures that drive home their expectation that interest rates will not rise for along time, and then through more bond buying."

First through 'communications measures'! Read: trying desperately to talk up the positives about the system to keep us all buying more stuff on debt. Don't fall for it. Also, 'more bond buying'. Read: money printing. Debt is increasing and it is just too darn large to pay back. New money will be created. You will have your wealth stolen.

Slavery could be your future.


Gold in New Zealand dollars: $2156.45 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.42 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Monday, December 12, 2011

Buying Gold: A Financial Transaction

A report from stuff.co.nz on the weekend stated that some NZ$64 million worth of gold had been imported into New Zealand. This was only reported as it was an a large amount and therefore an unusual discrepancy on the normal gold flows into NZ.

There are a number of take-away issues stemming from this report.

Firstly, the reported way in which our Statistics Department treats gold. If gold, in any form; bars or coins, is 99.9% pure then it is classed as a financial transaction. In other words, our government officially defines gold at this purity as money. Now I already knew this and have stated it previously, but to hear the official line in a major newspaper is heartening for those of us trying to get the message across that gold is defined this way and is the ulitmate monetary asset.

Secondly, the report states that New Zealand is a safe place to park gold bullion because of its stable government. While, relatively speaking, it is safer then say, Libya, there is still risk. The rule of thumb with bullion is to try and diversify physical holdings in a number of jurisdictions to reduce risk of theft and confiscation.  As an aside, also remember that storing gold in bank vault is not wise as banks have counter-party risk attached to any holdings in a their vaults. Try storing it in private vaults.

Thirdly, there is mention of the Reserve Bank of New Zealand. It states, "The Reserve Bank says it did not import gold". Now that doesn't mean that our Reserve Bank doesn't buy gold, it just doesn't import it. However, they don't actually buy it either. Even though it would be prudent to diversify our foreign reserves out of paper assets and derivatives thereof. Perhaps the Reserve Bank could take a leaf out of the books of Central Banks like Russia, South Korea, Thailand etc who are scrambling to get their hands on as much gold bullion as possible to protect their wealth in light of the coming monetary event out of Europe.

Some individual or organisation in NZ is seeing a need to import this large amount of gold (nearly 29,000 ounces). Their reasons for doing so I can only guess at. But I think I know why...

And briefly, on the topic of Europe. Last week we were told by "Merkozy" that the leadership of Europe needed to have a plan in place to solve the debt crisis by Saturday. Well, the plan arrived, the solution didn't. The '26' have three months to decide on a second tier pact which includes giving away National fiscal controls to Eurocrats in order to stem the debt problems going forward. Will local constituents agree to give away sovereignty to what amounts as a German dominated Europe with France as its mistress?

Also, the money promised to fix the banking solvency issues are not enough. Already, quantitative easing (money printing) is happening to bail out large French banks (note the three Central Banks intervening ten days ago with swap lines). This will continue exponentially, because that is how maths works. The only options are still debt forgiveness or QE to hyperinflation. Period.


Gold in New Zealand dollars: $2207.56 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.58 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Thursday, December 8, 2011

Is Europe's Banking System About to Fail?

There are signs that the banking system in Europe is now under huge stress. Stress that could see it break very soon unless massive intervention is undertaken. As mentioned a few weeks ago, the Bank of England Governor warned that Britain on the brink of second credit crunch. The latest headlines just tell us that a slow train-wreck (as Turk describes it) is occuring before our eyes. Tim Geithner just happens to be in Europe also.

This is why failure is close. The balance sheets of large banks are supposed to have asset values that at least match the amount of money deposited. But with so much money having gone into derivatives and bond purchasing over the last few years, these asset values are dropping to a point where to sell them would mean massive losses. Banks would not be solvent enough to cover their liabilities. Simply put: they would owe more than they own.

This from James Turk over at King World News:

“You know I have been traveling around Europe quite a bit and there is one common trait, regardless which country I am in, people are really frightened about the possibility of a collapse of the euro.  Money continues to move out of the European banking system, which explains why central banks stepped in with some money printing last week.”

The story goes that a large French bank could not obtain funding and was on the verge of collapse.  When a depositor withdraws money from a bank, the bank has to turn to other sources of funding or reduce its assets.  Given the nervousness about insolvency concerns at many banks today, banks have few funding alternatives.  Consequently, last week’s stop gap measure by the central banks is probably going to be short-lived.

Things aren’t any better on the other side of the Atlantic.  I see that the US government debt increased $310 billion in the first 2 months of this fiscal year.  This is approximately a $1.9 trillion increase.  Clearly these kinds of numbers are not sustainable.  Something has to give as we watch this slow motion train wreck, and in my view it will be more problems for the world’s currencies as confidence in governments and central banks continues to erode.

The collapse of the system are very real because governments have not yet come to grips with the fact that their capacity to borrow is limited.  History has shown that over-indebted countries always destroy their currency.  When it comes to the future we can only make informed choices and in my view physical gold and silver are the right place to be to weather this worsening storm...."

Marc Faber states he is ready to look at pruchasing hard assets again as in times of money printing, hard assets are the only insurance against a fast devaluing paper dollar. Gold and silver being the best hard assets to preserve value.

As Jim Sinclair recently said, "Slowly gold creeps back to its historic position as money in the public eye."


Gold in New Zealand dollars: $2232.47 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.66 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Wednesday, December 7, 2011

China About to Fail

Italy kicked Sicily, slipped on Greece and broke China.

This is a saying we used as kids. You know, thinking we were clever and funny at the same time.

China has been on a huge growth journey for the past 10 years. Using up the world's resources at a phenomenal rate. However, all this is about to end in tears. China has mistakenly seen paper as wealth and not only that, has misallocated the wealth it has accumulated.

An example of this misallocation of capital is in Ordos, Inner Mongolia. Here we have a new town full of brand new offices, apartments and shopping malls. There's just one problem. There are no people to be seen. Even in China with such a massive population, this is the result of too much cheap credit and some bad ideas.

China has tried to catch up to the western economies and has tried to do this in a matter of a generation. It has used its new found paper wealth to build roads and cities to rival the west. But the problem is, little of this new wealth has gone into real assets and innovation for long term wealth creation. It has been squandered on real estate.

China is touted to become the premier economy in the next 20 years or so. But this simply won't happen. Demographically, China has a predicament. The one child policy has caused distortions in the male/female ratio an the rate of replacement numbers that are needed to ensure the population survives has plummeted. Too many males, as is now the case, historically leads to war. Not a good outcome. Like most things, when the State thinks it knows best, the worst it becomes.

The other issues China has is a sparce population with little cohesion. And they are now getting a bit upset. The State authoriies fret about disgruntled inhabitants and their growing discontent within a failing socialist system. It seems discontent with socialism isn't a particulary Western issue.

When China's real estate bubble bursts, and it’s beginning to pop big-time right now, the West will also suffer. Commodity prices are likely to deflate affecting economies such as New Zealand and particularly Australia. Already the Reserve Bank in Australia is lowering interest rates to cope with a lower economic outlook.

The old saying above may be a little flippant and funny, but it tells of the interconnectedness of the world economy. It use to be when the US economy sneezed we all caught a cold, now it includes when China breaks, we all have to clean up the shards.


Gold in New Zealand dollars: $2213.44 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.01 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Tuesday, December 6, 2011

Chris Martenson and James Turk talk about Europe and the Global Economy



Gold in New Zealand dollars: $2211.37 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.17 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Monday, December 5, 2011

We Are All Italian Now

When my daughter and I were in Italy last year, she introduced me to a Bed and Breakfast host. Funnily, she used the incorrect word for 'father'; she called me "The Pope".

But I for one am not ready to be Pope, or for that matter so close to the Italians that I want to give freely of my time and money to help them out of this current debt crisis.

But this is exactly what is about to happen it seems. And not only me, but my children and grandchildren are being called upon to help as well.

You see, the IMF (International Monetary Fund) is asking New Zealand to contribute $1.3 billion to a fund to bail-out Italy.

Now Italy is a lovely place, it has beautiful architecture and art and a wonderful history. In many ways, we owe  much to the Roman Empire. You will recall the very first treaty that began the current European experiment was called The Treaty of Rome. Many Italians emigrated all over the world and gave much flavour to cities like New York and  Melbourne, Australia.

So what are we to do? Give the IMF and the Italians the big ‘whato’ and tell them to go fish or do we just play the game? The game with  the rules we don't make because we don't have a voice or a choice?

It appears we will not have our democratic right to vote on this huge proposal. As I've said before, the borrower is slave to the lender. Democratic rights are first to go when you borrow money. Most other rights follow.

New Zealand borrowed $20 billion to June 30th, 2011 and will borrow 'only' $8 billion this year. John English, the Finance Minister, is confident we can ride out this period of European instability because we don't require so much new debt. Hmm, you gotta love the spin. Borrowing is at an all-time mega-high, but we will survive shocks as we have borrowed so much previously. In other words, we can keep the spending going that people expect, on social welfare, health spending and large government agencies. Nothing to see here folks, move along.

Then we keep hearing that our banks are in better shape than in the days of the Lehman's collapse in 2008. Yet those days were full of easy, cheap money. Now, re-financing costs are going to soar with risk gathering pace in world money markets.

But back to Italy. Here we are, at a point of bailing out a first-world economy. The little old New Zealand taxpayer is going to be on the hook for $1.3 billion. All of it we will never see as roads, hospitals, power stations etc. Yet you and I, our children and their children will have to pay it back. I'm not going to be too harsh on the Italians, but why should we pay for their lavish overspending? Overspending from  a government who created words like bunga-bunga. Perhaps we asked the same questions when we sent our finest young men to die in Italy over 70 years ago? But we still went and helped, and I guess we will help again this time.

I hope Italy remembers little old New Zealand at the bottom of the world when we need them.

Ciao


Gold in New Zealand dollars: $2246.20 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.01 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Friday, December 2, 2011

Does Your Backyard Look Tidy?


In New Zealand, we cherish our little plots of land with our modest houses that we can buy freehold. We like to own land for our security in retirement. We enjoy a tidy backyard, for aesthetic value as well as for practical purposes. Growing food in vegetable gardens and fruit trees.

We kinda look sideways at messy backyards. They make the neighbourhood look untidy.

Using this metaphor to describe how we should be reacting to this current financial crisis is apt. Have we got our financial backyard in order? Because the signs of destruction are creeping upon us, perhaps ready to pounce.

Here are some disturbing statements.

Nicolas Sarkovsy calls for a 'new economic age' where debt and public spending are reduced, claiming that 'those that lend to us no longer want to lend to us'. Is the real message here that Eurpoe is in such a predicament that no plan now will work. A reset is the only option. remember, politicians are good at hidden meanings in positve statements. Also, Germany is encouraged to 'use its power'.

The Governor of the Bank of England has released a dire warning today. Mervyn King: the eurozone crisis is 'systemic, he says, and urges banks to brace themselves for a potential eurozone collapse amid fears that Britain is caught in a second credit crunch.

Another negative warning here from Olli Rehn, The Economic and Monetary Affairs Commissioner of Europe: He warns that Europe faces a crucial 10 days to save the eurozone and halt the two-year sovereign debt crisis.

Furthermore, the concerted effort by central banks this week to increase liquidity for banks means one thing. There is no money to keep the game going. Economies simply will not grow at the rates required to pay the debt mountain back. Resources are scarce an money growth is exponential. That is a function of charging interest on money, it's just a mathematical fact. The system must reset.

Whether it's ten days or ten months, who knows, but the statements and actions coming out from major leaders of the developed world point to sooner, real 'sooner', than later.

So it may be time to ensure your backyard is tidy and in order, ready for the coming reset. It's time to make sure yourself, your family and friends are prepared.


Gold in New Zealand dollars: $2243.16 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.14 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Thursday, December 1, 2011

Gold and Silver Shoot Upwards

Or do they?

Again, it's all about scarcity and value. The amount of physical gold and silver didn't decrease in supply overnight, so what happened to give the price a fright?

Firstly, the risk trade is back on. Those dollars once parked are now let lose as fund managers feel the glow of excitement once again. They bought everything they could lay their hands on in the commodity sector.

This is a reaction to the big news overnight of the concerted effort made by six of the worlds largest central banks for the Federal Reserve to provide dollar swap lines to banks in Europe. Apparently what this does is halt the liquidity crisis that banks are in at present. It allows them to 'swap' US dollars for their local currencies and begin lending out again. The banks are in a solvency crisis, that is they don't any money or don't want to lend it out as they don't trust the prospective counter-parties. This line of credit from the central banks allows money to begin flowing for a wee while to keep economies moving.

Swap lines work like this. A foreign central bank draws down on its swap line from the Federal Reserve Bank. It sells a specified quantity of its own currency (say euros) to the Fed in exchange for dollars at the prevailing market exchange rate.

At the same time, the Fed and the foreign central bank enter into an agreement that obligates the foreign central bank to buy back its currency at a future date at the same exchange rate. Because the exchange rate for the second transaction was set at the time of the first, there is no exchange rate risk associated with the swaps.The foreign central bank then lends the borrowed dollars to banks etc in its jurisdiction through a variety of methods.

At the conclusion of the swap, the foreign central bank pays the Fed an amount of interest on the dollars borrowed that was equal to the amount the central bank earned on its dollar lending operations (edited from source

But it hasn't solved anything long term. The structural issues of sovereign debt are still there and still need to be dealt with. Perhaps this new lifeline will get us through Christmas.

So who benefits? Obviously the people who hold commodities and especially precious metals have preserved their wealth. In New Zealand dollars, for example, the value of gold has virtually remained the same as yesterday, even though the spot price of gold has gone up US$50 per ounce. So the effect here isn't that marked, especially as the NZ dollar is seen as a 'commodity' sector beast anyway.

This is a short term solution and one that simply cannot be continued. Markets cannot continue to function sensibly with this form of massive intervention. Risk on, risk off.

Own precious metals and turn off the news and rest happily.

Finally I urge you to watch this recent seminar by Chris Martenson. Show it to your children as well.


Gold in New Zealand dollars: $2237.96 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.11 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Wednesday, November 30, 2011

Gold and Silver Versus the Rest


"In this edition of the AFE Global Insider, Duncan does an excellent job of assessing the Geo-political spectrum. He covers the topics of MF Global, Golds performance versus other currencies, his view on the Sydney Gold Symposium which includes an interesting entry on the “Moses Principle”, as well as the evolving situation in the Eurozone."

You can download the latest GI from this link: http://www.anglofareast.com/downloads/global-insider/afe_november_2011.pdf


Gold in New Zealand dollars: $2257.32 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.02 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Tuesday, November 29, 2011

The World is Owing


So what happens when there is no one left to pay? Did the bankers not foresee a time when they didn't have anyone left to take money from? Are aliens coming to the rescue? Will they be fleeced next?

It all started with private debt, the Mums and Dads lending to start a business or buy a house. Low interest rates and a stable money supply built on gold. Governments then got into the fray seeing a path to power built on borrowing to bribe voters. The gold standard was ditched and the politicians couldn't help themsleves. Printing money by the boat-load and laying all the costs on their non-the-wiser constituents.

Now those sovereign entities are going bust. Euroland is a basket case of debt. But look not to the discipline of austerity, but look to the last saviour on earth. The world banking cartels last option; the IMF.

The last stand of the bankers has arrived. The last stand of the working classes is here. The IMF has announced a US$600 billion bailout for Italy and Spain. Now just how stupid is that? I'm usually a little conservative on who I call stupid, but I make an exception today. The bankers are now running the world into the abyss. Headlong into a time of turmoil and disruption not before seen. The money system is now a gonner.

If we had had stand out leadership, we could have progressed an orderly reset to the fiat currency system. If politicians were honest with their people, and the bankers had been willing to take losses for the good of all, then maybe we could have preserved the wealth of the worlds middle-classes.

Now this seems doomed. New money is going straight to the top and will flow down through the system as inflation and a wealth distroyer. The middle-class worldwide is being blatantly stolen from. But the sad thing is, they don't know it. Yet.


Gold in New Zealand dollars: $2267.45 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.54 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Monday, November 28, 2011

What Happens When Fiat Currencies Die?

The Bank Run

What happens when the system goes into wild panic mode and everyone wants their money back? What is a bank run?

A bank run isn't a sponsored half-marathon run by your local bank as an advertising stunt. No, a bank run is something far more negative for the banks profile. A bank run is when a whole bunch of depositors get so anxious that their bank is about to go out of business that they start to all try to take out their money in a short period of time.

I say, 'try' because banks are required by law to only have a around 5% of deposits available in cash. This means that they are leveraged 20:1 with actual capital available. They have been able to, legally, lend out 20x the amount deposited. Therefore, it only takes a 5% drop in the value of the assets for there to be absolutely no money left in that bank.

Bank run at Northern Rock, England, 2008.
The UK Governemnt had to step in and guarantee
deposits as there was no money available to depositors.

If you go down to the bank today and ask for your money, they would probably give it to you. They may make it difficult if it is a large amount of you want to send it to another country, but you could get it. But if all the depositors tried this they would have to shut the bank down

By the way, some in the business world are seeing a market niche to start banks that always keep your deposits as ready cash (or backed by gold) and just make their money by charging a fee. A good idea?

The Europeans are waking up big-time to the fact that their money may not exist anymore in their banking system. The 'smart money' shifted their cash out of Europe many months ago. All that is left is highly leveraged banks with figures on their balance sheets that don't exist in reality; and hard working people who think their money still exists.

This whole banking mess is another reason to buy physical gold. It is money, and you can touch it. Gold is the ultimate insurance against bad banks and bad government.


Gold in New Zealand dollars: $2269.14 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.84 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Thursday, November 24, 2011

The Survival Period is Upon Us


The quote below is from Richard Russell, a respected member of the investment community. He has been around this business for over 60 years. He's experienced just about every turn of events a market can through at us.

Richard Russell's comments:
 
"My advice: We are moving closer and closer to what I call "survival period" -- the period where the magic of compounding turns into what will be the poison of compounding. This isn't a time for timing. This is a time for action. Reduce your exposure to bonds and all items that provide fixed interest rates. Similarly, reduce your exposure to stocks except the gold miners. Look to expand your positions in inflation-protected assets, especially gold.

Those who are holding stocks in the hopes of the usual rebound are going to be terribly disappointed in the years ahead. This bear market is going to be unlike anything we've ever seen before. In the end my survival vehicle will be gold. I say again, timing is hopeless. Gold will have purchasing power and true wealth as almost everything else is destroyed by this unprecedented bear market. The US Government is now so loaded with ever-growing debt that it has become a mathematical freak. We return to different times, when rising interest rates will eat up the US government. With $55 trillion in assorted debts, the US is in no shape to deal with rising interest rates. We are in a state of reverse compounding, leading to inevitable bankruptcy on a massive scale."

Are you insured? Have you considered gold as wealth insurance? Anyone investing in money markets right now had best have their wits about them.


Gold in New Zealand dollars: $2282.36 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.62 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Wednesday, November 23, 2011

Does the Rule of Law Exist Anymore?

I have heard, and read, a number of pieces recently about the state of the US legal system in regards to how it has reacted (or not) to the financial crisis..

With all that has gone on with the financial crisis, it is surprising and perplexing that no one has been prosecuted in the US.

One difficulty is that you need to be quite well heeled to even entertain the idea of suing a delinquent counter-party to a contract in the US. You need very good securities lawyers who do not come cheap. The costs of prosecuting someone can just make anyone who loses less than, say, $1 million throw up their hands in despair and just take their losses on the chin. This is by no means ideal of course, and those in large financial firms know they have this protection and use it accordingly. Think of all those people caught in the MF Global thievery. Their money was stolen, and they are stuck without access to justice.

Another facet of all this is that the financial system can just 'up and change the rules' anytime they wish. This, of course, is a two-edged sword. Investors don't like this type of volatility which cause business to drop for the Financiers.

Markets like stability and the way small investors are being treated right now is going to cause huge disruptions as confidence is lost.

Erik Townsend recently said on The Financial Sense Newshour (not verbatim): We may have come to a point in our society for Governments to say that they need to take extreme measures, and those extreme measures include things like abrogation of contract law. If they had allowed the CDS (on Greek debt) to be triggered, that would have potentially set of a  domino effect of counter-party risk to banks that didn't have the capital reserves against it. So Governments reward this bad behaviour because they won't allow the system to crash.

This means that you can't count on anything. What if gold investing triggers the anti-American Act and you can't have the gains on your gold investment because someone decided it didn't suit the country's best interests. This is not anymore ridiculous than having your collateral with MF Global literally stolen by John Corzine who don't seem to be subject to any criminal culpability. If you stole $500 down at the local Store, you'd be held accountable.

Because the system cannot be allowed to falter, certain institutions are literally above the law.

New Zealand has probably fared a bit better than some other jurisdictions. There have been prosecutions here for corrupt Directors involved in Finance Companies that went bust after 2008. There doesn't appear to be the tight cronyism that exists amongst corporate America and the Government here in New Zealand.

Once a trusted system like the US financial and legal system loses its mandate, then what happens? Perhaps the Occupy movement is the beginning of stronger winds of change to come.

The rule of law does exist. But does justice depend on the greater good as Regulators appear to be signalling? And who decides the 'greater good'? If it is those in charge right now, they are getting it wrong.


Gold in New Zealand dollars: $2273.75 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $43.85 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Tuesday, November 22, 2011

House Prices and Gold: Latest Figures

Here are the October figures for the median house price to gold ounces ratio. It now takes seven gold ounces less to buy a house in Auckland in October (213) than it did in September (220). Since the highs in New Zealand of 2005, it takes 422 ounces less to buy a house in Auckland, New Zealand (635 down to 213).




Gold in New Zealand dollars: $2240.28 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.11 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Monday, November 21, 2011

Why is Gold Money?

There is much debate in the finance world about the role that gold used to play, and may play, in our monetary system.

One of the common questions about gold is why it should be classed as a monetary asset. Why should people think of gold (and silver) as being 'money'.

It's not an easy question to get one's head around. We don't normally give much thought to what money is. We work, we get some folding stuff, or digits credited in the bank, and then we whittle that down by buying the necessities of life and perhaps a few luxuries. This allows us to live normal lives, hopefully in freedom, to be able to better ourselves, our families and those around us. We seek a strong society based on peace and freedom.

The issue with money is value. If we place value on fiat paper money, then all well and good. As long as we all agree on its value and that value remains constant, or pegged to some identifying standard, (like stable, trustworthy government) then we are happy with that scenario and forget about what money is and just live.

So money could be anything. It could be bits of shells or cattle or whatever. So long as value is swapped with that medium of exchange and both parties to the contract are in agreement, then a change of ownership will occur.

Here again are the main six attributes of money:

1. A store of value. ie. rare. It must have value on its own merits.
2. Fungible. Each unit of weight is equal to another equal unit of weight.
3. Divisible. It must be divisible into smaller parts and easily tradeable.
4. Act as a medium of exchange.
5. Easily recognizable and difficult to counterfeit.
6. It must be easily transportable to be money.

It is evident, by what is occurring in the markets now, that people are losing confidence in the paper money they have used for 40 years now (since Nixon walked away from the last remnant of a gold standard). People are noticing that the work they do is not being rewarded with a store of value that is constant and trustworthy. They are noticing that their past value of labor (savings) is being stolen from them also.

This is why gold is now coming to the fore in this period of crisis. Society is losing faith with governments, politicians and financiers because they see them meddling with the value of the paper medium of exchange they trust in. Paper printing, bailouts and huge debt mountains are a tipping point. A light is being shone on this current system and a niggling fear is being aroused in the minds of the masses. This fear is leading to a lack of confidence in their fiat money system which could easily build into a stampede. All it takes is the right tipping point now.

Gold (and silver) are the best 'things' to fulfil the definition of money as described above. People have recognised this for over 5000 years.  Occasionally, other systems come (and go) but every time people ditch them and yearn for a stable store of value. Just how gold can be re-incorporated into a modern, complex financial system is moot. But it must be done, especially right at the start of the coming reset.


Gold in New Zealand dollars: $2280.58 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.85 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Friday, November 18, 2011

Lock up in Financial Markets


It appears from some of the main stream press and some of the chatter on the internet that the situation in Europe is about to get ugly. If it isn't already.

This from The Telegraph yesterday : "Sir Mervyn King: Britain on the brink of second credit crunch, Bank of England Governor warns. The eurozone crisis has left UK banks unable to raise the funding they need to make loans to businesses, evoking the spectre of the crunch that followed the collapse of Lehman Brothers."

This from Pragmatic Capitalism: "This is getting more interesting with every day.   As the ECB is increasingly pressured to stop the Eurozone crisis with massive bond buying, the yield blowout is starting to spread to the core countries.  The surge in Italian bond yields is taking all the media glory in recent weeks, but the surge in French, Belgian, Austrian and Spanish yields is equally alarming.    Spain’s 10 year yield is now sitting well above 6% with Belgium fast approaching the 5% level."

And from The Future Tense: "The contagion is spreading so rapidly through Europe now that is is almost impossible to keep up with.  Rates are now rising across the board in Portugal, Italy, and Spain.  In addition, the markets have now turned on France."

Gonzalo Lira says: "We’re In The Middle Of A Run On Europe—And It’s Gonna Get Worse."

What appears to be occurring is money markets are seizing up. It is beginning to look like the period just after the Lehman Brothers collapse where banks stopped lending. For two reasons banks stopped lending, then and now. They have no liquidity (they have leveraged their deposits and now they are gone) and they cannot get new funding to keep their businesses going. Banks and other Financial Institutions don't trust each other. Risk is deemed too high.

Gold and all commodities (including oil) took a hit today. May be this is a result of people selling some of their holdings in the speculative markets in order to meet their funding requirements. After all, they cannot get it from anyone else. This would make sense as the USD has risen against other currencies. Yes, the high-frequency traders probably went all milisecond on us and sold speculative positions in minutes, but it's not their fault. This is a problem of confidence in paper.

Recall too, that New Zealand banks need to go regulary to these money markets to borrow funds. This could very well see the leap in interest rates for our banks that was expected. Bad for home-owners and the recovery and the NZ dollar. Temporarily good for exporters. But on what value terms? With the NZ dollar moving down 10 cents against the USD recently, gold in NZ dollars is still near record levels. Deflation in value seems to be upon us. If you hold gold, you are OK.

Europe is freezing up, even as winter approaches. Serious riots today in Greece, Spain, and Italy. When these sovereign bond interest rates move up to these levels so quickly, it means the buyers are drying up. Interest rates go up because no one is showing interest in buying bonds and the risk is too great. Contagion is spreading quickly to France. When France goes, then the winter of discontent will truly be upon us.

Are you prepared?


Gold in New Zealand dollars: $2272.01 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.86 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Thursday, November 17, 2011

The March of the Technocrats

Oh no, not another new term to try to confuse us. OK, so it may have been around a while, but it's fairly new to me. 'Politician' or 'Eurocrat' or even 'Banker' doesn't seem to do it now. All of those have lost credibility. Step up to the plate Oh New Saviors of the World.

The Technocrat.

Impressed? Going to now lay down all those large sums of money you have been keeping safe in gold and US dollars and with joyous abandon invest in every risky thing you can buy?

Well, they are here. Be scared, very scared. Notice the pictures of  new Italian Prime Minister, Mario Monti, with of all his wise old men, looking experienced and trustworthy and serious. Ready to fix the Italian debt problems. Ready to calm the fears of eurozone frailty. The last throw of the dice, the March of the Technocrats.

The headlines further descibe Monti as a 'distinguished liberal economist, ex European Commissioner etc. A man for the occassion if ever there was one.

Europe is losing the plot. It is desperate days. The Germans are increasing their influence over the 'bad' boys of debt. Increasingly walking over their democratic rights. Greece tried to ask it's people about the bailout. No go sorry, you are in debt to us, you do what we say. European advisors are already crawling all over Greece controlling spending and looking at assets to grab.

Added to this, we see the ECB being increasingly pressured to monetise Italy's debt; that is to print money to buy Italy's bonds to bring down the interest rates from over 7% (death spiral material) to at least 5%. The ECB is under pressure to go the whole hog and blitz the debt of Europe with newly printed money. Half-hearted measures are not working. Moreover, the new EFSF fund turned out to be a complete joke. It couldn't even raise €3 Billion of it's €1.2 trillion. The ECB has to step in to help the first auction.

The new scheme isn't going to work. You can bring in Technocrats, Aristocrats, Eurocrats or Bereaucrats in, but none will be able to magically blast away the debt.

Remember the suffx "crat" means to "rule". So does this mean we now have technocracy instead of a democracy. Yes, correct. The old sayings are always true. "The debtor is slave to the master". Owe money, owe your very rights to existence. The technocrats, like the martians in 'The War of the Worlds' are coming to a country near you.


Gold in New Zealand dollars: $2303.90 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $44.08 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Wednesday, November 16, 2011

Getting Used to the Noise

There's so much 'noise' in the markets at present. The problem is, there so much that we could now be attuned to it and actually be adapting to it in order to survive.

Dan Norcini is harsh critic of the current market mechanisms. He decries the way markets are now reacting to news and events rather than to fundamentals. But this type of reaction is born out of disfunctional market forces. Noise that isn't worth listening to usually, but now has markets all abuzz.

The strange thing about noise, whether wierd or loud, or sudden, is that humans can get used to it. They adapt to survive.

Perhaps this is what we are seeing in these crazy times. Volatility is becoming the investor's friend. For example, if you admit that the COMEX is rigged and manipulated, then you look for the signs and trade accordingly. You may have more of a chance of losing your shirt, but what's a trader to do? Just buy gold? Probably not, as most traders don't get the commissions they need to survive from those yellow bricks.

Here is some of the noise:

European Crisis Accelerating
Fear Over Eurozone Future
Bank of England set to downgrade UK growth
IMF says Chinese banks face risks
etc, there are just too many to list

Noise this may all be, but the silent, quiet-type, the one that always seems to get it right, almost eerily so, just happily, knowingly sits and waits for it's time to come.

When the noise is switched off, gold will be the last one sounding out. It is best preserver of value, it is money, the best money, and historically proven to be so. All the listed noises in the markets are good for the price of gold. There may be a small correction coming (according to some), but looking at the long term trend is always a good idea. And the trend is quietly upwards.

Note: gold is still showing record prices in New Zealand dollars today.


Gold in New Zealand dollars: $2309.22 per oz
Previous all time high: $2284.16 per oz (19 Aug, 2011)

Silver in New Zealand dollars: $44.78 per oz
Previous all time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________

Tuesday, November 15, 2011

Worst Hour Since World War Two?

This from Angela Merkel today, "Europe is in one of its toughest, perhaps the toughest hour since World War Two," Merkel told her conservative party in Leipzig, saying she feared Europe would fail if the euro failed and vowing to do anything to stop this from happening.

This sort of language portends a not too bright future. When leaders of large economies make statements like this, something is up.

This from Eric DeGroot:

"Confidence in the exist leaders and the system they represent and support is crumbling. Large European banks are rushing to announce their reduced exposure to Italy, because they know confidence is failing. Revolving leadership is not helping confidence.

Depositors have a tendency to withdrawal their money as confidence declines. Banks simply do not have enough reserves to handle concentrated withdrawals. Bank runs despite today's centralized insurance are not a relic of the past."

Confidence is the biggest building block of our political and economic system.  We rely on confidence and trust in each other to trade and to go about our lives in peace. When confidence goes and fear overtakes us, we resort to 'looking after ourselves'.

If countries go back to mis-trusting each other and looking to their own interests for survival, then the world will a volatile and unsafe place. Just like World War Two.

Note that, on all this volatility, gold is at record highs in most currencies other than the US dollar. It is hitting record prices in NZ dollars today.


Gold in New Zealand dollars: $2284.45 per oz
Previous all time high: $2284.16 per oz (19 Aug, 2011)

Silver in New Zealand dollars: $43.94 per oz
Previous all time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________