Saturday, December 29, 2012

The Number One Financial Scandal of 2012


Gold in New Zealand dollars: $2020.99 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.62 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, November 16, 2012

Travelling

Over the next five weeks I will be travelling to Africa, Europe and the USA. I will attempt to gather snippets of financial news that I will gather from these locations and try and update this blog regularly.

Gold in New Zealand dollars: $2119.38 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.31 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, November 14, 2012

House Prices in New Zealand v Gold - October, 2012

Last month, the gold ounce to house price ratio has moved in favour of housing over the past month. It now takes 12 gold ounces more to buy the median priced Auckland house than it did in September, and 8 ounces more to buy a median priced house in New Zealand.





Gold in New Zealand dollars: $2104.15 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $39.63 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, November 12, 2012

Public Pensions in the U.S. will cost $5 Trillion

Loss of Trust in Government – Public Pensions in the U.S. will cost 5 Trillion to taxpayers
Over a period of thirty years, $1,400 would have to be paid for every household of the country in order to fulfill the five trillion U.S. dollar Public pension for new and current retired employees... see the rest here

Gold
in New Zealand dollars: $2127.05 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $39.99 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Thursday, November 8, 2012

Do You Still Hold Gold?

This is a question that I get occasionally.

What is it asking?

You - yes me
Still - has anything changed whereby I shouldn't. Have the central banks worldwide stopped printing money?
Hold - I wish, it is quite shiny and bright and heavy for its size. Beautiful really. Probably why its been the best money for 5000 years. No, I don't hold it; physically. But it is safe, no counter-party risk. It's mine. See the the Anglo Far-East website for details.
Gold - best money ever. Why not?

Then there is the peculiar question, ‘Why do you buy gold, after all, you can’t eat it’. But an answer for that question another day. Or perhaps another universe. Anyway, try eating a dollar bill...

The first question is often puzzling because I was usually not aware that these people even knew I was interested in gold. Where did they hear this? But the most perplexing part of this is why haven’t they talked to me about it before? Do I have some form of disease or are they unsettled in some way by the concept?

But I think there may be a more ‘disturbing’ reason behind the question. People are waiting for the right time to jump into buying gold and silver. Waiting for that perfect moment when they know definitely that they will make money.

The right time.  Now there’s the investor conundrum in three words.

Tell me the exact right time to invest in anything and I would probably own all the resources that exist. But don’t worry, I’d be a great World Dictator and be graciously benevolent and give you a ‘little’ bit. Maybe.

So with precious metals, when do I consider the right time to invest or buy. The advice I have taken, and that has worked for us, is to use the ‘dollar cost average’ approach. That is you buy regularly and often when you can afford to.

But the typical new investor will think this way:

I will wait for the price to drop and then I will buy.
The price drops
Oh, I will now wait a little longer as the price has dropped and I don’t want to jump in now as it might dip further.
The price goes up
Oh, I think I’ll wait till the price dips again like last time and then buy some.
The cycle continues
The Investor never buys gold and silver

You see in precious metals you need to look at the fundamentals behind the market. Prices will fluctuate considerably at times. Your fear may get to you an you may never actually start to save in gold and silver. Look to the long-term and remain strong. If you do your homework and listen to the right people, you will feel less fear about what you are doing.

The bottom line for me is this. Government can 'create' money with computer bits and bytes. Gold and silver have been money for 5000 years and cannot be created by anyone.

Gold in New Zealand dollars: $2078.36 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.52 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, November 7, 2012

Gold; a Time-tested Form of Money

Here are some timely reminders about the monetary value of gold and risk from an article by the Hard Assets Alliance.

"... gold is not an obscure metal that sits in a vault and "does nothing." It offers direct and immediate financial protection for you and your family like nothing else can.

Remember that gold is above all else the world's best, time-tested form of money – something people were duped into doubting in the 20th century, but are now beginning to remember. Today's environment is exactly one in which gold shines: eroding purchasing power of paper currencies, vulnerable global economies, fears of inflation and/or deflation, a shaky banking system, insurmountable public debt levels, and fanciful money-printing schemes… if there were ever a time to own gold, this is it.

Having metal in your control and at your disposal empowers you in times of turmoil and lets you avoid dependence on counter parties.

Second, this trend carries a subtle signal: diversify. If risks are at a level sufficient to encourage holding physical metal, it's also worth diversifying that risk. Stash some at home, use private vaults, and store some internationally. Even large institutional investors frequently use more than one facility. No single method or location is risk-free, so spread it around."

Gold in New Zealand dollars: $2074.57 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.69 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, November 5, 2012

Biscuits and Inflation

In New Zealand we have this chocolate biscuit called a toffee pop. Now I'm not going to describe it completely, as it might cause you to lust after things that will inevitably produce your health downfall.

And I too might be tempted...

Suffice to say, that the toffee pop I picked up today nowhere near resembles the toffee pop I would have picked up 15 years ago.

Gone are the lashings of toffee beneath a thick chocolate facade. This is replaced with the thinnest of toffee coatings with the thinnest of chocolate overlay. Now you thought gold could be beaten to the ultimate ultra-thin slither. Think again.

But the strange thing about my toffee pop today was that I noticed it. Probably because I haven't partaken of one for many a year. You see, we eat a little healthier now. My wife is a raw food coach. Say no more. So for me, there was none of the slow change in product size that makes people unwary of a sneaky producers fraudulent ways. No, I could tell straight away that this biscuit was a compete wolf biscuit in sheep's biscuit clothing.

But here's the kicker. It was enormously smaller, but at the same or similar price to 15 years ago.

This is one way that manufacturers are coping with inflation. The consumer price indices of many countries tell us inflation is low. But to me, there is far more to that statistic than meets the eye. The inflation rate stays normal or low, but you aren't getting the same things for the same amount of money.

Quite a scam really. But cunning in it's execution.

Gold in New Zealand dollars: $2035.65 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.47 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, November 2, 2012

The Original Private Bullion Custodian

Here is an excellent segment from Al Korelin featuring Duncan Cameron of The Anglo Far-East Company and Marshall Berol. Duncan outlines why we need to be diversified into precious metals in these days of currency debasement.



Gold
in New Zealand dollars: $2074.61 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.98 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, October 31, 2012

Four Common Urban Myths About Gold

Here is an excellent interview with Alex Stanczyk of The Anglo Far-East Company.

"AFE is the gold and silver bullion custodial provider of choice for the sophisticated investor, families, and institutions that require the highest level of discretion, competence, safety, and service. Allocated gold accounts and silver accounts provide 100% ownership in “good delivery ” gold and silver bullion bars."

Four Common Urban Myths About Gold - Audio Download here

Gold
in New Zealand dollars: $2083.83 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.76 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, October 29, 2012

Now Where Did I Put that Gold?

Some people that have bought physical gold have hidden it in the strangest of places. It seems that security means weird for some. Try paint tins in the shed (you threw out what!!!) or other exotic locations around the house.

Well, if you think an individual owning gold has a security problem, then try sovereign countries. The talk last week has been of the increasing clamour for States to audit their stashes of gold reserves. It seems citizens want to know if their gold is safe. Funny that.

Well, this has proven to be no easy task. Central bankers worldwide appear to be giving the old 'trust us' routine (with a straight face even) with any request for proof.

One wonders why they can't just say, "Yeah, sure, come on over and count it!" But no, obfuscate they do.

Anyway, for those interested, here's the latest from Zero Hedge regarding Germany's gold. This is all getting rather interesting.
Yesterday we posted the official statement of Bundesbank executive board member Carl-Ludwig Thiele, which in turn was a response to a recent surge in concerns about the safety and sanctity of German sovereign gold, held mostly abroad (if a major part of it held in London had been secretly repatriated), and demands by the general public - i.e., those who actually own the gold - for either an audit, or full repatriation, or both... more
Gold in New Zealand dollars: $2080.11 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $39.01 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, October 26, 2012

Gold and Currencies

Central Banks around the globe are printing money in order to keep their economies competitive.

This is a zero sum game. While there may be immediate benefits, sooner or later, the value of those currencies will go to zero. That is, no matter how much of the fiat paper/digital stuff you turn up with to buy assets, you won't be able to.

Hyperinflation is the printing, value loss is the complete breakdown in confidence in fiat currencies that ensues.

At this stage holding assets in any form is the best scenario. Historically, gold is the best asset to own.



Gold in New Zealand dollars: $2083.58 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $39.11 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, October 24, 2012

Jim Rickards Simulates Potential Currency Wars Ahead

This short video presents a variety of hypothetical scenarios which would have significant effects on currencies and commodities (see goldsilver.com)


Gold in New Zealand dollars: $2109.91 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $39.31 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Tuesday, October 23, 2012

Gold and Silver Physical Demand Increasing - ETFs

In the mid-2000s, gold and silver were going up consistently. This of course signaled opportunity to the large bullion banks. How to get an ignorant public and fund manger sector to invest in these products. After all, gold was a fringe investment, no one wanted it.

So they conjured up the ETF schemes. This where Joe Sixpack could now take advantage of rising gold and silver prices but not actually have to store physical metal anywhere. He could also be 'in' and 'out' without moving large chunks of gold and silver bars from one owner to another.

These instruments caught on like wild-fire and were heartily snapped up. The volumes were terrifying. But questions began to be asked as to whether the metal was actually backing these funds. Depending on what side of the precious metals community you are from, this is moot.

Anyway, the party seems to have stopped,

The ETF funds, like EFT GLD, appear to be on the wane. Investors appear to be beginning to dump ETFs for the real 'McCoy'; physical gold and silver. Maybe, there is diversification going on. That is, splitting ones holdings in ETFs and physical.

This is a trend likely to continue and one very worth watching. Trust is obviously leaving the system and people want certainty and know they can get it with the real physical asset.

Gold in New Zealand dollars: $2113.88 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $39.66 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, October 17, 2012

The Lure of Gold

A recent article here in New Zealand discusses the upsurge in gold investing by locals.

It states the usual points commonly fed to a seeming unknowing public. Points like, "[Gold] is a hedge against economic uncertainty" and "you should have at least 10 per cent of your wealth in gold".

The predictions also come out; gold to hit prices of US$2000 to US$3000 within 12 months.

However, to be fair, the article does recommend gold in ones portfolio and does lay out some methods for the newby on how to go about buying it and in what form.

What I find fascinating about articles like this is that they frequently appear at times of uncertainty. There is a distinct fear factor involved with gold investing.

Then again, gold isn't really a hedge against economic uncertainty. I think you have to go back a step or two from there and see gold as a a hedge against bad government. Typically, it is bad governmental decisions that cause a bad economic environment. Economics is not something that goes bad without outside influence.

Buying gold is definitely still a contrary purchase decision. The sort that if discussed would make people go quiet at respectable parties. One is looked down upon as a hippie once was in the 1960s. Of course the bright side to that is that hippies are now the be-suited greenies holding sway in parliaments around the world. Oh, well.

Gold has always had an allure. Legendary pirate tales abound and are built around the plot of stealing Spanish pieces of eight. Scrooge McDuck is pictured swimming in gold coins. Gold is still the hot number one when it comes to jewellery. Somehow we just know gold is valuable. Does it have intrinsic value? Well, that's moot. I don't think so.  So why don't more of us own it?

For one, the stigma as mentioned above. Secondly, what do you do with it? You can't exchange it readily. You need fiat money to buy regular goods and services after all.

But gold is simply the best form of money. The amazing historical stability with which gold has kept its fascination and its consistency over time, and in many cultures, is testament to its ability to assuage the fears that men have of losing their hard earned wealth. Gold tends to be the best type of wealth preserver that has ever been known to man.

These days and those coming upon us show no signs that this allure is waning at all.

Gold in New Zealand dollars: $2140.88 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.37 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Tuesday, October 16, 2012

Debt Instruments versus Gold and Silver

"The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title." - Anonymous

The concept behind fiat money (or paper money) is this. When someone out there gives you a paper note for your hard work, of say $10 denomination, then you expect to be able to turn around and purchase a value of goods and services for that same denomination. The note is a contract of value.

Say I'm an accountant. I study hard, pay for a technical qualification in accounting and then use that skill to help a small business to be more efficient. The market has decided that my skills are worth, say, $80 per hour for a start up accountant or around $450 per hour for all the experience you will ever need. The SME owner pays that amount willingly as he/she gets that value back in increased business. If not, then I guess the market will speak and I will be forced to stop being an accountant and look for another job.

The dollars exchanged measure value and hard work. In a just world, this should never be devalued. My purchasing power should remain the same.

But value is a very difficult 'thing' to measure and get right. And it is easily distorted.

What is the easiest way to distort this measure of value. Money printing. Essentially this means that you are attempting to print hard work and value through a printing press (or these days a  stroke of a keyboard). Want $40 billion a month, easy, just type 40000000000 and hit ENTER.

When money (credit) is issued like this, there is a corresponding debt (debit) on the other side. It is the law of physics really. Positives have a negative. Energy emitted in one form gets translated to another, which has an equaling effect.

The unjust and insidious nature of this money printing 'transaction' is that is devalues your labour and hard work previously performed. The balancing energy on the other side of printing is truly negative for you. Someone has to pay. It's you.

Anyway, if a Bank issues new money (and they can legally issue about 90% of new money based on your deposit; the Fed? well they can issue unlimited amounts), then this is credit. The loan they issue on the other side is debt for you.

Look at it this way. The paper in your hand, that says $1 or 1 rupee or 5 euros, is a debt instrument which is owed to someone else. When that person on the 'other side' of your paper money wants their money back, you have to pay up or default.

Look on your note and see who owns it? Your Central Bank.

I recall in 1967 my father heading off to the bank to exchange his NZ pounds for NZ dollars. Why, because the next day his pounds would be worthless and if he didn't exchange them, his life's work would too be worthless. The bank had the power to change the value and type of debt instrument overnight. It had the power to cancel the value of the pieces of paper in my Dad's wallet.

Try doing that with gold or silver?

Gold and silver are out there in a box on their own. Once you own them in physical form, you are the owner and there is no creditor on the 'other side'. What makes gold perfect in this sense, is that it is also money. It is the ultimate medium of exchange. Sure, a government could try and confiscate it, but good luck with that. Potential hiding places for physical PMs are unlimited.

Gold in New Zealand dollars: $2132.82 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.14 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, October 15, 2012

Libor and the Road to Perdition

It has been some months since the Libor interest rate fixing scandal blasted over the main stream press.

And a short swift blast it was. Now forgotten, it seems, amidst the daily diatribe of more pressing issues like 'big bird' and smirking Vice-Presidents.

So why isn't this issue, probably the biggest financial scandal to have ever occurred, been given more time on the airways?

Let us briefly review the issue. Wikipedia states, "Libor is an average interest rate calculated through submissions of interest rates by major banks in London. The scandal arose when it was discovered that banks were falsely inflating or deflating their rates so as to profit from trades, or to give the impression that they were more creditworthy than they were. Libor underpins approximately $350 trillion in derivatives. It is controlled by the British Bankers' Association (BBA).

Libor is the foundations of trillions (yes trillions) of dollars of loans and contracts. Bought a car on credit lately, Libor interest rate; house? - Libor. Put some money away in a deposit account at interest? Libor again.

The interest rate literally affects all debt on planet earth.

A few years ago, I was pick-pocketed in Rome. I lost $300. It was real maddening and I felt violated. So why aren't you all feeling violated by the Traders from the BSA who stole from you? Aren't you angry? If not, why not?

One reason. It's all a bit to remote and complex. Plus we live very busy loves earning enough income (some of it ironically paying for Libor) and we are simply too burnt out just surviving. But what if we all did get a little upset? Perhaps we trust the government and their regulations too much?

Libor is a massive breach of trust brought upon us by greed. You know, unfortunately, you simply can't regulate everything.

Maybe the reason why we need more and more laws and regulations is because we have the increasing mindset that some laws aren't morally correct anymore. After all, they are only created by people for people, and are arbitrary and subjective as a consequence. If one doesn't believe in objective morality, then where is the sense of making laws. The basis for our western society, contract and law, is now on the slippery slope to destruction. If we can't trust each other anymore, then confidence in the system will disappear in the blink of an eye.

It hasn't happened yet, but the wobbles are there. Libor was a major earthquake, the damage similar.

What 'black swan' type event tips us over the abyss is yet to be seen. Perhaps the current situation in Turkey and Syria will be the catalyst? Who knows, but one can only protect themselves as best as they know how.

Gold in New Zealand dollars: $2149.35 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.02 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, October 12, 2012

The Long Term for Gold and Silver - The Fundamentals Revisited

This is a post from 18 months ago. It's thought provoking that with all the change that has happened (and will happen) in world markets, this theory about gold and silver still stands.

We humans are a strange bunch when it comes to money. It can engender anxiety (no matter how much you have), or peace and calm (probably if we don't need it). The more you have though, the more life seems to revolve around it.

Perhaps this is why gold and silver bugs get unusually precious about what happens to their 'precious' (as Gollum would say).

So it's time again to reiterate the fundamentals as to why holding physical gold and silver is crucial and perhaps put you all at ease. This is by no means a comprehensive list. Here's two of the main ones.

1. We have high debt levels in the private and public sectors worldwide.

This is the main driver of the reason to own gold and silver.

Governments continue to print money to pay off their debt. As long as we have Central Banks and a fiat money system, we will have debt creation at a high level. Even now, the Federal Reserve in the US has been 'monetizing' 40% the US Governments budget deficit needs.

In New Zealand, we are now borrowing $380 million a week. Our Reserve Bank is also monetizing some debt, although that is difficult to prove, especially with all the jargon they use to confuse.

These debt levels are too high to manage. Debt cannot be repaid. In NZ, we owe around $40K each. We are in the same space as Portugal, Ireland, Spain and Greece; and we know where they are headed.

There will not be enough economic growth to repay this debt. Any Government that tells you so is lying. Here is an article today about NZ's debt levels. (More on this article in a future posting. It deserves analysis).

It is the same worldwide though. The US is printing money to devalue the dollar which devalues their debt. Default by stealth. Their debt ceiling of over $14 trillion is about to be hit.

Just as an aside, here is what a trillion dollars looks like:



$1 miillion dollar pile of $100 notes

$100 million dollar pile of $100 notes

$1 trillion dollar pile of $100 dollar notes (NB the pallets are double stacked)
See the man on the far left!

If we didn't have electronic money, there wouldn't be enough trees.

2. Gold especially, is money. It is best suited as a store of value (wealth preserver) and a medium of exchange.

Over 2,500 years ago, Aristotle first described the properties on money
  • - It is durable. It won't evaporate, mildew, rust, crumble, break, or rot.
  • - It is divisible. It doesn't lose it's integrity
  • - It is convenient. Gold allows its owner to physically carry his wealth. You cannot carry a parcel of land in your pocket.
  • - It is consistent. Only one grade exists for 24-carat gold. It is scarce and cannot be 'printed' into existence.
  • - It has intrinsic value. It is used for many industrial applications.

Silver, of course, is known as the 'poor man's' gold. It has most of the attributes of gold, but has one other important aspect from an investing standpoint. It is used in many everyday applications as a commodity. Electronics especially. Silver has been used as money throughout the ages.

To sum up then, if you own gold and silver in physical, allocated form with a reputable Custodian (no ETFs, no paper promises), then you have the best protection in existence for your wealth.

Look at it like this. Four years ago one NZ dollar would buy 1/1254 of an ounce of gold. Today, that same dollar would only buy 1/2163 of and ounce.

So what changed? Not the gold.
Gold in New Zealand dollars: $2163 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.60 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, October 10, 2012

House Prices in New Zealand v Gold - September, 2012

As predicted last month, the gold ounce to house price ratio has moved in favour of gold over the past month. It now takes 5 gold ounces less to buy the median priced Auckland house than it did in August, and 7 ounces less to buy a median priced house in New Zealand.




Gold
in New Zealand dollars: $2159.82 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.55 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Tuesday, October 9, 2012

Sell Bonds, Buy Gold

So, I have a suggestion to fix our exchange rate problems. It may be as whacky as the Greens one to print money, but here it is anyway.

What if we step out of the fiat  race to debase debate a little and do something more constructive with the current positive monetary position we find ourselves in. We offer high interest rates of around 3.5% on our bonds. Higher than most 'good' economies around, especially Europe,the UK and the USA.

So, if money supply is increasing worldwide, and if that money is looking for a safe home in high interest bearing bonds and funds, then why don't we grab as much as we can, short-term, and buy physical gold with it.

Oh, you say, that's weird. But stay with me a moment.

At present, when we sell our bonds, they are over-subscribed. Everyone wants our money. It's backed by our great soft-commodity economy; everyone likes food, and we have a relatively non-corrupt system.

So, we buy gold with all this extra money flowing in. Naturally, we would have to tell the bond buyers where their money goes initially. That could be an issue. Anyway, we could then use the gold to lever off, perhaps print on golds collateral value? We would make the gold collateral useful, and use that to rebuild Christchurch, or re-position our EQC Funds.

The upside? in this continuing world of increasing money supplies, gold is going to continue its upward price journey. So, we would be able to pay back those bonds by selling the gold and using the extra fiat gained (because gold in this ZIRP evironment will be worth more paper dollars we borrowed initially).

So, take all the fiat thrown at us by Sovereigns and  Funds and buy gold, lever the gold while we have it, then sell as much gold as necessary (probably less at a higher 'value') to pay back the original loans.

I know I'm missing something...

And just to finish, a race to the bottom is just that, you reach the bottom. At that point we have nothing to bargain with. Is this not the reason many alliances are shifting worldwide. Note our recent friendliness with the US Military. Is this not why the middle-east is alight with disorder right now? As the bottom gets closer, people get more desperate to grab the resources they need to survive.

We've seen it before, it's called war.

Gold in New Zealand dollars: $2161.93 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.48 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, October 8, 2012

Beware, the Politicians Are Coming

Beware of politicians and their brilliant suggestions.

Years ago the Reserve Bank of New Zealand (RBNZ) was mandated to keep inflation low. The mandate included no interference from the NZ government. Just use all the tools necessary to get the job done.

Now the Greens, Labour and NZ First want to start tinkering with the RBNZ Act and make that institution less independent.

Oh dear, here we go. They can't get enough cheap money to pay for their promises, past and future, so they look to the Global Financial Crisis as an excuse to abuse. A crisis they were arguably complicit in creating in the first place. You can't make this stuff up.

So what's their best plan? They want to print money to bring down our exchange rate.

Would someone please tell them that printing money equals inflation. Here's the definition: "When the money supply grows faster than the underlying pool of goods & services on which to spend it, their prices are bid up."

Printing would equal higher prices for everything here in NZ. That money you saved for retirement; gone. Where, you say? Stolen by these very people who would deem to save us by their duplicitous ideas. If you don't understand, then here it is. Your savings bought a basket of goods and services one day for one price, and the next, because of inflation, you need more money to purchase the same amount of goods and services.

I hope this latest thought and media spin doesn't happen. We need other ideas.

Tomorrow, I have a suggestion.

Gold in New Zealand dollars: $2179.49 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.22 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, October 5, 2012

New Zealand to Default

Here is piece from Ambrose Evans-Pritchard that I have inserted new actors into for your thought as we act out this tragicomedy in world debt markets:

"Fear of escalating demands by China, Japan and South Korea is a key reason why New Zealand Prime Minister John Key continues to drag his feet on a full sovereign bail-out.

New Zealand's refusal to act has frozen the Asian bailout mechanism and begun to rattle markets. The Asian Central Bank will not buy New Zealand bonds until the country requests aid from the Asian Stability Fund (ASF) and signs a "Memorandum" giving up fiscal sovereignty.

Finance minister Bill English told New Zealand's parliament Wednesday that there will be no bail-out until the terms are clear. "The government will take the best decision for New Zealand and its Pacific allies when it knows all the details," he said.

Australia has become the greatest worry. "Key is terrified that the Australians will say `No' after he has requested a rescue," said an Australian economist with close ties to the Key team."


OK, so that may be a bit too 'tongue-in-cheek'. What do you think? Is this a scenario for little old New Zealand?

Gold in New Zealand dollars: $2180.76 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.57 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Thursday, October 4, 2012

Worldwide Race to Debase

When everyone is debasing their currencies together, it is difficult to get a perspective on value. How do we measure the value of our labour or assets when we are deliberately producing more units of measure against the 'thing' measured. Sound complex? Not really, look at the charts provided by goldsilver.com and weep.

In New Zealand, with reference to the NZD, we are just above where we were last year at this time. But, as from January 1, 2012 we are doing better according to the figures.

Gold in New Zealand dollars: $2171.10 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.27 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, October 3, 2012

Gold v Houses - the Mainstream Catches Up

Wow, a local New Zealand business website just published figures analysing the median house prices to gold over the last 20 years. Sounds like the journo may have been reading my blog. I publish these figures every month.

Oh well, better late than never. There's not a lot of analysis on gold though, but that's to be expected. The author probably didn't want to be classed as a 'gold bug' in a mainstream publication. But as we know, the term 'gold-bug' is merely a distracting phrase used by those who don't understand gold or are deliberately being mischievous.

Have a read here

My September figures will be out as soon as the REINZ publish them. I predict a slowing of the house price increases and a better ratio for gold.

Gold in New Zealand dollars: $2147.04 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.76 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Tuesday, October 2, 2012

The History of Money - Gold, the Raw Material



(courtesy of the British Museum, London)

This slide alludes to a couple of the important facets of gold that make it the most suitable metal to be used as money.

The Mining of Gold.

Gold is scarce. There is less than one ounce of gold per person on the planet.

It is more difficult to find sources of gold now. One hundred years ago, in the Yukon, for example, you used to find nuggets lying around on the ground. Now we need to dig deeper into the earth to find it, and that is more expensive. Peak gold is being mentioned more in gold mining circles.

In the world now there are around 130,000 tonnes of gold that has been mined. Most of this is still intact, although some has been lost through industrial usage.

It can take about 5 years and a large investment to get a new gold mine to production. It is estimated that there is around 60,000 tonnes underground in the known deposits.

For want of labouring the point, this is critical to understand what money is.

With gold being so scarce it means it cannot be easily mined to increase supply. Like paper money it cannot be created with the push of a computer's 'enter' button. This is why it will maintain your wealth.

Here again is the excerpt that I placed in this blog last Thursday describing why gold is used as money.

Why Gold

• Gold requires no government to prove it’s valuable. It has been the “Money of Kings” for thousands of years of human history.
• Gold retains buying power. Unlike fiat currency, Gold retains its ability to purchase goods over time.
• Gold can never go to zero. While “paper” relies on a government or financial institution to give it value, Gold has intrinsic value, and Gold has no counter-party risk. Regardless of what happens as financial institutions, financial systems, and even governments fail, Gold retains its value internationally.
• Gold is liquid and easily traded.
• Gold makes large amounts of wealth easily transportable, because it has a high value for its
weight.
• Gold has served as money because it is divisible; you can divide it into coins or re-melt it
into bars without destroying it or reducing its value.
• Gold is nearly impossible to counterfeit, as genuine Gold is easily recognizable.
• When measured by weight, Gold is easily countable and verifiable.
• Gold is not subject to decay, rot or rust.
• Gold is no one’s liability.
• Gold depends on no one’s promise to pay.
• Gold cannot be inflated (you can’t print more of it).
• Gold is scarce. There is less than one ounce of Gold per person on the planet.

Gold in New Zealand dollars: $2147.57 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.88 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, September 26, 2012

Oh the Web We Spin

Unless I'm missing something and the world is deleveraging faster than money can be printed, then we are all on course for a massive dose of price increases induced by inflating money supplies.

The implications of the QE to Infinity announcement two weeks ago is still filtering through the main-stream news and blogosphere. The general blogosphere opinion is this is the 'real' beginning of the end-game for the current monetary system. Will this be so? According to history, yes.

Will this time be different? Maybe. We, except the bankers, could all be missing the new, hidden policy that makes creating wealth from a stroke of an electronic pen somehow work. It never has in 5000 years, so lets hope there is a surprise.

Chris Martenson puts the current QE announcement like this:

"While the Fed can wrap this magic act in all sorts of covering language about dual mandates, maximum employment, and price stability, the simple fact remains that money printed out of thin air cannot, has not, and will not ever lead to prosperity.  How could it?  It arises without any effort at all, no work performed, no goods transformed or lives improved, no land planted and tended well, no services rendered, and no capital formed.  It is just conjured into existence.

It is just new money tossed after bad debts, with both remaining to work their different insidious effects on the economy and our daily lives.  If printed money could lead to prosperity, trust me – some culture would have worked it out long ago, because people every bit as clever and determined as those alive today (and with the same DNA software installed) have tried it again and again.

If it could work, then we should just print every household up a nice $1,000,000 check each year and let everybody stay home, take vacations, and drive nice cars.  It's just an absurd notion, and this is why you should keep a journal – you live in absurd times."


It seems rather obvious to me that this new money will cause price rises to key commodities and therefore hurt the pay-packets of the middle-class. Governments throughout history have always resorted to printing money as a form of stealth taxation. This time is no different, as there is no other choice for politicians.

So what happens to this extra money and how does it produce price rises? Well, the extra money is supposed to go into the US stock market and make people feel wealthier. But what if the stock market gets a severe jolt. Maybe a panic ensues for a myriad of possible reasons. What then? Where does this money flow? Into commodities, cash, gold, silver, houses? Who knows, but it probably will not be bonds, after all, how much more bubble pressure can sovereign bonds take before they explode leaving financial carnage for all to see.

Mr Bernanke has said he can 'mop up' this extra liquidity before it causes these sorts of massive price distortions. No on believes him, as it has never been worked before.

Inflation is simply an increase in the money supply. Price rises are caused by this money being let loose on a finite supply of 'things'. 'Experts' have said that QE will have no effect on the economy. They are right to a point. QE will not improve the economy, but it will have an effect. A most damaging one.

Oh the web we spin. Oh the mess we are in. The best way to protect yourself? Well, you know.

Gold in New Zealand dollars: $2142.75 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.06 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, September 24, 2012

Help With Gold Investing

You want to put some of your savings into gold? How much should you invest in gold? Should you buy gold and take delivery?

Here are 5 tips for the new Gold Investor.

1. How much should I invest in Gold?

This is a personal decision, but most commentators would recommend anything from 5 – 25% of your wealth should be in gold. It depends on how ‘bullish’ (or brave, or trusting in paper) you are.

Gold is an insurance for the bad times. Primarily an insurance against bad government. In the second world war, and other conflicts, many displaced people had much of their wealth in gold and actually carried their gold out with them when they had to leave countries. Will society ever break down like this again? Gold also has no counter-party risk. If you have it, then you own it

Gold will never go to zero value. Many other investments have that possibility.

2. How much gold bullion should be in my possession and how much in a vault?

It is sensible to have some physical gold bullion in your possession. The ratio is yours to decide. Small gold bars and gold coins are the best option. But remember that small gold pieces hold a large premium over spot price, so don't get too much. Buying large amounts form bullion companies and having it stored is the cheapest option. Perhaps around two months supply of gold is a good idea. You may even require it to purchase a fare out of your current location to another country.

For bullion storage I recommend The Anglo Far East Company. This company matches your gold investment with the actual physical gold. It is custodial, allocated gold and silver. You own it, they don't. It is a highly personalized, white glove service and has a minimum purchase amount. Their gold never leaves the LBMA good delivery system and can be transacted on anywhere in the world.

3. Where do I store my physical gold bullion?

Most people buy a safe and install it in a secure place in their home. Some put it in paint tins in their shed (but don't let anyone else clean out your shed!!) Others put gold into Bank Deposit boxes. Or you can split between the two. Remember it may be difficult to get YOUR gold out of a bank deposit box. Authorities can seize these boxes.

4. When do I sell my gold bullion?

Gold is very liquid and can be quickly sold in times of monetary stress. If you are looking at gold as an investment, then look at some of the better commentators on the internet for advice of when to sell. There are experts that will give this sort of advice for a fee. A well known gold company will tell their paid subscribers 24 hours after they have personally sold their precious metals.

5. Who will accept my small gold pieces when I need to trade them or sell them?

Most bullion dealers will be happy to buy pure gold. Also, in times of financial collapse gold will be acceptable as money to most people in exchange for goods or services.

In New Zealand we have little understanding of the world of gold. Those from Asia and the Middle-East and Eastern Europe have such a history. I suggest they would readily exchange goods and services for gold and silver.

(article repeated and updated from April, 2011)

Gold in New Zealand dollars: $2138.17 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.21 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, September 21, 2012

Quantitative Easing 8 and Remote Islands

Today, I draw your attention to two Ambrose Evans-Pritchard stories out of The Telegraph today. One looks at the fermenting problems between China and Japan over the Senkaku/Diaoyu Islands and the other a look at QE8 from Japan.

Not many of these events occur in isolation, it is just a matter of connecting the dots.

China, Japan and the world’s Agadir Crisis (1911)

Japan launches QE8 as 20-year slump drags on.

Gold in New Zealand dollars: $2134.53 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.82 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, September 19, 2012

Creative Schemes and Theft

What is the best way to get rid of onerous debt? If you are a banker that is?

First you dream up some wondrous scheme and give it a fancy-pants name. Names like, Quantitative Easing, Operation Twist, MBS buy-backs, blah blah.

You also have the option of pretending that the assets on your balance sheet have meaningful values. All you do is simply leave those values at what you bought them for or what you think they may be worth. Market value? Not on your life, that would look something like the truth. Pretend you have collateral.

But then again, I may be missing something. Theses deep minds in control of our hard earned wealth must have our best interests in hand? Yeah, right.

Of course the one aspect of all this money printing they don't tell you is who gets to use the money first. You see, having first use of new money, created out of thin air, is the best world you can live in. Before the money units get out there and cause higher prices, and they always do, you get to buy up assets at low and even distressed prices. Put it this way, you get to steal other people's wealth and they don't even know you are doing it.

This is why owning precious metals and other commodities, puts you as close to the 'new money' that you could possibly be. Not to steal wealth, but to maintain your own.

Then there's financial repression. Another brilliant phrase to redefine the word 'theft'. This is where your savings get pummeled with low deposit interest rates and the costs of goods and services increase by a greater amount than those deposit interest rates.  Of course this is why the Fed, the ECB and China, are buying their own government bonds. To keep interest rates low.

So have a think about this when next time someone (who should know better) tells you that holding physical gold and silver is high risk. Think, "increasing precious metals prices as money is printed and no counter-party risk" and rest assured.

Gold in New Zealand dollars: $2141.82 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $42.07 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, September 17, 2012

The Call to Print Getting Louder

The call today has gone out for New Zealand to start printing money.

Imports are cheap right now, but exports are suffering. Our competitiveness is hitting all-time lows.

But money printing for us may not have the desired effect. Confidence in a 'little' New Zealand dollar would not take long to disappear. New Zealand does not have the firepower to make a long-standing difference in huge money-markets. After all, New Zealand needs capital to rebuild Christchurch and to fund our deficit. Attracting that capital with higher interest rates is crucial. Right now we are stuck between a rock and a hard place

Those private interests, who lent money to us over the past ten years of profligacy, would not be happy campers if suddenly our dollar, and their investments, suddenly dropped through the floor in value.

Not happy indeed. This is mainly why the Government is holding back on money printing. Allowing private interests their day in the sun. Namely, a chance to grab assets of value before they disappear.

Maori aren't 'getting it' yet either. Water, air, these all mean nothing for ownership when we are already owned by those whom we borrowed from. If Maori want to grab ownership, using some reinterpretation of the Treaty, then good luck, there are far greater forces at play of which they have no control.

Money printing is not the answer, it sucks the wealth from savers, mainly the elderly.

Then again, once the tipping point is reached, we may not have a choice. Make sure you are protected.

Gold in New Zealand dollars: $2136.22 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)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, September 14, 2012

Money Printing to Infinity

How can we say this any different than, "This is it, money printing forever."

Now infinity is a large amount. Thinking about the concept of infinity has been known to drive people insane. Literally. Infinity has no end. Before this fiat party ends, many will not only be insane, but very angry. The riots you see in Egypt today will be a childrens party in comparison.

This latest round of stupidity has these main takeaway headlines (courtesy of ZeroHedge):

*FED TO KEEP POLICY STIMULATIVE FOR `CONSIDERABLE TIME'
*FED WILL ADD TO PURCHASES IF LABOR MARKET DOESN'T IMPROVE
*FED DOES NOT SAY WHEN MBS PURCHASE PROGRAM TO END
*FED TO BUY $40B MBS MONTHLY, CONTINUE `OPERATION TWIST'
*FED TO BUY MBS, EXTENDS ZERO-RATE POLICY INTO 2015

OK, so the Fed says it is for a 'considerable time'. Not really infinity. But in monetary debasement terms, a considerable time is long enough to destroy a currency. Just ask Germany in 1923.

Make no mistake, this is the end of fiat currencies as we know them. The $40 billion per month headline limit will be but a reference point and will shift upwards as quick as you can say 'inflation' or 'deficit'. Much like the German Constitutional court ruling that Germany will have an upper limit of €190 billion. Yeah, right...

There's a certain book, that has been around a while, that states, "Claiming to be wise, they instead became utter fools". OK, so give them some slack, what are they supposed to do. Remember the French King Louis XVI in 1789, he couldn't stop the runaway revolution train that was heading for him. He had to play with the cards he was dealt with. Likewise, Mr Bernanke has been dealt a set of cards called the fiat money system that was previously destroyed by Mr Greenspan. What's the poor man to do?

The NZD has also risen today on this news. That's a good thing if you hold wealth in NZ dollars. But New Zealand can't hold on much longer in this worldwide 'race to debase' and must decrease the value of the NZ dollar before export receipts get annihilated.

Fun times. Got gold and silver?

Gold in New Zealand dollars: $2125.72 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.75 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
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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 when you order: an-001
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Thursday, September 13, 2012

What is Your Financial Breaking Point?

For those of us fortunate enough to have been born at a time of relative peace and prosperity, we find it difficult to make a mind-shift to a time when growth and abundance may not be the norm.

This article reminds us that we should have a plan in place to provide a way forward for the point at which our finances cannot meet our immediate needs.

Here is the article:

"Many people realize that the financial situation in the U.S. is deteriorating, yet these same people continue on with their daily lives assuming things will get better or will not affect them. Those that still have a stream of income are in much better shape than many but they have not thought about the reality of losing that income and what will follow. Those that have lost their income but still have sufficient savings to live on have not thought about the day when that money runs out and what will follow"...more here

Gold in New Zealand dollars: $2111.11 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.54 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, September 12, 2012

The Shrinking Purchasing Power of the Dollar

Think carefully about what this graphic may mean for you. This from www.wholesalegoldgroup.com

Click here for larger copy

Gold in New Zealand dollars: $2119.68 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.92 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Tuesday, September 11, 2012

House Prices in New Zealand v Gold - August, 2012



As placed against gold ounces, house prices increased slightly in value. For Auckland house prices, it takes about 1 oz of gold more to buy a house in August compared to July. Prediction, based on precious metals prices stagnating over winter and now increasing, house prices are likely to deteriorate significantly against gold in September

Gold in New Zealand dollars: $2133.97 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.22 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, September 7, 2012

The Echoing Green

The Echoing Green by William Blake

The Sun does arise,
And make happy the skies.
The merry bells ring,
To welcome the Spring.
The sky-lark and thrush,
The birds of the bush,
Sing louder around,
To the bells cheerful sound.
While our sports shall be seen
On the Echoing Green.

Yep, happy days are here again. It's green all over the markets as prices rise; stock markets, precious metals, commodities. Risk is on, the birds are somehow 'louder around'.

Last night, there was a leak that Mr Draghi of European Central Bank fame, was to announce unlimited bond buying for cash strapped European countries like Spain and Italy. On this leak, up went precious metals.

Well, the leak was proven correct. Mr Draghi wants to wrestle control of European interest rates. So what's a Central Banker supposed to do? You got it, the only thing they can do, manipulate what is supposed to be a free bond market. Crank up the digital printing presses and buy as many bonds as necessary to halt those pesky bond interest rates from rising further and causing a catastrophic default event.

But there is a little hitch coming. Germany. Maybe this is why gold and silver showed a measured increase. The Germans vote on September 12 to agree or not to agreee to these bailouts. This could decide the fate of the whole of Europe. Then, of course, there is the counter-fire expected from the US Federal Reserve, as the Euro cannot be allowed to fall too far, hurting US exporters. 

But markets have liked what they see, so far. Spanish bond yeilds have already fallen. This could be it, this could be the answer to all our economic ills. We might all be wrong about money printing.

But then, William Blake ends his poem thus:

Till the little ones weary
No more can be merry
The sun does descend,
And our sports have an end:
Round the laps of their mothers.
Many sisters and brothers,
Like birds in their nest.
Are ready for rest;
And sport no more seen,
On the darkening Green.

Gold in New Zealand dollars: $2123.05 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.82 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

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 when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________