Thursday, May 31, 2012

Wealth Is Changing Hands; Fast

The reports out of Europe are revealing that a massive transfer in wealth is now underway.

Germany has once again resurrected a plan, once deemed too offensive, to deal with the debt of overstretched countries in the EU. In this plan, and couched in the language of financial jargon, is a little clause that should cause all of Europe's indebted perifery much concern.

The Germans are wanting something tangible from these indebted nations before they will commit to dealing with the debt. They want a nice, shiny, physical asset. Yes, you guessed it; gold.

In order to provide a guarantee that these nations will pay the debt back, the Germans, and other strong nations, want collateral. Italy has over 2451 tonnes, Greece 111 tonnes and Spain 281 tonnes. Not worth a lot, except perhaps in Italy's case. But that is if you value it at current prices in USDs.

So you could probably factor in that the price of gold will need to be increased to a higher, true value for the maximum extraction of wealth to be made. On this note, the BIS (Bank of International Settlements) is moving to reclassify gold as a tier one asset, that is equal to cash in definition. Currently it is a tier 3 asset class, about one-half the value of cash holdings. Now can you see how much gold needs to rise to make this wealth transfer work in favour of the lenders?

And of course what this will do to gold is bring it quickly back into the general publics eye and into reckoning as the asset of wealth transfer. The beginnings of this are seen in the massive uptake of physical gold by large central banks (not NZ, mores the pity) who are buying physical at a fast rate. China alone purchased over 124 tonnes last quarter.The general public always see these actions far too late, way after the wealth transfer process has begun.

We also read that the Rothschild and Rockefeller families are teaming up to buy distressed assets. Assets that used to be in public ownership and are now, and in the near future, going to be selling at bargain basement prices.

The way of the world is simple really. Spend above your means and those who lent to you get first option on that which you own. Good on the two big R's for taking the opportunity? Are they greedy or smart, you choose. But remember, if you own gold, you too can have a tier one asset and be like the big boys.  In readiness for the largest wealth transfer in history.

Gold in New Zealand dollars: $2075.16 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.03 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
_____________________________________________________________


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, May 29, 2012

Get in Line; Fast. Bank Runs Beginning?

The old adage is,"When you see a line forming at your bank, get in it."

If you live in Spain or Greece, take a supply of food and perhaps even a tent. The line could be long.

Yesterday, Spain bailed out its third largest bank, Bankia, to the tune of $24bn. Bankia was created out of a number of insolvent regional banks in an attempt to consolidate the good and hopefully hide the bad. Another confidence trick. Well, it didn't work. Money has been pouring out of Bankia faster than you can say, 'bank run' and yesterday, the Spanish government, itself having no money, managed to stump up the cash to keep it afloat. Here's how.

The BBC reports it like this. "Rather than borrowing money on the open markets, potentially at high cost, there are reports that Madrid is considering giving Bankia government bonds. The bank would then use them as collateral for loans from the European Central Bank.

One analyst said this would amount to "an ECB bailout through the back door".

Is that laughter I hear from my readers? If it is, it would be rightly expressed. Just pretend two people were competing to borrow money from you and one offered you Spanish bonds as collateral and the other some physical gold. No contest, the gold wins. The bonds are worthless or soon will be.

Anyway, back to the bank runs in Europe. When a bank gets in trouble, people quickly hear about it and take action. Confidence quickly ebbs. Money begins a flight to safety. Banks are not well capitalised. In other words, they only hold about 5% of everyones money on their balance sheets. So when everyone lines up to get what is rightfully theirs, it isn't actually there. The bank will probably close its doors and disappear. After that, counter-parties have first dibs on the assets the bank will have left after the rush. You lose.

But the real problem with bank runs is that they are highly contagious. Once begun, even in an obviously bad bank, they can spread quickly to solvent banks. Last Monday to Wednesday, depositors withdrew 700 million euros per day from European banks. The fear is these runs will spread further in Spain and even to Italy, countries which are far too big to save with money printing.

At the moment these withdrawn deposits from Greece and Spain are making their way to safe countries like Germany and France. Gold is also nearing new highs in euros as safe-haven demand increases.

The eurocrats and governments are now at the end of the road looking deep into the abyss. All the cans they kicked down the road have disappeared into it.

Time has run out?


Gold in New Zealand dollars: $2066.04 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.32 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
_____________________________________________________________


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, May 28, 2012

Derivatives: Wolf on Your Doorstep

Well, here we are. Just when you thought our banks were safe and your had good fuzzy feelings about your low mortgage interest rates going forward, a new danger lurks at your door.

No, not the fabled wolf from Little Red Riding Hood, although more on that analogy later, but the danger I warned about last year.

Derivatives on your house.

The world financial system is built on derivatives so large, that the numbers don't make sense anymore. The figure has been put at $1.5 Quadrillion, that is 1,500 Trillion dollars. Can you imagine that amount of money? I can't. But that's OK, because it doesn't exist. It exists on balance sheets all over the world as liabilities and assets, assets that have a book value now that are essentially meaningless. Therefore, if you begin to unwind these derivatives they will eventually unravel all the way back to something you can touch or feel. A commodity, or a business producing things.

Only those assets aren't worth $1500 quadrillion.

So now our lovely bankers in New Zealand, now that they have exhausted most other means of extracting money from us, are going to use your house as collateral for money they want to borrow. Borrow for what I hear you say? Perhaps to cover the losses coming from some of these derivatives they hold about to explode in Europe? Who knows.

Covered Bonds are what these dervatives are called and they are the financial systems latest attempt at thuggery. Here's what the banks do. They take your mortgage, which you rightly thought was held and owned by your bank, and bundle it up with other mortgages and use that wee bundle as collateral (backing) for loans they sell to anyone who will take them. Simply put, they sell your house to someone else.

I bet you didn't know that when you signed up for that lovely view of the sea.

And here's the rub. If the bank here defaults on these loans, your house goes to this new onwer who then likely has the ability to do anything he/she likes with it. Including raising that mortagge interest rate your thought was so good yesterday.

So the bank has created a derivative from the asset they hold. Your house. This derivative then gets thrust out into the wild woods with a wolf you probably can't trust. The worst that can happen? Your bank doesn't pay up, and the wolf has it's ugly way with your assets.


Gold in New Zealand dollars: $2088.24 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.86 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
_____________________________________________________________


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, May 25, 2012

Fiat Promises

Read this carefully and then read it again.

"When any Governmental system rests on a monetary system which uses a paper derivative of the wealth created by that system - also known as a "fiat" monetary system - that paper derivative is only as valuable as the promise that stands behind the paper which is used to represent systemic wealth creation.  At the end of the day, a fiat monetary system depends on the degree to which you trust the person or entity making the promise."  - Dave in Denver

If you save in physical gold and silver and you have it in your possession, you don't have to trust anyone with your wealth. There is simply no counter party risk with real money.


Gold in New Zealand dollars: $2064.40 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.54 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
_____________________________________________________________


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, May 24, 2012

Snippets

There's so much happening today, it's almost impossible to keep up. Events appear to be moving rapidly. Here is a short selection of points and other snippets of interest from the 'wild' internet.

* Spain had their hand out today as they are desperately in need of cash to help in the bailout of their banks - Organ

* Futures market analyst Dan Norcini tells King World News today that hedge funds are battling central banks in the gold market and that the hedge fund trade of shorting gold and silver mining shares seems to be reversing

* to get some perspective on how tiny the Silver market is, the American Silver Eagle (the most popular coin in the world) has sold a little over 300 mil. coins from inception (1986) or about $9 bil. at today's prices. By comparison, the marketcap loss on the Facebook IPO from the low $40s to the low $30s is equal to roughly the same amount - Jesse

* Greek bonds are crashing and now have fallen in excess of 50% from their post PSI bond swap.  The loss to bond swap holders is now higher than 90%.

* Pressure on Greece increased dramatically on Wednesday night after Germany's central bank called for a suspension of financial support to Athens and eurozone finance ministries agreed to draft contingency plans for a Greek exit from the euro - The Telegraph

* Facebook is turning out to be the poster child for everything that is corrupt on Wall Street.  From fraudulent representation of financials to the fleecing of widows and orphans - Dave in Denver

* Regardless of how hard the days may seem, there is no question as to what the end game is. I suggest you put your mind on other subjects until the madness of bullied markets is over, which it will be soon - Jim Sinclair

* "Now, please don't misunderstand what I'm telling you here. I'm still extremely excited about where the metals are headed, particularly silver" - Turd Ferguson

* ​In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its illegal, as was done in the case of gold (in the 1930s). If everyone decided, for example, to convert all of his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payments for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. Therefore, the financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves - Alan Greenspan (1966)

* I don’t often make market calls or indicate when to buy or sell, but...if you have been waiting to buy gold, or have a dollar-cost averaging strategy in play, today served up a very compelling buy signal for gold - Chris Martenson

* PM Key says NZ Government would delay move to surplus beyond 2014/15 and borrow more if Euro crisis worsens considerably - Interest.co.nz

* Gold prices are in a process of bottoming, it could decline further before the start of another rally upwards - commoditiesonline.com


Gold in New Zealand dollars: $2078.54 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.05 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
_____________________________________________________________


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, May 22, 2012

A Greek Bank Run Before June 16

Here is a scenario put forward by David Zervos from Jefferies, as reported in Zero Hedge about the possible coming Greek bank run:

"So lets "run" through the mechanics of a Greek bank run. As the Greek people begin to smell a Greek exit and a conversion of their hard earned Euro deposits back to Drachmas, they will withdraw Euros from Greek banks. So the Greek banks will head to the BoG with some dubious collateral to beg for Euros to pay depositors. The BoG takes the collateral, gives it a minuscule haircut, and draws Euros via the ELA. This of course creates an increase in BoG Target2 liabilities. The BoG then sends the Euros to the Greek bank and the Greek bank then gives the Euros to the hard working Greek depositor standing in line waiting to empty the account"...more here


Gold in New Zealand dollars: $2082.23 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.25 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
_____________________________________________________________


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, May 18, 2012

Debt Going Parabolic. Time to Take Stock.

New Zealand's public debt is doing what all debt plus interest is supposed to do. Go parabolic. Once you get to a certain point of debt increase, you need more and more debt to cover the last debt increases and the interest payable.

Four years ago New Zealand's net public debt was about $20b. Now it is around $50b, and we haven't ended 2012 yet. Forecasts show that in three years, it will be around $73b.

New Zealand Public Debt 2000 to 2016 (Projected) in NZ$billions


If this level of exponential increase continues, we will suffer enormously. We will cede control of our nation to those we borrowed from. The Chinese Government, private bankers and wealth funds worldwide. Like Greece and the other PIIGS we will have to make stark choices. It will happen.

Perhaps John Key and Bill English are doing the right thing by selling public assets here in New Zealand now. Are they being wise enough to see the 'debt' writing on the wall. You see, we do not want to be in the situation that Greece is in before realising we need to pay off the bankers.

A fire-sale of assets in New Zealand would be a disaster. A New Zealand in this position would mean an unstable living situation for all of us. Would we then see radical groups take their oportunity here to take advantage of rising public anger to sympathise with their causes? Maybe.

Asset sales are supposed to lower the crippling public debt to more comfortable levels. But I say it will not be enough. What are the other choices for New Zealand? Perhaps we devalue our currency to lower debt value. But imagine the hardship on the ordinary citizen that would result in. But it's probably the best political option. Stealing from the masses always has been. Just do it quietly.

Greece is currently going through the pain of austerity. Greece is the first 'developed' nation example of what it means to be over-indebted. Simply put, it means you don't have a nation anymore.

Is it any wonder that right and left wing extremist parties are capturing up to 20% of the vote there. This cannot bode well for Greece. When you threaten to take away someones livelihood, that's stressful enough. But when the people see unelected eurocrats backed by private bankers, run your country and want to sell your assets at bargain basement prices, then you run the risk of awakening the ire of ordinary citizens.

Private interests are seeing bargains galore coming up in Greece (New Zealand?). This is what happens when you get into too much debt. You pay with your past wealth accumulation, but you pay whatever the piper offers because your power to bargain is zero.

Greece and now Italy and soon others will have to make some dark choices soon. Going back to the Drachma will be paramount to ongoing success in Greece. Yes, it will be a difficult few years after, but if Iceland's story is to be admired, then Greece should only look in that direction.

New Zealand , are you ready for what is coming?

Gold in New Zealand dollars: $2061.58 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.71 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
_____________________________________________________________


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, May 17, 2012

Own Gold. The Rest Is Noise.

So JP Morgan reported a loss this week. In the region of $2 billion. I say 'in the region' as no one really knows the final figures. Perhaps not even JP Morgan.

So here's a rant. Jamie Dimon, the CEO of JP Morgan, called it a 'stupid thing' that his traders did. But we are still going to earn zillions of dollars and are worth gobzillions, so don't worry.

Don't worry. Hmm, well that is really easy for him to say. You see, Jamie, and his Wall Street bet-takers, are supposed to be Banks. Banks traditionally are supposed to use capital deposited with them and invest in the labour and sweat of human endeavour in order for the economy to grow and to make us more prosperous. Those Banks then make money from the growth. For example, they might invest in a pimply Bill Gates hoping it will turn into a Microsoft.

Instead, these people have been seduced by greed. They now take 'bets' using all sorts of financial derivatives (instruments 'derived' and packaged from something else, for example, real estate) and hope to be on the winning side. There's no growth encouraged, no prosperity created, just a massive shift in wealth from you and I pleb to those with the means and know how to bet on such large positions.

You suffer. Your money is cheapened. Your labour and savings are stolen. How? Through bailouts of the same leaching "to big to fail" Banks through money printing.

Is this criminal behaviour? Maybe. I have no idea what goes on in these illustriously complex trading systems. For example, do they undertake 'naked' shorting; pretending to have the asset or instrument they are selling? A highly illegal practice. Probably.

The cards are stacked against the 'little guy'. People suddenly lose their jobs or find out the real estate boom was a lie and get caught owning property way below its purchase price.

Right now, the world economy is falling off a cliff. Greece has spooked the markets terribly and all asset classes are taking a hit in price. Gold in New Zealand dollars is doing very well, but again, any measure of value using a fiat currency is difficult right now. Anyway, the end of the price declines in gold could well be close.

The whole Wall Street story will go down in history as one of the most sinister thefts of wealth ever. If you own physical gold, your wealth is not being stolen. The rest is noise.


Gold in New Zealand dollars: $2013.87 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $35.62 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
_____________________________________________________________


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, May 16, 2012

King World News Article by Robert Fitzwilson

Here is a post from King World News this morning. It is a piece from Robert Fitzwilson of The Portola Group and I think it is a worthwhile read:

“We know that the world’s debt-based, fiat money system can only be revived and sustained by the combination of more debt creation and consumption.  We have arrived at a critical point in history.

It has been a common belief, ours included, that there are two alternatives, print more fiat money or risk a catastrophic global depression.  A sane person will only choose the ‘print’ option that leads to the avoidance of an economic Armageddon, even if the effect is just temporary.

But, what if this is a flawed scenario and set of assumptions?  What if there is another path, and that path is to effectively crash the system?  We all know that the accumulated and accrued obligations cannot be repaid and paid, respectively.

We are in a destructive feedback loop in which new fiat money is created to pay for current and growing expenses, effectively creating even more obligations for future taxpayers.  Individuals are told that other people will be taxed to pay for their entitlements when the reality is that they are creating future obligations for themselves.

While not a prediction, it is wise to consider another alternative.

Any thinking person with a calculator knows that the current global monetary system is going to fail given enough time.  Rather than going through the charade of more quantitative easing, what if the central banks, the collaborating Western governments, and the financial elites decide to let the system fail now?

We know that the stock market has risen on the supportive hands of the U.S. Federal Reserve.  This has been a publicly stated policy designed to engender a ‘wealth effect’ making consumers more likely to ramp up their spending.  We know that Treasury bonds have also benefitted from the Fed’s largesse.

We also suspect that the markets for paper gold and silver have been ‘massaged’ by the same institutions.  Not wanting to see high gas prices for the coming election, we also suspect that the recent decline in the price of oil and the jawboning from Saudi Arabia are not coincidental.

Oil slumped today, yet our research sources suggest that the apparent worldwide run rate for the demand side of oil increased a whopping 3 million barrels per day in the most recent reporting period.  We also found out that there was an abnormal inventory drawdown for the OECD countries of 7 million barrels instead of a normal build of 17 million barrels.

We also found out last week that cracks were appearing for the players in the derivatives game.  Greece is threatening to renege on their outstanding obligations to European banks.

Investors need to consider the possibility that people in control are not simply trying to scare the public as they have done during the last 8 trading days, but a larger plan might be afoot.  That plan could be to accelerate the emergence of a new dollar.

Other countries are taking actions that are designed to dethrone the dollar’s dominance.  Some of these actions are making headway, perhaps too much headway.  If the threat of success becomes too great, a preemptive strike to bring down the financial and commodity markets before strong rivals emerge is a possibility to consider.

It would not be the end of the dollar as the king of currencies, just the end of the current dollar as we know it.  The new dollar could be realigned not only against other currencies, but would allow for the effective repudiation of the massive piles of debt and derivatives.  Interest rates would be allowed to return to more normal levels and all assets would be re-priced in terms of the new dollar.

It might seem crazy to sane people, but to insane people running global government and finance, it might seem rational to them.  Their constituencies will not care.  They vote for a living and will not care about the colors and digits on their checks.  It will sound Utopian, a return to fixing the problems of the past and restoring functioning markets at the same time.  Debts go away as does the dreaded austerity.  Wealth will be destroyed, but the vast majority of people have no wealth to preserve.

There is precedence for crashing the system as a technique.  It was the leaking of information about the financial condition of AIG in 2008 that sent markets into a tailspin.

We will see.  Portfolio allocations should continue to over-emphasize assets where the prices have been suppressed and avoid assets where prices have been manipulated higher.  The latter could prove quite dangerous until the question of whether the original path of more QE or the hypothetical situation above is known to investors.”


Gold in New Zealand dollars: $2008.32 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.00 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
_____________________________________________________________


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, May 15, 2012

What Could I Say?

Today, somehow, I got talking about the economy. Only briefly, but all the time that was required to get an insight into how most people are still thinking of the global financial crisis.

And I get the impression that many are still in the old paradigm.

People find it difficult to change. Just ask men. They hate going to the doctor for a checkup and probably won't until they get a major health scare. Silly them you say. Well, yes, but quite natural. We humans don't like change and even when difficulty rains down on us, we resist.

Anyway, the conversation today moved around to the european situation. Seems most people 'on the street' know Europe is in big Turdville. But their answers are limited to the same old solutions. Just buy US dollars, after all, the US won't go bust, will it?

Umm, it already has. It is insolvent. They are printing more money with less collateral backing it. In fact the only real acceptable collateral for the US, internationally accepted that is, is gold. Just wait till poeple want their money back from US bonds etc and they ask to be paid in gold. Goodbye US dollar.

So change is here, but most don't want to to think of gold as the ultimate saver of wealth. See, it's going down, they say. It was in a bubble after all. Beyond saying that this current drop has more to do with margin calls and the need for gold as settlement, to say that this bout of price smashing should make you not buy gold or even sell it, is lunacy.

Gold will be the last money standing, and soon.


_____________________________________________________________

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
_____________________________________________________________


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, May 14, 2012

Sit Back and Enjoy the Ride

Which way will the gold and silver market trend from here? Up, down, sideways?

Of course if we all new this, we could all be rich by lunchtime. But we don't know and all we have in front of us are the facts today and the extrapolation of those facts for a tilt at predicting tomorrow.

One commentator's view is that we aren't necessarily in a deflation, but we are in a period of re-pricing of financial assets and commodities. This will entail a period of price decreases in all assets to mark them back to true value. The point being that in the last 40 years or so, money supply has increased rapidly and prices have increased along with it.  The market will find real price value eventually, and this has to be down, across the board in everything. The violent rises and falls since 2008 are testament to this happening.

Of course the other agrument is for higher asset and commodity prices. This based on the sole influence of the sole market maker these days, the Federal Reserve Bank. The fundamentals are screaming QE3 as there is simply no mathematical model that tells us sovereign nations can ever pay back debt based on current growth metrics. Unless there is a restructuring of financial systems their will be defaults in a  big way.

Already the fringes of the EU are fraying further as Greece and Spain take the limelight. If Greece defaults and goes back to the Drachma, then investors will pull money out of Spain, Portugal and Ireland very quickly. This will spell the end of the Eurozone experiment.

But others suggest the Federal Reserve may be out of bullets and in fact may risk losing the confidence of the market if it goes and overtly prints more money in a QE3 scenario.

So will the Federal Reserve allow the market to re-price itself and hopefully maintain confidence in the dollar? Perhaps. But it would be a game of brinkmanship in order to save the reserve status of the US dollar and destroy the euro. One I'm sure they won't play, it is just too dangerous.

Will gold and silver prices likely fall from here? Maybe. Will gold shoot quickly to $3000 per ounce as a QE3 like program is announced? Or will Europe crumble causing people to flee to gold as much as they might flee to the US dollar for safety?

If anything, this will be an interesting ride. But if you own gold and silver, sit back and enjoy it.


Gold in New Zealand dollars: $2019.420 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.92 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
_____________________________________________________________


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, May 11, 2012

House Prices in New Zealand - April Update

Here are the latest median house price figures for New Zealand. April saw a small two ounce shift in favour of gold (ie. it took two ounces of gold less in April than March to buy the median priced house) for New Zealand overall and Auckland.





House values in Auckland have dropped 60% from the highs in May, 2005 as measured against gold ounces

Gold in New Zealand dollars: $2034.73 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.05 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
_____________________________________________________________


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, May 10, 2012

Of Greeks and Gold

Seems the new Greek Leader, Alexis Tsipras, is having some success trying to cobble together a new government.

We all know politicians will say almost anything to get into power. Don't get me started on Mr Obama and gay marriage. Mr Tsipras is no different. He promised to commit the recently agreed bailout via the 'troika' to the dustbin of failed promises. Seems when it's convenient and times are tough, even signed contracts by sovereign nations are worthless paper agreements.

What of the consequences? Probably not so much for Greece as they are resigned to a period of turmoil and poverty when they leave the European Union, which they definitely will. Or be kicked out by Germany. Either way, it will not be pretty.

It appears the flow on effects, of this Greek move, will be massive. If you live in one of the other pigs nations (soon to be known as 'pis') what would you do? Panic? Probably. You would likely get your money out of those countries banks as soon as possible and put it somewhere safe. Perhaps Germany or France. Switzerland maybe. Put it into gold? Not likely, people may need even more distress than this before they see the light of gold and the consequences of a failing fiat money system.

The world economy is likely to be in a considerable mess going foward. The rebellion against austerity is now in full flight and those with the means have already shifted their wealth out of the European perifery. Now the run on the banks by the masses will begin.

Unless there is some form of new monetary and political system soon in Europe, this could lead to high inflation and a complete politcal breakdown.


Gold in New Zealand dollars: $2030.14 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.37 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
_____________________________________________________________


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, May 7, 2012

The French Disconnection

So, the Socialist Francois Hollande has beaten Nicolas Sarkozy to become France's next president. What does this mean for Europe and especially the euro?

It appears the main policy change, is around stimulus. Simply put, Hollande wants more government spending rather than the austerity forced upon the eurozone via the Germans. He wants to be a true socialist neo-Keynesian. He wants to use other people's money until it runs out.

This idea may have worked in the 1930s in depression time. Back when debt levels were low and money supply small, but it won't work now. Debt has stiffled growth in most western economies causing stagflation. An unfortunate event where prices rise and growth is negative and unemplyment high.

There comes a point in debt cycles where all your hard earned income goes to paying off debt and is not available for capital investment and discretionary spending.

This is where we are now and the answer from the socialists is the same old, same old; print money and hope.

Well Sarkozy had a bet one way and tried to keep the machine running and it failed. Poiticians always have a knack of hoping for the best just to eke out that little bit of time so they can remain in power. They don't really care about their constituents. Power is far more important. Just look across the Atlantic at the beginnings of Obama's election campaign. Obama is trotting out the old slogans from 2008, only adding that hope and change may take longer than you think (in other words, I hope you swallow this rubbish for another four years).

George Clooney still believes in hope and change, he's hosting a dinner for Obama which will fetch $15 million for the campaign. Perhaps celebrities could save the world?

Anyway, who needs hope and change with that sort of financial muscle? Obama is likely, bar a black swan event, to be re-elected for another four years. Change and hope are slow, he said, but don't stop believing. Yes, but will hope and belief feed the masses? There will come a tipping point where the 'dumb' middle-classes can take no more of the debt they are laden with or the price increases forced upon them via money printing. Egypt and Syria may come to a nice first world economy near you.

Hollande will attempt to change the European fiscal pact in order to allow the printing of boat-loads of money to pay debt and to attempt to get the economy moving. It will eventually fail. This policy always has.

Gold and silver were strangely up last Friday while other markets, including commodities, were down. This has occured a couple of times in recent weeks. Strange goings on indeed. Gold is insurance and you have it in your portfolio to rest assured that you have something of value. If all else fails, gold will buy you something. Always.

The French elections throw a bit of a curve-ball into the economic equation. This week will be fascinating indeed.


Gold in New Zealand dollars: $2070.48 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.25 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
_____________________________________________________________


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, May 4, 2012

Gold and Money: A Tricky Concept

It can be tricky explaining the concept of gold and silver as money. How gold and silver have value as hard and scarce assets, to people who know very little about how money works and economics in general

Is it the 'glazed over eyes' reaction that tells you all is not being understood.

Am I a confusing kinda guy or too detailed? Why don't people get this? Why is it we have never been taught about what real money is?

So what I used to do in these situations is take out of my pocket two things. A 1/10th oz coin and a paper money note of, say, $10 or so. I placed these on the table in front of them and say, "One of these is paper representing value to purchase assets and one of these is an asset representing, well, the best asset ever to be used as money. Which one, of equal value, would you rather have? Of course it's a loaded question and the answer is always, the gold.

So how is it that we have been duped to believing that printed paper, backed only by the faith we have in our governments, has any value whatsoever? Especially in these times when Reserve Banks are trying to 'save' our financial system by printing more, thereby debasing the value of the already nearly valueless. This is why we had a confidence crisis in foiat money in October 2008. Trillions were being withdrawn form the system in hours. If the people lose confidence in the monetary system, then they will all want their money back. And you know what? It ain't there...just ask your Bank.

I hold the gold and know it has no liability attached. It's mine and it has been recognised as money for 5000 years. I sure will not swap it for bits of paper anytime soon.


Gold in New Zealand dollars: $2042.56 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.59 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
_____________________________________________________________


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, May 3, 2012

Gold Pays No Interest. So What?

One of the best reasons not to own gold is that it pays no interest.

This the argument from some of the greatest financial minds, including the Oracle or Omaha, Warren Buffett. So if multi-billionaires say it, we must listen or be damned.

However.

Bill Gates said Windows would reduce the cost of business and Steve Jobs said Apple Computers didn't get viruses. So perhaps billionaires can get it wrong, especailly when they are book-pumping?

Firstly, neither does a bank note pay interest, unless it is put to work as a capital investment. One of the reasons why most central bank interest rates are close to zero is that they don't want money to be left in their vaults. They want it to be out there in the economy, being used as capital investment. They want money to move, to be used. If it's not, there is no incentive or reason to charge interest.

Secondly, you can 'lend' out your gold, using it as collateral for a loan to someone else. Just ask the Goldsmiths of old who figured out that the financiers depositing their gold with them didn't come back that often wanting to take out their gold. So they leveraged up the gold they had in custody by lending out gold they didn't own and represented this with paper certificates. Exactly the same as Banks do today with your fiat money. Only there's no gold backing or much collateral for that. Maybe around 5% only.

Thirdly, look at the example in Vietnam's banking system. The 'Dong' (the Vietnamese monetary unit) is so devalued that Banks there will 'pay' you interest on your gold if you store it with them. So much for the income producing qualities of a currency when it goes pear-shaped.

Lastly, there is this article which I will just point you to. It's a complex reason, but here is a summary; "Gold can offer a money market return regardless of its price trajectory. Spreads between gold futures' delivery months, in fact, implicitly reflect short-term rate expectations. The gold market, through cash-and-carry operations, tells us what traders think short-term rates ought to be."

So gold may not earn interest as we know it, but it also is not a risky asset. Note that, over time, the price increase in gold has more than matched the returns from interest.

After all, perhaps those wanting to sell you alternate investments that are ripe to be foistered on the unaware investor, will always spout such arguments against gold. They want as many fiat money fools as possible to jump into their ponzi schemes before its inevitable crash. Property perhaps?

Sure, you can place gold on a table and look at it and it doesn't grow all by itself (I wish). But the same with cash. One has to 'put it to work' and risk those savings to make a return. To say you can't put gold to work and create a return is not correct.

Gold in New Zealand dollars: $2045.14 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.91 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
_____________________________________________________________


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, May 2, 2012

When The Global Fiat Money System Crashes

Fiat money systems have always failed. Always. This is the first time in history that the whole world has been on a fiat money system. The failure this time will be spectacular.

So let's discuss what this means for silver and gold.

Importantly, silver and gold will still be money. They always have been.

However, many still ask questions and seek to dither about the role of silver and gold.

Is silver a monetary metal or just a commodity used in industrial production? The debate has always been a heated one, but if we look at history as a whole, we can come to some interesting conclusions about gold and silver as money and hence what is likely to occur when the global financial system resets.

Silver and gold have been a monetary metals in most cultures throughout history. It is unlikely that the return to a true fiat money system from 1971 will unseat their roles as money. Just look at the way international transactions have been settled throughout history. Largely, settlements between empires and states are settled through gold swaps, and transactions between the ordinary people within states is settled with silver.

Silver is commonly known as the 'poor mans gold'. Meaning that not many can afford even one tenth of an ounce of gold, let alone that amount being too large too trade goods and services with. However, one ounce of silver is much more affordable and easily tradable.

But silver is obviously an industrial metal as well. An important note here, is the U.S. Geological Society recently stated that silver could become the first element on the periodic table to become extinct. In fact, right now there is less than one billion of above ground ounces of silver globally, worth around $31 billion. So just on a supply fundamental, the price of silver must go up. This without the watering down effect of money printing. The same with gold, although probably more critical as gold production likely peaked a few years ago.

So gold and silver are primarily money. There are many other facts to conclude this, not least the attributes that gold and silver hold as described at the bottom of this blog page.

When the system does eventually go the way of the dinasaur, I don't think it will be that difficult for most people to see the value of precious metals as money. I think, deep down, everyone knows their true instrinsic value. What do you think?

We call all sorts of products 'gold' this and 'silver' that to give them an extra credibility. A sign of great quality. We have gold and silver medals at the olympics to recognise our elite athletes. Gold and silver simply just 'are' the only representation of quality and true lasting wealth. As much as the fiat money central bank kings want to try, they simply cannot change these facts. They can go on as many cross-country school propaganda tours as they like, but they will still not shift the innate value reckoning the human mind has for gold and silver.

There are only two ways for us to react to this. We simply wait too long and lose our wealth when the system goes belly-up or react now and put a portion of our saved wealth in precious metals. Already there are indications, that if you valued gold based on the US dollar money supply it could be around $8000 and ounce, conservatively.

Act now (start with the links below) or later, simple really.


Gold in New Zealand dollars: $2040.38 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.01 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
_____________________________________________________________


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, May 1, 2012

Back to the Future


Here's a blog post of mine from one year ago. It is often interesting to recap and see if what was written in the past actually stacks up:

Inflation is a killer for those fiat dollars stashed away in your bank deposit account.

It's not uncommon these days to find that the value of your money is decreasing in purchasing power.

The interest rate you get at the bank is less than the inflation rate. And by inflation rate, I don't mean the official one where, in the calculations,  they take out those goods and services which distort the real figures. Whatever suits their politics it seems.

Recently we have been looking for bargains in bulk. We think, that beyond saving in sound, honest money, like gold and silver, the next best asset class is those commodities which we consume every day.

Food stuffs like butter, wheat, flour and sugar. You see, right now, it makes better sense to us to have our cash in the food bank at home. Take for example wheat. We have a wheat grinder and an bread maker and we make our own bread. We purchased some 25kg bags of wheat which should last us around 18 months of bread making. With prices of wheat about to rise dramatically (or even just a little), the 'cash' sitting around in our store room has a greater store of value than at the bank for the next 18 months.

(MB over the last twelve months from doing this, we are about even. Prices have risen slightly, but we have no regrets. Already the IMF is warning of fast rising food prices this year again)

What's more, we also feel a bit more secure should there there be shortages in the future.

Of course, the ultimate store of value are the precious metals. The best way of seeing how gold performs is by looking at oil in relation to gold. Oil is the best indicator of the value of gold as oil is the energy that drives our whole economic system. When energy prices rise (predominantly because of inflation - money supply increases) then most other assets and commodities rise also.

(At around the time this blog was written, gold and silver got hammered down in price. However, one year later, prices appear to have bottomed and may be coiling for a spring upwards. Global systemic risk still very much exists out there and the fundamentals for holding gold and silver remain intact)


Gold in New Zealand dollars: $2033.60 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.86 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
_____________________________________________________________


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.
_____________________________________________________________