Gold and Silver: The gifts that keep on giving!

Historically Gold and Silver have always been money.  They have something called intrinsic value, where the value is actually the physical properties of the metal itself.  They are shiny, they do not rust, and they are rare.  It is in these things that we find real value.  And is why we can exchange other goods or tangible assets for silver and Gold.  Only in the last 40 years or so, have people really forgotten what money truly is.  (40 years ago is when President Nixon severed the dollars tie with Gold)  Our dollar bills now, are actually just a debt instrument circulated throughout the world, and only have value because we believe it to have value.  We have faith that tomorrow when we wake up, we will still be able to purchase goods with our dollars.  Since the dollar is not backed by anything of value, once that trust fades our currency starts to lose value.  And once the trust is completely gone, then the currency will revert back to its mean, and eventually become worth the paper it was printed on.  Nothing.  Another thing that will destroy a currency (such as our beloved dollar) is inflation.  Inflation in its simplest form is increasing the currency supply through printing money.  And in itself is one of the main reasons a nation might lose faith in its currency.  This is what is happening now and has been happening for decades.  (Much more so recently)  We are currently in a global financial crisis in which we are all tied together.  Our government (and others) are currently printing more and more dollar bills to cover up the true source of the problem.  Historically any government that has taken this course in the past has always ended up destroying the currency.  This is why commodity prices are rising at very scary levels, and as I write this crude oil just hit $91 a barrel today (which translates into just about $3 gas prices).  It is my belief that this will only continue to get worse, and unlike in 2008, these prices won't come back down this time.  Our government is currently debasing our dollar to pay for a broke system, and I fear this will only end in hardship and an immense amount of pain and suffering for those unprepared.  What they are doing in Washington D.C. is playing with fire and is highly inflationary.  And will only result in virtually everything going up in price.  But there is hope.  There is a reason Gold and Silver have recently hit several all time highs in price.  Because they are real money!  They are the one true currency that will never fail.  Their price will continue to rise along with other commodities and goods because they maintain their value!  Prices in reality are not really going up, the value of our dollar is actually going down!  So things seem more expensive.  But if you hold Gold and Silver you actually see that prices stay the same, or actually only rise because of true supply and demand.  Not just inflation.  So I wish everyone a Merry Christmas and get ready for 2011 because it's gonna be a wild one.

Gold, dollar, oil, jobs, deficits

100% Sure Thing? Bernanke think again. The End game is on...

Submitted by Bruce Krasting on 12/05/2010 20:47 -0500


Bernanke did himself and the American people a great disservice tonight. He said that he was 100% certain that “He” could contain the consequences of his policy of quantitative easing. No person in a position of responsibility should make such bold statements. There is always risk.

Bernanke’s TV fireside chat was a bomb as a result of this gross misstatement of the risks of the Fed's monetary policy. There is a “zero” chance that QE will end badly? Please, that is idiotic and insulting. The thousands of people around the world who have stood up and said it is voodoo economics are all wrong? Talk about hubris.

I’m not going to write the article documenting the Fed’s prior mistakes. To suggest that they will not err this time around is too much of a stretch. Ben should have acknowledged that there is risk. That he and his mates don’t sleep at night knowing they have crossed a line to the dark side of monetary policy. I wanted to see a humble Ben. One who said that he is facing a daunting task, one where the risks of action and inaction are substantial. But he chose to brush it all off. He is either blind to history (that he claims to study), he is lying or he made a boastful statement of his powers that are totally unjustified.

History is unkind to those who look into the future with myopic eyes and see the outcome of an uncertain world as 100% certain. Ben made some history tonight, but we won’t know about it for a few more years. Then we will be looking at Ben’s video with both a laugh and a cry.

For the record. Ben is not printing money. He is monetizing debt. He is, in effect, financing the current deficit of the government. He is actively intervening in the bond market. There is no limit that has been established for this policy. Ben said tonight he would do more if it suits him. Monetizing debt is a desperate act. That we are doing it will make us desperate.

In my opinion QE is not necessary and exposes the global economy to a variety of risks. There will be little benefit to the US economy. We will have a long-term headache as a result. Ben’s persistence with QE at this juncture looks like a gamble by a desperate man. He was slapped down of late and made the unusual (unprecedented?) step of going on nationwide TV to say that all is well and not to worry.

I’m worried. I think the market for the dollar and gold will read it as I do.

Foreclosure Cover-Up or The Great MERS Whitewash Bill

Do we have any reason to trust our politicians, and especially our president? I don't think so. Congress and the President of the United States are suppose to stand up and do what's right for the American people, for you, for me.... It is disgusting that they would knowingly let something so corrupt and damaging to us just slide by like it's not a big deal. I am starting to feel ashamed of where I live and what our government stands for...

Entire countries are now bowing to the global financial community.

First Greece, now Ireland.... so what's next.  Well they are called the PIIGS countries.  They stand for Portugal, Ireland, Italy, Greece, and Spain.  Which are basically all bankrupt European countries.  These countries are having a domino effect, and cause a great threat to the European Union and to the strength of their currency, the Euro.  So we watch them all get bailed out one by one.  Instead of letting these large banks collapse because they are insovent.  We just print whatever money needs to be printed to bail them out, until they need to be bailed out again.  Formerly known as TARP, has now become a worldwide phenomenon.  These large banks are bankrupting entire nations, and causing the countries to go to the Global International Monetary Fund(IMF), the Fed, and the central banks for a bailout.  Instead of JUST LETTING THE BANKS FAIL.  When these countries accept a bailout (and believe me we are next on the chopping block) they are now hands tied to these global funds, and basically become forever indebted to them.  Whoever thought this was a good idea?  Regardless of what anyone thinks, this cannot end well, and you need to prepare yourself for when the shit hits the fan here.  And believe me it's coming.  Quantitative Easing 2 (QE2) is our ability to print money out of thin air, just to buy our own debt because we are so bankrupt as a nation no one else wants them.  Again this cannot end well.  This is coming to a head in the near future, and these are all concepts that no country or financial institution has ever tried before.  No one really knows just how bad this can get.  But I have an idea and it's not pretty.  The only thing they cannot destroy are sound money like Gold and Silver.  So you tell me what you should be putting your money into.  Take care my friends.

Wall Street Thieves, Bailouts Galore, Broken America

Crash JP Morgan, Buy Silver

Article: Silver, still the investment of a lifetime

 Read this:
http://www.zerohedge.com/article/guest-post-silver-still-investment-lifetime

If you guys don't know by now I am a huge Silver Bull, and rightly so.  When I first got in I bought my first silver ounce at $18.50 on the ask and is now over $26 an ounce.  I have been accumulating the metal ever since and have gotten into the stock market with it as well.  The point being, based on the article is that metal is still way undervalued and my belief is that even at $50 an ounce it will still be cheap.  Again if you know me personally, you know that I am a huge bear on the U.S. economy and all fiat currencies, especially ours.  We have now begun to buy our own debt (since no one wants to buy our garbage treasury bonds) by debt monetization through the federal reserve.  And as our currency continues to devalue, Gold and Silver will keep going up in price.  Lets face it, the guys in congress and especially our current President have not a clue what is going on currently in our financial system.  For surely if they could see what current policy will have done to our nation by the end of next year(my bet) they will take some much needed action right at this very moment.  But every day that goes by that the Fed continues to print money, and there are no headlines on impending doom in our country, the more you should be worried.  Because the longer we wait, the worse off we are going to be.  Gold and Silver have always been money throughout history, and fiat currencies have always ended up being worth the paper they were printed on.  Nada.  And since silver tested the $30 per ounce mark this week, I believe it is only an indication of what is to come.  So go get you some and spread the word!

Note: At this moment Silver is on a pullback to $26 and is especially cheap at this time, I believe we will never see $26 silver ever again.

The Fed has gone all in.... What this means to you and I

http://www.kitco.com/ind/Summers/nov052010.html

Here is what we have to look forward to in the near future, hope you are preparing as I have been.

Book Review: Boomergeddon

http://dollarcollapse.com/uncategorized/book-review-boomergeddon/


Have a great day, and happy investing in your tomorrow!

Chris

Currency wars, whose country will race to the bottom first?

Check out www.inflation.us for more info


http://www.youtube.com/watch?v=NCyCrl8mMbo&feature=player_embedded

Americans Enjoying Final Days of Artificial Economy

The title says it all my friends...

http://www.inflation.us/artificialeconomy.html

This should piss you off!

 If the Federal Reserve's Chief Investigator doesn't know where 9 TRILLION dollars went in 8 months, then do you think the government does?  These guys are out of control, and should be shut down.


http://dailybail.com/home/there-are-no-words-to-describe-the-following-part-ii.html

Breaking News: JP Morgan's price manipulation on silver might be coming to an end.

 Bear Stearn's held a short position on silver large enough to actually manipulate the price of silver down.  JP Morgan acquired Bear Stearn's assets when the company went under in March of 2008.  March 2008 was also when Silver hit it's peak of $21 an ounce.  If the manipulation is over then it will allow Silver prices to skyrocket back to historical levels in the Gold/Silver ratio.  We may never see $20 Silver prices ever again if that happens.


http://www.inflation.us/jpmorgansilver.html

A short article on hyperinflation and why it's coming to America soon...

 This is a pretty quick read that has some great info and a little history.  Now is the best time to get into Gold and Silver while they are still cheap!


http://www.kitco.com/ind/Lewis/sep032010.html

Fifty Years of Supressing Silver

 Great new article and a little bit of history on the price of Silver and where it's heading.  Keeping a close eye on SLV as it balances on the resistance of $19.40, I have a feeling tomorrow it's gonna make a big move.  Good thing with stock options you can make money whether it goes up or down ;)  Can't wait for the market to open in the morning.  Enjoy the article!  I hope everyone had a great Labor Day weekend.


http://seekingalpha.com/article/223986-fifty-years-of-suppressing-silver

Silver- Possibly the best investment of your life.

Recently I posted an article about Gold as a hedge against inflation.  In other words since Gold and Silver are both real money(and have historically always been so), then owning one of the two, or both, will maintain their value even as the dollar falls.  So it's actually a good idea to own them no matter what.  But as of the past century there has been a major difference between the two.  Silver is WAY way way undervalued compared to Gold, historically speaking of course.  Silver has always had a 1:10, 1:15 ratio to Gold in terms of value. And I'm not talking about the course of a couple of centuries here.  I'm talking about since the dawn of time.  So even being out of whack for a century may seem like a lot of time.  It's not.  And ya know what coincidentally has been around for that same time frame?  The Federal Reserve.  And it's ability to manipulate the price of pretty much everything.  Right now at $19 an ounce for Silver, and $1250 an ounce for Gold the ratio is more like a ratio of 1:64.  So that means that we are way over due for a correction, so that means the true value of Silver is much closer to $120 an ounce.  At $19 an ounce Silver is DIRT CHEAP!  During hyperinflation there have been talks of $35,000 an ounce for Gold.  That means if you bought one troy ounce of .999 fine silver at $19, within the next 5 years it could possibly be worth $3500!  If that's not a great return on your investment I don't know what is.  Historically Gold has always been a top performer for storing wealth, but I believe that Silver will be the best one at generating wealth for years to come.  The price is only going higher.

I regularly follow and read Jason Hommel's stock report on Silver.  He is a brilliant guy and has been a Silver advocate for over a decade now.  And the article's in his report will show you all there is to know in the supply and demand of Silver, and why it is such a great investment.  I hope you all enjoyed this article, and thanks for reading.

Chris

http://silverstockreport.com/

Meltup

Empty Store Shelves Coming to America

A great article on investing in gold.

A great article on investing in gold.  A hedge against inflation.  Remember in the end, real money always wins.  And they are Gold and Silver.  Read the article here

Uncle Scam: It's not too late to invest in Gold

An Excellent Quote

"I learned that good judgment comes from experience and that experience grows out of mistakes." Omar Bradely

First things first....

Well I might as well go ahead and start with the big issue first.  And that my friends is hyperinflation.  So what is hyperinflation you say? Well wikipedia describes it as this, "In economics, hyperinflation is inflation that is very high or "out of control", a condition in which prices increase rapidly as a currency loses its value."  In layman's terms it means that when the government prints more and more money out of thin air, our dollar becomes worth less and less.  Therefore your purchasing power is decreased, and the more expensive things seem.  A lot of people consider this to be a hidden tax by our government.  Well our total money supply has been doubled in just the past couple of years, and we are running record deficit's year after year.  Anyone with any financial sense can see that this is unsustainable.  Ben Bernanke and the Federal Reserve will continue to try to print our way out of this depression, and the President's serious lack of fundamental economics will prove to be a very destructive combination.  We are headed for hyperinflation a lot sooner than most people think, and I feel very sorry for the people who don't get educated about this stuff quickly as we are running out of time.  When it happens it will be instantaneous, and it will only get worse. Fast.  I am definitely not a doom and gloom kind of guy, but I am a realist and I am all about preparation.  I feel almost obligated to share the knowledge I have acquired over the past couple of years.  I guess if I just help a few more people become educated about these very important subjects then I have done my job.  Because I'm telling you right now we should be most aware, and in reality as a society we are clueless.

Well I hope you have enjoyed my first post, and I will do my best to keep them as simple and to the point as possible.  I will only get better over time... I hope :)  I strongly encourage everyone to do their own due diligence, and research on these subjects I will be posting about.  My next post will be a little more on inflation and what you can do to hedge yourself against this upcoming crisis.  Have a great weekend!

Chris
P.S.  Oh here are a couple links to get you started.

www.inflation.us - Everything you need to know and or learn about inflation is here.

www.usdebtclock.org - You can watch how fast we are sliding into debt as a nation live!