There are More than Just One Reason to Own Gold

If you have ever wondered if you should Own Gold and have read the news about the debt ceiling and whether or not Congress and Obama are going to come to an agreement in time to avoid a default, it has made you think about gold even more. Speculation from so called experts is all over the board as to what will happen if the government doesn’t raise the debt ceiling by August 2nd and perhaps this is what is … Read More »

The Pan Asian Gold Exchange Opens

As the march toward China’s prominence in the Gold as well as global market continues, a new FX exchange (Forex) has been opened in China. Those contracts will be traded in Chinese renminbi (RMB). This is a very big deal. Some think it will create greater transparency in the markets because the gold will be priced in terms of an alternative currency, bypassing the US Dollar, which still holds the title of “Worlds Reserve Currency.” Because the dollar is the … Read More »

How can Governments Deal with the Debt?

In a Fractional Reserve monetary system, in order to create money, Debt must be created first. Thus Treasury Bonds are issued. By Lynette Zang Those bonds are redeemed for fiat currency, in this country, the US dollar. Fiat currencies are supported by “The full faith and credit of the Government.” In other words, fiat currencies are created from debt and supported by the ability to create more debt.  Over time, all fiat currencies lose purchasing power through inflation. On the … Read More »

What Central Banks and Governments Own the Most Gold

As the global economic crisis has been heating up over the past few years and money has been printed to compensate at alarming levels many have turned to Gold hedge against inflation and possible collapse of fiat currencies. The US alone has tripled the monetary base since the 2008 banking collapse and created trillions of dollars out of thin air. The most interesting point is that central banks, the very institutions that have been printing the money, are buying gold … Read More »

Gold Breaks $1,600 per ounce

In trading today Gold broke $1,600 per ounce for the first time in history to $1,604.70, coming off a low of $1,478.30 on July 1st. Gold prices have rallied more than $120, which is an 8.5% gain in just a few weeks. What is fueling this rally? Gold is being acquired as a safe haven as the European debt crisis heats up and concern in the US over the debt ceiling still lingers. The bull market is still strong for … Read More »

Technically Gold is Looking Really Good

Gold has risen for the tenth straight session to over $1,592 per ounce rallying over 7% in the last ten days. This rally matches a record set almost 40 years ago.  Technical analysts are pointing to this strength as a reason they believe gold will go to over $1,700 per ounce by the end of the year. This is all happening during the summer which is typically a slow time for gold, a time when prices pull back and rally … Read More »

Ben Bernanke Says that Gold is not Money

Republican Congressman Dr. Ron Paul had the opportunity this morning of questioning Chairman of the Federal Reserve Ben Bernanke on Gold and the printing and spending of money by the Fed as well as what Bernanke’s feelings are about gold as money. I found this video entertaining as well as irritating because Ben Bernanke denies that the Fed’s money printing is costing anything even though it is counted as debt and we have to pay taxes to pay for the … Read More »

Government Spending Out of Control Creates Need for Competing Currency

Quantitative Easing round two is over as of the end of June, ending a six month long campaign to buy hundreds of billions of Currency in US Treasuries. Meanwhile confidence in the dollar has been on the decline as money printing to bridge the gap in the deficit pushes the national debt to its limit. People are beginning to wake up to the fact that government fiat currencies do not hold their value over time. A currency can only exist … Read More »

Bartering with Gold and Silver

Imagine: you walk into the grocery store to buy a loaf with Gold And Silver of bread and the cashier says “that will be 1/10th ounce of silver” or “that will be one pre-1965 dime.” As the dollar continues to lose value several states are trying to make this a reality. Throughout history gold and silver were used as money. From 1795 to 1933 gold was used in conjunction with paper dollars. Silver was used in quarters, dimes etc. up … Read More »

The “Perverse Feedback Loop” of Sovereign Debt

Sovereign Debt default would likely set off a chain reaction that would ultimately lead to a financial crisis. By: Lynette Zang The IMF calls it a “Perverse Feedback Loop” between sovereign risk and financial risk. To postpone the inevitable, governments and central bankers are relying on “Bailouts.” A “bailout” in these cases, is giving tax payer funds to an entity when they can’t service the debt they already have, so they don’t default. There are “austerity measures” required for this. … Read More »