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Gold ATM machine activated in China, 2,000 more to be installed

China is one of the world’s largest producers and purchasers of precious metals, especially gold and silver. Beijing has now unveiled its first gold ATM machine in a shopping district. More than 2,000 will be installed in the next two years. Since the beginning of the global economic meltdown, China has been purchasing and producing commodities at a rapid pace. Digital Journal has reported in the past that its central bank has bought gold bullion and state-television outlets have even urged citizens to acquire silver bullion. Digital Journal has also reported of gold ATM machines being installed in Germany and the United States. Now, China has unveiled its first gold ATM machine in Beijing’s shopping district of Wangfujing Street.


Read more: http://www.digitaljournal.com/article/312073#ixzz1aLf3IjlM

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Posted at 12:07am
Tagged international reserve currency gold China ATM gold standard economy currency devalutaion

 


Warning signs of a coming currency crisis

Greg Hunter of USAWatchDog, a former mainstream media correspondent for CNN, ABC, etc., gathers some disturbing trends regarding a potential currency crisis:

Gold hit an all-time high this week—again.  The yellow metal briefly topped $1,500 an ounce before falling back down a few dollars.  The world has become increasingly nervous about the size of the growing U.S. debt.  Just this week, America’s debt topped $14.3 trillion (also an all-time high) which is close to the limit Congress can legally borrow. A recent CNSNews.com report shows why the $38 billion, that was just cut, is a drop in the budgetary bucket. 

The report said,“Friday’s $34.54-billion jump in the national debt almost equaled the $38.5 billion the Republican House leadership said would be cut from spending for the remainder of this fiscal year by the continuing resolution that the Congress passed on Thursday and President Obama signed Friday.  The federal government is now perilously close to hitting its legal limit on debt.”  

Odds are the debt ceiling will be raised by more than $1 trillion.  Meanwhile, the Fed is printing more than $75 billion a month to finance 70% of the U.S. budget.  The math of this screams currency crisis 2011!

The warning signs over the past few weeks are monumental. The world’s largest bond fund, PIMCO, recently sold ALL of its U.S. Treasury bills.

Read the full story.  Very informative. 

 
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Posted at 12:41am
Tagged currency crisis debt ceiling QE2 QE3 precious metals gold silver

 


Gold Replacing Dollar as World’s Reserve Currency?

$105 per barrel oil. Cotton prices at record levels. Food prices at 2008 highs. Typically, such commodity price increases would send central banks running to the U.S. Dollar to secure the value of their savings. After all, the dollar has been the reserve currency since World War I.

But not this time. 

Central banks are shedding dollars, reducing their holdings by about $9 billion in previous quarter, according to Nomura Securities’ Jens Nordvig, global head of G10 FX Strategy.

What are they buying instead? Gold 

The yellow metal hit a fresh record high this morning, while the dollar index dropped to a 15-month low. The news had Fast Money’s Brian Kelly looking to add more gold and silver longs to his portfolio Thursday morning.

“What is working is gold, silver  and oil ” said Kanundrum Capital’s Kelly. “I wish I had more.”

Gold and silver have become the inflation hedges of choice for some investors. Gold hit an intra day high today of $1,448 per ounce. Silver is trading at 31-year highs, hitting an intra day high of $38 per ounce.

Source

 

Posted at 11:50pm
Tagged gold reserve currency decline of the US dollar dollar inflation silver precious metals

 


Utah House passes bill to recognize market value of gold & silver tender

I’m not a gold & silver hoarder, but a LOT of survivalist types are. I don’t think precious metals (PM) are the answer, but they should be a part of your portfolio if you’re into the market.

Here’s the deal, simply put, the silver and gold in your coins are worth more than the face value of the coin. But, the PM’s are only valued relative to the amount of dollars they can be traded for. If the dollar isn’t worth much, that means you still get less for your PM.

Some survivalists keep large supplies of gold and silver because they believe that when the dollar collapses, or if the Shit Ever Really Does Hit The Fan, PM’s will be the only thing you can use as money (besides food, water, and bullets).

You’ll have to figure out where you stand on all this on your own, but Utah is obviously working from this same mindset with their new bill. They even mention “preparedness”. :D

It may not fold as conveniently as dollar bills, but the Utah House took a first step Friday to recognize gold and silver as legal tender.

It voted 47-26 to pass HB317 by Rep. Brad Galvez, R-West Haven, and sent it to the Senate. The measure would recognize as legal tender gold and silver coins issued by the federal government — not just their face value, but also their value in gold and silver or to a collector.

It also would order the state to study whether Utah should establish an alternative form of legal tender, such as one backed by silver and gold.

“This is a step in preparedness, a step in security,” Galvez said, “that allows us to be able to help hold up our economy as the dollar continues to shrink.”

 

Posted at 10:41pm
Tagged gold silver precious metals Utah legal tender money currency currency reserve standard

 


Pan American Silver Shifts Assets to Canadian Dollars - Bloomberg

Pan American Silver Corp., the world’s fourth-largest silver producer, said it’s shifting its currency holdings into Canadian dollars, betting the U.S. dollar may fall further.

The world’s reserve currencies are struggling to maintain their value amid “ridiculous” debt levels, Chief Executive Officer Geoffrey Burns said today on a conference call with analysts. Gold and silver look “extremely appealing” as alternative long-term investments, he said.

“We diversified some of our currency holdings into Canadian dollars away from U.S. dollars to provide more stability in the event we do see continued weakness in the U.S. dollar,” Burns said. “It’s not just the U.S. dollar — the euro, the Japanese yen are going to have extreme difficulty hanging onto their long-term values as a commodity of trade.”

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Posted at 11:34pm
Tagged reserve currency US Dollar gold silver Canada economy currency revaluation

 


South Carolina lawmaker wants separate currency for state - Yahoo! News

A South Carolina state politician wants the state to develop its own gold and silver-based currency in case theFederal Reserve collapses and hyper-inflation ensues.

“If folks lose faith in the dollar, we need to have some kind of backup,” State Sen. Lee Bright told the Spartanburg Herald Journal’s Stephen Largen. His bill asks a committee to look into the development of a state currency, citing the Constitution and Supreme Court precedents to prove the bill’s legality.

Slate’s Annie Lowrey tracks down similar bills in Georgia and Virginia, and points out that the legislation reflects a larger trend of state politicians wading into monetary policy. A bill in Georgia would require all debts to the state be paid in pre-1965 gold and silver coins. The Virginia proposal would let the state print its own money. Meanwhile, one politician in Utah wants to cut out the middleman entirely and allow the state’s residents to run their very own mints.

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Posted at 12:54pm
Tagged currency revaluation gold silver legislation South Carolina economy